Nationwide Secure Growth Fixed Annuity – Reliable Growth and Principal Protection
Nationwide Secure Growth Fixed Annuity – Reliable Growth and Principal Protection
At Diversified Insurance Brokers, we help clients build retirement strategies centered around security, stability, and long-term peace of mind. The Nationwide Secure Growth Fixed Annuity, issued by Nationwide Life Insurance Company, is a declared-rate fixed annuity designed for individuals who want guaranteed interest earnings, full principal protection, and a straightforward path toward income planning without exposing their savings to stock market volatility. In today’s environment — where equity markets can shift rapidly and bond yields fluctuate with interest rate policy — many retirees and pre-retirees are searching for predictability. The Secure Growth provides that predictability by locking in a declared rate for a selected guarantee period with no index exposure, no participation rates, and no caps to calculate. For a carrier with AM Best A+ (Superior) ratings and mutual ownership structure, it is one of the cleaner, simpler fixed annuity designs available to conservative retirement savers. Two structural features set it apart from most competing MYGAs: the no-cost nursing home and terminal illness waivers built into every contract, and the optional Return of Purchase Payment Rider that protects principal even on early surrender — without charging a separate rider fee.
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Nationwide Secure Growth Fixed Annuity: Key Product Features at a Glance
| Product Feature | Details |
|---|---|
| Issuing Carrier | Nationwide Life Insurance Company. Columbus, Ohio. Subsidiary of Nationwide Mutual Insurance Company. AM Best: A+ (Superior), 2nd highest of 13 rating categories. Mutual ownership — no outside shareholders. Not FDIC insured. All guarantees backed by claims-paying ability of Nationwide Life Insurance Company. |
| Product Type | Single-premium deferred fixed annuity with declared interest rate. No market exposure. No index links. No participation rates, caps, or spreads. Tax-deferred growth. Income available through annuitization. Rate banding applies — premium amounts earn different declared rates; top band: $100,000–$1,000,000. Confirm the rate for your specific premium amount before application. |
| Guarantee Periods | 1-year, 3-year, 5-year, and 7-year guarantee periods. The 5-year guarantee period is only available with the 5-year CDSC option; the 7-year guarantee period is only available with the 7-year CDSC option. Rate locked at issue for the full guarantee period. After the guarantee period, a penalty-free window allows full surrender, renewal at the new declared rate, or repositioning. |
| Minimum Premium | $10,000. Single premium only. Maximum annuitant issue age: 90. No maximum contract owner age. Eligible for qualified and non-qualified funding. |
| Free Withdrawal Provision | Up to 10% of contract value per year, non-cumulative, beginning from the first contract year. RMD withdrawals from qualified accounts allowed without surrender penalties. Excess withdrawals above 10% are subject to CDSC and MVA (where applicable). |
| Return of Purchase Payment (ROP) Rider | Optional. No separate rider fee, but electing this rider results in a lower declared interest rate than the non-ROP version. Guarantees the return of principal minus previous withdrawals and applicable state premium taxes when the entire contract value is surrendered during the CDSC period. Critically: the CDSC is deducted from interest earned, NOT from principal — meaning the original premium is protected even on early surrender. This rider specifically addresses the scenario where a buyer needs to surrender before the CDSC period ends: they will receive their principal back intact, net of prior withdrawals. |
| CDSC and Market Value Adjustment | Surrender charges (CDSC) apply to withdrawals above the 10% free amount during the guarantee period. MVA also applies on excess withdrawals where available — may be positive if rates have declined since issue, negative if rates have risen. MVA is not available in all states. The ROP Rider ensures the CDSC is deducted from interest, not principal. Surrender charges and MVA reach zero at the end of the guarantee period. |
| No-Cost Health Waivers | Both included at no additional cost and without reducing the declared interest rate. Nursing home waiver: full withdrawal available without surrender charges when confined to a qualifying nursing home for a continuous 90-day period. Terminal illness waiver: full withdrawal available without surrender charges upon diagnosis of qualifying terminal illness. Both waivers are built into every Secure Growth contract regardless of whether the ROP Rider is elected. |
| Death Benefit | Full contract value paid directly to named beneficiaries. No surrender charges applied at death. Proper beneficiary designation allows assets to bypass probate in most cases. Spousal continuation options may be available — confirm in the contract disclosure at application. |
