American Century SPDA with Free Withdrawal Waiver — 5-year fixed annuity at 5.65%
- Locks in 5.65% for 5 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 5 years
Compounded at 5.65% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $565 | $10,565 |
| 2 | $597 | $11,162 |
| 3 | $631 | $11,793 |
| 4 | $666 | $12,459 |
| 5 | $704 | $13,163 |
| Total earnings | $3,163 | $13,163 |
Free-withdrawal allowance: Interest only / yr. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #29 of 166 (top is 6.35% — Mountain Life Alpine Horizon)
- Top 5-year CD
- 4.20% APY · $12,284 at maturity (taxed annually)
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 The charge is a percentage of the amount withdrawn, decreasing each year.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% |
Contract terms
What else to know
Term
5 years guaranteed at 5.65% 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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