Why it earned this rating
Our assessment
Nationwide Secure Growth 3-Year is a clean, no-frills MYGA from one of the most recognized insurance brands in the country. The immediate 10% free withdrawal, A+ carrier rating, and no-cost nursing home waiver give it real advantages over simpler short-term competitors. What keeps it at Good rather than Strong is the flat 7% surrender schedule and the MVA exposure — two factors that matter if anything changes before year three ends.
The short version
This is a 3-year guaranteed-rate fixed annuity for people who want a CD-alternative with tax deferral and principal protection. The pitch is simple: lock in a rate for three years, collect a guaranteed return, and walk away at the end with no penalty. Nationwide's A+ financial strength rating from A.M. Best adds credibility, and the product is straightforward enough that there is very little to misunderstand. The main thing to know going in is that surrendering early costs more than it would with a stepped schedule, and the market value adjustment means the actual cost of an early exit can fluctuate.
Key facts
The full review
Is Nationwide Secure Growth 3-Year a Good Annuity?
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.
Why Someone Would Buy This Annuity
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.
Who This Annuity Is Best For
I think 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.
What You're Really Buying Here
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.
How the Core Feature Works
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 the brochure date, those rates were 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.
Why the Secondary Feature Matters
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 — and it allows surrender charges and MVA 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. 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.
Liquidity and Surrender Schedule
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.
A market value adjustment (MVA) can also apply to amounts subject to the CDSC. The MVA adjusts the surrender value up or down based on changes in interest rates since the contract was issued. If rates have risen, the MVA works against the surrendering policyholder, potentially increasing the effective exit cost above the stated 7%. If rates have fallen, it can work in your favor. The practical point is that real exit costs during the surrender period are less predictable than the 7% number implies.
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 penalty or MVA exposure. RMDs are also fully exempt from CDSC and MVA, which matters for IRA money.
Fees and Tradeoffs
There is no base contract fee. There is no income rider fee because there is no income rider. The only explicit cost structure is the surrender charge and MVA described above.
The optional Return of Purchase Payment rider is worth noting — it allows the owner to elect a return of original premium at surrender (rather than current contract value minus charges), but it reduces the credited interest rate. That tradeoff rarely makes sense unless someone purchases the annuity with significant uncertainty about needing the full amount back early.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | Owner: 0–100; Annuitant: 0–90 |
| Minimum Premium | $10,000 |
| Crediting Methods | Fixed interest rate |
| Free Withdrawal | 10% of contract value per year, available immediately from contract issue; noncumulative; RMDs exempt from CDSC and MVA |
| MGSV | 0.50% guaranteed minimum floor rate on premiums (2.55% in New York) |
| Death Benefit | Return of full contract value at time of annuitant's death; MVA waived at death |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Variations approved in CA and NY. Nursing home and terminal illness waivers not available in CA or NY. Minimum guarantee rate is 2.55% in New York. In California, CDSC is called a surrender charge. Annuitization available after 1 year in Florida and New York (2 years elsewhere). |
Carrier snapshot
Legal Entity: Nationwide Life Insurance Company
Parent: Nationwide Mutual Insurance Company
A.M. Best Rating: A+
Final take
Secure Growth 3-Year is a fit for buyers who want a simple, short-commitment MYGA backed by a recognizable carrier. The guaranteed rate, immediate free withdrawal, and no-cost waiver riders give it a clean value proposition. The flat 7% surrender schedule and MVA exposure are real limitations — they make early exit more expensive and less predictable than step-down alternatives. If you are comparing this against the highest-yield 3-year MYGAs on the market, Nationwide's rate is competitive but probably not the leader. If you value the brand, the carrier strength, and the straightforward structure, this is a reasonable choice for short-term guaranteed money.