Best 7-Year Fixed Annuity Rates

For traders in search of a predictable return with out the volatility of the inventory market, a seven-year fastened annuity will be an interesting choice. The time period is lengthy sufficient to safe aggressive charges however quick sufficient to retain some flexibility for the long run.

Fastened annuities, significantly multi-year assured annuities (MYGAs), are providing a few of the most tasty yields in years. These yields gained’t final eternally, although, with rate of interest cuts on the horizon.

Nonetheless, you shouldn’t purchase a hard and fast annuity solely primarily based on the marketed charge. It’s important to think about the monetary power of the issuing insurer, liquidity constraints and the way the annuity matches into your broader monetary plan.

As of August 2025, right here’s a take a look at one of the best seven-year fastened annuity charges and what it’s worthwhile to know earlier than signing a contract.

Gainbridge SteadyPace 7-Yr (MYGA)

• Issuer: Gainbridge Life Insurance coverage Firm
• Price: 5.50 – 5.80 %
• Contract size: 7 years
• Minimal premium: $1,000
• AM Greatest score: A-
• Our take: This digital-first MYGA combines the most effective seven-year charges with one of many lowest entry factors out there. Gainbridge sells on to customers on-line, so there’s no must work by means of an insurance coverage agent or wade by means of further paperwork. The banded charges reward larger deposits, however even the decrease tier beats most opponents. It’s a simple, no-commission choice for these comfy managing all the pieces digitally.

American Nationwide Palladium MYGA 7

• Issuer: American Nationwide Insurance coverage Firm
• Price: 5.20 – 5.45 %
• Contract size: 7 years
• Minimal premium: $5,000
• AM Greatest score: A
• Our take: This product affords a conventional MYGA construction with charge bands primarily based on deposit measurement. The highest-band charge begins at $250,000 and is among the many higher seven-year yields from an A-rated service, although it requires a hefty deposit. For individuals who can’t meet the $250,000 threshold, the bottom charge nonetheless offers a secure, predictable return backed by a financially sturdy insurer with a protracted historical past within the annuity market.

Athene MaxRate 7

• Issuer: Athene Annuity and Life Firm
• Price: 5.00 – 5.30 %
• Contract size: 7 years
• Minimal premium: $10,000
• AM Greatest score: A+
• Our take: Athene’s seven-year MaxRate annuity is designed for consumers in search of each sturdy insurer credit score high quality and a aggressive fastened charge. In 2024, Athene offered extra fastened annuities than every other insurer — $34.8 billion, in keeping with LIMRA, an insurance coverage business commerce group — suggesting the corporate has earned a excessive stage of belief and satisfaction from consumers. The MaxRate product affords sure liquidity options, comparable to a confinement waiver and terminal Sickness waiver, permitting full penalty-free withdrawals if sure circumstances are met, although this profit isn’t out there in all states.

Brighthouse Monetary Fastened Price Annuity 7 MVA

• Issuer: Brighthouse Life Insurance coverage Firm
• Price: 4.95 – 5.20 %
• Contract size: 7 years
• Minimal premium: $25,000
• AM Greatest score: A
• Our take: Backed by one of many largest life insurers within the U.S., this MVA-style MYGA affords its finest charge for these buying contracts with $100,000 or extra. This product is a single-premium annuity, that means you’ll be able to’t make further contributions after your preliminary lump sum deposit. The market worth adjustment (MVA) can work in your favor if charges fall, however may cut back give up values if charges rise.

Constancy & Warranty FG Assure-Platinum 7

• Issuer: Constancy & Warranty Life Insurance coverage Firm (F&G)
• Price: 5.00 %
• Contract size: 7 years
• Minimal premium: $20,000
• AM Greatest score: A
• Our take: This can be a easy, no-frills MYGA from a well-established issuer. The one-band charge is aggressive, and the contract is straightforward to know. You may also withdraw accrued curiosity anytime with out give up prices or market worth changes. Whereas it doesn’t have the very best charge within the class, its mixture of name reliability and easy phrases could make it a stable alternative for consumers.

MassMutual American Freedom Aspire

• Issuer: MassMutual Ascend
• Price: 4.50 – 4.70 %
• Contract size: 7 years
• Minimal premium: $25,000
• AM Greatest score: A++
• Our take: The American Freedom Aspire 7 is an easy fastened annuity that locks in your rate of interest for seven years. It affords 10 % annual penalty-free withdrawals, a return-of-premium assure after yr three and life-event waivers for prolonged nursing care or terminal sickness, making it extra versatile than many multi-year contracts. Charges are tiered, so bigger deposits get higher returns.

