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Best 7-year fixed annuity rates for August 2025

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Rachel Christian
August 20, 2025 at 8:23 AM

For investors seeking a predictable return without the volatility of the stock market, a seven-year fixed annuity can be an appealing option. The term is long enough to secure competitive rates but short enough to retain some flexibility for the future.

Fixed annuities, particularly multi-year guaranteed annuities (MYGAs), are offering some of the most attractive yields in years. Those yields won’t last forever though, with interest rate cuts on the horizon.

However, you shouldn’t buy a fixed annuity solely based on the advertised rate. It’s essential to consider the financial strength of the issuing insurer, liquidity constraints and how the annuity fits into your broader financial plan.

As of August 2025, here’s a look at the best seven-year fixed annuity rates and what you need to know before signing a contract.

How fixed annuities work

Fixed annuities are a common annuity type that offer a stated interest rate along with a minimum guaranteed rate for the contract term. The current rate may reset periodically, but the minimum rate remains in effect for the life of the agreement. Both rates are specified in the annuity contract.

Gainbridge SteadyPace 7-Year (MYGA)

  • Issuer: Gainbridge Life Insurance Company

  • Rate: 5.50 – 5.80 percent

  • Contract length: 7 years

  • Minimum premium: $1,000

  • AM Best rating: A-

  • Our take: This digital-first MYGA combines one of the best seven-year rates with one of the lowest entry points in the market. Gainbridge sells directly to consumers online, so there’s no need to work through an insurance agent or wade through extra paperwork. The banded rates reward higher deposits, but even the lower tier beats most competitors. It’s a straightforward, no-commission option for those comfortable managing everything digitally.

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American National Palladium MYGA 7

  • Issuer: American National Insurance Company

  • Rate: 5.20 – 5.45 percent

  • Contract length: 7 years

  • Minimum premium: $5,000

  • AM Best rating: A

  • Our take: This product offers a traditional MYGA structure with rate bands based on deposit size. The top-band rate starts at $250,000 and is among the better seven-year yields from an A-rated carrier, though it requires a hefty deposit. For those who can’t meet the $250,000 threshold, the base rate still provides a safe, predictable return backed by a financially strong insurer with a long history in the annuity market.

Athene MaxRate 7

  • Issuer: Athene Annuity and Life Company

  • Rate: 5.00 – 5.30 percent

  • Contract length: 7 years

  • Minimum premium: $10,000

  • AM Best rating: A+

  • Our take: Athene’s seven-year MaxRate annuity is designed for buyers seeking both strong insurer credit quality and a competitive fixed rate. In 2024, Athene sold more fixed annuities than any other insurer — $34.8 billion, according to LIMRA, an insurance industry trade group — suggesting the company has earned a high level of trust and satisfaction from buyers. The MaxRate product offers certain liquidity features, such as a confinement waiver and terminal Illness waiver, allowing full penalty-free withdrawals if certain conditions are met, though this benefit isn’t available in all states.

Brighthouse Financial Fixed Rate Annuity 7 MVA

  • Issuer: Brighthouse Life Insurance Company

  • Rate: 4.95 – 5.20 percent

  • Contract length: 7 years

  • Minimum premium: $25,000

  • AM Best rating: A

  • Our take: Backed by one of the largest life insurers in the U.S., this MVA-style MYGA offers its best rate for those purchasing contracts with $100,000 or more. This product is a single-premium annuity, meaning you can’t make additional contributions after your initial lump sum deposit. The market value adjustment (MVA) can work in your favor if rates fall, but could reduce surrender values if rates rise.

Fidelity & Guaranty FG Guarantee-Platinum 7

  • Issuer: Fidelity & Guaranty Life Insurance Company (F&G)

  • Rate: 5.00 percent

  • Contract length: 7 years

  • Minimum premium: $20,000

  • AM Best rating: A

  • Our take: A simple, no-frills MYGA from a well-established issuer. The single-band rate is competitive, and the contract is easy to understand. You can also withdraw accumulated interest anytime without surrender charges or market value adjustments. While it doesn’t have the highest rate in the category, its combination of brand reliability and simple terms can make it a solid choice for buyers.

MassMutual American Freedom Aspire

  • Issuer: MassMutual Ascend

  • Rate: 4.50 – 4.70 percent

  • Contract length: 7 years

  • Minimum premium: $25,000

  • AM Best rating: A++

  • Our take: The American Freedom Aspire 7 is a straightforward fixed annuity that locks in your interest rate for seven years. It offers 10 percent annual penalty-free withdrawals, a return-of-premium guarantee after year three and life-event waivers for extended nursing care or terminal illness, making it more flexible than many multi-year contracts. Rates are tiered, so larger deposits get better returns.

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What are the pros and cons of fixed annuities?

