MaxRate 3 review

It depends on what you're solving for. If you want a guaranteed three-year rate from a financially strong carrier with no moving parts, MaxRate 3 is a good product. It's less appealing if you think you might need access to more than the annual interest during the surrender period — the 10% flat charge is real, and the MVA makes it worse if you exit in a rising-rate environment.

The primary reason to buy MaxRate 3 is simplicity combined with carrier credibility. Athene's A+ AM Best rating means the guarantee behind the product carries genuine weight. For a retiree or near-retiree who wants to park a portion of safe money for three years at a predictable return — without the complexity of indexed crediting strategies, rider fees, or ongoing allocation decisions — this product does exactly that. The RMD treatment is also a practical draw for IRA holders: required minimum distributions are treated as free withdrawals even when they exceed the standard free-withdrawal amount.

I think MaxRate 3 works best for someone in their late 50s through early 70s who has a specific block of money they're confident they won't need for three years. It fits particularly well for IRA or rollover money where RMD treatment matters, and for buyers who want a short commitment period without locking into a longer MYGA. It's less attractive for anyone who anticipates needing principal access above the annual interest, anyone in New York (product isn't available there), or anyone primarily focused on accumulation over a longer horizon where a 5- or 7-year MYGA might offer a meaningfully better rate.

You are buying a guaranteed fixed interest rate for exactly three years, backed by Athene Annuity and Life Company's claims-paying ability. The mechanics are simple: you contribute a lump sum, the Multi-Year Fixed Strategy credits a rate that is locked at issue for the full three-year term, and the contract matures at the end of year three. There's no market exposure, no index participation, no crediting complexity. The annuity wrapper gives you tax deferral — interest compounds without a 1099 until you withdraw — and the insurance contract gives you the contractual guarantee. The trade is that you're committing to a three-year lockup with meaningful surrender exposure if you break the contract early.

MaxRate 3 uses two crediting strategies. The Multi-Year Fixed Strategy applies to your initial premium and locks in a guaranteed rate for the full three-year term at contract issue — that's the defining feature of the product and the reason most buyers choose it. The 1-Year Fixed Strategy applies to any additional premiums contributed after issue and uses a rate declared annually that can change each year.

The rate is tiered by premium size. Below $100,000 the current rate is 4.75%; at $100,000 or more it steps up to 5.00%. Both tiers lock at contract issue and hold for the full term. The practical implication is that if you're close to the $100,000 threshold and can reach it, the 25-basis-point improvement compounds for three full years — worth considering when sizing the initial contribution.

The secondary feature worth noting is the waiver package: a Confinement Waiver and a Terminal Illness Waiver, both included at no additional cost. These provide penalty-free access to the contract value if you become confined to a nursing home or receive a terminal illness diagnosis during the surrender period. For a product designed for retiree savings, this kind of emergency release valve matters. It doesn't change the product's core function, but it reduces the worst-case scenario of locking money away and then needing it for care expenses. Note that California excludes both waivers and Massachusetts excludes the Confinement Waiver.

MaxRate 3 carries a flat 10% surrender charge across all three contract years — there's no taper. That's more aggressive than some competing 3-year MYGAs that start at 8% or 9% and step down. On top of the surrender charge, an MVA — Market Value Adjustment — may also apply. An MVA means the actual penalty on an early exit isn't fixed; it fluctuates based on where interest rates are relative to when you bought the contract. If rates have risen since you purchased, the MVA can increase your effective penalty further. If rates have fallen, it may reduce it.

The free-withdrawal provision offers some relief: each year you can withdraw an amount equal to the credited rate multiplied by the accumulated value without triggering surrender charges or MVA. This is effectively interest-only access, which covers living expenses or annual income needs without touching principal. RMDs from qualifying accounts are additionally protected — they're treated as free withdrawals regardless of amount.

There are no base contract fees and no rider fees on MaxRate 3. The fee load is genuinely zero, which is one of the product's cleaner attributes. The tradeoffs are structural, not fee-driven.

The first structural tradeoff is the surrender exposure already covered: a flat 10% charge plus MVA for the full term. The second is the lock-in itself — you're committing to a three-year rate that won't adjust if rates rise after purchase. The third is that the 1-Year Fixed Strategy rate on additional premiums is declared annually and not guaranteed beyond the first year, so the multi-year locked rate only applies to your initial contribution.

Legal Entity: Athene Annuity and Life Company

Parent: Athene Holding Ltd.

A.M. Best Rating: A+