Secure Growth 3-Year with MVA review

Yes, with a caveat. It is a good annuity for someone who has a short time horizon, wants certainty, and will not need the money during the surrender period. The rate is reasonable for a 3-year commitment, the carrier is well-rated, and the free-withdrawal terms are better than average. The caveat is the MVA: if interest rates have risen since you bought this contract and you need to surrender early, you can lose more than the stated 7% charge would suggest. If that risk is acceptable, this is a solid short-term vehicle.

The main reason to buy this annuity is tax-deferred growth at a locked guaranteed rate without any fee drag. For someone rolling over a CD or a short-duration bond position, it offers a familiar structure with a slightly better after-tax result because interest compounds without an annual tax event. The Nationwide brand and A+ carrier rating also matter to conservative buyers who want to know the institution behind the guarantee is sound. A secondary reason is the nursing home and terminal illness waivers — if something changes during the term, there is a built-in emergency exit that avoids surrender charges in specific circumstances.

I think this annuity is best for someone in or near retirement who has a defined short-term savings goal — say, bridging to Social Security, parking proceeds from a home sale, or completing a short-duration CD ladder — and wants tax deferral and carrier-backed guarantees. The $10,000 minimum is accessible, and the immediate 10% free-withdrawal window provides some flexibility from day one. It is less appealing for someone who might need more than 10% of the balance during the term, anyone who anticipates interest rates falling significantly (MVA can add value on surrender in that scenario, but that upside does not change the underlying risk profile), or anyone looking for growth tied to market indices.

You are buying a guaranteed interest rate for exactly three years, with a legally binding promise that Nationwide will credit that rate and return your principal at the end of the term. This is not an investment. There are no market-linked returns, no index crediting, and no variable outcomes. The product is closer in design to a bank CD than to a stock-market-linked contract — the main differences are tax treatment (interest is deferred until you withdraw), insurance wrapper (Nationwide's general account obligation rather than FDIC), and the MVA feature that can make early surrenders more or less expensive depending on the interest rate environment when you leave.

The Secure Growth 3-Year with MVA credits a fixed interest rate that is locked at contract issue. The rate applies for the full 3-year guarantee period and compounds annually. Nationwide offers a two-tier rate structure: contracts below $100,000 receive 3.85% and contracts at $100,000 or more receive 4.10%, as of the October 2025 rate sheet. After the initial guarantee period, the rate renews annually, and you have the right to surrender the contract without charges at that point if the renewed rate does not meet your expectations. The guaranteed minimum floor is 0.50% (2.55% in New York), which sets the absolute floor even in the unlikely event Nationwide's renewal rate reaches its regulatory minimum.

The MVA — Market Value Adjustment — is what distinguishes this product from a plain fixed annuity. On any surrender or withdrawal above the free amount during the surrender period, Nationwide applies an adjustment based on the change in a specified interest rate index between purchase and withdrawal. If rates have risen since you bought in, the MVA is negative, reducing your surrender value beyond the stated charge. If rates have fallen, the MVA is positive, partially offsetting the surrender charge. This is a meaningful risk for anyone who might need early access to more than the 10% free withdrawal.

The nursing home and terminal illness waivers are the most meaningful secondary feature here. If the annuitant is confined to a nursing home or diagnosed with a terminal illness after the first contract year, Nationwide waives the surrender charge and MVA — allowing full withdrawal without the typical early-exit costs. This is not unique to Nationwide, but it is a real benefit for buyers who are worried about what happens if health needs change during the term. Note that these waivers are not available in California or New York, and there is a maximum eligibility age of 80, so they are most valuable for buyers in their 60s and 70s who want a safety valve for a specific scenario.

This is a 3-year commitment. The full surrender charge applies in all three years — there is no staircase relief where year 2 or year 3 costs less. That 7% flat schedule is on the steeper end for a 3-year product; many peers in this duration band use something closer to 5-6% or step down in the later years.

The 10% free-withdrawal provision is available from the first contract year and is noncumulative — you cannot carry unused amounts forward. RMDs attributable to this contract are fully exempt from both the surrender charge and the MVA, which makes this a reasonable option inside a qualified account. Death distributions also avoid the MVA, so beneficiaries receive the full contract value at the annuitant's death. Outside of these exempt categories, plan to leave the principal untouched for three years.

There are no annual base contract fees. No income rider fee because there is no income rider. The Optional Return of Purchase Payment Rider is available, but it comes at a cost — if elected, the credited interest rate is lower (the spec does not disclose the exact rate reduction). This rider is mutually exclusive with the MVA, so buyers who want the return-of-premium safety net can elect it, but they give up the MVA feature and accept a lower guaranteed rate. That tradeoff is worth modeling before deciding.

The bigger structural tradeoff is the MVA itself. Many buyers see the 7% surrender charge and assume that is the worst case. It is not — in a rising-rate environment, the MVA can add additional cost on top of the stated charge. On the other side, in a falling-rate environment the MVA can reduce or fully offset the surrender charge. The direction is uncertain at purchase, which means buyers should underwrite the worst case rather than the average.

Legal Entity: Nationwide Life Insurance Company

Parent: Nationwide Mutual Insurance Company

A.M. Best Rating: A+

Nationwide is one of the larger mutual insurance groups in the United States, and the A+ A.M. Best rating places it in the top tier of carrier financial strength. For a short-term product like this one, where the entire value proposition depends on the carrier fulfilling a 3-year interest-rate promise, that financial strength matters.