It’s April—CD renewal season—and that means opportunity.
Every spring, millions of dollars roll out of low-yielding certificates of deposit as clients search for better rates, more flexibility, and safer growth options. For financial advisors, this is prime time to introduce a powerful alternative: the Multi-Year Guaranteed Annuity (MYGA).
If you're not talking to clients about replacing maturing CDs with MYGAs, someone else will.
Here’s what your clients are thinking right now:
“My CD just renewed at 3% for 12 months—that doesn’t feel like enough.”
“I want a safe return, but I don’t want to tie up my money for 5 years.”
“The bank doesn’t seem to offer many good options right now.”
And they’re right.
While CD rates have ticked up from recent lows, they’re still underwhelming when compared to what MYGAs are offering—especially for 3- to 5-year terms.
A Multi-Year Guaranteed Annuity is the annuity world’s answer to a CD—but often with better rates, tax advantages, and more flexibility.
Here’s the MYGA advantage: ✅ Fixed interest rate locked in for 2–10 years
✅ Tax-deferred growth (CDs are taxed annually)
✅ No stock market exposure
✅ Optional liquidity features
✅ Backed by insurance carriers—not the FDIC
In today’s environment, some MYGAs are offering interest rates north of 5%, depending on the carrier and term selected. That’s a game-changer for clients who want to grow their money without taking risk.
| Feature | CD | MYGA |
|---|---|---|
| Interest Rate | Typically 3–4% | 4.5–5.5%+ |
| Taxation | Annual | Tax-deferred |
| Safety | Bank-backed (FDIC) | Insurance-backed (state guarantee associations) |
| Flexibility | Often rigid | Liquidity options available |
| Suitability | Savers | Savers + retirement-focused clients |
Use these openers to engage clients this month:
“Do you have any CDs maturing soon? Let’s see if there’s a way to get a better return with the same level of safety.”
“Would you be open to an option that locks in a higher rate than your CD—and doesn’t require you to pay taxes on the interest every year?”
“There are some annuity options offering over 5% right now with principal protection. Want me to show you how that compares to your current CD?”
These aren’t sales pitches—they’re service-driven, timely check-ins. And they often lead directly to new business.
Make your list. The best prospects this month are:
Clients 60+ who value safety and guaranteed returns
Anyone who’s rolled over a CD within the past 12 months
Conservative investors holding excess cash in savings or money markets
Retirees looking for a laddered income strategy
CD replacement season only comes once a year. And with interest rates still elevated, this could be the best time in years to help clients lock in strong, guaranteed returns—while helping you drive new premium and uncover other planning opportunities in the process.
Need rates? Case designs? A sales idea for a specific client?
We can help you run comparisons, review surrender options, or even generate side-by-side CD vs. MYGA breakdowns you can send to clients.
Let’s turn April into a month of action—and annuity production.