Best 7-Year Fixed Annuity Rates for 2026

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- 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. Here’s a typical rate spread across terms (rates shift weekly — check the live table above for current figures):

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:

The MYGA advantage: $13,870 more on a $200,000 investment — and that growth is tax-deferred until you withdraw, which can compound the advantage further for investors in higher tax brackets.

The tradeoff: CDs are FDIC-insured; MYGAs are backed by insurer solvency and state guaranty associations (typically up to $250,000 per insurer). Sticking with A-rated carriers — 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:

Some carriers also include a Market Value Adjustment (MVA) clause — 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, AnnuityRateWatch, which aggregates filings from insurance carriers across the country. Rates are verified and updated weekly.

My Annuity Store only displays rates from A-rated carriers (A–, A, A+, A++ from AM Best). We do not accept payment to inflate or promote specific products. Our advisors are licensed in 47 states and are paid a commission by the insurance carrier — not by you — when a policy is placed.

7-Year Fixed Annuity FAQs

What is the best 7-year MYGA rate today?

Top 7-year MYGA rates currently range from 5.20% to 6.30% depending on the carrier, your state, and your investment amount. Rates shift weekly — the live table above always shows the most current figures from verified carrier filings.

Is a 7-year annuity a good investment right now?

In the current rate environment, 7-year MYGAs offer attractive guaranteed yields compared to the near-zero rates of 2020–2021. If you’re comfortable committing funds for seven years and want guaranteed growth without market risk, the timing is favorable. Your advisor can compare current options and run exact projections for your situation.

Can I lose money in a 7-year MYGA?

No — your principal is fully protected. The only way to receive less than you deposited is if you withdraw early, triggering surrender charges and potentially a Market Value Adjustment. If you hold the contract to maturity, you receive your full principal plus all accumulated interest.

Can I withdraw money from a 7-year annuity early?

Most 7-year MYGAs allow penalty-free withdrawals of up to 10% of your account value per year. Amounts beyond that incur surrender charges (typically 7–9% in year one, declining to near zero by year seven). Withdrawals before age 59½ may also trigger a 10% IRS early distribution penalty on the earnings portion.

What happens if the insurance company goes bankrupt?

All carriers on this page are A-rated by AM Best, which reflects strong financial stability. If a carrier did fail, your state guaranty association would step in — coverage limits are typically $250,000 per insurer. You can increase protection by spreading deposits across multiple carriers.

Are 7-year annuity earnings taxable?

Interest earned in a non-qualified (non-IRA) MYGA grows tax-deferred — you owe ordinary income tax only when you withdraw. In a traditional IRA, withdrawals are taxed as ordinary income. In a Roth IRA, qualified withdrawals are tax-free. Your tax advisor can help determine the most efficient account type for your situation.