In February, I wrote about the new 23-month CD Special offered by Michigan Schools and Government Credit Union (MSGCU). At that time, the 23-month CD Special earned a respectable 1.10% APY, but following two rate increases, the APY is a very competitive 1.60%. MSGCU is also offering a 9-month CD Special that now earns 1.20% APY after two recent increases totaling 70 bps. The minimum opening deposit for either CD Special is $500, with no stated balance cap.
Both CD Specials are also available as IRA CD Specials (Traditional, Roth, CESA, SEP), earning the same APYs with the same funding requirements.
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interest for Certificates less than 2 years, and 180 days interest for Certificates 2 years or greater, on the amount withdrawn. Any remaining balance is subject to the terms and conditions of the original Certificate.
If the interest forfeiture exceeds the interest due you at the time of such early withdrawal, the difference shall be deducted from the principal amount.
There is a ten day grace period before the 23-month CD Special automatically renews as a standard 24-month CD and the 9-month CD Special automatically renews as a standard 6-month CD.
According to CSR, the easiest way to fund a CD is through an internal transfer from a MSGCU savings account. MSGCU participates in the CO-OP Shared Branch network, facilitating any transfer of funds. Maturing funds can be distributed by a check to the address on file or transferred into a MSGCU savings/checking account.
Headquartered in Clinton Township, Michigan Schools and Government Credit Union’s field of membership (FOM) has expanded and simplified since my 2017 blog post. Rather than having a laundry list of ways to qualify, MSGCU now offers membership to all individuals who live, work, worship, or attend school in any Michigan county.
Joining MSGCU and/or opening a CD Special can be done online, or in person at any of 17 Michigan branches located in Bloomfield Hills, Chesterfield (2), Clinton Township, Commerce Township, Farmington Hills, Livonia, Macomb, Madison Heights, Royal Oak, Saint Clair Shores, Shelby Township (2), Sterling Heights (2), Troy, and Warren.
A $5 minimum opening deposit in a Membership Share account is the first step in joining MSGCU.
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.
Credit Union Overview
Michigan Schools and Government Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 1.40% (excellent) based on December 31, 2021 data. In the past year, MSGCU has increased its total non-brokered deposits by $240.96 million, an excellent annual growth rate of 10.1%. 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. Sixty-eight years later, MSGCU is the sixth largest credit union in Michigan with nearly 137,000 members and assets in excess of $3 billion.
As stated in the January 6, 2022 MSGCU Year in Review article,
As we reflect on all there is to be grateful for from the past year, Michigan Schools and Government Credit Union (MSGCU) is pleased to share 2021 achievements and positive impacts made for members and community.
Nearly a quarter million dollars was donated through MSGCU’s 2021 community giving efforts, including their scholarship and Classroom Cash Grants programs. Team members also volunteered more than 3,500 hours.
In response to the recent and devastating tragedy experienced at Oxford High School, MSGCU provided $21,000 in financial support to help the community navigate through this unexpected event. A donation was made directly to Oxford High School for students and faculty impacted by the trauma for counseling care. The credit union also made contributions to Mission Oakland, Oxford Village Police Department, and Oxford Fire Department to assist with the departments’ medical expenses, counseling, and trainings, plus the purchase of emergency and first aid supplies. In honor of the individuals who lost their lives, MSGCU will provide two $2,500 scholarships for the senior graduating class of 2022.
How the 23-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 23-Month CD Special. The following table compares the 23-Month CD Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
How the 9-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 9-Month CD Special. The following table compares the 9-Month CD Special to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
The above information and rates are accurate as of 4/1/2022.
To search for the best CD rates, both nationwide and state-specific, please refer to our CD rates table page.