If you happen to live in the upper northeast (Maine to be specific) and are hunting for long term CD rates to invest in, you have several options from some local credit unions serving residents of the state. In our most recent survey of Maine’s top CD rates we found that the small community credit unions in the area are providing higher yields than the top online FDIC insured CD rates from our database on long term durations ONLY. If live in Maine and are looking for something with a smaller term, you’re better off applying for a certificate of deposit from one of the nationally available institutions.
As we conduct these surveys regularly, we generally point to the common trend that small banks and credit unions are usually on top for annual percentage yields, however, this trend does is not consistent with every state in the country (Maine being one of them). In fact, if you’re looking to lock in any CD with a term under the 60 month mark, you’ll be hard pressed to find a locally based bank or credit unions out of Maine that is able to compete with online banks. However, for 5 year CD’s, Maine’s credit unions have the top interest rates on lock down.
Top 5 year CD Rates in Maine:
(The interest rates listed below are time sensitive in nature and are accurate as of November 2011. Visit our 60 month CD rate database to compare APY’s, minimum deposit requirements and bank ratings.)
- Maine Savings Federal Credit Union (North Vassalboro, ME) is offering a 5 year CD with an APY of 2.36% with a minimum deposit requirement of $500.
- Maine State Credit Union (Waterville, ME) is offering a 5 year CD with an APY of 2.30% with a minimum deposit requirement of $500.
- New Dimensions Federal Credit Union (Waterville, ME) is offering a 5 year CD with an APY of 2.30% with a minimum deposit requirement of $5,000.
- Brewer Federal Credit Union (Brewer, ME) is offering a 5 year CD with an APY of 2.274% with a minimum deposit requirement of $500.
- Bangor Federal Credit Union (Brewer, ME) is offering a 5 year CD with an APY of 2.270% with a minimum deposit requirement of $500.
The top 5 year CD rates from institutions nationwide are:
- Nationwide Bank with an APY of 2.05% and a minimum deposit requirement of $500.
- First Internet Bank of Indiana with an APY of 2.00% and a minimum deposit requirement of $1,000.
- Discover Bank with an APY of 2.00% and a minimum deposit requirement of $2,500.
To put the offers above in perspective the national average for 5 year CD’s sits at roughly 1.70% APY as of November 2011.
Long term CD rates (and specifically 5 year CD’s) have fallen sharply since the summer due to the FED purchasing long term treasury notes, effectively lowering the rates offered on longer term bank deposits. These rates are expected to remain flat through most of 2013 and potentially into 2014 depending on economic conditions. FED Chairmen Bernanke made this announcement in his latest Jackson Hole, WY meeting two months ago.
Should you go long on CDs?
Here at BankVibe.com we recommend holding off on the purchase of long term CD’s due to the current unfavorable landscape for savers. If you’re looking to obtain a bank deposit, we would suggest looking into 6 month – 3 year CD’s at this will free up your funds in a time when interest rates should begin to rise. As a general rule of thumb, long term CD’s provide optimal utility when they are purchased at the end of a high rate cycle before rates begin to decline, thereby allowing the consumer to lock in high rates before the downward trend begins.