Michigan Deposit Account Rates and Deals

Members First Credit Union is offering some competitive long-term CD and IRA CD rates. The best is a 3.25% APY 5-year CD. The special 27-month CD is also competitive with a 2.00% APY. Minimum deposit is $1,000. These rates are listed in the credit union's rates page as of 8/27/2010.

One thing I like about this credit union is they clearly list the early withdrawal penalties right below the rate table. The penalties for terms of 4- and 5-year terms is 180 days of interest. Terms from 2 to 3 years is 90 days of interest.

Membership is open to those who who live, work, worship, or attend school or post-high school in the following Michigan counties: Midland, Clare, Gladwin, Isabella, Gratiot, Saginaw, or Bay. Please refer to the credit union membership page for the full details.

The credit union's overall health score is 4 out of 5 with a Texas Ratio of 2.96% at DepositAccounts.com (see our financial overview of Members First Credit Union). This is based on June 2010 data. The credit union is federally insured by the NCUA (Charter # 62076).

First Community Federal Credit Union is offering several competitive CD and IRA CD rates. The best rates require the Member Advantage Program. One of this blog's readers has CDs with this program, and she informed me that it requires a checking account with direct deposit and a balance of at least $25,000 in checking, savings and/or loans. An ACH transfer of at least $400 per month may also qualify. The following Member-Advantage CD rates are listed in the credit union's deposit rates page as of 8/15/2010:

• 3.50% APY 60-month CD
• 2.90% APY 36-month CD
• 2.35% APY 24-month CD
• 1.75% APY 12-month CD

IRA CD rates are 10 basis points higher. Without the Member Advantage Program, the rates are 50 basis points lower. Another nice feature of these CDs is a low early withdrawal penalty. CDs with terms of 13 months and longer have an early withdrawal penalty of 91 days of interest.

First Community FCU recently acquired Education First Credit Union in a merger. As I reported on Friday, Education First is still operating with their own rates, and these are also very competitive and they don't require a checking relationship.

Membership into the credit union is open to anyone living or working within the following nine (9) southwestern counties of Michigan: Allegan, Barry, Berrien, Branch, Calhoun, Cass, Kalamazoo, St. Joseph, and Van Buren. Please refer to the credit union's membership page for the full details.

Branches are located in the Michigan cities of Parchment, Richland, Kalamazoo, Plainwell, Portage, Battle Creek, Mattawan, Southgate and Brownstown.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for First Community FCU). These ratings are based on March 2010 data. The credit union is federally insured by the NCUA (Charter # 62101).

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

Education First Credit Union is offering several competitive CD and IRA CD rates. These include a 3.30% APY for a 4- and 5-year term, 3.00% APY for a 3-year term and a 2.45% APY for a 2-year term. The IRA CD rates are 10 basis points higher. These rates are listed in the credit union's deposit rates page as of 8/13/2010.

According to the credit union's field of membership page, the field of membership includes "All retired persons". I have a feeling they mistakenly made this too broad. The other part of the FOM includes the employees and students of the school districts in Wayne and Monroe counties. So it may only be retirees of these school districts who can qualify. Please refer to the FOM page for the full details.

Branches are located in the Michigan cities of Southgate, Brownstown and Grosse Ile.

Merged into First Community FCU

One important note about this credit union is that it's being merged into First Community FCU. This credit union has lower CD rates (see them here), and I was worried if the above rates were still valid. I contacted the credit union yesterday, and I was informed that the listed rates are still available.

The advantage of this merger is that First Community FCU is in much better shape financially. Its ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview for First Community FCU). These ratings are based on March 2010 data. The credit union is federally insured by the NCUA (Charter # 62101).