Pros

  • Guaranteed returns: A fixed annuity provides a set interest rate for a set term and it isn’t linked to stock market performance.

  • Tax-deferred growth: Earnings grow without being taxed until money is withdrawn, allowing for compounding growth over time. When you start receiving payouts from your nonqualified annuity, only the earnings portion is taxable as ordinary income.

  • Potentially higher yields than CDs: In certain situations, MYGAs offer better rates than certificates of deposit of similar duration.

  • Simplicity: Fixed annuities are straightforward compared with other types of annuities, such as variable annuities or indexed annuities.

  • No IRS contribution limits: Unlike retirement plans such as a 401(k) or IRA, nonqualified annuities have no IRS contribution limits, and most insurers let you fund an annuity with up to $1 million to $3 million. This feature makes them more attractive to higher-income households.

Cons

  • Limited liquidity: Withdrawing more than the penalty-free amount can trigger significant surrender charges.

  • No inflation protection: A fixed annuity provides a guaranteed payout, but inflation can erode its purchasing power over time. That’s why it’s important to have other inflation-adjusted income sources, such as Social Security, to help maintain your standard of living.

  • Insurer credit risk: The future of your annuity payouts are only as strong as the financial health of the insurer. State guaranty associations provide a safety net, but coverage limits vary.

  • Opportunity cost: If interest rates rise during your term, you may be locked into a less competitive rate.

What are the different types of fixed annuity rates?

Fixed annuities don’t all credit interest the same way, and the timing of how your rate is set can make a big difference in your earnings. Some adjust annually based on the insurer’s declared rate, while others lock in a single rate for the entire term.

Traditional fixed annuity rates

With a traditional fixed annuity, the insurance company sets your interest rate each year. You’ll lock in the advertised rate for the next 12 months, and while you’re guaranteed to earn at least that rate, it will reset annually — usually lower. The insurer isn’t obligated to raise it even if overall interest rates are climbing.

Before you commit, check whether the company has a history of increasing rates for policyholders. Otherwise, the guaranteed minimum rate after that first year can be as low as 1 or 2 percent.

Multi-year guaranteed annuity (MYGA) rates

MYGAs lock in a specific interest rate for a set term, such as five, seven or 10 years. The rate does not change for the duration of the term, which can be advantageous in a stable or declining interest rate environment.

When your annuity term ends, you can choose to renew it at the interest rate available at that time. Or if the new rate doesn’t work for you, most companies let you transfer your funds to a different provider without penalties or taxes. You also have the option to surrender the contract and withdraw your money.

How to choose the best fixed annuity

When selecting a fixed annuity, don’t focus solely on the advertised rate. It’s important to consider the following factors as well.

  • Look for insurers with strong financial ratings: Use ratings from AM Best, Standard & Poor’s or Moody’s to assess the company’s ability to meet its financial obligations.

  • Compare current rates: Rates change frequently, so always review the most recent offers before committing. Higher returns ultimately mean a higher monthly payout.

  • Review surrender schedules: Most annuities allow a penalty-free withdrawal of about 10 percent annually, but exceeding this limit can result in fees. Surrender charges can last the entire seven-year term, decreasing gradually over time.

  • Consider tax implications: Tax-deferred growth can be beneficial, but withdrawals are either fully or partially taxed as ordinary income.

  • Riders: You can customize an annuity with optional riders to add extra benefits to your contract, such as an enhanced death benefit for your heirs or an income rider that guarantees a set payout for life. These add-ons can tailor the contract to your needs, but they come at a cost — each additional feature reduces your base return or increases your fees.

  • Match the term to your goals: Choose a duration that aligns with your liquidity needs. It doesn’t make sense to lock in a great rate if you’re forced to withdraw the money before the term ends and lose a chunk of your earnings to fees and penalties. Speaking with a third-party financial advisor is a good way to assess how a fixed annuity fits into your broader financial plan.

Fixed annuity FAQs

  • Are fixed annuities similar to certificates of deposit?

    In some ways, yes. Both CDs and fixed annuities provide a guaranteed rate for a set period and both impose a penalty if you withdraw money before the term ends. The differences are important, though: CDs are insured by the FDIC and generally shorter in duration, while annuities are issued by insurers, often offer higher rates and interest grows tax-deferred.

  • Are fixed annuities safe?

    Fixed annuities are generally safe when issued by financially strong insurers. State guaranty associations provide protection up to certain limits depending on the state. However, these limits may not fully cover large balances.

  • Can you withdraw money from a fixed annuity?

    Yes, but with restrictions. Most contracts allow penalty-free withdrawals of up to 10 percent of the account value annually. Exceeding that limit usually triggers surrender charges, which decline over time. Some contracts also apply a market value adjustment, which can reduce payout if interest rates have increased since you bought the contract.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.