Oak Advantage 5-Year review

Yes, for the right buyer. If you have $50,000 or more that you genuinely will not need for five years and want a guaranteed yield from a top-tier carrier, this is a clean option. The rate is competitive and the penalty structure is more forgiving than most 5-year MYGAs. It is less attractive if you might need principal access before maturity, want index-linked upside, or are shopping for lifetime income features.

The main reason to choose this product is a combination of yield certainty and a shorter-than-average surrender sting. A locked 5.40% over five years removes reinvestment risk entirely — no annual decisions, no market watching. The secondary reason is the penalty structure: knowing that your worst-case early exit costs 3% (plus any MVA) rather than 7% or 8% makes this a more comfortable commitment for buyers who are reasonably confident but not certain they will hold to maturity. For someone rolling a CD or maturing bond into a tax-deferred vehicle, the arithmetic on the Oak Advantage 5-Year is simple and the carrier quality is high.

I think this contract is best suited for conservative savers in their 50s, 60s, or early 70s who have money earmarked for retirement but want some breathing room in the penalty structure if circumstances change. It works in both qualified accounts (IRA, 403(b) rollover) and non-qualified accounts — the tax deferral is most valuable on non-qualified money where CD interest would otherwise be taxable annually. It is not a good fit for someone who expects to need principal before maturity, wants market participation, or is primarily shopping for income distribution features.

You are buying a contractual promise from Midland National to credit a fixed rate to your account for five years. There are no indices to track, no crediting strategies to choose among, and no rider mechanics to evaluate. The entire value proposition comes down to three things: the rate level, the surrender terms, and the carrier's financial strength. That is a much simpler evaluation exercise than an FIA or variable annuity. The relevant comparisons are other 5-year MYGAs and bank CDs of similar duration — the annuity wins on tax deferral, and on this product, the penalty structure is unusually competitive.

Midland National credits a single fixed interest rate to your account for the entire five-year guarantee period. As of the brochure dated April 2, 2026, that rate was 5.40%. The rate is guaranteed and does not change with market conditions during the contract term. Interest compounds annually on a tax-deferred basis and is not taxed until you withdraw. At the end of the five-year period, Midland National will offer a renewal rate. At that renewal point — and for 30 days following the end of the initial guarantee period — you can surrender the contract penalty-free, move to a new term, or take distributions. Outside of that window, early access beyond the free-withdrawal provision triggers the surrender charge and MVA.

The nursing home confinement waiver is the most meaningful secondary feature on this contract. If you are confined to a qualifying nursing home for a required period during the surrender term, Midland National will waive surrender charges and the MVA on withdrawals. For buyers in their 60s and 70s — the natural market for this product — that provision addresses a realistic concern about locking money away for five years. It does not replace long-term care planning, but it is a practical safeguard for a mid-duration commitment.

The surrender schedule is one of the cleaner features on this product. At a flat 3% in every contract year — dropping to zero after year five — the Oak Advantage 5-Year is meaningfully more forgiving than the front-loaded 8% first-year charges common on competing 5-year MYGAs. That said, an MVA — Market Value Adjustment — also applies to surrenders beyond the free-withdrawal window. The MVA adjusts your effective exit penalty up or down based on interest rate movements since purchase. In a rising-rate environment, the MVA can add materially to the stated 3% charge, so the actual cost of early exit is not fully predictable.

Free withdrawals are limited to interest credited after year one. You are not getting a 10% of account value withdrawal provision — this is interest-only access, which is a real restriction if you need principal. Required minimum distributions attributable to this contract are available without surrender charges or MVA, which matters for IRA holders who are or will be taking RMDs during the five-year period.

There are no explicit annual fees on this contract. No base contract charge, no rider fee, and no spread mechanism that visibly reduces your credited rate. The rate quoted is the rate you earn. That is standard for MYGAs and is one of the structural advantages of this product type.

The real costs are the surrender charge and MVA, both of which apply to withdrawals beyond the free-withdrawal amount. The 3% flat charge is low by 5-year MYGA standards, but the MVA adds variable exit-cost risk that is worth understanding before committing. Additionally, the interest-only free-withdrawal provision means you should not view this as a product with flexible liquidity — your principal is largely inaccessible until maturity or a qualifying waiver event.

Legal Entity: Midland National Life Insurance Company

Parent: Sammons Financial Group

A.M. Best Rating: A+