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Best 7 Year Fixed Annuity Rates 2025

Lock in today’s top 7 year fixed annuity rates, defer taxes, and buy your annuity at home — all through one independent platform.

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Top 7 Year Fixed Annuity Rates Preview

  • Knighthead Life* A- 6.45%
  • Mountain Life* B+ 6.15%
  • DirectGrowth* B++ 6.00%
Example: $100,000 at 6.45% simple interest earns $6,450 annually (before taxes). Actual crediting method & compounding may vary by contract.

*Illustrative snapshot. Click below for live updates & full comparison including carrier strength, liquidity, and renewal options.

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Rates subject to change without notice. Availability & features vary by state and insurer. Guarantees are backed by the claims‑paying ability of the issuing insurance company. Not a bank product. Not FDIC insured. State guaranty association limits apply (vary by state).

Best Annuity Rates for 7 Years

The best 7-year fixed annuity rate is 6.60% simple interest offered by Knighthead Life Insurance Company.

TermInsurerCompany DetailsAnnuityRateAM BestApply
7 Years Knighthead Life Logo thumb on white background. Knighthead LifeStaysail Annuity6.65% SimpleA-Apply
7 Years Revol One Annuity Logo Thumb Revol OneDirectGrowth6.00%B++Apply
7 Years Mountain Life Annuity Logo Mountain LifeAlpine Horizon5.75%B+Apply
7 Years Ibexis Annuity Logo Ibexis MYGA Plus5.80% SimpleA-Apply
7 Years AMERICO Annuity Logo AMERICOPlatinum Assure5.50%AApply

*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.

Loss

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.

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

7-Year Fixed Annuity FAQs

7-year MYGA rates often price higher than 3–5 year terms and slightly below 10-year options, depending on carrier and state. We’ll compare today’s best 7-year rates across A/A‑rated insurers and help you balance yield, liquidity, and financial strength. Call 855-583-1104 or email info@myannuitystore.com.
Great for savers who want higher guaranteed yields without committing to a full decade—pre‑retirees 5–10 years from income needs, rollover money seeking stability, and ladder users wanting a mid‑to‑long rung for rate diversification and predictable maturity.
Most 7‑year MYGAs allow up to 10% penalty‑free withdrawals annually. Over‑limit withdrawals during the term may incur surrender charges and a market value adjustment (MVA). Some carriers include nursing home or terminal illness waivers. We’ll compare contract specifics for your state.
7 years can be a sweet spot: often higher rates than 5‑year terms with less commitment than 10 years. Choose 7 years if you want better yield and can forgo full liquidity until maturity. If your timeline is shorter, 5 years or a ladder may fit. If maximizing yield matters most and you can commit, 10 years may pay more.
At maturity, you typically have a penalty‑free window to withdraw funds, renew, 1035 exchange to a new annuity, or annuitize for income. If you take no action, many carriers auto‑renew—review your maturity notice and call us to compare your best options before the window closes.
Yes—7 years is a strong middle rung in a 3‑5‑7‑10 ladder. It helps capture better long‑term rates while spacing maturities. As each rung matures, you can reinvest at prevailing rates or use funds for income or planned expenses, reducing reinvestment‑timing risk.
Interest grows tax‑deferred until withdrawal. For non‑qualified annuities, withdrawals are generally taxed LIFO (interest first) as ordinary income. In IRAs and qualified plans, standard IRA/plan distribution rules apply. Please consult your tax professional for personalized guidance.
Minimum premiums for 7‑year MYGAs usually start around $10,000–$25,000, with product and rate availability varying by state and funding source (non‑qualified, IRA, 401(k) rollover). We’ll confirm today’s best options for your state and carrier preferences.

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