Lake Michigan Credit Union Review: Great Rates and Low Monthly Fees
Written by
Taylor Milam-Samuel
Edited by
Elizabeth Constantineau
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Lake Michigan Credit Union
-
APYs
4.5
-
Benefits
4.5
-
Products
4.5
-
Customer Service
4.0
Pros
- High APY for checking accounts
- Accessible membership eligibility
- Wide variety of banking and loan products
Cons
- Limited locations in Michigan and Florida
- Monthly fees on some accounts
- Must meet specific requirements to earn APY
Overview of Lake Michigan Credit Union
Lake Michigan Credit Union (LMCU) is one of the largest and most well-established credit unions in the U.S. Founded in 1933, LMCU has grown to serve over 600,000 members across Michigan and Florida. With assets exceeding $14 billion, it continues to offer a wide range of banking products, including checking and savings accounts, loans and mortgages, while maintaining its commitment to low fees and competitive rates.
Lake Michigan Credit Union Checking Accounts
LMCU offers four different checking accounts plus a Pay Card program for those who don’t qualify for one of the traditional accounts. Here are the details.
Max Checking
One of the biggest selling points for LMCU is its Max Checking account which offers an impressive APY on the first $15,000 for qualifying members. Plus, there’s no minimum balance or monthly fees. To earn the APY, you’ll have to meet all four of the following criteria each month:
- Direct deposit to Max Checking account
- Minimum of 10 posted debit or credit card purchases
- Minimum of four logins to online or mobile banking
- Sign up to receive eStatements/eNotices (only needs to be done once)
Free Checking
Even though it doesn’t pay any interest, Free Checking is an option for banking basics without fees or hassle. The account has no minimum balance requirements or monthly maintenance fees. Plus, the first order of checks is free. It’s a straightforward option for members who want to keep it simple.
Investor Checking
If you’ve exhausted the $15,000 cap on the APY interest rate for Max Checking — or simply don’t qualify for the rate — LMCU also offers an investor checking account specifically for stashing cash between investment opportunities.
The account offers APY on the first $2,500 to $24,499 and APY thereafter. The rates are low, but pretty standard. However, you must keep a balance of at least $2,500 to avoid the $10 monthly maintenance fee, making it an expensive option for most members.
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Advantage 50 Checking
Advantage 50 Checking is an interest-bearing checking account specifically designed for members aged 50 and over. The account doesn’t require a minimum opening deposit or a minimum balance to earn the APY. Plus, you’ll receive two free boxes of checks per year.
PayCard
Those who might not qualify for a checking account can get the convenience of a debit card with a Pay Card account. As with a checking account, you can deposit your paycheck directly to the Pay Card account and make purchases with a secure PIN.
But the account has some limitations. You can’t schedule automatic payments or withdrawals. Plus, there’s a $10 maintenance fee, which adds up.
Lake Michigan Credit Union Savings Accounts
Savings at LMCU earn more interest than similar savings accounts at traditional banks. Here are the details for the four savings accounts the credit union offers.
Member Savings
LMCU’s Member Savings account requires a $5 minimum opening balance and pays a APY. The account does have a $5 monthly fee, but the credit union will waive it if you maintain a $300 minimum balance. By opening a Member Savings, you can also create additional sub-accounts to keep savings goals separate. If you like sinking funds and saving for big expenses throughout the year, this account is a great option.
Max Savings
Max savings offers a savings rate as high as APY. You’ll need at least $100 in your account to start earning but you need a balance of at least $1,000,000 to earn the highest rate. Rates for smaller balances aren’t very competitive and start at .
Holiday Club
Earn some extra money while you save for the holidays, vacations or other upcoming expenses with this option that automatically transfers the account balance plus interest into your primary account on Sept. 30 each year. You can make deposits at any time. The Holiday Club account pays a APY interest rate, and if you need to make a withdrawal before Sept. 30, a $3 fee will apply.
Kids and Teen Club
The Kids and Teen Club is a solid choice if you’re looking for a youth savings account. The Kids Club accounts are available for kids 12 and under, while the Teens Club is for teenagers at least 13.
The account holder must become a Lake Michigan Credit Union member and provide a Social Security card when they apply. The accounts earn up to APY, which is a competitive rate.