| Tax Treatment | Interest grows tax-deferred until withdrawal. Non-qualified: LIFO — earnings distributed first, taxed as ordinary income; cost basis returned tax-free. Qualified accounts: full distributions taxed as ordinary income. Withdrawals before age 59½ subject to 10% IRS early withdrawal penalty. Not FDIC insured. Note: placing an annuity inside a qualified plan does not provide additional tax deferral beyond what the plan already provides — the value is the guaranteed rate, principal protection, and ROP Rider. |
The Return of Purchase Payment Rider: What It Solves and What It Costs
The Return of Purchase Payment Rider is the most structurally interesting feature of the Nationwide Secure Growth, and it is frequently misunderstood. Most fixed annuities — including MYGAs from other carriers — expose buyers to the possibility that an early surrender during the CDSC period will result in a net payout below the original premium. The mechanism is straightforward: surrender charges reduce the surrender value, and if the contract has been held for a short period with limited credited interest, the surrender charge percentage can exceed the interest earned, pushing the net payout below the original deposit. The Nationwide ROP Rider eliminates that specific outcome. If the contract is surrendered during the CDSC period, Nationwide guarantees that the surrender proceeds will equal at least the original premium minus prior withdrawals and state premium taxes. The CDSC is applied to interest earned — not to principal. The original premium is contractually protected even on early exit. The cost of this guarantee is not a separate annual fee — it is a lower declared interest rate on the ROP version versus the non-ROP Secure Growth at the same term and premium band. The trade-off is precise: higher yield with principal-at-risk on early surrender (non-ROP version), or lower yield with principal guaranteed even on early surrender (ROP version). Whether the protection is worth the yield reduction depends entirely on the buyer’s exit-risk tolerance. A buyer who is highly confident they will hold through the full guarantee period and never need early access is paying for protection they do not expect to use. A buyer who has any meaningful probability of needing to exit early — perhaps within the first 2–3 years — may find the principal guarantee worth the rate reduction.
Rate Banding: Confirming Your Specific Rate Before Application
The Nationwide Secure Growth is a premium-banded product, meaning the declared interest rate varies based on the amount of premium deposited. The top band — $100,000 to $1,000,000 — earns the highest declared rate for a given term. Lower premium amounts receive a lower declared rate for the same term length. This banding structure is common across fixed annuities and MYGAs but is frequently overlooked by buyers who compare products based on the headline top-band rate without checking whether that rate applies to their specific premium amount. Confirming the current declared rate for your exact premium tier and chosen guarantee period — including whether you are selecting the ROP or non-ROP version — is essential before any comparison with competing products. A side-by-side comparison of Nationwide Secure Growth rates against competing A-rated and A+-rated carriers at your specific premium and term is available from Diversified Insurance Brokers at no cost. For context on how the Secure Growth compares against other conservative fixed-rate options, reviewing current 5-year fixed annuity rates across the full market establishes the competitive benchmark, and our resource on fixed annuities vs. CDs walks through the tax deferral and yield comparison that often drives conservative savers from bank products into MYGAs.
Four Guarantee Periods: Matching Duration to Planning Horizon
The availability of 1-year, 3-year, 5-year, and 7-year guarantee periods gives the Secure Growth unusual term flexibility for a fixed annuity from an A+-rated carrier. Most competing MYGAs at this financial strength tier offer 3-, 5-, and 7-year terms; the 1-year option is less common and makes the Secure Growth accessible for buyers with very near-term planning horizons — a 12-month rate lock for capital that will fund a specific near-term use, or a bridge position while evaluating longer-term strategy. For most retirement accumulation buyers, the 5-year and 7-year terms are the most relevant choices. Longer terms generally carry higher declared rates because Nationwide can invest in longer-duration assets — but the rate spread between 5 and 7 years varies by interest rate environment. In a steep yield curve environment, the 7-year premium over the 5-year may be 40–60 basis points or more, justifying the extended surrender commitment. In a flat yield curve environment, extending by 2 years for a minimal rate difference may not be worthwhile. For buyers who want to create a laddered structure across multiple terms — allocating separately into a 3-year contract and a 7-year contract simultaneously, for example — our resource on laddering annuities covers the mechanics of how staggered maturities create rolling liquidity without requiring a single duration bet. For buyers repositioning from CDs, savings accounts, or maturing bonds, reviewing how to transfer a CD into an annuity covers the timing, tax implications, and process for coordinating incoming funds without IRS complications.
