Best CD Rates in Michigan for February 2024

CDs can be a good option if you’re looking for a safe place to invest funds without the risk of losing them. With the onslaught of online banks, there are many places to get the best CD rates in Michigan.

Check out our list of the best rates and what terms you must meet to make the most of your investment.

Best CD Rates in Michigan

We’ve located the best CD rates in Michigan to make investing your funds easy. These CDs have high APYs and flexible terms, which we’ve noted to help you decide which is best for you.

  1. Valley Direct: 5.60% APY
  2. First Internet Bank: 5.35% APY
  3. Vio Bank: 5.35% APY
  4. Quontic: 5.05% APY
  5. Discover® Bank: 5.00% APY
  6. CIT Bank: 5.00% APY
  7. Ally Bank: 5.00% APY
  8. First Tech: 4.91% APY

1. Valley Direct

  • Minimum Deposit: $500
  • APY: 4.60% to 5.60%
  • Terms: 12 to 36 months

Valley Direct is an online bank offering CDs to savers in Michigan. They have only three-term options but cover short- and long-term timelines.

Valley Direct’s 36-month CD is unique because it guarantees the rate will remain 0.1% above the Federal Funds Target Rate Upper Limit to help your funds keep pace with inflation.

The other terms are fixed rates. All CDs offered by Valley Direct are FDIC-insured up to $250,000 per depositor.

Pros:

  • Low minimum deposit
  • Option for a variable rate CD
  • Attractive interest rates

Cons:

  • A small selection of terms
  • Penalties for early withdrawal

 


2. First Internet Bank

  • Minimum Deposit: $1,000
  • APY:4.18% to 5.35% APY
  • Terms: 3 months to 5 years

First Internet Bank offers some of the best CD rates in Michigan, offering fixed rates and no monthly maintenance fees.

Like most banks, they charge hefty fees for early withdrawal but make up for it with their high APYs. Before choosing a CD term at FIB, make sure you can leave the funds untouched to avoid excessive penalties.

Pros:

  • High APYs across most terms
  • Low minimum deposit
  • Guaranteed returns

Cons:

  • High early withdrawal penalties
  • Interest compounds monthly

3. Vio Bank

  • Minimum Deposit: $500
  • APY:2.75% to 5.35% APY
  • Terms: 6 months to 10 years

Vio Bank offers competitive APYs on CDs with terms starting at six months. They pay the highest APY at six months, and they decrease with longer terms, but your returns are guaranteed.

Vio Bank requires a low minimum deposit, and they compound interest daily. They are FDIC-insured, so your funds are protected up to $250,000 per depositor.

Pros:

  • Easy to open an account online
  • Attractive APYs
  • Low barrier to entry

Cons:

  • No option for no-penalty CDs
  • Low APYs on longer terms

4. Quontic

  • Minimum Deposit: $500
  • APY: 4.3% to 5.05%
  • Terms: 6 months to 5 years

Quontic is a digital bank with some of the best CD rates in Michigan. Consumers need $500 to open an account and can choose from terms ranging from six months to five years.

Don’t get scared that it’s a digital bank, thinking you’re on your own for support. Quontic has great customer service, including phone and live chat options, so you can always have your questions answered.

Just be sure you only commit to the term you can keep the funds untouched, as Quontic charges hefty fees for early withdrawal.

Pros:

  • Many customer service options for a digital bank
  • Many CD terms
  • Open an account in three minutes or less

Cons:

  • The highest APY is on the 6-month term
  • It costs a lot to withdraw funds early

 


5. Discover® Bank

  • Minimum Deposit: $2,500
  • APY: 2% to 5%
  • Terms: 3 months to 10 years

Discover® Bank offers more than credit cards. Their deposit products, including CDs, are available at attractive terms. You’ll need a sizeable deposit to open an account, but you can choose CDs with terms starting at just three months, helping your money earn interest.

Discover has some of the highest early withdrawal penalties we’ve seen, so make sure to pick your term carefully so you don’t eliminate the benefit of having a CD.

Pros:

  • Offers the largest selection of CD terms
  • Offers guaranteed returns
  • Takes only a few minutes to open an account

Cons:

  • High penalty fees for early withdrawal
  • Requires a large deposit

 


6. CIT Bank

  • Minimum Deposit: $1,000 for term and no-penalty CDs; $100,000 for jumbo CDs
  • APY: 3% to 5%
  • Terms: 6 months to 5 years

CIT Bank offers Michigan savers many options when opening a CD. Before choosing your CD, decide if you want a term CD with a fixed rate and strict term or a no-penalty CD that allows you to withdraw funds early if needed, as CIT offers both.

They also offer jumbo CDs for those with $100,000+ to save, but they have longer terms starting at two years up to five years.

