On the surface, certificates of deposit (CDs) and share certificates might seem like boring investments. However, they’re low-risk investment options that can offer very attractive returns. With a CD, you make a lump sum deposit, committing your funds for a fixed period in exchange for a fixed interest rate.
Through collaboration with Curinos, we analyzed over 20,000 data points from banks and credit unions in Michigan, pinpointing the best CDs in the state that offer the highest annual percentage yields (APYs).
CDs and share certificates are considered deposit accounts, making them eligible for FDIC or NCUA insurance that provides coverage on balances up to $250,000.
Best CD rates in Michigan overall
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We've also gathered information from banks nationwide to determine the banks and credit unions offering the best CDs. Our selections boast competitive interest rates and minimal opening deposit requirements.
Best CD rates in Michigan by term
Utilizing data from Curinos, we found the best 6-month, 1-year, and 5-year CDs in Michigan.
To qualify for these rates, you may need to meet criteria outlined in the notes field in the tables below. Note that some fields may be blank—for the latest information, we recommend contacting the bank or credit union directly.
Best 6-month CD rates in Michigan
Secure an impressive APY without locking up your funds for an extended period with 6-month CD. However, keep in mind that by opting for a shorter maturity, you’ll typically receive a lower APY than you would with a longer-term CD.
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Best 1-year CD rates in Michigan
If you're unprepared for an extended financial commitment, consider getting a 1-year CD. Some CDs have minimal opening deposit requirements, so you can open one regardless of how much you have to save.
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Best 5-year CD rates in Michigan
If you have a financial goal set in the future, a 5-year CD could be a sound choice. Despite requiring a longer commitment, 5-year CDs generally offer higher rates in exchange for locking up your money for longer.
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What is a certificate of deposit?
With a CD, you allocate your funds for a fixed period and, in exchange, receive a fixed interest rate. If your bank or credit union is covered by FDIC insurance or NCUA protection, your CD is secure, providing up to $250,000 of coverage.
A significant downside of CDs is that when you withdraw your funds before the CD matures, you’ll incur an early withdrawal penalty that typically amounts to a few months' interest.
What does APY mean on a CD?
The APY, or annual percentage yield, is a number that represents the rate of return over a year. For example, if you deposit $2,000 in a 1-year CD with a 5% APY, you will accumulate $100 in interest by the end of the year.
What are the most common types of CDs?
There are various types of CDs, but traditional, brokered, and no-penalty CDs are the most common.
- Traditional CDs. Deposit your money for a fixed period and, in return, receive regular interest payments.
- Brokered CDs. Financial institutions sell these CDs to brokerages, which then offer them to customers with more attractive APYs compared to traditional CDs.
- No-Penalty CDs. If you value flexibility, these CDs allow you to access your funds without incurring an early withdrawal fee. However, note that these CDs may offer slightly lower interest rates.
How to choose the best CD in Michigan
There are over 100 FDIC-regulated banks in Michigan and 190 NCUA-regulated credit unions. Here’s how to choose the right one for your needs:
- Term length. The CD’s term length indicates how long it takes to mature, which may be anywhere from a few months to years. Choose a term that aligns with your needs and financial goals.
- APY. The annual percentage yield (APY) tells you what the rate of return over a year on your CD is. A higher rate means you can expect to earn more in interest.
- Minimum deposit requirement. Some banks and credit unions require a minimum investment to open a CD. This initial deposit can vary from a few dollars to thousands. Most CDs require a lump sum deposit, so you can’t make additional contributions.
- Early withdrawal penalty. Most CDs penalize you for withdrawing funds early, which means you could lose earned interest and part of your principal balance. You probably can’t plan for early withdrawals but it's good to be aware of a penalty if you need to access your money early.
Deposit insurance: With FDIC and NCUA insurance, you get coverage of up to $250,000 per depositor or share owner if your credit union or bank fails. Double-check that your account is insured to protect your money.
