Secure Growth 7-Year review

Yes, for the right buyer. If you want a guaranteed fixed rate for seven years from a large, financially strong carrier, this is a solid choice. It is less appealing if you might need access to more than 10% of the contract value in any given year, if you are uncomfortable with a market value adjustment on early surrenders, or if your primary goal is lifetime income rather than principal protection.

The main reason to buy Secure Growth 7-Year is certainty. The declared rate is set at contract issue and does not change for the full seven-year period. There are no caps to follow, no participation rates to track, and no crediting-method decisions to revisit at renewal. A buyer who simply wants to know what their money will earn — and who does not need regular access to the full balance — will find the structure very clean. The secondary reason is the Nationwide name: A+ from A.M. Best is genuine financial strength, and that matters when you are handing over a lump sum for seven years.

I think this product is best for pre-retirees or retirees in roughly the 50–75 age range who have a bucket of money they do not need to touch for seven years and want to earn more than a bank CD without taking market risk. It works well for non-qualified funds where the tax-deferral on credited interest is meaningful, and it fits IRA money as long as RMD obligations are manageable — the contract exempts RMDs from surrender charges and the MVA. It is a poor fit for anyone whose planning horizon is shorter, who is counting on this money for near-term spending, or who wants the contract to eventually generate a guaranteed income stream.

You are buying a multi-year guaranteed annuity — essentially a fixed-rate contract that behaves like a CD inside an insurance wrapper. The insurance carrier takes your premium, credits a declared interest rate each year, and guarantees that rate for the full seven-year surrender period. In exchange, you give up the right to withdraw the full balance without cost during those seven years. The return is entirely predictable; the downside is illiquidity above the free-withdrawal amount. That trade-off is the core of the product, and it is not a complicated one to evaluate.

Nationwide declares a fixed credited rate at contract issue — 4.10% annually for premiums under $100,000 and 4.35% annually for premiums of $100,000 or more as of January 2025, per the Wink rate report. That rate applies to 100% of your contract value and compounds annually for the full seven years. It does not fluctuate with market conditions once set. The minimum guaranteed floor of 0.50% (2.55% in New York) ensures the rate can never fall below that threshold for the life of the contract, though in practice the declared rate at issue is locked and does not reset annually the way a bank CD might on rollover. The tiered pricing at $100,000 is worth knowing: if your premium is close to that threshold, rounding up may be worth considering.

The two no-cost waivers — nursing home and terminal illness — are the most meaningful secondary feature here. Most MYGAs charge nothing extra for these, but the fact that they exist matters for a product asking for a seven-year commitment. If you are confined to a nursing home or diagnosed with a terminal illness after the first contract year, Nationwide will waive surrender charges and the MVA, giving full access to the contract value. That is a real backstop. The caveat is that these waivers are not available in California or New York, and the maximum eligibility age is 80. Buyers in those states or above that age should factor the absence of this protection into their decision.

Secure Growth 7-Year allows a 10% free withdrawal of contract value each year, available immediately from the contract issue date. That provision is noncumulative — unused free-withdrawal amounts do not carry forward. Withdrawals above that threshold are subject to the contingent deferred sales charge (CDSC) and, if the MVA is elected, to a market value adjustment.

The MVA — market value adjustment — is worth understanding before electing it. An MVA means your surrender penalty on non-free withdrawals can be higher or lower than the stated CDSC depending on how interest rates have moved since your contract was issued. If rates have risen, the MVA works against you; if rates have fallen, it can reduce your effective penalty. The MVA is optional rather than mandatory on this product, which is less common and gives buyers a meaningful choice.

RMDs are fully exempt from the CDSC and MVA, which is important for qualified accounts. Annuitization is available after two years (one year in Florida and New York), and distributions at the annuitant's death also receive full surrender charge and MVA waivers.

There is no base contract fee on Secure Growth 7-Year — no annual administrative charge, no mortality expense, nothing beyond what the declared rate already reflects. That is one of the genuine advantages of a plain MYGA over a more complex product.

The main economic tradeoff is in the surrender schedule: 7%, 7%, 7%, 6%, 5%, 4%, 3% across the seven contract years. The front-loaded structure means years one through three carry the highest penalty. Anyone who thinks there is a meaningful chance they will need more than 10% of the contract value in the first three years should think carefully before committing. The optional Return of Purchase Payment Rider can reduce this concern — it lets you walk away without a loss on your original premium — but it does so by reducing the credited interest rate, which is itself a fee in the form of foregone yield. Whether that trade is worth making depends on how much liquidity insurance you value.

Legal Entity: Nationwide Life Insurance Company

Parent: Nationwide Mutual Insurance Company

A.M. Best Rating: A+

Nationwide is a large mutual insurance company with a well-established annuity business. The A+ rating from A.M. Best reflects strong financial stability — a meaningful credential when evaluating a seven-year commitment. The Secure Growth product line has been in distribution for several years and is available through commission-based advisors.