MaxRate 5 (NY) review

Yes, for the right buyer. If you live in New York, want a guaranteed fixed rate for five years, and have no need for an income rider or index participation, this is a clean, well-constructed MYGA. It is less useful for buyers who might need principal access during the term, because the flat 10% surrender charge makes early exit expensive every year, not just the first.

The main reason to buy MaxRate 5 (NY) is certainty. You lock in a rate at purchase — 4.60% below $100,000 and 4.80% at $100,000 or more as of the available quick reference, though rates will vary at the time of purchase — and that rate holds for the full five years regardless of what happens in the market or the interest rate environment. That predictability is the product's core value. A secondary reason is tax deferral: growth compounds without an annual tax event, which can matter meaningfully over five years compared to a taxable CD.

I think MaxRate 5 (NY) works best for New York residents in their 50s through early 80s who are allocating a portion of retirement savings to a guaranteed fixed instrument. It fits well in a qualified account like a traditional IRA, where tax deferral adds less incremental benefit but the guaranteed rate and RMD-friendly design are directly useful. It also works in a non-qualified allocation where someone simply wants to know exactly what their money will return over five years without market exposure. Buyers who want index-linked upside, lifetime income, or who have any real chance of needing principal before year five are not a good match.

You are buying a contractual guarantee from Athene Annuity & Life Assurance Company of New York: your premium earns a fixed interest rate for five years, the rate does not reset, and your principal is not exposed to market losses. This is not an indexed product and not a variable product. The guarantee is backed by Athene's general account, which is why the carrier's A.M. Best A+ rating matters — you are relying on the insurer's financial strength for the duration of the contract.

The Multi-Year Fixed Strategy locks in a declared interest rate that applies for the entire five-year surrender period. There are no index options, no participation rates, and no cap structures to evaluate — just a rate set at issue. Athene offers a two-tier rate structure: contracts under $100,000 receive one rate, contracts at $100,000 or more receive a slightly higher rate. Both tiers use the same guaranteed rate for the full term.

A 1-Year Fixed Strategy is also available, but it applies only to additional premiums received after the initial deposit. That strategy resets annually at a rate that will always be at or above the minimum guaranteed rate. For most buyers, the Multi-Year Fixed Strategy is the product — the 1-Year option is a housekeeping feature for incremental deposits rather than a separate investment choice.

Additional premiums are accepted: minimum $1,000 per payment, maximum $10,000 per contract year, with a $1,000,000 total premium cap.

The confinement waiver is the most meaningful secondary feature here. If you spend 60 or more consecutive days in a qualified care facility after the first contract year, you can surrender the full accumulated value without the 10% surrender charge. That matters because one of the real risks of locking money into a 5-year annuity is an unexpected long-term care event. This waiver does not eliminate that risk, but it materially softens it.

A terminal illness waiver also applies after the first contract anniversary: if a physician confirms a terminal illness expected to result in death within one year, the full accumulated value is available without surrender charge. These are not insurance products for long-term care — they are hardship waivers — but for a no-fee MYGA, they add genuine value.

You are committing to five years. The surrender charge is 10% in every contract year — this is a flat schedule, not a declining one. Many competing MYGAs step the charge down from 9% or 10% in year one to 0% by year five. Here, the charge is the same on day one as it is in year four. That makes this product less forgiving for anyone who might need principal access early.

The free-withdrawal provision mitigates this somewhat. Starting in contract year one, you can withdraw interest earned on the Multi-Year Fixed Strategy without triggering a surrender charge. For buyers who are living off interest in retirement, this is a meaningful accommodation. Required minimum distributions are also treated as free withdrawals, even if they exceed the calculated free-withdrawal amount — that makes this a usable choice inside an IRA for retirees subject to RMDs.

If you need more than the free-withdrawal amount before the contract matures, expect a 10% charge on the excess regardless of which year you are in.

There are no base contract fees and no rider fees. This is a no-cost MYGA in the traditional sense — the insurer earns a spread between what the premium earns in the general account and what it pays out as your credited rate. You do not see that spread as a line-item charge, but it is the mechanism behind every guaranteed fixed annuity.

The main structural tradeoffs are the flat surrender schedule and the geographic restriction. A declining schedule would give you more practical flexibility in years four and five. The New York-only availability is not a problem for New York residents, but it also means Athene has calibrated this product to New York regulatory requirements, which can sometimes affect terms compared to the national version of a comparable product.

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

Parent: Athene Holding Ltd.

A.M. Best Rating: A+