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

Flagstar Bank continues to offer some competitive promotions on its S.M.A.R.T. products. I last reported on these deals in May, and the rates have stayed the same. In addition, another CD special has been added. The following deals are listed at Flagstar's front page as of 8/08/2010:

• $100 bonus to open the Express Checking Account. According to the small print, "Customer must open and maintain a new primary checking relationship at Flagstar Bank with a $50 minimum balance to receive the $100 bonus. $100 bonus will be deposited into the account within 30 days of meeting primary checking relationship requirements." I was told in May by a Flagstar CSR that a primary checking relationship requires a monthly direct deposit of at least $250. A reader who reported to have signed up in Texas commented that an ACH push can qualify, and the bonus will be deposited 30 days after first direct deposit hits the account. The account must remain open for six months to keep the bonus.
• 1.50% APY savings account with the rate guaranteed for 4 months. After promo period, the rate reverts back to the standard Express Savings Account. No minimum balance requirement.
• 1.50% APY 12-month CD with a partial no-penalty feature. In this SMART Choice CD you're allowed one penalty-free withdrawal during the term, however, it's limited to half the initial balance. Minimum deposit is $500.
• 1.76% APY 24-month Rising Rate CD with no-penalty feature In this SMART Choice CD you're allowed penalty-free withdrawals at the end of each 6-month period. The gotcha is that the interest rate starts off as 1% for the first six months and goes up 50 basis points after each 6-month period. So your money won't earn much until the last year. It's a stealth type of early withdrawal penalty.

To see the promo pages, you have to enter your zip code. In the past, Flagstar promos were limited to their market area (MI, GA & IN). However, this does not seem to be the case for these current promos. Any zip code appears to show the same promos. In May I was told by the CSR that any zip code can qualify. I also asked the CSR if they do a hard credit inquiry in the application process. According to the CSR, it's a "soft pull to just view banking history."

Flagstar Direct

Flagstar also offers CDs, money market accounts and checking accounts at Flagstar Direct which continues to offer two competitive short-term CD deals: 1.25% APY 6-month CD and 1.55% APY 12-month CD (as of 8/08/2010). The advantage of the SMART Choice 12-month CD is the partial early withdrawal penalty. Even though it's only a partial early withdrawal penalty, it seems to be worth 5 basis points. Please refer to my Flagstar Direct review for more details.

Flagstar Overview

Flagstar Bank currently operates around 165 branches in Michigan, Indiana and Georgia. The bank has been hit hard by mortgage problems that started during the financial crisis. It has made some improvements this year with an increase in its Tier 1 Capital Ratio. More details about Flagstar's financial health are available at our financial overview of Flagstar Bank. The bank has been a FDIC member since 1987 (FDIC Certificate # 32541).

Best CD Rates and Bank Bonuses

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com. To find other bonus deals at other banks, please refer to my bank bonus page which has all of my recent bank bonus blog posts.

PNC Bank has another $100 bonus for opening a checking account. It's not as good as the $125 July bonus, but this $100 bonus appears to be the best PNC bonus currently available. Here's the direct link to the promotion. It requires direct deposit of at least $400 per month along with 10 check card purchases. According to the small print, the checking account must be opened via the online application by 9/30/2010. Here's some of the small print as listed in the promo page with my highlights of the important things to note:

Offer available only to new PNC customers. New personal checking account must be opened via online application between 8/01/2010 and 9/30/2010. To qualify for the $100 reward a Qualifying Direct Deposit must be received and at least 10 check card purchases made with your PNC Visa Check Card must be posted to the eligible account within 60 days of account opening. Your checking account must remain open in order for you to receive the $100 reward, which will be credited to the eligible account within 60 days after all conditions have been met and will be identified as "Promo Reward Cash Trans" on your monthly statement. A "Qualifying Direct Deposit" is defined as a recurring direct deposit of a paycheck, pension, social security or other regular monthly payment electronically deposited into a Free, Performance, Performance Select Checking account, or the Spend account for Virtual Wallet (each an "Eligible Account") on a recurring month-to-month basis. The amount of each recurring Direct Deposit must be at least $400. The recurring Direct Deposits must be made by an employer or an outside agency. Credit card cash advance transfers, transfers from one account to another or deposits made at a branch or ATM do not qualify as Qualifying Direct Deposits. Offer only available to new PNC Bank checking account customers who open the Eligible Account using the on-line application. Offer only available to residents of DC, DE, FL, IL, IN, KY, MD, MI, MO, NJ, OH, PA, VA and WI. Offer may be extended, modified or discontinued at any time and may vary by market. This is an online offer that is not available through the branch.

