Best 7-Year Fixed Annuity Rates

Best 7 Year Fixed Annuity Rates

The best 7-year fixed annuity rate is 6.20% simple as of October 11, 2024. Fixed annuities provide a guaranteed rate for a specified time and are often referred to as a “CD Type Annuity” because of their similarities to a Certificate of Deposit. 

TermInsurerCompany DetailsRateAnnuityAM BestApply
7 Years Ibexis annuity logo Ibexis 5.70% SimpleMYGA PlusA-Apply
7 YearsFarmers life logoFarmers Life 5.40%Safeguard PlusB++Apply
7 YearsAspida annuity logoAspida5.15%Synergy ChoiceA-Apply
7 Years Americo annuity logo AMERICO5.10%Platinum AssureAApply
7 Years Nassau logo Nassau5.05%MyAnnuity 7B++Apply

*NOTE: Click on the insurer or annuity product name for more details. You can find fixed index annuity rates here if you are looking for them instead.

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Understanding Annuity Rates

It is important to understand there are different types of annuities and the rate of return varies by type. Fixed annuities provide a fixed rate for a guaranteed period of time; usually the longer you invest the higher your rate will be.

Indexed annuity icon

Fixed Index Annuity Rates

Earn interest based on the performance of a stock market index offering more upside potential along with downside protection.

Fixed annuity rates icon

Fixed Annuity Rates

Fixed annuities interest rates are set by the insurance company and guaranteed for the initial contract term.

Indexed annuity icon

Fixed Index Annuity Rates

Earn interest based on the performance of a stock market index offering more upside potential along with downside protection.

Today’s highest 7 year annuity rates

Variable Annuity Rates

Earn investment returns based on the performance of “subaccounts." You can lose money in a variable annuity.

Annuities vs CDs

Fixed annuities work very much like a certificate of deposit (CD) but are typically higher than CD rates. Below are some of the similarities between the two:

  • Both pay a guaranteed rate for a set number of years
  • Both provide principal protection
  • Both typically allow free withdrawals of interest
  • Both provide full account value lump-sum death benefit
  • Fixed Annuities grow tax-deferred
  • Fixed Annuities can provide guaranteed lifetime income
  • CDs are FDIC Insured
  • Fixed Annuities are guaranteed by the claims-paying ability of the issuing life insurance company and State Guaranty Associations

CD/ Annuity Comparison Chart

FEATURESFIXED ANNUITYCD
Issued ByInsurance CompaniesBanks
Investment Amount$2,000 - $1,000,000Essentially Any Amount
Investment Term2 years - 10 years3 months - 5 years
Interest Rates (APY)Varies by product.Varies by bank, term and investment amount.
LiquidityUsually, 10% annually or interest earned.Almost always accumulated interest.
GuaranteesBacked by Insurer & State Guaranty Associations.Backed by the FDIC.
Death BenefitMay avoid probate.Probate process required.
RankAnnuity CompanyFixed Sales
1New York Life$14,857,784
2Mass Mutual$11,900,949
3Athene Annuity and Life $9,714,648
4Corebridge Financial$7,146,379
5Western Southern Group$6,230,513
6Global Atlantic Financial Group$5,159,947
7Pacific Life$4,512,947
8USAA Life$4,155,154
9Fidelity & Guaranty Life (F&G) Review$3,740,550
10Brighthouse Financial$3,704,850
11Symetra Financial$2,954,492
12Sammons Financial Companies$2,745,169
13Reliance Standard$1,457,344
14Nationwide$1,301,800
15Delaware Life$1,148,882
16American National Insurance Company$937,996
17Security Benefit Life$926,412
18The Standard$750,428
19Thrivent Financial$744,781
20Mutual of Omaha$688,054

The Federal Reserve and Interest Rates

Federal reserve building

Current annuity rates often mirror the interest rates available in bonds. When bond rates increase, annuity rates usually go up as well.

Annuity rates are influenced by 10 Year Treasury rates because insurance companies invest a lot of their money in high-quality bonds.

The Federal Reserve signaled it would begin steadily raising interest rates in mid-March, its latest step toward removing stimulus to bring down inflation.

Last week’s data showed that US consumer prices are rising at the fastest pace since the early 1980s. This has led to speculation that the Federal Reserve will raise interest rates by 0.5% at its next meeting.

Fed Chairman Jerome Powell said Wednesday that the central bank was ready to raise rates at its March 15-16 meeting and could continue to lift them faster than it did during the past decade.

If that holds true annuity rates will likely continue to go up throughout 2022.

Today's Best Fixed Annuities

Best Fixed Annuity Companies

The table below the details 10 best U.S. fixed annuity companies by sales. When buying a deferred annuity, factor in the life insurance company’s financial ratings.

Fixed income written on paper laying flat on a desk.

What is a 7 Year Fixed Annuity?

Fixed annuities offer a guaranteed rate of return for a set period of time. For example, when you buy a 7-year annuity your interest rate is guaranteed for the length of the contract but a new rate is declared at the end of the annuity.

The fixed annuity contract will explain whether, how, and when this can happen. Although the word “fixed” might suggest otherwise, the interest rate on a fixed annuity can change over time.

Are Annuities Taxed?

The interest you earn in an annuity grows tax-deferred which means you don’t have to pay taxes on your earnings until you take it out of the annuity. Generally speaking, annuities are taxed using the LIFO (last in first out) method at your ordinary income tax rate.

Most states’ tax laws on annuities follow federal law. You should consult a professional tax advisor to discuss your individual tax situation.

Roth IRA Annuity Taxation
A Roth IRA annuity is treated like an ordinary Roth IRA and you will not pay taxes.

Qualified Annuity Taxation
Any annuity purchased with qualified funds, like a 401(k) or IRA, is considered a qualified annuity. Qualified funds are monies that you have never paid taxes on such as a traditional IRA or a traditional 401(k).

When you begin to make withdraws from a qualified annuity you will pay normal federal income taxes.

Non-Qualified Annuity Taxation
A non-qualified annuity is an annuity that is not purchased with tax-advantaged funds, such as from a 401(k) or IRA. You will only pay tax on your earnings with you withdraw your money.

Fixed Annuity Pros and Cons

Pros

  • Guaranteed Annuity Rates
  • Grow Tax-Deferred
  • Principal Protection
  • You can exchange your fixed annuity for a new one via a 1035 Exchange 
  • The most simple type of annuity
  • Usually provide some liquidity
  • Low investment minimums
  • Full account value passes directly to your loved ones at death

Cons

Frequently Asked Questions

Annuities are not insured by the FDIC. Instead, they are backed by the claims-paying ability of the issuing life insurance company and by State Guaranty Associations.

Fixed annuities do not have annual fees in general. However, there are some fixed annuity products that offer optional income riders, death benefit riders, or long-term care riders for an additional annual fee.

Yes, you can buy a 5 year annuity. A 5 year fixed annuity is an annuity contract with a five-year surrender charge schedule (CDSC). When you purchase a 5-year fixed annuity the interest rate is guaranteed for the initial 5-year contract period and you agree to keep the annuity for the 5-year contract term.

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    Upcoming Rate Changes

    Minor Increases

    07/15/2024
    Lincoln National Life Insurance Company (approx 5 bps across the board.

    Minor Decreases

    07/15/2024
    Integrity Life Insurance Company

    07/15/2024
    OneAmerica Financial Partners, Inc.

    07/15/2024
    MassMutual Ascend Life Insurance Company

    07/15/2024
    Fidelity & Guaranty Life Insurance Company

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