A 7-year fixed annuity typically offers the highest guaranteed rates in the MYGA market. Longer terms allow insurance companies to invest in longer-duration, higher-yielding bonds — and that advantage gets passed to you as a higher rate guarantee.
Below are today’s best 7-year fixed annuity rates from A-rated carriers, updated daily.
Rates shown are for informational purposes only and subject to change without notice. Only carriers rated A− or better by AM Best are included. Products marked SI use simple interest — effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity professional before purchasing.
Key Takeaways
- 7-year MYGAs typically offer the highest rates in the MYGA market
- Today’s top 7-year rates from A-rated carriers: approximately 4.85%–5.35%
- $100,000 at 5.10% for 7 years grows to $141,714 — guaranteed
- Best for savers who won’t need the money for 7+ years
- Rate premium over 5-year terms: typically 0.10%–0.40% — compare carefully before committing
What Is a 7-Year Fixed Annuity?
A 7-year fixed annuity locks in your interest rate for 84 months. The rate is contractually guaranteed — it cannot be changed by the insurance company during the term, regardless of what happens to market interest rates.
Sandra, age 58, invests $300,000 in a 7-year MYGA at 5.10%. When she turns 65 — just as she plans to retire — her account is worth $425,142. She earns $125,142 in guaranteed interest with zero market risk. That money becomes part of her retirement income strategy.
Who Should Choose a 7-Year Term?
A 7-year MYGA is best for pre-retirees with a defined retirement date (58–60 retiring at 65–67), savers who want the highest possible guaranteed rate with no near-term liquidity need, tax-deferral seekers who benefit from 7 years of deferred growth on a larger interest amount, and those bridging to Social Security maximization at age 70.
The 7-year term is NOT ideal if you anticipate needing funds within that window, have health concerns requiring liquidity, or if the rate premium over the 5-year term is less than 0.25%.
Is the 7-Year Rate Premium Worth the Extra Lock-Up?
| Term | Rate | $200K grows to | Total interest |
|---|---|---|---|
| 5-Year MYGA | 4.90% | $254,230 | $54,230 |
| 7-Year MYGA | 5.10% | $283,428 | $83,428 |
| Difference | +0.20%/yr | +$29,198 | +$29,198 |
In this example, the 7-year term earns $29,198 more — a substantial difference. But it also ties up your money for 2 extra years. If you have clear visibility on not needing those funds, the math strongly favors the longer term.
What Happens If I Need Money Before 7 Years?
Most 7-year MYGAs include two forms of built-in liquidity. The annual free withdrawal lets you take 10% of account value each year without penalty — on a $200,000 contract, that’s $20,000 annually. Hardship waivers let many quality carriers waive surrender charges entirely if you enter a nursing home, are diagnosed with a terminal illness, or become permanently disabled.
A typical 7-year surrender charge schedule: 7% in year 1, declining 1% per year, reaching zero at maturity. Never invest money in a 7-year MYGA that you might genuinely need before the term ends.
7-Year MYGA vs. 10-Year Treasury Bond
| Investment | Rate/Yield | $100K after 7 years | Tax Treatment |
|---|---|---|---|
| 7-Year MYGA (A-rated) | 5.10% | $141,714 | Tax-deferred until withdrawal |
| 7-Year Treasury Note | 4.35% | $134,748 | Taxable each year (federal only) |
| Investment-grade corp bond | 4.80% | $138,870 | Taxable each year (fed + state) |
The MYGA outperforms on both rate and after-tax returns for investors in the 22%–32% tax brackets.
How to Choose the Best 7-Year MYGA
- AM Best rating: A- or better only. Seven years is a long time to be exposed to a financially troubled insurer.
- Free withdrawal amount: Some carriers offer 10%, others 15%. The difference matters over 7 years.
- Nursing home waiver: More important on longer terms given the 7-year horizon.
- Death benefit: Confirm full account value passes to beneficiaries without surrender charge deduction.
- State availability: Not all products are approved in all states.
Frequently Asked Questions
What is the best 7-year annuity rate available today?
The best 7-year MYGA rates from A-rated carriers as of February 2026 range from approximately 4.85%–5.35%. Rates change daily — see the live rate table above for current figures.
How much does $200,000 grow in a 7-year annuity at 5%?
At exactly 5.00%, $200,000 grows to $281,421 after 7 years. At 5.10%, it reaches $283,428. At 5.25%, it grows to $286,449. All figures assume annual compounding and no withdrawals during the term.
Is a 7-year annuity too long to lock up money?
