Nationwide New Heights Select vs a 5-Year MYGA: Surrender Schedule, Rider Fees and Fixed Rate (2026)
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Product terms and rider charges checked on nationwide.com · Updated
Head to head · Nationwide New Heights Select 9 vs a 5-year MYGA · compiled October 18, 2026 from the dated sources below
Short answer: New Heights does not publish a fixed rate: caps come from a state rate sheet and can change. A MYGA states its rate up front. The trade is a longer surrender schedule and optional rider fees for index-linked upside.
| Nationwide New Heights Select 9 | 5-year MYGA (best A-rated we track) | |
|---|---|---|
| Rate | Index-linked; caps and participation set by state rate sheet and not listed here | 5.95% fixed for 5 years on $100,000 and up (Delaware Life Pinnacle Plus, AM Best A-, negative outlook 7/31/2026; effective 10/6/2026; rate sheet) |
| Surrender period | 9 years; California 8.15%, 7.85%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, 0% (checked 9/24/2026) | 5-year term; surrender charges vary by carrier and state |
| Fees | No annual contract fee; optional income rider 0.95% a year, or 1.10% with 30% bonus | No rider fee on a plain MYGA |
| AM Best | A+ (Nationwide) | A-, negative outlook (7/31/2026) |
Sources: Nationwide New Heights Select 9 and optional riders, checked 9/24/2026. Current MYGA rates: dated MYGA rate table.
Nationwide New Heights Select is a fixed indexed annuity sold in 8-, 9- and 12-year versions with a $25,000 minimum (Select 9), no annual contract fee, and optional riders: a lifetime income rider at 0.95% a year, the same rider with a 30% bonus at 1.10%, and enhanced death benefit riders. Caps are set by state rate sheet and change; they are not listed here.
Contract minimums (checked October 4, 2026): guaranteed minimum cap, minimum participation rate and maximum spread are on the contract specifications page and not publicly disclosed; bailout: none found in public documents. These contractual minimums are backed by the claims-paying ability of Nationwide Life and Annuity Insurance Company. To see how this floor compares with other fixed indexed annuities, read guaranteed minimum caps across FIAs (October 2026).
Correction (September 24, 2026): this page used to describe New Heights as a pure-accumulation annuity with no income rider and quoted caps of "5.5-6.5% typical." Nationwide offers optional lifetime income and death benefit riders on New Heights Select. I could not verify the cap range, so I removed it.
Also see: Nationwide Peak 10 Review
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
What are Nationwide New Heights Select 9 surrender charges in 2026? New Heights Select 9 has a 9-year surrender period that varies by state: California charges run 8.15%, 7.85%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, then 0%, and many other states run 9%, 9%, 9%, 9%, 8%, 7%, 6%, 5%, 4%, then 0% (as of 2026-09-24).
New Heights Select 9 at a glance
| Feature | Detail |
|---|---|
| Minimum premium | $25,000 single purchase payment (qualified and nonqualified) |
| Issue ages | Annuitant up to 80; owner any age |
| Surrender period | 9 years; schedule varies by state |
| California surrender charges | 8.15%, 7.85%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, 0% |
| Most other states | 9%, 9%, 9%, 9%, 8%, 7%, 6%, 5%, 4%, 0% (or 9%, 8.9%, 7.9%, 7%, 6%, 5%, 4%, 3%, 2%, 0% in a second state group) |
| Indexes | Seven, including the S&P 500, Nasdaq-100 Volatility Control 10%, SG Macro Compass and Goldman Sachs New Horizons |
| Annual contract or admin fee | None |
Optional riders and what they cost
| Rider | Annual charge | What it does |
|---|---|---|
| High Point 365 Select Lifetime Income Rider | 0.95% | Lifetime income; minimum income benefit value grows at 1% compound for 10 years or until first lifetime withdrawal |
| High Point 365 Select Lifetime Income Rider with Bonus | 1.10% | 30% minimum income benefit value bonus; grows at 10% compound for 12 years or until first lifetime withdrawal |
| High Point Select Enhanced Death Benefit | 0.50% (Select 8, 9); 0.55% (Select 12) | Enhanced death benefit |
| Enhanced Death Benefit with Purchase Payment Bonus | 0.80% (Select 8); 0.95% (Select 9, 12) | Purchase payment bonus of 3% / 4% / 5% (Select 8 / 9 / 12) |
The income benefit base is not cash. It is only used to calculate lifetime withdrawals. A 1.10% charge on a base that grows faster than your account value can take a larger share of the account every year.
