Michigan State University Federal Credit Union (MSUFCU) is currently offering very competitive rates on its 1-year Add-On Certificate (4.60% APY, $50 min) and 1-year Jumbo Add-On Certificate (4.86% APY, $100k min). Following significant rate increase of 160 bps, both Add-On Certificate APYs are the highest offered since DA began tracking them more than ten years ago. Unfortunately, the Add-On feature doesn’t provide much value since add-on deposits are limited to a maximum of $10k. I have more details below.
The Add-On Certificate and Jumbo Add-On Certificate are also available as an IRA Add-On Certificate and IRA Jumbo Certificate (Traditional, Roth, CESA, SEP), earning the same APYs with the same deposit requirements.
In the past, the best CD deals at MSUFCU have been on its 5- and 7-year CDs. Those rates are now only mildly competitive (4.26% APY on the 5-year Jumbo and 4.31% APY on the 7-year Jumbo), and they are well under the 1-year CD rate. It’s another case of an inverted yield curve with short-term rates that are higher than long-term rates.
As stated in the Certificate Disclosure,
Additional deposits to the 1-Year Add-On Certificate are allowed up to $10,000 per member per calendar year (not per Certificate). Additional deposits do not change the Certificate’s maturity date or rate.
If additional deposits to the 1-Year Add-On Certificate exceed the stated limitations, the funds in excess of the stated limitations will be withdrawn and deposited into the member’s Spartan Saver or Grizzly Saver account.
The Certificates landing page provides this explanation:
For example, if a member had five (5) 1-Year Add-On Certificates, any combination of amounts up to $10,000 could be added to each certificate, but the total additions to all certificates must not exceed $10,000 per member, per year.
There is no mention on MSUFCU’s website about limitations on additional deposit for the 1-year Jumbo Add-On Certificate. I was hoping for a larger cap, but in a Live Chat CSR stated,
I agree that does make sense when you are considering the minimum balance [$100k] for a Jumbo Certificate, however, it [$10k max per calendar year] is the only option we offer that allows you to deposit additional funds to it once it has been opened.
As stated on the Rates page, the Early Withdrawal Penalty reads as follows:
Certificates of one year or less: Results in penalty equal to 90 days dividends based on amount withdrawn.
If the dividend is not sufficient to cover the penalty, the principal amount will be reduced to cover this amount.
Funding and Other Particulars
- Funding – ACH or Shared Branch transfer.
- CO-OP Shared Branch Network – Yes.
- Dividends – compounded/credited monthly; dividends can be deposited in a share account or distributed by check to the address on file.
- Maturing Funds – Cashier’s check, wire, or internal transfer to an MSUFCU savings or checking account.
- Grace Period – 7 calendar days.
- Beneficiaries – Up to six using Beneficiary Designation form, percentages available, Social Security numbers required.
- Credit Check – Soft pull.
Headquartered in East Lansing, Michigan State University Federal Credit Union’s field of membership (FOM) offers virtually any US citizen/resident alien a way to join.
Easy Membership: A $10 donation to the Desk Drawer Fund qualifies for MSUFCU membership.
Residency: Individuals who live, work, worship, attends school, or owns a business in the Michigan counties of Genesee, Lapeer, Livingston, Macomb, or Oakland are eligible to join.
University Relationship: MSU Faculty and staff who regularly work on campus qualify for membership. Alumni, donors, graduates, international students, and individuals currently enrolled at MSU (and their immediate family members) are all eligible for membership.
Employment: Employees of more than 530 SEGs (including State of Michigan employees) are eligible to join.
Family Relationship: Immediate family members (spouse, parent, sibling, grandparent, or child) and household members of current MSUFCU members are also welcome to apply.
Joining MSUFCU and/or opening an Add-On Certificate can be done online (there is an “Open an Account” button at the top every page of the MSUFCU website) or at any of 21 Michigan branches located in Auburn Hills, Berkley, Charlotte, Clarkston, East Lansing (4), Grand Rapids, Haslett, Holt, Lansing (4), Mason, Okemos (2), Ortonville, Rochester, and Traverse City. Appointments can be scheduled online for any branch location.
The New Account Application is also available as a download and can be returned by snail mail.
A $5.00 minimum deposit into your Spartan Saver is required to open your account.
MSUFCU participates in the CO-OP Shared Branch and ATM networks giving members access to more 5,600 shared branches and nearly 30,000 surcharge-free ATMs located throughout the country.
Credit Union Overview
Michigan State University Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.74% (excellent) based on September 30, 2022 data. In the past year, MSUFCU increased its total non-brokered deposits by $277.99 million, an excellent annual growth rate of 4.99%. Please refer to our financial overview of Michigan State University Federal Union (NCUA Charter # 23279) for more details.
Michigan State University Federal Credit Union is the largest university-based credit union in the world, with more than 336,000 members and assets in excess of $6.9 billion. Established in 1937 by eight Michigan State College faculty and staff members, the fledgling MSC Employees Credit Union’s first “office” was a founding member’s desk drawer. (Founded in 1855 as the Agricultural College of the State of Michigan, the college was one of the country's first institutions of higher education to teach scientific agriculture.) In 85 years of operation, the credit union has re-branded twice (reflective of the school’s name changes), merged with two other Michigan credit unions, and was named Federal Credit Union of the Year (2014) by the National Association of Federal Credit Unions.
How the 1-Year Add-On CD and Jumbo CD Compare
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide, no banks or credit unions have higher rates than currently offered on the MSUFCU 1-year Add-On Jumbo CD. The following table compares the 1-year CD and Jumbo 1-year CD 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 12/2/2022.
To look for the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.