Michigan Schools and Govt Credit Union 5-Year CD Offers Leading Rate
If you live in Michigan and are looking for long-term CD with a high rate, the 5-year CD offered by Michigan Schools and Government Credit Union (MSGCU) might be a good fit. In addition to having a competitive 4.75% APY, the 5-year also has a mild 180 day Early Withdrawal Penalty (EWP), a one-time rate bump option, and a low $500 minimum opening deposit. A long-time DA reader described the MSGCU 5-year CD as having “perhaps the best combo I have seen of rate, flexibility, and reasonable EWP.”
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.75% | $500 | - | Michigan Schools And Government Credit Union | 5 Year CD | |
| 4.75% | $500 | - | Michigan Schools And Government Credit Union | 5 Year IRA CD (Traditional, Roth, CESA, SEP) |
The 5-year CD is also available as an IRA CD (Traditional, Roth, CESA, SEP), earning the same APY with the same deposit requirements.
All MSGCU non-promotional CDs with terms longer than 2 years are offered with a one-time rate bump option. According to the Certificate of Deposit Disclosure,
You will have a one-time bump up option to adjust your rate to the then prevailing rate for new Certificates of identical terms. Your Certificate's original maturity date will not change.
Further details are provided in MSGCU's "Bump Your CD Rate" page:
You must contact a Michigan Schools and Government Credit Union representative to activate the bump rate option.
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interest for Certificates less than 2 years, and 180 days interest for Certificates 2 years or greater, on the amount withdrawn.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.
Funding and Other Particulars
- Funding – ACH, wire, internal transfer, or Shared Branch transfer.
- CO-OP Shared Branch Network – Yes.
- Dividends – Compounded/credited quarterly and can be withdrawn without penalty.
- EWP – Partial withdrawals are permitted.
- Maturing Funds – Cashier’s check or internal transfer to an MSGCU savings/checking account.
- Grace Period – 10 calendar days before automatic renewal.
- Beneficiaries – Unlimited, equal shares, Social Security numbers required.
- Credit Check – Soft.
Availability
Headquartered in Clinton Township, Michigan Schools and Government Credit Union’s field of membership (FOM) has both expanded and been simplified in the past five years. Rather than having myriad 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 a CD 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 1.42% (excellent) based on June 30, 2022 data. In the past year, MSGCU has increased its total non-brokered deposits by $212.76 million, an excellent annual growth rate of 8.31%. 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 139,000 members and assets in excess of $3.2 billion.
Earlier this month, MSGCU announced the 2022 Classroom Cash Grants results.
MSGCU is awarding more than $45,000 to 63 educators from 49 schools across the Metro Detroit area. The grants are worth up to $750 each and help teachers implement innovative learning experiences that foster students’ exploration, independent thinking, and problem solving. With a heritage rooted in education, MSGCU values the important work teachers do every day, and is excited to help educators bring creative learning concepts to life in their classrooms. Since its inception, the Classroom Cash Grants program has awarded over half a million dollars to local educators. The program has funded more than 1,000 unique projects that otherwise wouldn’t be covered by school budgets.
How the 5-Year CD 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 5-Year CD. The following table compares the 5-Year CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 4.75% | 5-Year CD (EWP=180 days) | Michigan Schools and Government Credit Union |
| 4.75% | 5-Year Bread Savings CD (EWP=365 days) | Bread Financial |
| 4.70% | 60-84 Month CD (EWP=180 days) | Department of Commerce Federal Credit Union |
| 4.64% | Senior Citizens 60-Month CD (EWP=180 days interest) | State Bank of India (IL) |
| 4.59% | 60-Month Share Certificate (EWP=365 days) | Interior Federal Credit Union |
The above information and rates are accurate as of 11/29/2022.
To search for the best CD rates, both nationwide and state-specific, please refer to our CD rates table page.
This page states interest can be credited to the CD, and then withdrawn, without penalty.
The disclosure statement (also linked here) does not clearly state that.
Mountain America at least and a few others, state interest credited to the certificate, becomes principal, and cannot be freely withdrawn.
Or does forfeiture only apply when the entire CD is closed? Can a small amount can be left in the CD, to keep the CD open, to avoid the loss of any accrued interest? That is the case with the very few savings accounts I have seen with this aspect. Hopefully that is what it means. But would not want to hope that is what it means. And some people will not be aware. Good luck.