CDs in Michigan can fluctuate much like anywhere else. And unless you have the money to invest in several CD accounts, you’re most likely going to be focused on just one. But is the highest rate always the best choice for a certificate of deposit in Michigan? The answer may surprise you.
The best CD accounts are often promotional rates only, meaning you will only receive that rate for the first few months of your deposit term. For example, if you sign up for a 12 month CD, the promotional rate may only apply to the first 3 months. That’s not always a bad thing, but you should carefully consider if you could get a higher return on a CD that’s offering a lower rate from the start, but never drops off like the promotional CD.
Another important consideration is whether the bank you’re looking to open a certificate of deposit account with actually has any level of customer service satisfaction. Banking can be a nightmare if you choose to work with the wrong bank. There is nothing worse than having your money tied up and inaccessible when you need it for an emergency. You may also be hit with massive fees that only wasted your time and efforts while your money was also tied up.
Before you open a CD account, take the time to consider this and other variables that could affect your banking experience. The highest Michigan CD rate may not always be the best choice.
