Why it earned this rating
Our assessment
New York Life's A++ financial strength is a genuine differentiator in an industry where carrier quality varies significantly, and the 3-year commitment is short enough to suit buyers who want near-term certainty without overextending. The product loses some ground on access because it is limited to Fidelity-contracted agents and only available in California and New York, which narrows the pool considerably. The MVA adds a layer of uncertainty to early surrender that a comparable no-MVA MYGA avoids, and the $50,000 floor puts it out of reach for smaller accounts.
The short version
This is a 3-year guaranteed-rate annuity sold exclusively through Fidelity in California and New York. The core trade is straightforward: you lock a fixed rate for three years, your principal is protected, and New York Life — one of a handful of carriers still holding an A++ rating — stands behind the promise. The catch is the MVA. Unlike a MYGA with a flat surrender charge, this product includes a market value adjustment on early surrenders, so the penalty you'd actually face isn't fixed — it moves with interest rates. For buyers who intend to hold to maturity, that distinction is irrelevant. For buyers who might exit early, it matters.
Key facts
The full review
Is New York Life Secure Term MVA Fixed Annuity IV Fidelity 3-Year a Good Annuity?
Yes, for a narrow but well-defined buyer. If you are in California or New York, you have at least $50,000 committed for three years, you work through Fidelity, and carrier financial strength matters to you — this is a good annuity. The A++ rating from A.M. Best is not marketing language; it reflects a mutual company structure and balance sheet that genuinely separate New York Life from most of its competitors. The 3-year surrender period is short enough that the commitment shouldn't feel oppressive.
The honest caveat is the MVA. Most buyers in this category are comparing this against other MYGAs or short-term CDs, and a flat-penalty MYGA is easier to understand when thinking about early exit. The MVA introduces rate-environment risk on top of the surrender charge, which is a real tradeoff worth understanding before signing.
Why Someone Would Buy This Annuity
The primary reason someone picks this over a comparable no-MVA MYGA or CD is New York Life's financial strength. In a 3-year commitment, most people aren't worried about carrier solvency — but some buyers, particularly those closer to or in retirement, place real value on institutional credibility. New York Life's A++ rating, backed by its mutual structure, is a meaningful signal for that segment.
The secondary reason is the Fidelity relationship. Many Fidelity clients prefer to consolidate their financial picture through one firm, and this product makes that possible for annuity exposure. The $100,000 premium band unlocks the same 4.70% rate as the $1.5M band, which means most serious buyers are working at the same rate.
Who This Annuity Is Best For
I think this product is best for a specific type of buyer: someone in California or New York, typically pre-retirement or early retirement, who already uses Fidelity as their primary custodian and has $50,000 or more to commit for three years without needing access. The carrier's A++ rating matters most to buyers who are moving meaningful money and consider counterparty quality a real factor — not just a checkbox.
It is less suited for someone who: lives outside CA or NY, works with a different custodian, has less than $50,000 available, wants a no-MVA design for cleaner exit math, or might need access to more than 10% of the account value before maturity.
What You're Really Buying Here
You are buying a 3-year guaranteed interest rate from one of the most financially sound insurance companies in the United States. Your premium earns a fixed rate for the full term — 4.45% for the standard $50,000-$99,999 band, 4.70% for $100,000 and above (rates as of May 2026 and subject to change at issue). The interest compounds inside a tax-deferred insurance wrapper until you withdraw or annuitize, which is the core difference from a taxable CD.
The product does not have index exposure, riders, or participation mechanics. What you see is what you get: a declared rate, locked for three years, with a death benefit equal to the full account value and a free-withdrawal provision of 10% per year. The one complexity is the market value adjustment, which is not a fee — it is a mechanism that adjusts the surrender value based on how interest rates have moved since you purchased. If rates have risen since your purchase date, an early surrender will cost more than the stated 7% charge suggests. If rates have fallen, it may cost less.
How the Core Feature Works
The Secure Term MVA IV is a fixed-rate annuity with a single crediting approach: a declared fixed rate applied to your account value for the full surrender period. New York Life guarantees the stated rate for the entire 3-year term — it does not reset annually or fluctuate with market conditions. At the end of year three, you can renew, withdraw, or move the money without any surrender charge.
The rate you receive depends on premium size at issue. At $50,000-$99,999 the rate is 4.45%. At $100,000 and above — including the $1.5M tier — the rate is 4.70%. There is no further premium-band differentiation above $100,000, which means a $100,000 deposit and a $500,000 deposit both earn 4.70%.
The "IV" in the product name indicates this is the fourth iteration of the Secure Term MVA series. The Fidelity version carries a higher minimum ($50,000 versus lower on other channels) but is otherwise structurally consistent with the carrier's broader MYGA offering.
