Secure Term Choice Fixed Annuity II 3-Year review

Yes, for the right buyer. If your goal is a short, predictable, guaranteed rate from a carrier you can count on, this is one of the cleanest options in the 3-year MYGA market. It is less compelling for anyone who may need significant liquidity before the term ends — the flat 7% surrender charge is unforgiving — and it is not a fit for buyers seeking income, index exposure, or a premium bonus.

The primary reason is certainty. New York Life locks your rate for three years, period — no moving parts, no participation rates, no index caps to follow. The secondary reason is carrier quality. A++ from A.M. Best is the highest rating in the industry, and New York Life is one of a small handful of carriers that holds it. For a saver whose first question is "will this money actually be there in three years," that carrier quality closes the conversation fast. The return-of-premium benefit at the second anniversary provides additional peace of mind for anyone with residual concern about accessing their principal.

I think this annuity is best for a conservative saver — often in the 55-75 age range — who is parking a portion of safe-money assets for a defined three-year window and places high weight on carrier creditworthiness. It works well in both qualified and non-qualified accounts, and the broad issue age range through 90 makes it accessible for inherited IRA rollovers and older non-qualified savers alike. It is less suitable for someone who wants flexible access to principal before the term ends, expects to need income distributions, or is focused primarily on maximizing credited rate above all other factors.

You are buying a three-year insurance contract with a locked interest rate and the obligation to leave your money in place until the term expires. There is no index, no variable component, and no rider complexity. The entire value proposition is rate certainty plus the insolvency protection that comes from parking funds with one of the most capitalized life insurers in the United States. The fixed rate — which varies by premium tier, with larger deposits earning higher rates — is the only return mechanism. New York Life also embeds a return-of-premium guarantee at no additional cost: starting at the second policy anniversary, the company guarantees you will receive at least your premiums paid minus prior withdrawals, regardless of surrender activity at that point. For most buyers this will be academic, but it is a genuine backstop that distinguishes this product from a bare MYGA.

The fixed account credits a guaranteed annual rate for the full three-year term. As of early May 2026, New York Life was quoting rates in a tiered structure that ranges from 4.00% for the minimum deposit range up to 4.65% for deposits at the highest tier — with the $100,000-and-above bracket earning the top rate. Those rates are guaranteed through the end of the surrender period; there is no renewal risk during the initial term. After the three years are up, the contract enters a renewal period and the rate adjusts to whatever New York Life is offering at that time, which is not guaranteed in advance. Buyers who are rate-shopping for the long haul should factor in renewal-rate uncertainty when comparing against a longer-duration MYGA.

The return-of-premium feature is the most meaningful distinguishing element beyond the carrier itself. For most 3-year MYGA holders it will never be triggered, but its presence matters structurally: it signals that New York Life is willing to backstop principal return on its own balance sheet even in an edge scenario. For older buyers or those placing non-qualified funds they may want to access around the second anniversary, the benefit adds a real safety net. There is also a tiered free-withdrawal provision worth noting — deposits of $100,000 or more earn access to the greater of 10% of account value or 100% of interest earned without surrender charges, which is a meaningfully more flexible provision than the flat 10% of account value that applies to smaller deposits.

This is a 3-year commitment. Free withdrawals are available immediately — 10% of account value for premiums between $5,000 and $99,999, or the greater of 10% of account value or 100% of interest earned for premiums of $100,000 or more. A minimum of $2,000 must remain in the account after any withdrawal.

Amounts above the free-withdrawal threshold are subject to a flat 7% surrender charge in every contract year. Unlike most MYGAs that reduce the charge as the term progresses, this one holds at 7% across all three years — there is no step-down. That means someone who needs principal in year two faces the same penalty as in year one. There is no market value adjustment on this product, which is a positive distinction — your surrender penalty is fixed and predictable rather than floating with interest rate movements.

Required minimum distributions are accommodated without surrender charges, which is important for qualified money. The return-of-premium benefit becomes available at the second policy anniversary for issue ages 0-85 and is available immediately for ages 86-90.

There are no base contract fees on this product. No income rider fees, no annual wrap charges. The only explicit optional cost is the Performance-triggered Interest Opportunity Rider, which reduces the initial fixed rate by 0.15% annually (Option 1) or 0.25% annually (Option 2) in exchange for additional interest-crediting opportunities in certain scenarios. For most buyers, the plain fixed rate without this rider will be the better choice unless the specifics of that rider's crediting logic are well understood.

The tradeoffs are structural rather than fee-driven. The locked rate cannot benefit from rising rates during the term. The minimum guaranteed rate is 0.05% annually, which is very low relative to what competing MYGAs often disclose. And the flat 7% surrender charge without any step-down is less forgiving than many peers in the 3-5 year band.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++