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.
Annuity Rates by State
State guaranty association limits, premium taxes, and carrier licensing all change which 7-year MYGAs you can buy. Browse current 7-year fixed annuity rates available in your state:
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
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.