Fixed Rate Annuity 5-Year review

Yes, for the right buyer. This is a straightforward MYGA from a solid carrier, and it does what it promises — a guaranteed rate for five years with principal protection and no extra fees. The question is whether the 5-year commitment and the steeper early surrender schedule fit your situation. If you have money that can stay put for five years and you are not counting on needing more than the 10% annual free withdrawal, this is a clean product. If there is any meaningful chance you will need to access funds above that threshold in the first three years, the 7% surrender charge will be painful.

The case for this product is predictability. You lock in a guaranteed rate — currently in the range of 4.60% to 4.85% depending on premium band, per the brochure — and it does not change for five years regardless of what happens in the market. There are no allocation decisions, no crediting strategy to manage, and no fees to erode the stated rate. Brighthouse carries an AM Best A rating, which adds some confidence in the insurer's ability to honor the guarantee. For someone who is tired of low CD rates and wants the tax-deferred treatment that an annuity provides, this is a logical alternative.

I think this product is best for someone in the 55-75 age range who has a defined pool of retirement savings they do not need for five years and wants a predictable, guaranteed return with tax-deferred growth. It is equally appropriate for IRA, Roth IRA, and non-qualified money, which gives it flexibility across account types. The wide issue-age window (0-85) is notable but in practice this is a retirement savings product. It is a poor fit for anyone who wants income during the surrender period beyond the free-withdrawal limit, is looking for market-linked upside, or might need a large withdrawal in the first three contract years.

This is a time deposit wrapped in an insurance contract. Brighthouse takes your premium, guarantees a fixed credited rate for five years, and returns principal plus accumulated interest at maturity. The insurance wrapper provides tax deferral and the death benefit passes the full account value to beneficiaries. There is no index exposure, no participation rate to negotiate, and no rider to evaluate. What you see is what you get — one rate, one term, one outcome if you hold to maturity.

The crediting mechanism is a single declared fixed rate that applies for the full five-year guarantee period. The brochure notes current rates of approximately 4.60% or 4.85% depending on the premium band, though those figures will vary with market conditions at the time of purchase and should be confirmed with a current rate sheet. The rate is credited annually and compounds within the contract. There is no floating component, no floor to worry about, and no annual reset — the rate agreed to at issue is the rate for the entire surrender period. At the end of five years, you can renew, annuitize, or surrender without penalty.

The free-withdrawal provision is the most meaningful secondary feature here. Brighthouse allows 10% of the original purchase payment in the first year and 10% of account value from year two onward without triggering surrender charges. RMDs attributable to the contract also come out without charge. For qualified money (IRA, Roth IRA), that RMD accommodation is genuinely important — a MYGA that penalizes required distributions creates a compliance problem. The fact that RMDs are explicitly carved out makes this product workable inside an IRA without structuring concerns.

This is a 5-year commitment, and the early surrender schedule is worth understanding clearly before purchasing. The charges are 7% in years one through three, dropping to 6% in year four and 5% in year five. That front-loading is steeper than some 5-year MYGA peers, which often start at 6% or grade down more quickly. Surrender charges apply to withdrawals above the free amount — not to the full account value — but on a substantial withdrawal in year one, a 7% charge is meaningful.

There is no market value adjustment (MVA) on this product, which is an advantage relative to MYGA competitors that do apply MVA — it removes one layer of surrender risk if interest rates have risen since purchase. The minimum guaranteed surrender value (MGSV) is 87.5% of the purchase payment accumulated at the contract's minimum guaranteed rate, which meets the standard floor for MYGAs.

There are no stated fees on this product. No base contract fee, no rider fee, and no expense ratio eroding the credited rate. The rate you are quoted is the rate you receive. That is one of the cleaner things about a straightforward MYGA — what you see is what you earn.

The real tradeoffs are structural. The credited rate will be lower than what equity markets might deliver in a strong five-year stretch. The surrender schedule means this is not liquid money. And unlike a bank CD, the account is not FDIC-insured — your protection depends on Brighthouse's financial strength, which is why the AM Best A rating matters. There are no state variation details beyond the note that New York is excluded and California, Massachusetts, and South Dakota have approved variations; buyers in those states should confirm the terms that apply to them specifically.

Legal Entity: Brighthouse Life Insurance Company

AM Best Rating: A