The Best CD Rates In Michigan July 2024 (2024)

Best CDs In Michigan 2024

Here are the best Michigan certificate of deposit options, compiled after researching several financial institutions in the state. We also compared them to online banks to ensure we listed the banks with the best CD rates.

Each bank below currently offers high interest rates and several term length options.

West Shore Bank 6 Month CD

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Vault Verified

APY

5.20%

Term Length

6-month

Min. Deposit Requirement

$500

Early Withdrawal Penalty

Yes

Why We Chose It

West Shore Bank recently celebrated 125 years in business in 2023. It’s a local bank that serves communities in nine offices in western Michigan and employs 120 people. This bank offers competitive interest rates and several different CD term lengths to choose from.

Pros

• West Shore Bank offers a higher APY on their CDs compared to many other banks.
• This bank has a strong reputation with 125 years in business serving several Michigan cities.
• West Shore Bank frequently offers CD specials and several term length options.

Cons

• West Shore Bank has limited customer service hours, including no customer service availability on Sundays.
• In-person bank locations are limited to cities in western shore of Michigan.
• The CD has an early withdrawal penalty that varies depending on when you withdraw your money, with the possibility of losing all your earned interest.

See Also

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The State Bank 9 Month CD

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Vault Verified

APY

5.09%

Term Length

9-month

Min. Deposit Requirement

$500

Early Withdrawal Penalty

Yes

Why We Chose It

We chose The State Bank for several reasons, including the high APY it offers on CD accounts. The State Bank is an institution with over a 125 year history. Founded in 1898, this bank currently has 20 locations in several Michigan counties including Oaklound, Saginaw, Livingston counties and more.

Pros

• The State Bank is a long-standing institution that’s dedicated specifically to helping customers who live in Michigan.
• This bank offers easy live chat options for customer service questions.
• The State Bank has a higher APY on 9-month CDs than many competitors, including larger banks.

Cons

• The State Bank has limited customer service hours, including no access to customer service by phone on the weekends.
• If you move out of state, you won’t have access to physical branch locations as The State Bank only has banks in Michigan.
• This bank is not Better Business Bureau accredited.

First Merchants Bank 6 Month CD

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Vault Verified

APY

5.00%

Term Length

6-month

Min. Deposit Requirement

$2,500

Early Withdrawal Penalty

Yes

Why We Chose It

First Merchants Bank is a bank that focuses on serving customers in the Midwest with branches in Indiana, Illinois, Michigan and Ohio. They offer a high APY on their CDs compared to many other banks, including online banks.

Pros

• First Merchants Bank has an outstanding reputation and has won numerous awards and accolades as an employer and as a bank.
• This bank offers easy live chat options organized by topic.
• First Merchants Bank offers numerous CD options with terms from 91 days through over 60 months.

Cons

• This bank requires a higher minimum deposit than other banks for their 6 month CD.
• First Merchants Bank offers a lower APY on a certificate of deposit than other banks on this list.
• The CD APY varies by location. When entering a Detroit-area zip code, the CD rate is 5.00% APY; however, when entering a northern Michigan zip code, the 6 month CD rate lists 4.75% APY.

See Also

Top CD Rates Today: June 21, 2024 | Take Advantage Of Top Rates

Vault’s Viewpoint: Overview of the Best Michigan CDs

Opening a CD in Michigan is one way investors can grow their money securely for a set period of time. A key benefit of opening a CD is that you are guaranteed your interest rate for the CD term. That means regardless of how the market fluctuates, your APY is set. The downside of a CD is that there are penalties for withdrawing your money early.

Michigan has several banks that offer APYs higher than the national average for a 6 month CD, which is 1.79% according to data from the FDIC. Additionally, the Michigan banks on this list offer many different CD terms, ranging from days to years, so customers should be able to find an option that works best for their personal finances.

Here are the three Michigan-based banks with the best CD rates, along with the term, APY and minimum deposit required to open an account.

Short-Term CD Rates in Michigan

Short-term CDs usually last between 3-12 months. Because banks only have to guarantee rates for a short amount of time, the APY on these CDs is typically high. Several banks on this list offer above 5% APY for short-term CDs.

Long-Term CD Rates in Michigan

Long-term CDs can be as long as 5 years. However, because banks have to guarantee CD rates for a long time, these rates are typically lower than short term ones. This product is for people who prefer a guaranteed, more conservative investment.

Jumbo CD Rates in Michigan

Jumbo CDs are named because consumers have to invest with a higher minimum deposit, such as $100,000. Sometimes jumbo CDs can have higher interest rates than short-term CDs; however, it varies by financial institution. It’s important to do your research if you want to open a jumbo CD to ensure you get the best rates.

How Much Can You Earn With The Best CD Rates In Michigan

When calculating the best CD rates in Michigan, it’s helpful to use a CD calculator. That way, you can see your estimated earnings depending on the length of your CD and the APY your bank offers.

The banks below are dedicated to helping customers in Michigan and offer competitive interest rates on CDs compared to other banks, including online banks.

Here are the potential estimated earnings you could earn with these CD rates based on a $25,000 initial deposit that compounds daily for the term listed.

How to Open a CD In Michigan

Here are the steps to take to open a CD in Michigan.

Step 1: Research and Compare CD Rates

While it might be tempting to open a CD with your current bank, doing your research can pay off (literally). It’s especially important to compare the annual percentage yield (APY) and minimum deposit requirements of each CD to find which will earn you the most overall.

Step 2: Gather Your Documents

Before you open a CD, your bank will need your driver’s license, social security number and other information, like proof of your address. Sometimes, depending on the bank, they’ll ask for your employment details.

Step 3: Apply

You do have to apply to open a CD. Most banks have online applications, but you can also apply in person if you live near a branch. If you apply in person, don’t forget to bring your identification documents.

Step 4: Sign and Fund

Before you sign on the dotted line, review your CD agreement. Make sure your agreement lists the term and interest rate you agreed upon. Also, check to see whether or not the bank charges penalties for early withdrawal.

Step 5: Monitor Your CD Account

Once you fund your CD account, monitor it regularly. Make sure the bank applies interest correctly and check in on your balance. Make a note in your calendar of when your CD matures so you can decide whether or not to withdraw funds or renew it.

Alternatives to a CD In Michigan

If you don’t want to invest in a CD, consider these alternatives.

High-Yield Savings Account

Similarly to CDs, high-yield savings accounts offer consumers competitive interest rates. The difference is you are not locked into a certain term. In fact, you can withdraw your money several times per month without penalty. If you want access to your money and don’t want to commit to a CD for several months, a high-yield savings account might be a better option for you.

Treasury Bonds (T-bonds)

T-bonds are government-backed investments. To put it another way, you loan money to the government, and in return you earn interest on your money. Interest rates are typically lower than other investment products. However, bonds are considered a conservative investment. T-bonds are typically long-term investments, but there are other products, like treasury bills, that mature in less than a year.

Money Market Accounts

Money market accounts are like a combination of CDs and high-yield savings accounts. It’s an investment account, but it comes with checks and a card you can use to make purchases. This gives you faster access to your money than you would have with a high-yield savings account. However you still earn interest similar to a CD without being locked in.

IRA CDs

An IRA CD is a certificate of deposit account that’s held within an IRA. IRA stands for individual retirement account. Think of it like a basket that can hold several different types of investments. One of those investments can be a CD. This product is ideal for investors who prefer a more conservative investment type or investors who are nearing retirement who still want the tax benefits of an IRA with the guaranteed interest that CDs provide.