PNC Bank's Virtual Wallet

One of the checking accounts that can qualify for the bonus is the Spend Account which is part of PNC's Virtual Wallet. Another part of Virtual Wallet is the Grow Account which is a savings account that pays 1.10% APY on balances up to $25K as of 8/8/2010. Please see my PNC Virtual Wallet review for more details.

PNC Q2 Results and Its Deposit Strategy

PNC released its second quarter results in late July. It reported a better-than-expected second-quarter profit. One thing I found interesting in PNC's press release was the description of its plans to grow checking account deposits while shrinking CD deposits. Here's an excerpt:

Average deposits of $182 billion declined $.8 billion compared with the first quarter of 2010 and $10.4 billion, or 5 percent, compared with the second quarter of 2009. In both comparisons, average deposits decreased due to the continued reduction of high-cost and primarily nonrelationship certificates of deposit and other time deposits, partially offset by growth in average transaction deposits. This was consistent with PNC’s overall deposit strategy focused on growing demand and other transaction deposits as a lower-cost funding source and the cornerstone product of customer relationships.

You can see PNC executing this strategy with these checking account bonuses and its very-low CD rates (one example: 1.50% 5-year CD in Florida).

The conversion of National City branches was also mentioned in the press release:

PNC successfully completed the National City conversion of 16 million accounts, 6 million customers and 1,300 branches in nine states.

I know many readers will miss those National City CD specials that were so popular a couple of years ago.

PNC Bank has been a FDIC member since 1934 (FDIC Certificate # 6384).

Other Bank Bonuses

To find other bonus deals at other banks, please refer to my bank bonus page which has all of my recent bank bonus blog posts. Some additional bonuses are also listed in the checking account deals section of the discussion forum.

The Miners State Bank is offering three competitive CD specials: a 2.25% APY 29-month CD, a 2.02% APY 19-month CD and a 1.30% APY 9-month CD. Minimum deposit is $1,000. These rates are listed in the bank's rates page as of 7/13/2010.

One thing I like about this bank is that it lists the early withdrawal penalties on the bottom of the rate table. Some banks hide these penalties in their disclosures which are often not even available online. The penalties for the bank's CDs are typical: 3 months of interest for terms of 12 months and under, and 6 months of interest for terms over 12 months.

It appears that a branch visit is required to open an account. Branches are located in the Michigan cities of Iron River, Houghton, Ontonagon, Hancock and South Range.

The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial, 3 stars (performing) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our financial overview of The Miners State Bank). These ratings are based on 3/31/10 data except for Bankrate which is based on 12/31/09 data. The bank has been a FDIC member since 1934 (FDIC Certificate # 10928).

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

mBank is offering competitive rates on its checking accounts, CDs and CD IRAs. For checking accounts, their Green Checking Account pays 1.55% APY on all balances as of 6/09/2010. Minimum to open is $100. This is a little like a reward checking account. It requires eStatements, debit card, online bill pay and an active email account. However, it only requires a minimum of 3 electronic transactions per month (including debit card). Also like a reward checking account, there are no ATM fees anywhere in the U.S. Also, it has no monthly fees or minimum balance requirements. You have to keep the number of checks at 5 or under per month to avoid a $3 per check fee. Details of this Green Checking Account are listed in the bank's Green Checking brochure (pdf). Refer to the bank's rates page for the latest rates.

The bank also offers a High Yield Checking Account that pays 1.40% APY as of 6/09/2010. This requires a $1,000 minimum to avoid a $7/month fee. It doesn't require the 3 electronic transactions per month, but it does require eStatements, debit card and active email account. Details of this account are listed in the bank's High Yield Checking brochure (pdf). Refer to the bank's rates page for the latest rates.