What are the professionals and cons of fastened annuities?

Execs

• Assured returns: A set annuity offers a set rate of interest for a set time period and it isn’t linked to inventory market efficiency.
• Tax-deferred development: Earnings develop with out being taxed till cash is withdrawn, permitting for compounding development over time. Once you begin receiving payouts out of your nonqualified annuity, solely the earnings portion is taxable as unusual revenue.
• Doubtlessly larger yields than CDs: In sure conditions, MYGAs provide higher charges than certificates of deposit of comparable length.
• Simplicity: Fastened annuities are easy in contrast with different varieties of annuities, comparable to variable annuities or listed annuities.
• No IRS contribution limits: Not like retirement plans comparable to a 401(ok) or IRA, nonqualified annuities haven’t any IRS contribution limits, and most insurers allow you to fund an annuity with as much as $1 million to $3 million. This characteristic makes them extra enticing to higher-income households.

Cons

• Restricted liquidity: Withdrawing greater than the penalty-free quantity can set off vital give up prices.
• No inflation safety: A set annuity offers a assured payout, however inflation can erode its buying energy over time. That’s why it’s necessary to produce other inflation-adjusted revenue sources, comparable to Social Safety, to assist preserve your lifestyle.
• Insurer credit score danger: The safety of your annuity payouts is just as sturdy because the monetary well being of the insurer. State warranty associations present a security web, however protection limits fluctuate.
• Alternative price: If rates of interest rise throughout your time period, you could be locked right into a much less aggressive charge.

What are the various kinds of fastened annuity charges?

Fastened annuities don’t all credit score curiosity the identical approach, and the timing of how your charge is ready could make a giant distinction in your earnings. Some alter yearly primarily based on the insurer’s declared charge, whereas others lock in a single charge for your complete time period.

Conventional fastened annuity charges

With a conventional fastened annuity, the insurance coverage firm units your rate of interest annually. You’ll lock within the marketed charge for the following 12 months, and whilst you’re assured to earn at the least that charge, it would reset yearly — often decrease. The insurer isn’t obligated to boost it even when total rates of interest are climbing.

Earlier than you commit, examine whether or not the corporate has a historical past of accelerating charges for policyholders. In any other case, the assured minimal charge after that first yr will be as little as 1 or 2 %.

Multi-year assured annuity (MYGA) charges

MYGAs lock in a particular rate of interest for a set time period, comparable to 5, seven or 10 years. The speed doesn’t change all through the time period, which will be advantageous in a steady or declining rate of interest atmosphere.

When your annuity time period ends, you’ll be able to select to resume it on the rate of interest out there at the moment. Or if the brand new charge doesn’t give you the results you want, most corporations allow you to switch your funds to a special supplier with out penalties or taxes. You even have the choice to give up the contract and withdraw your cash.

How to decide on one of the best fastened annuity

When choosing a hard and fast annuity, don’t focus solely on the marketed charge. It’s necessary to think about the next elements as nicely.

• Search for insurers with sturdy monetary scores: Use scores from AM Greatest, Commonplace & Poor’s or Moody’s to evaluate the corporate’s skill to satisfy its monetary obligations.
• Evaluate present charges: Charges change often, so all the time evaluation the latest affords earlier than committing. Larger returns finally imply a better month-to-month payout.
• Evaluation give up schedules: Most annuities permit a penalty-free withdrawal of about 10 % yearly, however exceeding this restrict can lead to charges. Give up prices can final your complete seven-year time period, lowering step by step over time.
• Contemplate tax implications: Tax-deferred development will be helpful, however withdrawals are both totally or partially taxed as unusual revenue.
• Riders: You possibly can customise an annuity with optionally available riders so as to add further advantages to your contract, comparable to an enhanced dying profit in your heirs or an revenue rider that ensures a set payout for all times. These add-ons can tailor the contract to your wants, however they arrive at a value — every further characteristic reduces your base return or will increase your charges.
• Match the time period to your objectives: Select a length that aligns along with your liquidity wants. It doesn’t make sense to lock in an incredible charge for those who’re compelled to withdraw the cash earlier than the time period ends and lose a bit of your earnings to charges and penalties. Talking with a third-party monetary advisor is an effective method to assess how a hard and fast annuity matches into your broader monetary plan.

Fastened annuity FAQs

Editorial Disclaimer: All traders are suggested to conduct their very own unbiased analysis into funding methods earlier than investing choice. As well as, traders are suggested that previous funding product efficiency isn’t any assure of future value appreciation.