Manhattan Life Premium Preferred — 5-year fixed annuity at 3.85%
- Locks in 3.85% for 5 years
- Open with $10,000 to $1,000,000
- Free withdrawals allowed for:
- 15% of your balance each year
Rates as of May 8, 2026
Projected balance
over 5 years
Compounded at 3.85% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $385 | $10,385 |
| 2 | $400 | $10,785 |
| 3 | $415 | $11,200 |
| 4 | $431 | $11,631 |
| 5 | $448 | $12,079 |
| Total earnings | $2,079 | $12,079 |
Free-withdrawal allowance: 15% / yr. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #161 of 171 (top is 6.35% — Mountain Life Alpine Horizon)
- Top 5-year CD
- 4.20% APY · $12,284 at maturity (taxed annually)
Same product, other terms
Other Premium Preferred terms from Manhattan Life
Projections shown for a $10,000 premium.
| Term | Rate | Projection | |
|---|---|---|---|
| 5-year | 3.85% | $12,079 | You're here |
| 7-year | 3.90% | $13,071 | View → |
If you withdraw early
Surrender charge schedule
Surrender charges apply to withdrawals beyond the free-withdrawal allowance during the contract term. The charge is a percentage of the amount withdrawn, decreasing each year. They exist because the carrier matches your premium against long-duration assets — early redemption forces them to unwind those positions.
| Contract year | Charge |
|---|---|
| Year 1 | 8.0% |
| Year 2 | 7.0% |
| Year 3 | 6.0% |
| Year 4 | 5.0% |
| Year 5 | 4.0% |
Contract terms
What else to know
Term
5 years guaranteed at 3.85% APY
Investment range
$10,000 – $1,000,000
Funding sources accepted
Roth Conversion (Partial), Roth Conversion (Full), Traditional IRA, Non-Qualified, Inherited IRA, IRA Rollover, IRA Transfer, SIMPLE IRA, IRA-Roth, SEP IRA, TSP
Owner age
0 to 84 years old
Free look period
30 days after policy issue to change your mind without penalty.
Death benefit
Full accumulated value passes to your beneficiary, no surrender charge.
Riders & waivers
- Death Benefit Waiver
- Return of Premium
Maturity
30-day window at the end of the term to withdraw, reinvest, or convert to guaranteed income via annuitization.
Tax treatment
Interest accumulates tax-deferred. Personal post-tax funds: only the interest is taxable on withdrawal. Withdrawals before age 59½ may be subject to a 10% IRS penalty.
Source: Manhattan Life contract brochure (download PDF). Anything you act on should be confirmed against the carrier's most recent filing.
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