It depends on your financial picture. If the money is designated retirement savings you won’t touch for 7+ years, the lock-up is largely theoretical — you have annual free withdrawals of 10% for genuine emergencies. If there’s any real uncertainty about needing the funds, a 3-year or 5-year term offers more flexibility.
Can I put IRA money into a 7-year MYGA?
Yes. A 7-year MYGA works well inside a traditional IRA or Roth IRA. The principal protection and guaranteed rate make it a valid safe-money holding. Be mindful of required minimum distributions (RMDs) if you’re over 73 — confirm the free withdrawal provision covers your RMD amount.
What is the penalty for early withdrawal from a 7-year annuity?
A typical 7-year surrender charge schedule: 7%, 6%, 5%, 4%, 3%, 2%, 1%, then 0% at maturity. On a $200,000 contract, surrendering in year 2 at a 6% charge costs $12,000. Annual free withdrawals (usually 10%) are always available without surrender charge.
Are 7-year MYGAs safe?
As safe as the insurance company backing them — which is why carrier ratings matter more on longer terms. All carriers in our tables are rated A- or better by AM Best. State insurance guaranty associations provide additional backstop coverage, typically $250,000–$500,000 per insurer.
Pros and Cons of Fixed Annuities
Before you commit to a fixed annuity, weigh the advantages and drawbacks for your retirement situation.
- ✓ Guaranteed rate locked in for the full term — no surprises
- ✓ Principal is 100% protected from market losses
- ✓ Often pays significantly more than CDs or savings accounts
- ✓ Tax-deferred growth — no annual tax bill until withdrawal
- ✓ Up to 10% annual free withdrawal without surrender charge
- ✓ State guaranty association coverage (typically up to $250,000)
- ✓ Simple to understand — no moving parts or index tracking
- ✗ Surrender charges apply if you withdraw more than 10% early
- ✗ Not FDIC insured — backed by the insurance company, not the government
- ✗ Earnings taxed as ordinary income (not capital gains rates)
- ✗ 10% IRS early-withdrawal penalty before age 59½
- ✗ Rate is fixed — you won't benefit if market rates rise
- ✗ Less liquidity than a savings account or money market
Learn more: Are annuities safe?
Compare Top MYGA Rates by Term
See today's highest guaranteed rate from an A-rated carrier for each term length.
Types of Annuities
Insurance companies offer several types of annuities to fit different financial goals. Here's how they compare.
A MYGA (Multi-Year Guaranteed Annuity) is the simplest fixed annuity. Your rate is guaranteed for the entire term — 3, 5, or 7 years. No market exposure, no index tracking. What you see is what you earn.
Best for: Savers who want a predictable, guaranteed return and are comfortable locking funds for a set term. Often compared to CDs but frequently pays more.
Current top 5-year rate: 6.30% APY
Learn more about MYGAs →A Fixed Indexed Annuity (FIA) links your interest credits to a market index (like the S&P 500) with a floor of 0% — so you can never lose principal. Upside is capped via participation rates or caps.
Best for: Investors who want some market participation with a safety net. More complex than MYGAs but potentially higher returns in strong market years.
Learn more about FIAs →A SPIA (Single Premium Immediate Annuity) converts a lump sum into a guaranteed income stream — monthly checks that start within 30 days and continue for life or a set period.
Best for: Retirees who need guaranteed income immediately and want to eliminate the risk of outliving their money. The "pension replacement" product.
Learn more about SPIAs →A Variable Annuity invests your premium in sub-accounts (similar to mutual funds). Returns fluctuate with the market — you can earn more but can also lose principal.
Best for: Long-term investors who want market exposure inside a tax-deferred wrapper and are comfortable with investment risk. Higher fees than fixed products.
Learn more about variable annuities →A RILA (Registered Index-Linked Annuity) offers partial market participation with a defined buffer against losses (e.g., 10% or 20%). Unlike FIAs, RILAs can lose money — but losses are limited.
Best for: Investors willing to accept limited downside in exchange for higher upside potential than a traditional FIA. A middle ground between fixed and variable.
Learn more about RILAs →Rate Methodology
AnnuityJournal monitors MYGA rates from over 50 A-rated insurance carriers via AnnuityRateWatch. Our rate data refreshes every 6 hours.
To make our list, a carrier must be rated A− or better by AM Best — a financial strength rating that indicates the insurer's ability to meet obligations. Carriers with ratings of B++ or lower are excluded regardless of how attractive their rate appears.
Rates are sorted by highest guaranteed APY within each term group. Products using simple interest (SI) are labeled — the effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) purchases.