Certificate of Deposit Rates

The bank's CD and IRA CD rates are also competitive. The best deals include a 1.75% APY 13-month CD, a 2.65% APY 36-month CD and a 3.00% APY 48-month CD. These rates are listed in the bank's rates page as of 6/09/2010.

It appears that a branch visit is required to open an account. Branches are located in several Michigan cities including Sault Ste. Marie, Traverse City, South Range, Newberry, Kaleva, Marquette, Stephenson, Birmingham, Ontonagon, Gaylord and Manistique.

The bank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 3/31/10 data), 3 stars (performing) at Bankrate.com (based on 12/31/09 data), and an overall health score of 4 out of 5 at DepositAccounts.com (based on 3/31/10 data, see our mBank rates and reviews page). The bank has been a FDIC member since 1934 (FDIC Certificate # 14816).

Flagstar Bank is offering some competitive promotions on its S.M.A.R.T. products. The following deals are listed at Flagstar's front page as of 5/25/2010:

• 1.50% APY savings account with the rate guaranteed for 4 months. After promo period, the rate reverts back to the standard Express Savings Account. No minimum balance requirement.
• $100 bonus to open the Express Checking Account. According to the small print, "Customer must open and maintain a new primary checking relationship at Flagstar Bank with a $50 minimum balance." The CSR told me this morning that a primary checking relationship requires a monthly direct deposit of at least $250.
• 1.50% APY 12-month CD with a partial no-penalty feature. In this SMART Choice CD you're allowed one penalty-free withdrawal during the term, however, it's limited to half the initial balance. Minimum deposit is $500.

According to the CSR, you can participate in all of the above promos. You are not limited to just one. The online application allows you to use ACH transfers to fund the accounts.

To see the promo pages, you have to enter your zip code. In the past, Flagstar promos were limited to their market area (MI, GA & IN). However, this does not seem to be the case for these current promos. Any zip code appears to show the same promos. In addition, I was told by the CSR that any zip code can qualify.

I also asked the CSR if they do a hard credit inquiry in the application process. According to the CSR, it's a "soft pull to just view banking history."

Finally, I asked about how long these promotions would last. He wasn't able to say, but he thought they would at least last through today. As is common, they're subject to change at anytime.

Flagstar's Express Money Market Account

Flagstar still has its internet bank at FlagstarDirect.com. Flagstar has been offering an internet money market account since July 2007. The rates had remained competitive until last December when the rate plummeted. Just recently the rates have become a little more competitive for an internet money market account although they're nothing to get excited about. As of 5/25/2010, the top rate is 1.20% APY, but this requires a $100K minimum balance. Under $100K, the rate drops to 1.06% APY. This low tier rate had been 0.60% in April. The Express Internet Checking has a 0.85% APY on all balances. These accounts do offer some perks like free checks and free identity theft protection.

Financial/FDIC Info

Flagstar has been hit hard by the mortgage crisis, and it has been losing money since 2007. Flagstar reported its 1st quarter earnings in April. Losses widened, but loan-losses went down and it succeeded in issuing additional shares to help shore up its capital reserves.

Bankrate.com continues to give Flagstar a 1-star rating (lowest) for safety and soundness. BauerFinancial gives Flagstar Bank 2 stars (problematic). Our DepositAccounts.com health score for Flagstar is 3 out of 5 (see our Flagstar rates and reviews page). All ratings are based on 12/31/09 financial data. Flagstar Bank is a member FDIC (FDIC Certificate # 32541).

Update: This KeyBank promotion has ended. For those who live in parts of New York, another bank is offering a free iPod touch in a promotion that's scheduled to last through 9/30/2010. KeyBank has regularly offered an Apple iPod promo each year, so hopefully, we'll see another one next year.

