Manhattan Life Preferred Choice — 6-year fixed annuity at 3.85%
- Locks in 3.85% for 6 years
- Open with $25,000 to $1,000,000
- Free withdrawals allowed for:
- 15% of your balance each year
Rates as of May 8, 2026
Projected balance
over 6 years
Compounded at 3.85% guaranteed. No market exposure, no fees deducted from your balance.
| Year | Earnings | Balance |
|---|---|---|
| 1 | $963 | $25,963 |
| 2 | $1,000 | $26,962 |
| 3 | $1,038 | $28,000 |
| 4 | $1,078 | $29,078 |
| 5 | $1,120 | $30,198 |
| 6 | $1,163 | $31,360 |
| Total earnings | $6,360 | $31,360 |
Free-withdrawal allowance: 15% / yr. Withdrawals beyond the allowance trigger the surrender charge below.
- Rank vs. peers
- #34 of 43 (top is 6.00% — American Gulf Anchor MYGA)
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 The charge is a percentage of the amount withdrawn, decreasing each year.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% |
| Year 6 | 3.0% |
Contract terms
What else to know
Term
6 years guaranteed at 3.85% APY
Investment range
$25,000 – $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
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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