Best CD Rates in Michigan for 2025
- Michigan First Credit Union offers tiered interest for its CDs.
- Lake Michigan Credit Union offers special bonus interest rates for those who qualify.
- CIT Bank, an online financial institution, offers an 11-month CD with no penalties if you access funds before they mature.
- All of Forbright Banks CDs can be opened online with $1,000.
If you’re thinking about ways to get the most out of your money, a certificate of deposit (CD) in Michigan is a convenient way to start. CDs allow you to receive a fixed interest rate for your account when you keep your money saved for a certain amount of time. In exchange, you’re able to earn much more than you would from a traditional savings account.
Continue reading this page to find out which banks have some of the best CD rates in Michigan. We also discuss CDs offered by online banks and some of the benefits and drawbacks of opening one of these accounts.
Best CD Interest Rates In Michigan
Popular Banks and Credit Unions in Michigan
Lake Michigan Credit Union: In addition to healthy CD rates, Lake Michigan Credit Union offers VIP bonus APRs for those who qualify.
Michigan First Credit Union: This local credit union provides tiered interest for its CDs.
United Federal Credit Union: Customers can increase their CD rates when they open a checking account.
Online Banks: Online banks available to Michigan residents often offer higher interest rates, so they’re worth taking a look at.
Online Banks Offering CDs
You may think that online banks are only associated with checking accounts. However, Michiganders can also benefit from their CDs. In fact, they provide many of the same benefits as the CDs you get from local banks and credit unions.
Since online banks don’t have the same overhead expenses, they may provide a little more than you would expect from brick-and-mortar alternatives. Let’s take a look at some of the benefits of a CD at an online bank.
Account protection
Like local banks in Michigan, you can rest assured that when you open a CD at an online bank, your money will be safe. Online banks have the same federal insurance from the Federal Deposit Insurance Corporation (FDIC) as traditional ones. This means that all of your deposits are protected up to $250,000.
Convenience
Online banks make money management easy and convenient. You can open a CD on a company’s website within minutes. Also, if you want to check on how your investment is doing, online banks provide mobile apps that make getting information on the go effortless.
Interest rates
Another benefit of online banks is that they often provide significantly higher interest rates. In addition, if you want to open a checking account at one of these organizations, they often have interest-bearing products that you may not find at local banks and credit unions.
Minimum deposits
The minimum deposits for CDs offered by online banks are often lower than they are at brick-and-mortar companies. You may even be able to find CDs with no minimum deposit requirement.
Paperless transactions
Online banks can help you handle your finances in a more environmentally friendly way because the process of opening an account is not only convenient but also paperless. You don’t have to fill out any forms, nor will you receive any monthly statements in the mail.
Are you interested in what specific online banks can do for you? Below are some examples of virtual banks that offer healthy CD rates.
Online Bank CD Rates and Terms
Vio Bank: Vio Bank offers CDs with terms as short as six months and as long as ten years. They require a $500 opening deposit.
Forbright Bank: Forbright Bank has high-yield one-year CDs for those who want to maximize their investment quickly and longer-term choices. All CDs can be opened with $1,000.
Bank5Connect: Bank5Connect has high-yield CDs with terms ranging from three to 36 months. There are no monthly maintenance charges.
CIT Bank: CIT Bank offers an 11-month CD with no penalties if you access funds before they mature and no opening fees.
Several kinds of CDs are available, so be sure to consider which is best for your financial situation and goals.
Factors to Consider When Choosing a CD in Michigan
Clearly, one of the most important factors you want to pay attention to is the interest rate you’ll receive when you open a CD in Michigan. Many banks and credit unions around the state have CD interest rates in the 3 percent to 4 percent range, so you’re able to make a healthy return on your investment.
Additionally, there is a wide range of terms available. If you want a longer-term option, such as a two-year CD or longer, you can find something that meets your needs. If you’re more interested in a slightly shorter term, like an 18-month CD, or one as short as three months, Michigan banks and credit unions also have them.
CD Pros and Cons
Pros
- CDs offer significantly higher interest rates compared to many savings accounts, especially with online banks.
- The interest rate is locked in, providing certainty about earnings over the CD term.
- CDs carry minimal risk compared to stocks and bonds, making them a secure way to grow savings.
Cons
- Most CDs charge a penalty if you withdraw funds before the term ends, though some banks offer no-penalty options.
- Returns are limited, meaning you might earn less than with other investments if interest rates rise.
Frequently Asked Questions About CDs in Michigan
Yes. According to the Michigan Department of Treasury, the state taxes the interest on any savings accounts, including CDs.
Although some CDs have terms of one year or more, some banks and credit unions in Michigan offer shorter-term products. For example, Lake Michigan Credit Union and United Federal Credit Union have CDs with three-month terms. If you want a CD with a slightly longer term, this six-month CD offered by Michigan First Credit Union is a good choice.
Although banks and credit unions in Michigan offer CDs, it’s important to keep in mind that these organizations are different. Banks are for-profit companies run by a board of directors and are responsible for ensuring that their investors get good returns, which often amounts to high fees for customers. On the other hand, credit unions are not-for-profit organizations made up of members. This means account holders may benefit from lower fees and more community-minded service.
Find the Best CDs Rates in Michigan Now
Whether you want a one-year CD or a 10-year one, Michigan has many choices. Be sure to do your homework so you choose the best product to help you reach your financial goals. Look at terms, rates, and features that different banks and credit unions offer to get an understanding of how you can maximize your money with CDs.
