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Catherine Collins
Catherine Collins
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Catherine Collins is an award-winning freelance writer and author of the book Mom’s Got Money. Her writing and expertise have been featured in dozens of media outlets, including Good Morning America, Forbes, U.S. News and World Report and more. She is the co-host of the Five Year You podcast and a proud mom of twins.
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Mallika Mitra
Mallika Mitra
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Mallika Mitra is a freelance contributor to Newsweek’s personal finance team. She was previously a writer and editor at Money, where she wrote a weekly newsletter about investing, and a wide range of stories on meme stocks, crypto, generational investing trends and more. Her work can also be found in CNBC, Bloomberg News, Business Insider, The Wall Street Journal’s Buy Side, CNN Underscored and USA Today, among other places.
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If you’re looking for a savings account in Michigan that will help you earn interest on your cash, you have ample online banks, credit unions and community banks to choose from. In addition to competitive savings rates, many of these firms offer perks like convenient online banking, 24/7 customer service and no monthly fees.
While interest rates are always subject to change, we’ve highlighted the current best savings interest rates in Michigan. We considered annual percentage yields (APYs), accessibility, fees, convenience and more.
Our Methodology
Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
- Associated fees
- ATM access
- Balance requirements
- Customer service
- Interest-earning potential
Our Picks
- Ally Bank
- MSU FCU
- Advia Credit Union
- Flagstar
Vault’s Viewpoint: Overview of the Best Savings Rates In Michigan
Best Online Savings Account
Ally Savings Account
Vault Verified
APY
4.20%
Minimum Deposit
$0
Monthly Fees
$0
Why We Chose It
While not Michigan-based, Ally is a highly-rated online bank that offers customers competitive interest rates without maintenance fees. The bank’s savings accounts currently earn 4.2% APY—much higher than the national average savings rate of 0.45%.
Unlike many high-yield savings accounts, Ally doesn’t require a minimum deposit to earn that high APY, and the savings rate doesn’t change based on the amount you save like other banks on this list. Ally also makes it easy to save for specific goals like vacation or a pet fund with savings buckets, and offers boosters that help you save like recurring transfers. Read our Ally Bank review.
Pros
- High APY
- No account balance minimum to earn the APY, and the APY doesn’t change depending on your balance
- Features include savings buckets and boosters
Cons
- No ability to deposit cash
- No branch locations
Best for College Students
MSU Federal Credit Union Savings Builder Tiered Savings Account
Vault Verified
APY
5.25%
Minimum Deposit
$0
Monthly Fees
$0
Why We Chose It
MSUFCU is a credit union that was founded in 1937 by Michigan State College faculty and staff. Today, you don’t have to be a Michigan State student to join MSU FCU. All Michigan residents can become members and take advantage of the credit union’s Savers Builder Tiered Savings Account, which offers 5.25% APY on the first $1,000 you save. This makes it a great first savings account for college students.
Pros
- High APY
- No minimum balance to open a savings account
- No monthly service fees or withdrawal penalties
Cons
- The high APY is only for the first $1,000
- This bank is not BBB accredited
Best Credit Union
Advia Advantage Plus High Yield Savings
Vault Verified
APY
5.00%
Minimum Deposit
$0
Monthly Fees
$0
Why We Chose It
Advia is a credit union with locations in Michigan, Wisconsin and Illinois. Customers can choose from several savings accounts, including the Ultimate Savings Account which earns 4% APY for the first 10 statements and Advantage Plus High Yield Savings which earns 5% APY on balances of $10,000 or more—an impressive return, even among high-yield savings accounts.
Pros
- High APY
- No deposit or withdrawal limits
- Interest compounded and paid monthly
Cons
- Customers must maintain a $10,000 minimum balance to earn 5% APY
- Membership is only open to Michigan residents who reside in the lower peninsula
Best Community Bank
Flagstar Promo Flagstar Savings Plus
Vault Verified
APY
5.55%
Minimum Deposit
$1
Monthly Fees
$0
Why We Chose It
Flagstar is a community bank with locations in nine states, including Michigan. The bank offers a Promo Flagstar Savings Plus account that guarantees 5.55% APY for five months if you have a balance of $25,000 or more. Flagstar was recently acquired by a New York bank, but kept its name and the Michigan branches.
Pros
- High 5.55% APY
- Only $1 to open the account
- $0 monthly fee if you have a checking account with the bank
Cons
- Customers must have a balance of $25,000 to earn the 5.55% promotional rate
- $15 monthly fee if you don’t have a checking account
- Flagstar Bank is not BBB accredited
How Much Can You Earn With a Savings Account In Michigan?
The amount of money you can earn with a savings account depends on the account’s interest rate and APY, which is the rate of return after one year. The chart below shows the APY for each of the best savings accounts in Michigan.
It’s important to keep in mind, however, that the estimated earnings in the chart don’t reflect promotional or temporary rates. For example, some accounts might offer a bonus rate for the first few months that you have an account, a specific number of cycles or up to a certain amount deposited. Interest rates on savings accounts also change at any time.