Tax Deferral, RMDs, and Comparing the Secure Growth to Taxable Alternatives
Interest credited inside the Nationwide Secure Growth compounds without annual taxation, which creates a meaningful compounding advantage over taxable CDs or savings accounts earning comparable nominal rates. A CD credits interest each year and that interest is taxable immediately — reducing the compounding base for subsequent years by the amount consumed in taxes. Inside the Secure Growth, 100% of each year’s credited interest stays in the contract and compounds in the next period. For buyers in higher marginal tax brackets, this deferral advantage is most pronounced. For buyers in lower tax brackets, the advantage narrows but remains present. Understanding how annuities are taxed — including LIFO treatment on non-qualified withdrawals and full ordinary income taxation on qualified account distributions — ensures income projections reflect net-of-tax outcomes rather than pre-tax illustrations. For qualified account buyers specifically, the Secure Growth’s RMD waiver is important: RMD withdrawals from tax-qualified accounts are allowed without surrender penalties, keeping the annuity accessible for buyers whose required distributions exceed the standard 10% annual free withdrawal. Buyers with larger qualified balances who are already taking significant required minimum distributions should model whether their annual RMD obligations will stay within the 10% free withdrawal limit across the chosen guarantee period — if not, the excess RMD amounts would normally trigger surrender charges. The RMD waiver removes that specific concern, making the Secure Growth more RMD-friendly than many competing products that lack this provision.
Pure Accumulation vs. Index-Linked Growth: Where the Secure Growth Fits
The Nationwide Secure Growth is a pure declared-rate product — it carries no index exposure, no caps, no spreads, and no participation rates. Buyers receive a contractually guaranteed interest rate that does not change during the guarantee period and does not depend on market performance. This simplicity is the product’s core value proposition. Comparing the Secure Growth to fixed indexed annuities reveals the fundamental trade-off: an FIA offers upside potential if the chosen index performs well, with a zero floor if the index declines, and potentially higher credited interest in strong market years — but at the cost of crediting uncertainty. The Secure Growth eliminates that uncertainty entirely: the rate is locked at issue, and that is exactly what will be credited, every year, until the guarantee period ends. For buyers who understand how a fixed indexed annuity works and have consciously evaluated the FIA trade-off, selecting a declared-rate product like the Secure Growth is not a conservative default — it is a deliberate planning choice that prioritizes certainty over upside optionality. Many clients use the Secure Growth as the guaranteed foundation of a retirement plan while maintaining separate assets in growth-oriented vehicles — allowing the annuity’s predictable crediting to anchor the income floor and the portfolio’s market exposure to function without being forced to fund withdrawals during downturns.
Income Transition, Beneficiaries, and What Happens at Maturity
The Nationwide Secure Growth is primarily an accumulation vehicle. It does not include a built-in income rider or GLWB structure. Income from the Secure Growth comes through annuitization — converting the contract value into a structured payment stream at maturity — or through systematic withdrawals within the 10% annual free provision during the guarantee period, or through full surrender at the end of the CDSC period and repositioning into an income-focused product. For buyers whose long-term plan involves transitioning from accumulation to guaranteed lifetime income, the Secure Growth serves as the accumulation phase of that strategy: build the base, then reposition into an income product when the time is right. The decision about which income structure to use — annuitization directly from the Secure Growth versus exchanging into a fixed indexed annuity with a built-in GLWB — involves meaningful structural differences. Reviewing the key differences between annuitizing and using an income rider on a separate product covers that comparison in full. At death, the full contract value passes to named beneficiaries without surrender charges, allowing proper beneficiary designation to facilitate efficient asset transfer outside of probate in most cases. Reviewing annuity beneficiary death benefits covers payout elections, spousal continuation options, and how inherited annuity proceeds are taxed for non-spouse beneficiaries. Ultimately, whether this product belongs in a retirement plan depends on whether the buyer’s objective for that capital is guaranteed, predictable accumulation rather than indexed growth potential or immediate income. Reviewing whether annuities are worth it in the context of the buyer’s full retirement picture — including other income sources, existing guaranteed assets, and time horizon — provides the decision framework for that allocation question.
