Secure Growth 3-Year review

Yes, for the right use case. If you want a short-term, guaranteed-rate place to park money with principal protection and a credible carrier behind the contract, this does that job cleanly. It is less compelling if you are comparing it against the best-available 3-year MYGA rates on the open market — the standard-tier rate is solid but not the highest available, and the flat 7% surrender charge is less forgiving than step-down schedules offered by some competitors.

The main reason to pick this over a bank CD or a shorter deposit is the tax deferral and the Nationwide brand. For buyers who do not need to touch the money for three years and want to keep growth off their current-year tax return, the MYGA structure is genuinely useful. The immediate free-withdrawal provision also gives a measure of access that some contracts deny — helpful for buyers who want a safety valve without changing their overall plan.

I think Nationwide Secure Growth 3-Year works best for someone in their late 50s or early 60s who has a lump sum — perhaps from a CD rollover, a 401(k) distribution, or a home sale — that they do not need for three years and want to grow on a tax-deferred basis. It is well-suited to qualified money (IRA, rollover) as well as non-qualified funds. It is not a fit for someone who may need more than 10% of the account in any given year, or for someone shopping strictly on rate and willing to use a smaller carrier to get there.

You are buying a three-year insurance contract that credits a guaranteed interest rate and protects your principal. The annuity issuer, Nationwide Life Insurance Company, takes your premium, invests it in its general account, and agrees to credit a fixed rate for the full contract term. At the end of three years, you get back principal plus accumulated interest — with no stock market exposure and no cap-and-participation math. The rate you see on day one is the rate you earn through day 1,095. If the annuitant dies during the three-year term, beneficiaries receive the full current contract value — since this base version carries no market value adjustment, there is no MVA to net out of that death benefit.

The product credits a single guaranteed fixed rate for the entire three-year surrender period. There is no index, no participation rate, and no cap — just a flat yield applied to the contract value. Nationwide uses two pricing tiers: a standard rate for contracts below $100,000 and a higher enhanced rate for contracts at or above $100,000. As of rate sheets effective July 10, 2026, those rates are 3.60% and 4.00% respectively. After the initial three-year period, the rate resets annually — Nationwide sets a new rate each year, subject to a guaranteed floor of 0.50% (2.55% in New York). That floor is the contractual minimum the carrier can ever credit, but practically speaking, renewal rates track market conditions.

The nursing home and terminal illness waiver is the secondary feature that deserves attention. There is no additional cost for it — it is built into the contract for eligible policyholders up to age 80 — and it allows the surrender charge to be waived if the owner is confined to a nursing home (for 30+ consecutive days after the first contract anniversary) or diagnosed with a terminal illness (12-month life expectancy or less) after the first year. This base version of the contract has no market value adjustment to begin with, so the waiver's practical value is entirely against the 7% CDSC. That is not a unique feature in the MYGA market, but getting it for free from a major carrier on a $10,000 minimum contract is meaningful. The catch: it is not available in California or New York.

The surrender period is three years. Early withdrawals above the free amount are subject to a contingent deferred sales charge — 7% in year one, 7% in year two, 7% in year three. There is no step-down in this schedule, which means the penalty is just as high going into year three as it is on day two.

This base version of the contract does not carry a market value adjustment. Nationwide also offers Secure Growth 3-Year with an optional MVA feature, priced at different rates, in some states — but the product reviewed here has none. That means the 7% CDSC described above is the complete early-exit cost during the surrender period; there is no additional rate-driven adjustment layered on top of it.

The free-withdrawal provision is more generous than it first appears: 10% of contract value is available each year starting at issue — not after year one. That means a $100,000 contract has $10,000 accessible from the beginning without any surrender charge. Required minimum distribution amounts, along with death benefit and annuitization distributions, are also fully exempt from the CDSC, which matters for IRA money. A withdrawal taken before age 59½ may still trigger the standard 10% federal early-withdrawal tax penalty, separate from any contract-level charge.

There is no base contract fee, and no annual administrative fee. There is no income rider fee because there is no income rider. The only explicit cost structure is the 7% surrender charge described above — this base version carries no market value adjustment. Nationwide also offers longer 4-, 5-, and 7-year CDSC/guarantee-period options under the broader Secure Growth product family, priced separately from this 3-year contract.

The optional Return of Purchase Payment Rider — a separate SKU from the base contract reviewed here — is worth noting: it guarantees a return of principal, less any prior withdrawals, during the CDSC period, in exchange for a lower credited interest rate. That tradeoff rarely makes sense unless someone purchases the annuity with significant uncertainty about needing the full amount back early.

Legal Entity: Nationwide Life Insurance Company

Parent: Nationwide Mutual Insurance Company

A.M. Best Rating: A+