Why the Secondary Feature Matters
The most important secondary feature here is the waiver package on early surrender. While the MVA makes normal early exit unpredictable, New York Life provides hardship waivers for nursing home confinement, terminal illness, and disability. These matter more than they might seem on a 3-year product, because even short-duration annuities can trap buyers who experience a health event mid-contract. Knowing these exits are available without the standard surrender charge adds a meaningful layer of flexibility for buyers who are older or have health concerns.
The 10% free-withdrawal provision, available immediately from issue (with a $2,000 account minimum required to remain), also gives buyers modest ongoing access without triggering the MVA or surrender charge. For an account funded at $100,000, that is $10,000 per year available without penalty — enough to cover modest liquidity needs if they arise.
Liquidity and Surrender Schedule
This is a 3-year commitment, and the surrender charge structure is flat: 7% in all three years. That is a higher charge than many 3-year MYGAs carry, which typically step down or carry 5-6% in the first year. That alone deserves attention in a side-by-side comparison.
More importantly, the MVA is layered on top of the surrender charge. The Market Value Adjustment — the "MVA" in the product name — is a formula-driven adjustment that adds or subtracts from the surrender value based on the movement of a reference interest rate (typically tied to a Treasury index) between your purchase date and your withdrawal date. In a rising rate environment, the MVA works against you: your surrender value would be reduced beyond the 7% charge. In a falling rate environment, it works in your favor. The key point is that you cannot know in advance how large the MVA impact will be — that depends on conditions at the time of exit.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 7% |
| 2 | 7% |
| 3 | 7% |
The standard surrender charge exemptions — nursing home, terminal illness, and disability — apply without the MVA. Required minimum distributions are not explicitly mentioned in the available materials as surrendercharge-exempt; RMD treatment should be confirmed directly with New York Life or Fidelity before purchase if RMDs are a factor.
Fees and Tradeoffs
There are no stated base contract fees, rider fees, or mortality and expense charges on this product. That is appropriate for a MYGA — fees would directly erode the declared rate, and the absence of them is a feature, not a gap.
The implicit costs are structural. The 7% flat surrender charge is higher than many comparable 3-year fixed annuities. The MVA makes early exit costs difficult to forecast. And because this product is channel-restricted to Fidelity in CA and NY, it is harder to comparison shop in context — the rate and terms you see here cannot be referenced against a broader network of agents or independent producers offering competing products.
The $50,000 minimum is also a tradeoff relative to other MYGAs that start at $10,000 or $25,000. It concentrates this product among buyers with more meaningful assets to deploy, which is the point — but it excludes buyers who might otherwise find the carrier quality compelling at a lower entry.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | Inherited IRA: 0-85, NQ: 0-85, Q: 18-85 |
| Minimum Premium | $50,000 |
| Crediting Methods | Fixed Account |
| Current Rate (as of May 2026) | 4.45% ($50,000-$99,999) / 4.70% ($100,000+) |
| Free Withdrawal | 10% of Account Value immediately. Must leave $2,000 in account. |
| MGSV | 0.05% guaranteed annual return |
| Death Benefit | Full Account Value |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | CA and NY only. Must be contracted through Fidelity to sell this product. |
Carrier snapshot
Legal Entity: New York Life Insurance and Annuity Corporation
Parent: New York Life Insurance Company
A.M. Best Rating: A++
New York Life Insurance Company is a mutual company — meaning it has no shareholders — and has carried A.M. Best's highest rating, A++, for an extended run. The issuing entity here is New York Life Insurance and Annuity Corporation, a wholly owned subsidiary. Among carriers in the MYGA space, very few hold an A++ rating; most top-rated competitors are A+ at best. For buyers who treat carrier financial strength as a selection criterion rather than an afterthought, this is a meaningful differentiator.
Final take
The New York Life Secure Term MVA Fixed Annuity IV Fidelity 3-Year is a well-constructed short-duration MYGA for a specific, narrow audience. If you are in California or New York, have $50,000 or more to commit for three full years, work through Fidelity, and place real weight on carrier financial strength, this is a clean and credible option. The rate is competitive for a 3-year term from an A++ carrier, and the hardship waiver package adds meaningful protection.
The main reason to hesitate is the MVA. If you are even moderately likely to exit before maturity — because rates rise and you want to capture better terms elsewhere, or because your financial situation changes — the MVA introduces uncertainty that a flat-charge MYGA does not. In a rising rate environment, the MVA penalty on top of the 7% surrender charge could be materially painful. This is not a product to buy with any expectation of early liquidity beyond the 10% free withdrawal.
For buyers who fit the profile and genuinely intend to hold to maturity, the combination of New York Life's A++ backing, a 3-year commitment, and a competitive rate makes this a good short-duration option. For buyers who don't fit the Fidelity channel or who want cleaner early-exit terms, there are comparable MYGAs without MVAs worth examining side by side.