Guaranteed Growth Strategies 5-Year review

It depends on your situation. For someone who wants a locked 5-year rate from an A-rated carrier, holds to term, and treats the free-withdrawal as a safety valve rather than regular income, this is a clean, reasonable product. For someone who is uncertain about their 5-year liquidity needs or is placing money in a rising-rate environment where an MVA could bite, there are simpler MYGA structures without a market value adjustment. Rate competitiveness matters here too — because MYGAs live or die on their fixed rate, shoppers should compare current rates across carriers before committing.

The rational case for this product starts with the carrier. Equitable Financial Life Insurance Company of America has name recognition and a solid financial strength profile, which matters to buyers who prioritize institutional stability. The 5-year term is short enough to feel manageable, and the guaranteed rate gives exactly the kind of certainty that buyers fleeing CD rollovers or uncertain bond markets often want. The free-withdrawal provision and RMD waiver make it more practical than pure lockup products for buyers in or near distribution phase.

I think this product fits best for a buyer in their late 50s to mid-70s who has a defined pool of conservative money — IRA rollovers or non-qualified savings — that they do not need to touch for five years. Someone who values simplicity, has been burned by complexity in other financial products, and wants to know exactly what rate they will earn. It is less appealing for someone under 50 (long timeline, better options exist), someone who anticipates needing more than 10% of their account value annually during the term, or someone shopping in a rapidly rising rate environment where locking in today's rate carries real opportunity cost.

You are buying a 5-year insurance contract that credits a fixed, guaranteed interest rate. Unlike a bank CD, the contract is backed by an insurance company's general account rather than FDIC insurance, so carrier financial strength is part of the equation. Unlike a fixed indexed annuity, there are no moving parts around caps or participation rates — the rate is stated at issue and does not change during the surrender period. What you trade for that certainty is liquidity. Outside the 10% free-withdrawal, accessing your money early costs a surrender charge and potentially a market value adjustment.

Guaranteed Growth Strategies credits a fixed rate for the full 5-year surrender period. The spec shows two rate tiers: a standard band rate and a "Low Band" rate available at $100,000 or more. Current rate levels (as of the brochure date) are 4.75% for the standard band and 5.00% for the $100,000-plus band — these are the guaranteed rates for the full term, not teaser rates that reset. After five years, the contract typically moves into a renewal rate environment; buyers should clarify renewal terms with Equitable before committing. The Guaranteed Minimum Interest Rate floor is 0.15%, which is a contractual backstop, not a realistic operating rate.

The secondary feature worth understanding is the terminal illness waiver and nursing home waiver. Both the surrender charge and the MVA are waived if you are hospitalized or in a nursing home for 90 or more consecutive days, or diagnosed with a terminal illness with a life expectancy of 12 months or less. For a buyer placing money for five years, this provision addresses the most common "what if something goes wrong" scenario. It does not replace long-term care planning, but it does reduce the financial penalty of an unexpected health event. That is a meaningful protection for someone placing a significant portion of retirement savings here.

You are trading 5 years of liquidity for a locked rate. The surrender schedule runs 7%, 7%, 7%, 6%, 5% across the five contract years — steeper in the early years than some peer MYGAs at this duration, which sometimes step from 5% or 6% at year one. A market value adjustment (MVA) also applies to amounts subject to surrender charges; this means your effective penalty in a rising-rate environment could exceed the stated surrender percentage.

The 10% free-withdrawal provision provides genuine relief. In year one it is 10% of premiums paid; in years two through five it is 10% of the prior anniversary account value. RMD withdrawals incur no charges, which makes this workable inside a traditional IRA without the risk of annual penalty exposure.

There is no base contract fee on this product. There are no rider fees unless you elect the optional Period Certain annuitization feature, which converts the account to income. Because this is a pure MYGA, the cost structure is implicit rather than explicit — the carrier earns spread between what it makes on the general account and what it credits to you. That is standard for fixed annuities and not a red flag, but it does mean the fixed rate is the number to scrutinize against peer products.

The main tradeoffs are the MVA and the moderately steep surrender schedule. In a flat or falling rate environment, the MVA works in the buyer's favor. In a rising rate environment, it works against you. Buyers who are uncertain about holding to term should compare no-MVA MYGA alternatives.

Legal Entity: Equitable Financial Life Insurance Company of America

Parent: Equitable Holdings, Inc.

A.M. Best Rating: A