Pros:

  • Option to save without risking a penalty
  • Many terms to consider
  • Attractive rates on the six-month term

Cons:

  • Higher deposit than other banks
  • It doesn’t pay to save money on a longer-term CD because the rate drops

 


7. Ally Bank

  • Minimum Deposit: N/A
  • APY: 2.55% to 5% APY
  • Terms: 3 months to 5 years

Ally Bank is an online bank that doesn’t charge fees and doesn’t require a minimum deposit for their CDs. You can deposit any amount of money and earn their attractive APYs, some as high as 5%.

However, like most banks, the early withdrawal penalties are steep, costing between 60 to 150 days of interest.

Pros:

  • No minimum deposit requirement
  • High APYs on some terms
  • Many term options

Cons:

  • High penalties for early withdrawal
  • The 9-month and 18-month CDs have the best rates

8. First Tech

  • Minimum Deposit: $500
  • APY:2.25% to 4.91% APY
  • Terms: 6 months to 5 years

First Tech is a credit union, but the partner list of companies you can work for to join First Tech is vast. Members have many options for CD terms, including fixed and bump-up CD options.

If you choose the bump-up option and market rates increase, you can bump up your rate without withdrawing your funds. This makes it easier to grow your earnings without worrying about early withdrawals.

Pros:

  • Option for bump-up CDs
  • High APYs
  • Low minimum deposit requirement

Cons:

  • Only members qualify
  • The best rates are on short-term CDs

 

Summary of the Best CD Rates in Michigan

Company APY Min. Dep. Requirement Compounding Frequency
Valley Direct 4.60% – 5.60% $500 Daily
First Internet Bank 4.18% – 5.35% $1,000 Monthly
Vio Bank 2.75% – 5.35% $500 Daily
Quontic 4.30% – 5.05% $500 Daily
Discover 2.00% – 5.00% $2,500 Daily
CIT Bank 0.30% – 5.00% $1,000 Daily
Ally Bank 2.55% – 5.00% N/A Daily
First Tech 2.25% – 4.91% $500 Daily

Types of CDs Available in Michigan

Before investing money in a CD, you should understand how they work. It is important to know how long you must tie up your funds and what it will cost to access them early.

Here are the different CD types in Michigan.

Short-Term CDs in Michigan

Short-term CDs are usually for one year or less. Many banks offer them in increments of 3, 6, 9, and 12 months. You can often find some of the best CD rates in Michigan on these shorter terms.

A short-term CD allows you to liquidate your funds if necessary, or you can roll them over into another CD and continue earning interest.

Long-Term CDs in Michigan

Long-term CDs usually have terms of two to five years but sometimes as long as ten years. Be careful before choosing these options, as many banks charge hefty early withdrawal fees if you access the funds too early.

Long-term CDs can be a good way to protect funds you need within a couple of years but want the money to grow before you use it for your intended goal.

Liquid CDs in Michigan

The point of a CD is to lock up your funds for a specific term. However, liquid CDs are an option with some banks. These CDs allow you to cash out your CD early without penalty.

This can be helpful if you aren’t sure when you’ll need your funds, but make sure you understand the terms. Most have a period where you can’t touch the funds, usually seven to 30 days.

Step Up/Bump Up CDs in Michigan

Locking up your funds in a CD can be risky. If rates increase, you can’t access them because you can’t access your funds. A bump-up CD, though, allows you the option to increase your rate if rates increase.

These CDs have specific terms and usually have higher deposit requirements, so be sure to read the fine print before choosing them.

Add-on CDs in Michigan

An add-on CD is important if you want to make regular contributions to your CD. Traditional CDs don’t allow you to add to the balance. You can open another CD if you have enough funds, but you cannot add to them. Add-on CDs, however, allow the option for you to grow your earnings.

Our Methodology

The BankBonus team has reviewed dozens of brick-and-mortar banks, online banks, credit unions, and fintech companies offering CD accounts in Michigan.

To provide you with accurate recommendations for the best CD rates in Michigan, we used the metrics below to assess each account:

  • APY: First and foremost, we evaluate CD offers based on how competitive their APY is
  • Compounding schedule: Another major factor we consider is the account’s compounding schedule, prioritizing banks that compound interest daily rather than monthly or quarterly
  • CD terms: We also consider the variety of CD term lengths each financial institution offers
  • Account minimum: Additionally, we look at each CD’s minimum opening deposit requirements and any ongoing account minimums
  • User experience: We carefully consider the ease of applying and managing CD accounts on each bank’s website and factor in reviews of the mobile app from the App Store and Google Play Store
  • Customer service: In our review process, we also explore each institution’s customer service channels, hours of availability, and third-party reviews

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