American Century SPDA with Free Withdrawal Waiver — 10-year fixed annuity at 5.85%
- Locks in 5.85% for 10 years
- Open with $2,000 to $500,000
- Free withdrawals allowed for:
- All interest earned
- Required IRA distributions
Rates as of May 8, 2026
Projected balance
over 10 years
Compounded at 5.85% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $585 | $10,585 |
| 2 | $619 | $11,204 |
| 3 | $655 | $11,860 |
| 4 | $694 | $12,553 |
| 5 | $734 | $13,288 |
| 6 | $777 | $14,065 |
| 7 | $823 | $14,888 |
| 8 | $871 | $15,759 |
| 9 | $922 | $16,681 |
| 10 | $976 | $17,657 |
| Total earnings | $7,657 | $17,657 |
Free-withdrawal allowance: Interest only / yr. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #18 of 55 (top is 6.25% — Sentinel Security Personal Choice)
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 The charge is a percentage of the amount withdrawn, decreasing each year.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 | 9.0% |
| Year 2 | 8.0% |
| Year 3 | 7.0% |
| Year 4 | 6.0% |
| Year 5 | 5.0% |
| Year 6 | 4.0% |
| Year 7 | 3.0% |
| Year 8 | 2.0% |
| Year 9 | 1.0% |
| Year 10 | 0.5% |
Contract terms
What else to know
Term
10 years guaranteed at 5.85% APY
Investment range
$2,000 – $500,000
Funding sources accepted
Traditional IRA, Non-Qualified, Inherited IRA, IRA Rollover, IRA Transfer, IRA-Roth
Owner age
0 to 90 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
- RMD-Friendly (RMD withdrawals exempt from surrender charge)
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: American Century contract brochure (download PDF). Anything you act on should be confirmed against the carrier's most recent filing.
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