Nationwide Secure Growth review

Yes, for the right buyer. This is a good annuity for someone who wants a guaranteed fixed rate with principal protection and values the flexibility to choose their guarantee period. It is less appealing for someone who is rate-shopping purely for the highest yield, because the front-loaded surrender charges and the trade-off on the Return of Purchase Payment Rider may make competing MYGAs more attractive on a pure rate basis.

The main reason to buy Nationwide Secure Growth is a guaranteed rate of return with principal protection from a highly rated carrier. The secondary reason is the flexibility to choose a 3, 4, 5, or 7-year guarantee period within a single product, which means the buyer can match the annuity to their specific time horizon. In real life, this is the type of annuity someone buys when they want something that behaves like a CD but with tax-deferred growth, a guaranteed minimum floor, and the backing of a Fortune 100 insurance company. It is not exciting, and that is the point.

I think Nationwide Secure Growth is best for someone who wants a predictable, guaranteed return with no market risk and values the ability to select a guarantee period that matches their timeline. It is also a reasonable fit for someone who wants the optional Return of Purchase Payment Rider as a safety net — knowing they can get their full premium back on a full surrender even during the charge period, in exchange for a lower interest rate. It is less attractive for someone who wants the absolute highest MYGA rate in the market, needs full liquidity before the guarantee period ends, or wants any form of index-linked or market-linked upside.

You are not buying market exposure or index-linked growth. You are buying a guaranteed fixed rate of return for a defined period, backed by a principal guarantee from one of the strongest insurance carriers in the country. The real value here is certainty — you know exactly what rate you are earning, for exactly how long, with your principal shielded from market risk. That simplicity is the product's core appeal. This SKU also carries no market value adjustment, so at death — or on any CDSC-free withdrawal — owners and beneficiaries receive the full current contract value with no MVA calculation involved.

Nationwide Secure Growth pays a guaranteed fixed interest rate for the selected guarantee period — 3, 4, 5, or 7 years. The rate is set at the time of purchase and does not change during the initial guarantee period. Rates are tiered by premium amount, with deposits of $100,000 or more typically receiving a higher rate. Interest compounds on a tax-deferred basis.

After the initial guarantee period ends, the contract renews annually at a rate declared by Nationwide, subject to a minimum floor of 0.50% (2.55% in New York). The renewal rate is not guaranteed to match the initial rate, which is an important distinction. Buyers should think of this as a product that guarantees a specific rate for a specific window, not indefinitely.

The most meaningful secondary feature is the optional Return of Purchase Payment option. It guarantees that the buyer can receive their full purchase payment back on a full surrender during the CDSC period, even if the contract value would otherwise be reduced by surrender charges. Note that this is filed as a separate SKU with its own, lower credited rate — similar to the separately filed "with MVA" variant — rather than a box you check on the standard contract reviewed here. For conservative buyers who want that kind of safety net, it has real value.

The nursing home and terminal illness waivers are also worth noting. Both are available at no additional cost for annuitants issued at age 80 or younger, though they are not available in California or New York. They allow access to contract value without CDSC in qualifying situations. The death benefit returns the full current contract value to beneficiaries at the annuitant's death; because this SKU carries no MVA, there is no market value adjustment to reduce that payout in the first place.

This annuity allows free withdrawals of up to 10% of contract value immediately and each year thereafter. Amounts above that are subject to the CDSC schedule, which varies by guarantee period: **7-year: 7/7/7/6/5/4/3%; 5-year: 7/7/6/5/4%; 4-year: 7/7/7/6%; 3-year: 7/7/7%**. This SKU carries no market value adjustment — a separately filed "with MVA" variant is available at a different rate band for buyers who want that feature.

The front-loaded nature of the schedule is the main concern. The 3-, 4-, and 7-year options all start with three consecutive years at 7%; the 5-year option now steps down after two years at 7% (to 6% in year three). For the 3-year option, the full surrender charge is 7% for the entire guarantee period — there is no year where the charge steps down before the period ends. RMDs, death benefit distributions, and annuitization distributions are all available free of CDSC, which is important for IRA holders and beneficiaries alike (a 10% federal early-withdrawal tax penalty may still apply to taxable withdrawals taken before age 59½). The nursing home and terminal illness waivers provide additional access in qualifying situations, though not in California or New York. The contract can be annuitized after 2 years in most states (1 year in Florida and New York), or once the annuitant reaches age 95.

There are no annual fees. The only explicit cost is the surrender charge schedule; this SKU does not carry an MVA (a separately filed "with MVA" variant does, at a different rate). If the buyer wants the Return of Purchase Payment option, that is a separately filed SKU with its own lower credited rate rather than a fee added to this contract.

The less obvious tradeoffs are structural. The guaranteed rate only applies to the initial period — renewal rates may be lower. The front-loaded CDSC schedule is aggressive on the 3-, 4-, and 7-year options (the 5-year option is now somewhat less front-loaded, stepping down after two years at 7% instead of three). And choosing the separately filed Return of Purchase Payment SKU, while a nice safety net, means accepting a lower rate of return than this standard contract. Buyers should weigh the certainty of the guaranteed rate against what they might earn from competing MYGAs with lower surrender charges or higher rates.

Nationwide Secure Growth is issued by Nationwide Life and Annuity Insurance Company or Nationwide Life Insurance Company, based in Columbus, Ohio. Nationwide is a Fortune 100 mutual company founded in 1926 with $322.3 billion in total assets. The company carries ratings of A+ from S&P, A+ from AM Best (second highest of 16 rating levels), and A1 from Moody's. Nationwide is one of the largest and most diversified insurance and financial services companies in the United States.