Why it earned this rating
Our assessment
Protective Smart Saver 4-Year (NY) is a clean, no-frills MYGA for buyers who want a locked rate for four years and live in New York. The rate banding structure is competitive within its peer group, the absence of an MVA simplifies the exit math, and the Return of Premium feature is a meaningful safety net at no added cost. What holds it to a Good Option rather than a stronger rating is the 9% initial surrender charge — high for a 4-year product — and geographic restriction to a single state.
The short version
This is a 4-year guaranteed-rate annuity for New York residents who want CD-like certainty with better tax treatment. It is not fancy. You put in a minimum of $25,000, earn a fixed interest rate for four years, and get your money back at maturity. The rate tiers reward larger deposits — $50,000 unlocks a better rate, and $100,000 or more earns the best available — and the no-MVA design means surrender charges are the only variable if you need out early. The free-withdrawal provision starts immediately, so you are not completely locked in from day one.
Key facts
The full review
Is Protective Smart Saver 4-Year (NY) a Good Annuity?
Yes, for the right buyer. If you are a New York resident with $25,000 or more of short-term savings that you want to lock into a guaranteed rate for four years, this is a solid, low-complexity product backed by an A+ carrier. It is a poor fit for anyone outside New York, anyone who may need a large withdrawal before the four years are up, or anyone whose main goal is income or index-linked growth.
Why Someone Would Buy This Annuity
The rational case for this product is straightforward: a New York resident who has already maxed other tax-advantaged vehicles, wants a known return for a known period, and does not want the complexity of index credits or the overhead of a living benefit rider. The three-tier rate banding gives higher earners a small reward for larger deposits, and the no-MVA design removes one of the more confusing risks in the MYGA market. Protective's A+ rating adds some extra confidence for conservative buyers who care about carrier strength.
Who This Annuity Is Best For
I think this product fits best for New York residents in or approaching retirement who have a defined-purpose pool of money — perhaps rolling over a maturing CD or a fixed annuity from another carrier — and want a clean 4-year commitment with no surprises. It works equally well inside a qualified account (IRA, Roth IRA, 401(k)) or a non-qualified contract, and the issue-age ceiling of 85 means older buyers are not shut out. It is a poor fit for people who prioritize liquidity above a 10% annual amount or who need index-linked upside.
What You're Really Buying Here
You are buying a contractual promise from Protective Life and Annuity Insurance Company that your money will earn a set interest rate for four years, no more and no less. Unlike a bank CD, the interest grows tax-deferred until you take a distribution, which can matter if you are in a higher bracket today and expect a lower rate in retirement. There are no indices, no caps, no participation rates, and no embedded fees to decode — just a single locked rate for the duration. What you give up is any chance of earning more if rates rise, and access to more than 10% per year without a surrender charge.
How the Core Feature Works
Smart Saver 4-Year (NY) credits a fixed interest rate that is locked in at issue and guaranteed for the full four-year term. The rate depends on which premium band you fall into: the base band below $50,000, the mid-band at $50,000 or more, and the top band at $100,000 or more. As of the brochure date of 3/31/2026, those current rates are 3.95%, 4.20%, and 4.45% respectively. These are snapshot figures — rates reset with each new contract issued — so the rate you see today is specific to when you fund the contract.
Return of Premium is automatically included at no additional charge. That means if you surrender the contract and the surrender charges would otherwise reduce your value below what you put in, Protective guarantees you at least your original premium back. This is a meaningful feature, not a standard giveaway — it sets a real floor under the worst-case surrender outcome.
Why the Secondary Feature Matters
The no-MVA design is the secondary feature worth paying attention to. Many MYGAs include a market value adjustment, which means the surrender penalty you actually pay can be higher or lower than the stated surrender charge depending on where interest rates have moved since you bought the contract. If rates have risen significantly, an MVA can make the effective exit cost worse than the schedule shows. Protective's Smart Saver 4-Year (NY) does not have an MVA — the surrender charge table is the complete picture of what you pay to exit early. That makes the liquidity math predictable and removes a variable that confuses a lot of buyers.
Liquidity and Surrender Schedule
You can withdraw up to 10% of account value in any contract year without a surrender charge, and this applies from the start of the contract — not after a waiting year. For a $25,000 contract, that is $2,500 per year in accessible cash; for a $100,000 contract, $10,000. Amounts above that are subject to the surrender schedule below.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
The 9% first-year charge is notable — it is on the steeper side for a 4-year product. In year one, a large unplanned withdrawal above the free amount will cost you. By year four, the charge has declined to 6%, which is more typical for this duration. No MVA applies, so these percentages are what you actually pay.
Two surrender-charge waivers are available: a nursing home waiver and an unemployment waiver. Required minimum distributions from the account are also addressed in the product — the contract allows RMD-friendly plan types including IRA, Roth IRA, 401(k), and others.
Fees and Tradeoffs
There are no base contract fees and no rider fees on this product. The rate you are quoted is the rate you earn — there is no spread or asset-based charge eroding it over time. That simplicity is one of the genuine strengths of a plain MYGA design.
The real tradeoffs are structural. You are committing to a fixed rate for four years: if market rates rise meaningfully after you lock in, you will earn less than what a new contract might offer. The surrender schedule limits large withdrawals to 10% annually without cost, so this should not be used for money with any chance of being needed in full before maturity. And the New York-only availability means this is simply not an option for buyers in other states.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 4 years |
| Issue Ages | 0-85 |
| Minimum Premium | $25,000 |
| Crediting Methods | Fixed Rate |
| Free Withdrawal | 10% of Account Value immediately |
| MGSV | 1.20% guaranteed annual return |
| Death Benefit | Full Account Value |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Approved in New York only. Not approved in AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY. |
Carrier snapshot
Legal Entity: Protective Life and Annuity Insurance Company
Parent: Protective Life Insurance Corporation
A.M. Best Rating: A+
Final take
Smart Saver 4-Year (NY) is a good product for what it is: a no-MVA, fixed-rate, short-term annuity backed by a financially strong carrier and available to New York buyers. The inclusion of Return of Premium at no cost, the immediate free-withdrawal provision, and the absence of complex features make it easy to evaluate and easy to explain.
It is not the right product for someone outside New York, for someone who might need liquidity above 10% in year one, or for anyone hoping for index-linked upside. The 9% first-year surrender charge is the main thing I would flag for someone considering it — that is a real constraint that buyers should understand before funding. But within its intended use case — a clean 4-year principal protection vehicle for a New York resident — this does what it promises.