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New Heights vs a MYGA
New Heights credits interest from index performance, with no loss in down years and an upside limited by caps or participation rates that reset. A MYGA pays one fixed rate for the term. MYGA benchmark: insurers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs (public carrier rate sheets, October 14, 2026); rates vary by state, premium and carrier. If you want accumulation you can predict, compare both before committing to a 9-year surrender schedule.
Current MYGA rates · Annuity vs CD
Sources
- Nationwide New Heights Select 9 page
- Nationwide New Heights Select optional riders
- public carrier rate sheets (MYGA benchmark), October 14, 2026
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with Nationwide. Figures are copied from the sources named, as of the dates shown; confirm current terms and rates with the issuer before you buy. MYGA figures are market benchmarks, not quotes.
Frequently asked questions
Does Nationwide New Heights have an income rider?
Yes, optionally. Nationwide lists the High Point 365 Select Lifetime Income Rider (0.95% a year) and the same rider with a 30% bonus (1.10% a year), both calculated on the income benefit base and deducted quarterly from the contract value. Only one rider can be added, at issue.
What are the New Heights Select surrender charges?
For New Heights Select 9 they run 9 years and vary by state. In California: 8.15%, 7.85%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, then 0%. In many other states: 9%, 9%, 9%, 9%, 8%, 7%, 6%, 5%, 4%, then 0%.
What is the minimum premium?
$25,000 single purchase payment for New Heights Select 9, qualified or nonqualified. The annuitant can be up to age 80.
What are New Heights cap rates?
Nationwide publishes current caps and participation rates in state-specific rate sheets. I have not re-verified them, so I don’t list them here. Ask for the current rate sheet for your state and the minimum guaranteed rates in the contract.
Are there annual fees?
Nationwide says there are no annual contract or administration fees. Rider charges apply only if you add a rider.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
A fixed indexed annuity ties up your money for 7 to 15 years. Caps reset every year and can drop, and an income rider's benefit base isn't cash. Have someone independent look at it before you lock retirement savings into a multi-year contract.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.
Renewal rate risk: FIA caps can change after year one
The cap you are quoted on a fixed indexed annuity is not locked like a mortgage rate. It covers the first crediting period, usually one year. At each contract anniversary the carrier can reset it anywhere above the contract minimum.
It works much like a high-yield savings rate: the bank can lower that next month, and the carrier can lower your cap next year. The reason is how caps are funded. The carrier puts most of your premium in bonds and uses part of the yield to buy index options. When bond yields fall, that option budget shrinks and caps get cut. Caps were cut across the industry in the 2010-2021 low-rate years and came back after 2022.
The minimum cap is the only guarantee
Every FIA states a minimum guaranteed cap in the contract. Of the 99 FIAs we found that publish one, 86 let the insurer cut the cap to 1% or less, and some go as low as 0.25%. A few set 2% to 3%, and several insurers publish no number at all (FIA minimum cap data, checked October 4, 2026). Read that number before you sign.
Questions to ask before you buy
- "What is the minimum guaranteed cap in this contract?"
- "Can you show me this product's in-force renewal-rate history for the last 5 years?"
- "What cap are contracts sold in 2020, 2018 and 2015 getting today?"
- "If the cap drops to the minimum, what would I realistically earn each year?"
If the agent can't answer questions 2 and 3 with documents, you don't have enough information to buy yet.
Riders and fees, in plain terms
This is where most buyers get confused, and where a bad agent can hide things.
