Top 5-Year CD Rate at Southwest Michigan Federal Credit Union


Southwest Michigan Federal Credit Union has been offering some top CD rates for quite a while. I was wondering why I haven’t reviewed this credit union before. I found out the reason from the credit union’s 2012 summer newsletter. The credit union had a major expansion of its field of membership. According to the CEO, it was the “largest community charter expansion this year by the National Credit Union Administration.” Before this charter expansion, the credit union probably had a narrow field of membership. I usually don’t focus on credit unions with narrow fields of membership since very few people can qualify.

The credit union’s long-term CD rates are the most competitive. These include a 2.00% APY 5-year CD and a 1.50% APY 4-year CD. Minimum deposit is $3,000. These rates are listed in the credit union’s rates page as of 4/17/2013.

One downside with these CDs is that the early withdrawal penalties are above average. According to the credit union’s investment page, the EWP is 730 days of interest for the 5-year CD and 365 days of interest for the 4-year CD.

As I mentioned above, the credit union now has a community charter. Membership is open to those who live, work, worship, or attend school in the Michigan counties of Kalamazoo, Calhoun, Barry, Allegan, VanBuren, Berrien, Cass, St. Joseph, and Branch. Please refer to the credit union’s Who Can Join page for more details. Membership requires a minimum $5 balance in the share account.

Southwest Michigan FCU branches are located in Kalamazoo and Battle Creek, Michigan.

The credit union has an overall health score at of 5 stars (out of 5) with a Texas ratio of 0.78% (excellent) based on December 2012 data. Please refer to our financial overview of Southwest Michigan FCU for more details. The credit union is federally insured by the NCUA (Charter # 4103).

How This CD Rate Compares

The highest 5-year CD rate without a checking requirement that's available nationwide is 2.00% APY at Mountain America Credit Union. This rate is accurate as of 4/17/2013.

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