Capitol Life Heritage Elite — 5-year fixed annuity at 5.40%
- Locks in 5.40% for 5 years
- Open with $10,000 to $1,000,000
Rates as of May 8, 2026
Projected balance
over 5 years
Compounded at 5.40% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $540 | $10,540 |
| 2 | $569 | $11,109 |
| 3 | $600 | $11,709 |
| 4 | $632 | $12,341 |
| 5 | $666 | $13,008 |
| Total earnings | $3,008 | $13,008 |
Free-withdrawal allowance: None. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #55 of 168 (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 The charge is a percentage of the amount withdrawn, decreasing each year.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 | 7.9% |
| Year 2 | 7.0% |
| Year 3 | 6.2% |
| Year 4 | 5.3% |
| Year 5 | 4.4% |
Contract terms
What else to know
Term
5 years guaranteed at 5.40% APY
Investment range
$10,000 – $1,000,000
Funding sources accepted
Roth Conversion (Full), Traditional IRA, Non-Qualified, Inherited IRA, NQ Stretch, IRA-Roth, SEP IRA
Owner age
18 to 90 years old
Death benefit
Full accumulated value passes to your beneficiary, no 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: Capitol Life contract brochure (download PDF). Anything you act on should be confirmed against the carrier's most recent filing.
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