MaxRate 3 (NY) review

It depends on what you're solving for and where you live. For a New York resident who wants a guaranteed three-year rate from a financially strong carrier with no fee load and no MVA risk, this is a solid product. It's less appealing if you have any real probability of needing principal access before maturity — a flat 10% charge in every year is a meaningful early-exit cost — or if you're not in New York, in which case this isn't available to you at all.

The primary reason to buy MaxRate 3 (NY) is simplicity paired with carrier credibility. Athene's A+ AM Best rating means the guarantee behind the product carries real weight, and New York's regulatory environment means the issuing entity — Athene Annuity & Life Assurance Company of New York — is capitalized and supervised under New York insurance law. For a New York resident who wants to park retirement savings for three years at a predictable return without taking on market risk, index complexity, or rider fees, this delivers 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 (NY) works best for a New York-based buyer in their late 50s through early 70s who has a defined block of money they're confident they won't need for three years. It fits especially well for IRA or qualified-account rollovers where RMD flexibility matters and where a short, predictable commitment is preferable to a longer MYGA. It's less attractive for anyone who anticipates needing access to principal above the annual interest, anyone outside New York (different products serve those buyers), or anyone with a longer horizon where a 5- or 7-year MYGA might offer a more competitive guaranteed rate.

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

MaxRate 3 (NY) 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 issue — that is the defining feature 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, though it will never fall below the minimum guaranteed rate.

The rate is tiered by premium size. The brochure data available (dated March 2017) shows 4.40% below $100,000 and 4.65% at $100,000 or more. Current rates will differ — rates on any MYGA change with market conditions, and the brochure rates are a historical snapshot, not what you would receive today. Always confirm the current guaranteed rate directly before purchasing. If you are close to the $100,000 band threshold and can reach it, the step-up compounds for three full years and is worth evaluating when sizing your initial contribution.

The most meaningful secondary feature is the waiver package: a Confinement Waiver and a Terminal Illness Waiver, both included at no additional cost. The Confinement Waiver lets you access up to 100% of the accumulated value without surrender charges if you are confined to a Qualified Care Facility for at least 60 consecutive days — but only after the first contract year. The Terminal Illness Waiver provides similar access if you receive a terminal illness diagnosis expected to result in death within one year, also available after the first contract anniversary.

For a product designed to hold retirement savings for three years, this kind of emergency release valve matters. It doesn't change the core function, but it reduces the worst-case scenario of locking money away and then facing a serious health event. New York buyers should confirm current state applicability, as waiver availability can vary by state.

MaxRate 3 (NY) carries a flat 10% surrender charge across all three contract years — there is no taper. That is a meaningful structure for a short-duration product. Importantly, unlike the standard non-NY version of this product, there is no MVA on MaxRate 3 (NY). That means your early-exit cost is fixed: if you surrender in years one through three and take out more than the free-withdrawal amount, you pay exactly 10%, with no additional adjustment based on how rates have moved. That predictability is a genuine improvement over the non-NY design.

The free-withdrawal provision offers annual liquidity equal to the credited rate multiplied by the accumulated value — effectively interest-only access each year without triggering surrender charges. RMDs from qualifying accounts are additionally protected: they count as free withdrawals regardless of amount.

There are no base contract fees and no rider fees on MaxRate 3 (NY). The fee load is zero, which is one of the product's cleaner attributes. The tradeoffs are structural rather than fee-driven.

The first structural tradeoff is surrender exposure: a flat 10% charge in every year with no taper. The second is the lock-in itself — your guaranteed rate won't adjust upward if rates rise after you purchase. The third is that the 1-Year Fixed Strategy rate on additional premiums resets annually and is not locked for the term, so the multi-year guarantee applies only to your initial premium. And the fourth is geographic: this is a New York-only product, which means it benefits from New York's regulatory environment but also limits who can access it.

Legal Entity: Athene Annuity & Life Assurance Company of New York

Parent: Athene Holding Ltd.

A.M. Best Rating: A+