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FAQs: Nationwide Secure Growth Fixed Annuity
Should I elect the Return of Purchase Payment Rider or the higher-rate version without it?
This is the central product decision for every Nationwide Secure Growth buyer, and it hinges on one question: what is the realistic probability that you will need to surrender the contract before the CDSC period ends? The ROP Rider costs no separate fee — its cost is embedded in a lower declared interest rate on the ROP version compared to the non-ROP version at the same term and premium band. The protection it provides is specific: if the contract is surrendered during the CDSC period, the original premium (minus prior withdrawals and state premium taxes) is guaranteed to be returned. The CDSC is deducted from interest earned, not from principal. Without the ROP Rider, a surrender during the early years of the CDSC period could produce a payout below the original premium — the surrender charge percentage could exceed the interest earned to that point, resulting in a net principal loss. The non-ROP version earns a higher declared rate. Over a full 5- or 7-year term, the additional interest from the higher rate compounds significantly. If you are highly confident you will hold through the full term — you have clear, separate emergency liquidity elsewhere, your planning horizon is well-defined, and no health events are anticipated — the higher-rate non-ROP version typically produces a better 10-year financial outcome. If there is any meaningful probability of early exit — health uncertainty, anticipated large expenses, unclear liquidity outside the annuity — the ROP Rider’s principal guarantee has real value. The no-cost nursing home and terminal illness waivers built into both versions provide full access in those specific circumstances, which reduces one of the most common early-exit scenarios. For buyers whose remaining concern is non-qualifying early exit events, the ROP decision comes down entirely to rate-yield-vs-protection trade-off analysis at your specific premium and term. Request illustrations of both versions at current rates before deciding.
How does the 1-year guarantee period actually work — and when does it make sense?
The 1-year Secure Growth is a genuine 12-month rate lock from an A+-rated carrier — a relatively uncommon structure in the fixed annuity market where most products start at 3-year minimums. The mechanics are identical to the longer terms: single premium, declared rate locked for 12 months, 10% annual free withdrawal, no-cost health waivers, and a renewal window at the end of the period. After 12 months, the buyer has a penalty-free window to surrender, renew at the new declared 1-year rate, or reposition to a different term or product. The 1-year term is appropriate in a specific set of circumstances. First, a buyer who is evaluating longer-term positioning but wants to hold capital in a guaranteed, tax-deferred vehicle for a year while completing their planning — a bridge position that earns competitive interest while the longer-term strategy is determined. Second, a buyer in a rising interest rate environment who expects rates to be materially higher in 12 months and wants to benefit from those higher rates at renewal rather than locking in today’s longer-term rate. Third, a buyer with a defined 12-month need — a property purchase, a large planned expense, a specific financial event — who wants to earn guaranteed interest on that capital without long-term commitment. The trade-off is that the 1-year declared rate will generally be lower than the 5-year or 7-year rate, reflecting the shorter investment duration available to Nationwide. In a steep yield curve environment, the 1-year rate may be meaningfully below the 5-year rate; in a flat or inverted yield curve, the spread may be minimal. Comparing current 5-year rates against the 1-year alternative at the time of application determines whether the short-term flexibility is worth the rate trade-off.
I’m 75 years old — does the Nationwide Secure Growth still make sense at my age?
The Nationwide Secure Growth has no maximum contract owner age and a maximum annuitant issue age of 90, so the product is technically available well into advanced retirement. Whether it makes strategic sense at age 75 depends on several planning variables. The primary consideration is whether a 5- or 7-year surrender period aligns with your planning horizon and liquidity needs at that age. At 75, a 7-year Secure Growth would reach maturity at age 82 — a period when health events, care needs, and estate considerations may be more likely. The no-cost nursing home (90+ consecutive days) and terminal illness waivers built into every Secure Growth contract address the most common access scenarios that arise during a longer commitment at advanced ages. If health events occur that qualify under those waivers, the full contract value is accessible without surrender charges. For planned income needs and required minimum distributions, the 10% annual free withdrawal covers most RMD obligations from a single annuity contract. Buyers at age 75 with larger qualified balances should specifically model whether their projected RMD obligations will remain within the 10% annual free withdrawal throughout the chosen term — RMD percentages increase with age, and a 7-year term from age 75 may see rising RMDs that approach or exceed the 10% threshold in later years. The RMD waiver on the Secure Growth removes the penalty concern but does not eliminate the planning step of verifying the withdrawal will stay within the free provision. For buyers at advanced ages who primarily need a shorter commitment, the 3-year Secure Growth may better balance competitive rates with a maturity horizon that aligns with near-term planning flexibility.