See below for the APY and estimated earnings on a $10,000 deposit for the best high-yield savings rates in Michigan.
| Bank Name | Savings Account | APY | Estimated Earnings |
| Ally Bank | Savings | 4.20% | $420 |
| MSU FCU | Savings Builder – Tier 1 | 5.25% | $525 |
| Advia Credit Union | Advantage Plus High Yield Savings | 5.00% | $500 |
| Flagstar | Promo Flagstar Savings Plus | 5.55% | $555 |
How to Open a Savings Account in Michigan
Opening a savings account in Michigan is fairly straightforward, though the specific process will depend on the bank or credit union. Here are the four general steps you’ll need to take.
- Research your options: Find out which bank offers the best savings account for your situation. Consider the amount you have to deposit, fees and requirements for promotional rates, as well as which banks fit your needs like ATM availability or in-person customer service.
- Prepare to apply: Most banks will ask for your government issued ID, Social Security number and proof of your address (like a lease or utility bills) to open a savings account. Gather your documents ahead of time to make the process smooth.
- Apply for your savings account: Most banks and credit unions have an online application process. But if you prefer—or it’s required—you can also open an account in person. If your documents are ready, opening a savings account can take just a few minutes.
- Make a deposit: Once you open your savings account, make your first deposit and set up your preferences like online and mobile banking. Consider a recurring deposit to build your savings quickly.
Tips for Choosing the Best Savings Account for You in Michigan
The best savings account for one person may not be the best account for another. Here are four tips to help you choose the right option for you.
1. Compare APYs and Fees
Look for savings accounts that offer the highest APYs and the least (and lowest) fees. Some savings accounts, like Ally, offer competitive APYs without fees or tiered savings rates. Other banks offer higher APYs but have monthly fees.
2. Review Account Requirements
Some savings accounts offer high APYs but have specific requirements you have to meet. For example, you might have to maintain a minimum balance or have the account open for a specific period of time. Other accounts might offer a high APY but only for a short amount of time or until you meet a savings threshold. Sometimes the APY will drop once you save above a certain amount of money.
3. Factor in Convenience
When it comes to banking, convenience matters. Consider factors like how long it takes to transfer money to savings and whether or not your bank has ATMs nearby. See whether or not the bank has mobile banking and 24/7 customer service.
4. Check Online Reviews
Earning a high interest rate on your savings account is great, but it’s important to look at other factors too when choosing a bank, like customer reviews. Recent reviews and ratings can tell you whether or not the bank has a good reputation and if its customers are happy with the services they get.
Alternatives to a Savings Account
If you’re interested in alternatives to a savings account, there are several other types of accounts that offer both short-term and long-term savings benefits.
Certificates of Deposit (CDs)
Certificates of deposit (CDs) are a savings option for people who want to lock in a specific interest rate. With a CD, you commit to keep your money in the bank for a specific period of time, typically three months to five years. While these accounts are extremely low-risk, the catch with a CD is that if you withdraw your money before it matures, there are penalties.
Money Market Account
Money market accounts (MMAs) are like a checking and savings account combined. Many MMAs offer high interest rates alongside check-writing capabilities and a debit card. Typically, you have to have a minimum account balance to open a MMA. However, you get better interest rates than a typical savings account with less restrictions than a CD.
I Bonds
I Bonds are debt securities that are backed by the U.S. government, meaning they come with relatively no risk. The interest rate on these bonds changes every six months depending on inflation. You can cash in your bond any time after one year, but if you do so before five years, you’ll lose three months of interest.
Frequently Asked Questions
Are Online Savings Accounts Available for Michigan Residents as Good as Local Bank Options?
Yes, online savings accounts can be as good as local banks and sometimes even better, depending on your preferences. If you’re someone who likes going into a brick-and-mortar bank to have in-person conversations about your finances, you probably won’t like online banks. However, if you appreciate convenience and lower fees, you might prefer online banks.
Can I Open Multiple High-Interest Savings Accounts to Grow My Savings in Michigan?
Yes, you can open several high-interest savings accounts at once to take advantage of different promotional rates and diversify your savings. But keep in mind that managing multiple accounts will likely require more time and attention.
Are There Any Michigan-Specific Credit Unions Offering High-Interest Savings Accounts and Rates for My Money?
Yes, there are several Michigan credit unions that offer high-interest savings accounts. These include MSUFCU and Advia Credit Union. You’re eligible to become a member of these credit unions if you’re an eligible resident of Michigan.
Can You Earn 7% in a High Yield Savings Account?
We couldn’t find banks that offer savings accounts with 7% APYs. However, several of the financial institutions mentioned above offer 5% APY to customers who meet specific savings criteria.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Catherine Collins
Contributor
Catherine Collins is an award-winning freelance writer and author of the book Mom’s Got Money. Her writing and expertise have been featured in dozens of media outlets, including Good Morning America, Forbes, U.S. News and World Report and more. She is the co-host of the Five Year You podcast and a proud mom of twins.
Read more articles by Catherine Collins
