Highest Rated
5.80%
Current Rate (APY)
Get a Quote →Compare Today’s Best 7 Year Annuity Rates
Consider These Key Features
- Availability in your home state (the issuing insurer must be licensed in the owner’s home state to sell the annuity to you).
- Guaranteed interest rate (typically compounded; the rate can vary by your home state and by your purchase amount).
- Issuer (carrier) rating (the AM Best rating reflects the insurer’s financial strength; lower-rated insurers often offer higher rates).
- Product term (1 to 10 (sometimes up to 20) years earning the guaranteed rate; the term also matches the surrender-charge period).
- Penalty-free withdrawals (interest only, a set percentage of account value, or none; for the same product, adding free withdrawals usually lowers the rate).
Is a 7-Year Fixed Annuity Right for You?
A 7-year fixed annuity, also called a 7-year MYGA (Multi-Year Guaranteed Annuity), locks in a guaranteed interest rate for seven years. It typically offers higher rates than 3-year or 5-year contracts because you’re committing your capital for longer, giving the insurance company more investment certainty.
The sweet spot for a 7-year contract is someone who doesn’t need access to the full principal for at least seven years but wants more yield than a shorter-term contract provides. Think: a 60-year-old planning to retire at 67, or a 65-year-old allocating a portion of their IRA to guaranteed growth.
How Do 7-Year MYGA Rates Compare to Shorter Terms?
Longer terms generally pay more, but not always. Here is today’s top rate for each term, pulled live from the same feed as the table above:
| Term | Top Rate Today | Best For |
|---|---|---|
| 3-Year MYGA | 5.80% | Short-term parking, near-term income needs |
| 5-Year MYGA | 6.45% | Balanced term, most popular choice |
| 7-Year MYGA | 6.80% | Higher yield, medium-term commitments |
| 10-Year MYGA | 6.05% | Maximum deferral period, long-term planning |
Note that 10-year rates aren’t always higher than 7-year rates, insurers price longer contracts more conservatively. The 7-year term often hits the “sweet spot” in the rate curve.
7-Year MYGA vs. 7-Year CD: Which Pays More?
Bank 7-year CDs typically pay 1.00%–1.50% less than comparable MYGA rates. On a $200,000 investment over seven years, that difference compounds significantly:
| Product | Rate Example | Value at 7 Years ($200K) | Gain |
|---|---|---|---|
| 7-Year Bank CD | 4.50% | $272,172 | $72,172 |
| 7-Year MYGA | 5.50% | $290,936 | $90,936 |
The MYGA advantage: $18,764 more on a $200,000 investment, and that growth is tax-deferred1 until you withdraw, which can compound the advantage further for investors in higher tax brackets.
The tradeoff: CDs are FDIC-insured2; MYGAs are backed by insurer solvency and state guaranty associations (typically up to $250,000 per insurer)3. Sticking with top annuity companies, which is all My Annuity Store shows, keeps that risk minimal.
What Happens at the End of 7 Years?
When your 7-year MYGA matures, you typically have several options during a grace period (usually 30 days):
- Withdraw all funds, take your principal plus all accumulated interest, penalty-free
- Annuitize, convert the contract to a stream of guaranteed income payments
- Roll into a new MYGA, reinvest into a new contract at then-current rates (no tax event if staying in the same tax status)
- 1035 Exchange, transfer to another annuity or life insurance product without triggering taxes
Most carriers send a renewal notice 30–60 days before maturity. If you take no action, the contract typically renews automatically at the carrier’s then-current renewal rate, which may be lower than the original rate.
What Is the Surrender Period on a 7-Year MYGA?
The surrender period is the 7-year contract term itself. Withdrawals beyond the free-withdrawal allowance (typically 10% of account value per year) trigger a surrender charge during this period. A typical surrender charge schedule looks like this:
| Year | Surrender Charge |
|---|---|
| Year 1 | 8% – 9% |
| Year 2 | 7% – 8% |
| Year 3 | 6% – 7% |
| Year 4 | 5% – 6% |
| Year 5 | 4% – 5% |
| Year 6 | 2% – 3% |
| Year 7 | 1% – 2% |
| After Year 7 | 0% (fully liquid) |
Some carriers also include a Market Value Adjustment (MVA) clause4, if interest rates have risen since you purchased, the MVA can reduce your surrender value. Not all 7-year MYGAs have MVAs. The rate table above flags which products include an MVA.
How We Source Our Rates
All rates displayed on this page come directly from our licensed data provider, AnnuityRateWatch5, which aggregates filings from insurance carriers across the country. Rates are verified and refreshed every six hours.
Our editorial floor is B+ or higher by AM Best6, and lower-rated products are always shown with their rating disclosed. We do not accept payment to inflate or promote specific products. Our agents are licensed in 47 states and are paid a commission by the insurance carrier, not by you, when a policy is placed.
Related Resources
- What Is a MYGA? Complete Guide
- All Current Annuity Rates, Updated Daily
- Compare MYGAs to CDs: Rates & Tax Treatment
- Best Fixed Annuity Companies
- Understanding Annuity Surrender Charges
Browse Carrier Reviews for MYGA Providers
Want to learn more about a carrier before you buy? Our independent reviews cover financial ratings, product details, and who each company is best suited for.
- Athene Annuity Review
- MassMutual Ascend Review
- Global Atlantic Review
- Corebridge Financial Review
- Protective Life Review
- Gainbridge Review
- Symetra Life Review
- Oceanview Life Review
- Aspida Life Review
- Ibexis Life Review
- Delaware Life Review
- CMFG Life (TruStage) Review
- F&G Annuities Review
- EquiTrust Life Review
- Nassau Life Review
- New York Life Review
Sources
This page draws on primary industry and regulatory sources. Figures are current as of the last update.