Riders (optional add-ons)
- Income rider (GLWB, guaranteed lifetime withdrawal benefit). You pay extra each year, typically 0.95% to 1.50% of the benefit base, and the carrier guarantees a set income for life even if your account value runs to zero. The "benefit base" or "PIV" the rider tracks is not cash you can withdraw. It only matters if you turn the income on. If you never do, you paid the fee for nothing.
- Death benefit rider. You pay extra so your heirs get more than the cash value. Useful if leaving money matters to you; skip it if not.
- Confinement/LTC rider. Doubles your withdrawal allowance if you are in a nursing home or qualifying long-term care. Often free or cheap, and usually worth keeping.
- Bonus. Not a rider; it is built into the contract. A one-time boost of 5% to 25% to your account value or PIV. The carrier pays for it with lower caps, a longer surrender period, or a recapture if you leave early. Read the recapture schedule.
Fees that cut into your return
- Rider fees. An annual charge for any rider you elected, usually 0.95% to 1.50% a year.
- Spread or asset fee (some products). Subtracted from the index return before it is credited. A 1.5% spread turns a 10% index return into 8.5%.
- Surrender charge. A penalty for taking more than the free-withdrawal amount during the surrender period (typically 5 to 14 years). It starts high, around 10% to 13%, and steps down each year.
- Market value adjustment (MVA). An extra adjustment on top of the surrender charge if rates have moved since you bought. If rates went up, an early withdrawal costs more.
- No front-end load. Unlike many mutual funds, you pay no upfront commission. The carrier pays the agent out of its own margin, not out of your premium.
You only pay rider fees on riders you elected. A pure accumulation annuity with no income rider does not carry the 1%+ a year fee. Check which riders are on your contract before assuming fees apply.
Quick FAQ
Q: Is this annuity right for me?
A: That depends on your age, your time horizon and whether you'll want income later. It fits best if you're 55 to 75, have a 10 to 15 year horizon, won't need the principal before then, and want either growth (no income rider) or guaranteed lifetime income (with the rider). It's the wrong fit if you're over 75, might need the money within 5 years, or want pure growth and don't need downside protection.
Q: How does an annuity actually pay out?
A: Three ways. You can surrender and take the cash, with surrender charges if it's early. You can annuitize and convert the balance into a lifetime income stream (often required at maturity). Or you can turn on the income rider for guaranteed lifetime withdrawals that keep coming even after the account value hits zero.
Q: What happens if the carrier goes out of business?
A: State guaranty associations cover annuity owners, typically up to $250,000 to $300,000 per owner per carrier, depending on the state. Check your state's limit. The carrier's AM Best rating is a good read on failure risk, and A-rated carriers have very low historical default rates.
Q: Can I lose money in this annuity?
A: Not from a market drop. Your principal is protected from market loss, and index credits never go below 0%. You can still lose money to early surrender charges, rider fees or a market value adjustment.
Q: How much commission does the agent make?
A: Typically 4% to 8% of premium on fixed indexed annuities, paid by the carrier, not out of your money. Higher-commission products often have longer surrender periods or lower caps. The commission doesn't change what you pay, but its size is a decent clue to how complex the product is.
Q: Should I roll over my 401(k) into an annuity?
A: Sometimes, but often not. It can make sense if you want guaranteed income, you're risk-averse, you have other liquid savings for emergencies and you're 55+. It usually doesn't if you're under 50, need liquidity, already have plenty of pension or Social Security income, or would be putting all your retirement money into one product. Get an independent second opinion before rolling over six figures.
Q: Why are caps so different across products?
A: Every product gives something up to pay for its cap. A higher cap usually comes with a smaller bonus, a longer surrender period, a lower-rated carrier or a different index strategy. A 10%+ cap typically means a B-rated carrier and a 14-year surrender. A 6% cap typically means an A+ carrier and a shorter surrender.
Q: How are annuity earnings taxed?
A: Growth inside the contract is tax-deferred, so there's no tax until you withdraw. Withdrawals are taxed as ordinary income, not capital gains. For non-qualified annuities, only the gain portion is taxable. For qualified (IRA) annuities, the entire withdrawal is taxable. There's a 10% IRS penalty on withdrawals before age 59½.