Michigan Schools & Govt Credit Union 11-Mo CD Has Market-Leading Rate

At the end of 2022, one of the most competitive 5-year CDs in the country was offered by Michigan Schools and Government Credit Union (MSGCU). The 4.75% APY (very competitive in 2022), a low $500 minimum opening deposit, a one-time rate bump option, and a mild Early Withdrawal Penalty (EWP) lasted for five months.

MSGCU currently has a promotional 11-month CD Special offering 5.40% APY. The minimum opening deposit is $500, with new money required. As stated on the CDs & IRAs page,

Minimum balance to open the CD account and earn the advertised APY is $500 in new money […] (funds that are not currently on deposit at MSGCU.) Funds will be considered new if the funds came to MSGCU via cash, check, or wire transfer and the CD is opened within five days of receiving the funds of if the funds came from an IRA transfer that was deposited into the IRA share and the CD opened within five days.

Minimum of $10,000 of new money must be deposited to the CD using cash or check before existing MSGCU funds can be added.

The 11-month CD Special is also available as an IRA CD Special (Traditional, Roth, CESA, SEP), earning the same APY with the same deposit requirements.

Early Withdrawal Penalty

As stated in the Certificate of Deposit Disclosure, the Early Withdrawal Penalty reads as follows:

If you withdraw from this Certificate before the maturity date, it is considered an early withdrawal. In this situation, you will not receive any interest that is accrued but has not been paid.

Additionally, you will incur an early withdrawal penalty which is the forfeiture of 90 days interest for Certificates 1 year or less, and 180 days interest for Certificates greater than 1 year, on the amount withdrawn

CSR confirmed that partial withdrawals are permitted, but a withdrawal from an 11-month CD Special within 90 days of account opening will reduce the principal.

Availability and Account Opening

Headquartered in Clinton Township, Michigan Schools and Government Credit Union’s field of membership (FOM) was both expanded and simplified more than five years ago. Rather than having “laundry list” of ways to qualify, MSGCU now offers membership to individuals who live, work, worship, or attend school in any Michigan county.

Joining MSGCU and/or opening an 11-month CD Special can be done online, or in person at any of 21 Michigan branches located in Ann Arbor, Bloomfield Hills, Canton, Chesterfield (2), Clinton Township, Commerce Township, Farmington Hills, Livonia, Macomb, Madison Heights, Rochester Hills, Royal Oak, Saint Clair Shores, Saline, Shelby Township (2), Sterling Heights (2), Troy, and Warren. Appointments are available and can be scheduled online.

A $5 minimum opening deposit in a Membership Share account is the first step in joining MSGCU. If an MSGCU membership is closed within the first year, there is a $5 early closure fee.

As a member of the CO-OP Share Branch network and the ATM network, MSGCU offers it members access to more than 5,600 shared branches and over 30,000 surcharge-free ATMS.

Funding and Other Particulars

The following information is from the MSGCU website and a conversation with CSR.

• Funding – ACH, wire (no fee), internal transfer, or Shared Branch transfer.
• Ownership – Individual or joint.
• CO-OP Shared Branch Network – Yes.
• Dividends – Compounded/credited quarterly and can be withdrawn without penalty.
• Maturing Funds – Cashier’s check or internal transfer to an MSGCU savings/checking account.
• Grace Period – 10 calendar days before automatic renewal as a 12-month CD.
• Beneficiaries – Unlimited with equal shares, Social Security numbers required for all beneficiaries.
• Credit Check – Soft pull.

Credit Union Overview

Michigan Schools and Government Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.16% (excellent) based on December 31, 2023 data. In the past year, MSGCU has increased its total non-brokered deposits by $112.37 million, an excellent annual growth rate of 4.12%. Please refer to our financial overview of Michigan Schools and Government Credit Union (NCUA Charter # 62049) for more details.

Michigan Schools and Government Credit Union was founded in 1954 by a group of Macomb County school teachers, and was known as the Macomb Schools and Government Credit Union. Seventy years later, MSGCU is the sixth largest credit union headquartered in Michigan with more than 149,000 members and assets in excess of $3.6 billion.

MSGCU announced its 2023 Classroom Cash Grants recipients at the end of last year.

MSGCU is awarding more than $45,000 to 64 educators from 54 schools across the Metro Detroit area. Each teacher is receiving a grant worth up to $750 to help implement innovative learning experiences that foster students’ exploration, independent thinking, and problem solving in the classroom. […] The Classroom Cash Grants initiatives has funded nearly 1,200 unique projects since it launched 18 years ago.

How the 11-Month CD Special Compares

When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM and have minimum deposit requirements of $10k or less, no banks or credit unions currently have higher rates than offered on the Michigan Schools and Government Credit Union 11-Month CD Special. The following table compares the 11-Month CD Special to the four highest-rate similar length-of-term CDs from banks/credit unions.

The above information and rates are accurate as of 3/18/2024.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.