As a fellow Michigander, I know we’ve got some great banks and credit unions. We’ve rounded up the top banks that serve Michigan, offering CD terms with APYs over double the national averages — and they have reasonable deposit requirements.
Quontic Bank is an online bank offering up to 5.10% APY with a low $500 minimum deposit — with rates that high and deposits that low, that's hard to beat. The 4.25% APY is for the 6-month term, and its other terms also have great rates.
An online credit union with very flexible membership requirements, Alliant's strongest CD is the 4.1% APY on a 12-month term. Its other CDs also beat out national average rates easily. Since it is a credit union, you have to become a member, but most anyone can do so outside its service area by making a one-time $5 donation to the Alliant Credit Union Foundation.
Headquartered in Troy, Michigan, Flagstar Bank offers a very competitive 4.5% APY on a 7-month special CD, requiring a $500 opening deposit. Its other CDs have great rates, too, with the same low deposit of just $500.
The first online bank ever, First Internet Bank offers a very high 4.42% APY on a 12-month CD term. There's a $1,000 minimum opening deposit. Its other CD terms also have competitive rates, and it offers terms as short as three months.
While it is an online bank with no physical branches, Ally Bank is headquartered in Detroit, Michigan. It offers great CD rates across its various terms, with the top rate being 4.2% APY on its 6-month term. Ally also doesn't have any minimum deposit requirements on its CDs, making it a top choice not only for rates but also for savers with all deposit sizes.
Marcus is part of Goldman Sachs, a long-standing bank. Marcus mainly focuses on savings and CDs and consistently offers some of the highest rates on the market. One of its best offers is its 6 and 9-month CD with a 4.1% APY, requiring just a $500 minimum opening deposit.
A Michigan-based bank that's been around for over 150 years, Independent Bank has pretty stellar CD rates. Its top offer right now is the 4.13% APY on a 3-month CD, requiring a $1,000 opening deposit open to those with an Independent Bank checking account. It offers other CDs with a $500 minimum deposit, but expect lower APYs with those terms.
Minimum deposit to open
$1,000
3-month APY
4.13%
7-month APY
4.02%
13-month APY
3.82%
Minimum deposit to open
$1,000
verified_userFDIC Insured
Methodology: How we chose the best CD rates in Michigan
Finder’s experts compared Michigan-based banks and credit unions to find the best CD offerings. We heavily considered banks based or headquartered in Michigan and online banks that service Michigan. We only considered CDs with minimum opening deposits no higher than $1,000 and rates that were at least double the national average rate for CDs of the same term.
How to compare the best CDs in Michigan
The best CDs in Michigan have low deposit requirements, high rates and relaxed early withdrawal penalties. Keep these factors in mind when comparing CDs:
APYs. When comparing CDs, the number one factor is the interest rate. The higher the APY, the more your deposit will earn.
Deposit requirements. Banks almost always have opening deposit requirements for their CDs, often at least $1,000. However, a few options, such as Ally Bank, don’t have any specific requirements. Just know that most CDs don’t allow you to add more funds after the initial deposit.
Early withdrawal penalties. If you need to withdraw your CD’s funds early, you’ll likely have to pay early withdrawal fees, usually sacrificing earned interest. Most banks charge anywhere from 90 to 180 days of earned interest for pulling funds from your account before the term is up.
CD terms. The longer your CD’s term, the more you stand to earn. However, you won’t have fee-free access to that money during the term. Choose a term that makes sense to you, and we don’t recommend locking all your savings into a single CD in case you need those funds later.
How often do CD rates change?
Unlike savings accounts with variable interest rates, the great thing about CDs is that your APY is locked in for the entire term. With traditional CDs, you’re guaranteed to earn the rate you saw when you opened the account — unless you withdraw funds early.
But that doesn’t mean CDs aren’t vulnerable to changing interest rates. There’s no guarantee that a CD offered today will have the exact same rate in a month’s time. It may be higher, or it may be lower. External factors like inflation, market conditions and the overall state of the economy can impact CD interest rates.
Alternatives to Michigan CDs
CDs tend to offer double the
0.43% average rate for savings accounts, according to the FDIC.(1) But CDs aren’t everyone’s cup of tea. If you’d rather have access to your funds without the threat of early withdrawal penalties, consider these CD alternatives:
High-yield savings accounts. Also called HYSAs, these savings accounts are just regular savings accounts with significantly higher rates than average. Online banks like SoFi® or Ally tend to offer these high-rate accounts, often without the need to front a large deposit to earn the high APY.
Interest-bearing checking. The main perk of savings and CD accounts is that they earn interest, but there are interest-bearing checking accounts, too. These accounts provide a debit card to spend your cash, and you earn interest on your balance.
Money market accounts. Functioning like a checking and savings account hybrid, money market accounts often give you a debit card and checkwriting privileges, and you earn interest on your balance. Just watch for high monthly fees and opening deposit requirements, if any.
Bottom line
CDs are a great place to store some savings and make your money work for you. But if you don’t want to lock your funds away, there are other savings options available.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
Bethany's expertise
Bethany has written 448 Finder guides across topics including:
See what the average interest rate was in the US for 3-month, 60-month, 1-year, 3-year and 5-year CDs since 2009 and learn how the economy affects rates.
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