How does the Nationwide Secure Growth compare to Nationwide’s Peak 10 FIA?
The Secure Growth and the Nationwide Peak 10 Fixed Indexed Annuity serve fundamentally different buyer objectives, even though both are from Nationwide and both provide principal protection. The Secure Growth is a pure declared-rate product: the interest rate is locked at issue, credited regardless of market performance, and completely predictable for the full guarantee period. The Peak 10 is a 10-year FIA with index-linked crediting: the credited interest depends on index performance, subject to caps, participation rates, or other crediting method parameters that can vary at renewal. In a strong index year, the Peak 10 may credit significantly more interest than the Secure Growth. In a zero-credit year, the Peak 10 credits 0% while the Secure Growth continues crediting the declared rate. The Secure Growth eliminates variability entirely; the Peak 10 trades variability for upside potential while maintaining the zero floor. The choice between them is not simply about which product earns more — it is about whether the buyer wants certainty (Secure Growth) or market-linked potential within a protected structure (Peak 10). The Peak 10’s 10-year surrender period is also longer than the Secure Growth’s maximum 7-year term. Buyers who are comfortable with a 10-year commitment and want the possibility of higher credited interest in strong market environments should evaluate the Peak 10 seriously. Buyers who want a specific declared rate they can count on for planning purposes — particularly for income flooring, cash flow coordination, or conservative asset allocation — are better served by the Secure Growth.
What are my options at the end of the guarantee period?
At the end of the Secure Growth guarantee period, a penalty-free window opens during which the full contract value is accessible without CDSC or MVA. Buyers have several paths. First, surrender the full contract value — walk away with the accumulated principal and credited interest, with no charges and no MVA adjustment. Second, renew into a new Secure Growth guarantee period at the then-current declared rate — Nationwide will offer a new rate, the buyer has the option window to accept it, and the new term begins with a fresh CDSC schedule starting over. Third, execute a 1035 exchange into a different annuity product — a longer MYGA from a competing carrier if rates are higher elsewhere, a fixed indexed annuity if the buyer now wants market-linked growth potential, or an income-focused FIA with a built-in GLWB if the transition to guaranteed lifetime income is the next planning priority. Fourth, annuitize — convert the contract value into a structured lifetime or period-certain income stream through Nationwide’s available settlement options. The most common mistake is passive renewal — taking no action during the penalty-free window and allowing the contract to auto-renew at a potentially sub-competitive rate while the CDSC schedule resets for a new full term. Calendar the maturity date at contract issue. Request a cross-carrier rate comparison from Diversified Insurance Brokers 60 to 90 days before the window opens. Make an active decision about the best use of the accumulated value at that moment — which may or may not be staying with Nationwide Secure Growth. For buyers whose next step involves converting accumulated fixed annuity assets into guaranteed lifetime income, our resource on the annuitization vs. income rider decision covers the structural comparison that should precede that election.
About the Author:
Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, Group Health, Travel Medical and Evacuation Insurance, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, and contributions from his agency featured in Kiplinger and GoBankingRates— highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Explore More Annuity Options: Browse our complete guide to What Is a Fixed Annuity? — covering fixed annuities, MYGAs, laddering strategies & conservative growth options from 100+ carriers.
Last Reviewed: June 22, 2026 |
Reviewed by: Jason Stolz, CLTC, CRPC, DIA, CAA
Chief Underwriter, Diversified Insurance Brokers, Inc. | NPN: 20471358 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
Fact Checked by: Tonia Pettitt, CMIP©
Medicare Specialist, Diversified Insurance Brokers, Inc. | NPN: 14374308 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
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