Lake Michigan Credit Union Money Market Account
With a money market account from Lake Michigan Credit Union, you can write a limited number of checks while still getting great interest rates. The account requires no minimum opening deposit, and you can start earning interest immediately.
However, because the account has tiered interest rates that correlate to your balance, you need a lot of money in the account to earn competitive rates. For example, you need at least $1 million to earn the highest rate.
Lake Michigan Credit Union CD Rates
A CD offers additional savings options if you have money on hand that you don’t need to immediately access. Choose a term that fits your savings goals. Then, let your money go to work earning interest.
LMCU offers CD terms from three months to five years and rates go up to APY. A $500 minimum balance is required to open any CD. To qualify for even higher CD rates, you must enroll in the Member Owner Rewards Enhancement program and earn at least 400 points.
Fees
A handful of accounts from Lake Michigan Credit Union have monthly maintenance fees. The amount of the cost varies from one account to the next. You can also expect to pay fees for non-sufficient funds, dormant accounts and early account closing. Here are the most common fees from the credit union.
| Fee | Cost |
|---|---|
| Pay Card | $10 per month |
| Investor Checking | $10 per month |
| Holiday Club early withdrawal | $3 |
| Basic Checking | $5 per month |
| Early account closing (within 90 days) | $5 |
| Non-sufficient funds | $30 per item |
| Dormant account — six months with no activity | $5 per month |
How To Become a Member
Before opening an account, you must become a member of Lake Michigan Credit Union. Here’s how to qualify:
- Anyone who lives or works in Michigan’s lower peninsula or anywhere in Florida
- Immediate family members of an LMCU member
- Anyone who contributes $5 to the Amyotrophic Lateral Sclerosis Association Foundation
Minimum opening deposits are the exception, not the rule at LMCU, which makes it more affordable to open more than one account at a time.
The only accounts that require a minimum opening deposit are the Member Savings account and the certificates of deposit. The Member Savings account requires a $5 minimum opening deposit and is required to become a member of LMCU. To open a CD, you must deposit at least $500.
Lake Michigan Credit Union vs. Competitors
When considering a new financial institution it can help to compare how it stacks up to the competition.
Lake Michigan Credit Union vs. Teachers Credit Union
Teachers Federal Credit Union members can open a Smart Checking account that earns APY, which matches Lake Michigan Credit Union’s Max Savings account. Only one of LMCU’s checking accounts has a monthly service fee. Teachers Credit Union doesn’t charge a monthly fee on any of its checking accounts.
Lake Michigan Credit Union vs. United Federal Credit Union
United Federal Credit Union and LMCU offer similar CD rates, but UFCU offers more account options. United Federal members can choose from five different types of certificate of deposit accounts, including one for young investors, while LMCU only offers one type of CD. However, LMCU doesn’t require a minimum opening deposit for any of its checking accounts. But you must have a minimum opening deposit of $50 if you open a checking account at UFCU.
Final Take
Lake Michigan Credit Union provides members with an array of banking products and services that rival some of the biggest banks in the country. It’s easy to become a member, so it may be worth joining even if you don’t live in Michigan or Florida.
Competitive interest rates and attractive loan terms make LMCU a serious option for anyone who prefers nonprofit banking. The only difference you may notice between LCMU and for-profit banks is better returns in your accounts.
Lake Michigan Credit Union FAQ
Here are answers to some of the commonly asked questions about Lake Michigan Credit Union.- What is Lake Michigan Credit Union ranked?
- Lake Michigan Credit Union earns the number one ranking for member value, according to Callahan & Associates' Return of the Member rating among U.S. credit unions with assets over $10 billion. LMCU also earns a rating of 4.4 out of 5 from GOBankingRates, making it a top credit union pick.
- Is Lake Michigan a good bank?
- Lake Michigan is a good bank, but whether it's the right choice depends on your needs. If you can avoid the monthly maintenance fees while taking advantage of the higher-than-average APY rates, LMCU is an excellent option.
- How long has Lake Michigan Credit Union been in business?
- Lake Michigan Credit Union has been in business since 1933. By 2016, LMCU was the largest credit union in the state. Today, it has over 14 billion in assets and serves over 600,000 members in Michigan and southwest Florida.
Joel Anderson and Cynthia Measom contributed to the reporting for this article.
Rates are subject to change. Information on accounts is accurate as of Sept. 23, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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