Nationwide New Heights Select 8 review

In exchange, every crediting strategy on the contract caps, participates in, or spreads the index return rather than paying it in full, and the premium is committed for 8 years.

The contract offers 32 crediting accounts, but we don't have a cap we can quote here as a single, comparable annual S&P 500 point-to-point figure. That can mean several things: the menu may not include a plain point-to-point account at all, an account that names the S&P 500 may carry a fee, a spread, or a reduced participation rate that makes its cap not directly comparable, or a plain point-to-point account may exist and our rate data simply doesn't carry a cap figure for it. Each account's own terms, where we have them, are in the table below.

A fixed indexed annuity works by measuring an index's return over a set period and applying a crediting formula to decide how much of it you keep. A cap sets a ceiling on the credit; a participation rate credits a percentage of the index's gain; a spread subtracts a fixed amount before crediting the rest. None of it is direct market ownership, and none of these formulas can produce a negative credit — the worst a crediting period can do is pay zero. The guarantee behind all of it is a contractual obligation of Nationwide Life Insurance Company, backed by the company's own reserves, not by the FDIC and not by any bank.

Beyond the point-to-point accounts, this menu also includes Other strategy. Those measure the index a different way than a simple annual cap does, so we're not going to summarize the mechanics here — the account table below states each one's own terms as ARW carries them.

The carrier's brochure states these premium bonus terms: "Purchase payment bonus added to contract value and the Return of Purchase Payment Guarantee amount; applies ONLY if the optional Nationwide High Point Select Enhanced Death Benefit Rider with Purchase Payment Bonus is elected (one of four mutually exclusive optional riders — not automatic). Vests over 9 years: 0.39% (yr 1), 0.75% (yr 2), 1.14% (yr 3), 1.50% (yr 4), 1.89% (yr 5), 2.25% (yr 6), 2.67% (yr 7), 3.00% (yr 8+, fully vested; brochure separately shows a 10-year, 13%-per-step vesting schedule reaching 100% at year 8+, so exact step timing is medium confidence). Unvested bonus recoupment is waived for free withdrawals. A separate 30% benefit-base-only bonus applies if the optional High Point 365 Select with Bonus lifetime income rider is elected instead (see riders.income.benefitBaseBonus)." We are quoting that language rather than summarizing it, because a bonus like this can be conditioned on electing a separate optional rider, restricted to a premium band or a state, or otherwise not automatic — read the condition in the text itself rather than assuming this contract gets it by default. Where a bonus does apply, it commonly comes with its own vesting schedule or a clawback on early surrender as well. Per the carrier's brochure as of August 7, 2026; confirm current terms in your own illustration.

The contract allows 7% out each year without a surrender charge. Beyond that allowance, a withdrawal during the surrender period is reduced by the charge for that contract year — on top of whatever the index accounts did or didn't earn.

The surrender charge starts at 9% in year 1 and steps down to 2% in year 8; the full schedule is in the table below. Those percentages come off the amount you withdraw, which is why an early exit can return less than you put in even in a year the index accounts credited something.

This contract also carries a market value adjustment. On top of the surrender charge, an early withdrawal is adjusted up or down depending on how interest rates have moved since the contract was issued — if rates have risen, the adjustment works against you. It applies only to withdrawals above the free amount during the surrender period.

The High Point Select Enhanced Death Benefit carries a charge of 0.50% , and it is optional — declining it removes both the benefit and the charge. That charge buys the rider's benefit; it does not raise the credit on any index account.

The real tradeoffs on a contract like this are the crediting caps and the surrender period, not a visible fee line. Gains come out as ordinary income rather than capital gains, and a withdrawal before age 59½ generally carries a 10% IRS penalty on top of the tax. Neither is a reason to avoid the product; both are reasons it suits money you have already decided not to touch.

The buyer this suits already wants downside protection more than upside, and is comfortable getting a share of an index's gain in exchange for never taking its losses for 8 years. Protection is the product being sold; full market participation is not.

It is the wrong contract for anyone who might need the principal early, for a buyer who wants uncapped market exposure, and for money that is already an emergency reserve. Under age 59½, the 10% IRS penalty on early withdrawals is an additional reason to look at this as long-term money.

Every guarantee in this contract is only as good as Nationwide Life Insurance Company, which currently holds an A.M. Best financial strength rating of A+. An annuity is not FDIC insured; the backstop is the carrier's own balance sheet, with state guaranty association coverage behind it at limits that vary by state.

The contract is filed in 48 states, not including New York — New York files its own annuity products, so a New York resident is shopping a different and much smaller shelf.