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CD Rates in Michigan for December 2025

Updated December 23, 2025

Written by
Marcos Cabello, J.D.
Edited by
Marc Wojno, MBA

Residents of Michigan may be wondering how to effectively grow their savings in today's rate environment. The best certificates of deposit (CDs) are a good option for parking your cash at minimal risk, so long as you open an account at a bank that is insured by the Federal Deposit Insurance Corp. (FDIC). With rates still near multi-year highs, now is an opportune time for Michigan savers to lock in competitive returns. Here's how to find the best CDs in Michigan.

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How to find the best CD rates in Michigan

There are three main components you should consider when choosing a CD: the term length, the yield and the penalty for early withdrawal. 

Choosing the CD term

CD terms typically range from three months to five years. When selecting a term, ask yourself how long you can comfortably keep your money untouched. Most CDs require an early withdrawal penalty if you access funds before maturity.

Consider minimum deposit requirements as well. While online banks like Ally and Capital One offer CDs with no minimum, traditional banks typically require $500 to $1,000 to open an account. For jumbo CDs, expect minimum deposits around $100,000.

Choosing the yield

Getting the best yield is probably the most important factor for most consumers when choosing a CD. Online banks typically provide much higher returns than traditional brick-and-mortar institutions in Michigan.

But choosing a CD based solely on the highest yield may not always be the right move. If you might need early access, consider a CD with more reasonable withdrawal terms or explore Bankrate's best no-penalty CDs instead.

Understand the early withdrawal penalties

Early withdrawal penalties range widely from bank to bank. A relatively standard early withdrawal penalty for a 12-month CD could range anywhere from three to six months of interest. Some banks may impose additional flat fees.

Balance the term length and yield against the penalty structure based on your risk tolerance. If you might need early access, a high-yield savings account may be a better alternative.

Short-term vs. long-term CDs

Whether to invest in a short-term or long-term CD is dependent on your financial goals.

Michigan residents with established emergency funds may benefit from longer-term CDs (2-5 years), which lock in today's high rates as protection against future rate decreases. Bankrate's current forecast suggests potential rate cuts later this year, making long-term CDs particularly attractive now.

Short-term CDs offer more flexibility for those who may need access to funds sooner or who believe interest rates might continue rising. They're ideal for specific goals with defined timeframes, like saving for a home down payment or major purchase in the next year.

How to compare CD rates in Michigan

The most popular banks in Michigan by number of branches include Huntington Bank, Chase Bank and Comerica Bank. Of these options, only Huntington Bank offers only a couple of competitive options, so consumers looking to open a CD will likely want to look elsewhere. 

Michigan residents seeking higher returns should explore nationwide online banks, which offer their products to customers regardless of location. Online banks not only provide higher CD rates but often feature user-friendly digital tools and expanded customer service hours. Consider opening multiple accounts at the same bank for easier fund transfers between your checking, savings, and CD accounts.

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