Why it earned this rating
Our assessment
Equitable Guaranteed Growth Strategies 3-Year earns a good-option rating because it delivers a clean, straightforward MYGA from a reputable carrier at a competitive rate structure, with useful liquidity provisions for RMD-dependent buyers. The flat and relatively steep surrender schedule — 7% in each of the three contract years — combined with the market value adjustment keeps it from the strong-option tier, but the short duration, no-fee structure, and rate banding at $100,000 make this a reasonable pick for accumulation-focused savers who want certainty over a brief holding period.
The short version
This is a 3-year guaranteed-rate annuity for people who want a CD-like commitment with insurance-company backing and modestly better tax treatment. Equitable locks in your rate for the full term, charges no contract fees, and guarantees a minimum regardless of what interest rates do during your three years. The catch is that if you need money beyond the 10% free-withdrawal allowance before the term ends, you face a 7% charge plus a potential market value adjustment on every dollar you pull out. If you are confident you will not touch the principal, the math is simple and the carrier quality is solid.
Key facts
The full review
Is Equitable Guaranteed Growth Strategies 3-Year a Good Annuity?
Yes, for the right buyer. This is a good annuity for someone who wants a short, clean guaranteed-rate commitment with no fee drag, RMD-friendly withdrawal terms, and a carrier with financial strength they can point to. It is less appealing for someone who wants any index-linked upside, a step-down surrender schedule, or income-rider features — this product offers none of those things.
Why Someone Would Buy This Annuity
The rational case is simple: you have a pool of money you do not need for three years, you want a guaranteed return higher than most bank CDs, and you do not want to pay for features you will never use. Rate banding at $100,000 gives larger depositors a 25-basis-point bump over the standard rate, which is a reasonable incentive. The terminal illness waiver and RMD accommodation make the product more usable for retirees who need occasional access in specific circumstances.
Who This Annuity Is Best For
I think this annuity is best for a retiree or near-retiree in their early-to-mid 70s who holds a meaningful lump sum in a tax-deferred account and wants a three-year parking spot with a predictable return. Buyers taking RMDs from qualified accounts will find the waiver useful. It is less suited to someone who might need liquidity above the 10% free amount, someone who wants stock market participation, or someone looking for a longer-term income strategy.
What You're Really Buying Here
You are buying a contractual promise from Equitable Financial Life Insurance Company of America to credit a fixed interest rate on your deposit for exactly three years, then return principal plus accumulated interest with no surrender charges if you stay to term. No index performance affects your crediting. No fees eat into your return. The tradeoff is that you are giving up liquidity and any possibility of higher market-linked returns during those three years. That is the core exchange, and it is a clean one.
How the Core Feature Works
Guaranteed Growth Strategies 3-Year credits a fixed interest rate guaranteed for the entire three-year contract period. Equitable applies rate banding: deposits under $100,000 earn the standard rate; deposits of $100,000 or more earn the enhanced rate, which runs 25 basis points higher. The guaranteed minimum interest rate floors the crediting at 0.15% or higher depending on state, though in practice the contracted rate will be substantially above that floor. Interest compounds annually inside the contract without being subject to current income tax in a deferred account.
Why the Secondary Feature Matters
The most meaningful secondary feature here is the combination of the RMD accommodation and the terminal illness waiver. For a retiree who is contractually required to take withdrawals each year from a qualified account, the ability to satisfy those RMDs without triggering surrender charges or the market value adjustment is genuinely useful — it removes the biggest practical friction of holding a MYGA inside an IRA. The terminal illness waiver is a standard provision, but it is worth noting for buyers who want a backstop if health circumstances change during the term.
Liquidity and Surrender Schedule
You are trading three years of liquidity for a locked rate. The free-withdrawal allowance — 10% of premiums paid in year one, 10% of the prior anniversary account value in years two and three — gives you modest access to principal without penalty, but the minimums ($300 per withdrawal, $500 remaining balance) suggest this is designed for occasional distributions, not frequent access.
What makes this contract more restrictive than some peers is the flat surrender schedule. Many MYGAs step down charges from a higher starting point toward zero over the term. This product holds at 7% for all three contract years, which means there is no benefit to waiting until year three if you need money — the penalty is the same on day one of the contract as it is the month before maturity. On top of that, a market value adjustment applies to surrenders during the charge period, meaning your out-of-pocket cost in a rising interest rate environment could exceed the stated 7%.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 7% |
| 2 | 7% |
| 3 | 7% |
| 4 | 0% |
RMD withdrawals attributable to the contract are exempt from surrender charges, and nursing home and terminal illness waivers are available for qualifying events.
Fees and Tradeoffs
There are no recurring contract fees and no rider fees — this is a pure fixed-rate contract. That is genuinely good for buyers who want clean math.
The structural tradeoffs are: a flat, non-tapering 7% surrender charge for the full term; a market value adjustment on surrenders, which adds rate-environment risk on top of the stated penalty; and no income rider or index participation of any kind. If you need money during the three years, the cost can be meaningful. If you do not need money during the three years, those tradeoffs cost you nothing.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | 0-85 |
| Minimum Premium | $25,000 |
| Crediting Methods | Fixed rate |
| Free Withdrawal | 10% of premiums paid year one; 10% of previous Account Anniversary Value years 2+. Minimum $300 withdrawal required; must leave $500 in account. |
| MGSV | 87.5% of premiums at 0.15-3% |
| Death Benefit | Greater of account value or Minimum Guaranteed Surrender Value |
| Income Rider | Not available |
| Premium Bonus | None |
Carrier snapshot
Legal Entity: Equitable Financial Life Insurance Company of America
Parent: Equitable Holdings Inc.
A.M. Best Rating: A
Final take
Guaranteed Growth Strategies 3-Year is a clean, no-fee MYGA from a financially strong carrier. If you have three-year money and want a guaranteed return without any index exposure, fee drag, or rider complexity, this is a straightforward option that does what it says.
The product is harder to recommend for anyone who might need access to principal before the term ends. The 7% flat charge does not relent as you move through the contract, and the MVA can make early exit more expensive than the stated penalty alone. For buyers who can commit cleanly to the three-year horizon and want to take advantage of rate banding at $100,000 or higher, this is a reasonable short-duration MYGA choice from a carrier with genuine financial standing. For anyone with uncertain liquidity needs, a product with a step-down schedule or a shorter commitment would serve them better.