Secure Growth 5-Year review

It depends primarily on two factors: how much you're depositing and whether you understand the MVA. For buyers putting in $100,000 or more, the 4.80% guaranteed rate (as of the brochure date) is competitive within the 5-year MYGA peer group, and the A+ carrier rating adds genuine peace of mind. For buyers below $100,000, 4.05% is reasonable but you'll want to compare it carefully against other short-term MYGAs before committing. The MVA is the product's most honest limitation — it is not the hidden fee some consumers fear, but it does mean a forced early exit could cost more or less than the printed surrender schedule suggests, depending on which way rates have moved.

The main draw is the combination of Nationwide's carrier quality and a clean 5-year fixed rate. Buyers who care about counterparty risk — and in the MYGA space they should — get one of the highest A.M. Best ratings available. The immediate free-withdrawal provision is a meaningful convenience feature: most MYGAs delay free access until year two, so the ability to take up to 10% in contract year one is a structural advantage. RMD handling is also clean — those distributions are not subject to surrender charges or MVA, which matters for IRA holders who are already taking required distributions.

I think Secure Growth 5-Year is best suited for someone in or near retirement who wants to park a meaningful sum — ideally $100,000 or more — in a guaranteed-rate vehicle for five years and has no realistic expectation of needing that principal before maturity. It works well inside an IRA or non-qualified account. It is less compelling for someone under $100,000 who can find a higher rate elsewhere, someone who wants liquidity above the 10% annual amount, or anyone who would be rattled by an MVA calculation at exit. Buyers focused on lifetime income or index-linked growth potential are better served by a different product category entirely.

This is not a market-linked product. You are buying a contractual guarantee that Nationwide will credit a fixed interest rate to your principal for five years, and that principal itself is backed by Nationwide's general account. What you are not buying is flexibility — the tradeoff for that guaranteed rate is a real commitment to the five-year window. The "fixed annuity" structure means no upside from good markets, but also no participation in bad ones. The tax deferral is a genuine benefit over a taxable CD: interest compounds without annual tax drag until you withdraw. The product earns its keep as a predictable accumulation vehicle, not as an income or growth vehicle.

Nationwide credits a fixed interest rate to your contract value for the full five-year guarantee period. The rate is tiered by deposit size: as of the brochure date, 4.05% annually for contracts below $100,000 and 4.80% annually for contracts at $100,000 or above. That 75-basis-point premium at the $100K tier is meaningful over five years — roughly a $4,000 difference on a $100,000 deposit at maturity. After the initial guarantee period ends, the contract transitions to annual rate renewals set by Nationwide, with a minimum guaranteed floor of 0.50% (or 2.55% in New York). Policyholders in New York benefit from a higher floor rate, which provides more downside protection on renewal rates. The rate at renewal is at Nationwide's discretion within that floor, which introduces some uncertainty once the initial guarantee period ends.

The nursing home waiver and terminal illness waiver are the most practically meaningful secondary features here, and they're included at no additional cost. If the owner becomes confined to a nursing home or receives a terminal illness diagnosis (subject to the eligibility terms — maximum issue age 80, not available in California or New York), Nationwide will waive the surrender charge and MVA on withdrawals. For a 5-year MYGA, this is a real safety valve. The average buyer for a product like this is in or near retirement, and the possibility of needing care during a five-year window is not remote. The fact that these waivers come without an extra fee makes them genuinely valuable rather than a fee-offset exercise.

The Secure Growth 5-Year allows you to withdraw up to 10% of contract value per contract year without any surrender charge — and that 10% window opens immediately, not after the first anniversary. That is a structural improvement over most MYGAs in this duration band. The free-withdrawal amount is noncumulative, meaning unused percentages do not carry over to the next year.

For anything above the 10% free amount, the surrender schedule applies: 7%, 7%, 7%, 6%, 5% for contract years one through five. That is a steeper front-end than some shorter MYGAs and notably flat through the first three years.

The MVA is the more important liquidity caveat. A market value adjustment — which fluctuates based on interest rate movements — applies to any withdrawal subject to surrender charges. If rates have risen since you purchased, the MVA will increase your effective exit cost beyond the printed schedule. If rates have fallen, it could reduce the cost or even work in your favor. This bidirectional effect is why the MVA needs to be understood clearly before purchase rather than discovered at exit. RMDs attributable to the contract and death distributions are exempt from both the surrender charge and MVA, which provides meaningful relief for qualified account holders.

There is no base contract fee here, which keeps the net credited rate identical to the stated rate — a genuine advantage over products that apply an annual administrative charge. There is no rider fee because no rider is available.

The optional Return of Purchase Payment rider can be added at no explicit fee, but Nationwide notes it reduces the credited interest rate. That rider is also not available when the MVA option is elected. For most buyers, the MVA election is the default structure, which makes the ROPP rider effectively unavailable in that setup. The fee picture is clean on the surface, but the MVA is a form of contingent cost that is easy to underestimate. It is also worth noting that this product has an optional MVA, meaning depending on state and contract terms, a non-MVA version may be available — buyers should confirm with their agent which version they're being offered.

Legal Entity: Nationwide Life Insurance Company

Parent: Nationwide Mutual Insurance Company

A.M. Best Rating: A+