KeyBank has a new checking account promotion in which you can earn a free iPod touch. This is similar to the Garmin promo they offered last year. Here's a summary of the requirements of this new promo:

• Open a Key Express Free Checking Account by 6/30/10, and
• Make one KeyBank Rewards debit card transaction, and
• A combination of two direct deposits and/or automated payments each of $100 or more by 10/01/10

One important thing to note is that you must have or request a KeyBank Rewards debit card and enroll in the KeyBank Rewards points program. There is a $20 annual fee for the KeyBank Rewards Program that will be waived for the first year. Below are some additional important points from the small print:

Qualifying debit card transactions include signature, PayPass, and PIN-based purchases only. Direct deposit transactions are limited to: payroll, Social Security, pension, and government benefits. Automated payments exclude Key Bill Pay, debit card automated payments, PayPal transactions, and account-to-account balance transfers. Limit one iPod touch per qualifying account. Limit one iPod touch per individual. The value of the iPod touch will be reported on Form 1099-INT. You will receive your iPod touch within 90 days of meeting requirements. Offer available to individuals without an existing checking account at KeyBank as of 4/30/10. Employees of KeyBank, its affiliates, and subsidiaries are not eligible for this offer. If you close your account within 180 days of account opening, you will be charged a $25 account early closure fee.

Credit for this find goes to FW member Neidman who posted it on this FW thread.

One thing not mentioned at the promo page is the version of the iPod Touch. The 8GB version is currently selling at Newegg.com for $189. KeyBank would likely give it a higher value on the 1099-INT.

Like previous KeyBank promos, it appears to be only available in areas where they have branches. Key has branches in the following states: Alaska, Colorado, Connecticut, Idaho, Indiana, Kentucky, Maine, Michigan, New York, Ohio, Oregon, Utah, Vermont, and Washington.

Some FW members have reported problems with the online application. It looks like you'll have better luck by applying by phone.

KeyBank has been FDIC member since 1956

Other Bank Bonuses

To find other bonus deals at other banks, please refer to my bank bonus page which has all of my recent bank bonus posts.

Comerica Bank is offering a new checking account promotion that's scheduled to last until June 30, 2010. You can earn up to $300, but $75 of the $300 requires that you open one of their premium checking accounts which have monthly fees that are hard to avoid. You can qualify for the other $225 in bonuses by opening their Access Checking account. This also has potential monthly fees, but it's much easier to avoid than the other checking accounts.

You can open the account at a branch or by phone. I just spoke with a CSR, and I was told that people in any state can qualify for this promo. If you don't live near a branch, they'll mail you the account opening kit. The CSR wasn't sure if they do a hard credit inquiry. She could only confirm that they do use ChexSystem. Last year I was told by a CSR that their credit inquiry is soft and not a hard pull.

Here's a summary of what needs to be done to earn the $225:

• Open a qualifying Comerica checking account by 6/30/2010
• Add one of the three qualifying services ($75 for each)
• Register online for the program by 6/30/2010

Qualifying services include:

• $75 for signing up and paying an average of five or more bills each month for six consecutive months
• $75 for signing up and using your Comerica Check Card an average of five or more times each month for six consecutive months
• $75 for establishing a recurring direct deposit of $150 or more per statement cycle on or before 8/31/2010

You can qualify for an additional $75 if you open either a Premier or Comerica Platinum Circle Checking account by June 30th AND deposit at least $2,500 by August 31, 2010. These are the checking accounts that have monthly fees that are difficult to avoid.

According to the CSR, you can qualify for the three $75 bonuses with their basic Access Checking Account. However, it still has potential monthly fees. Fees can be waived if you maintain a $800 minimum balance, have direct deposit, own a house or are a full time college student. There's also a quarterly inactivity fee that you have to watch out for.

Comerica is a large bank with most of its branches in Michigan, California and Texas. There are only a few branches in Arizona and Florida. Comerica is a member FDIC (FDIC Certificate # 983).

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.

Thanks to the reader who emailed me news of this new promotion.