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.

About TD Bank:

TD Bank claims to be America’s most convenient bank (so much so that they’ve actually trademarked the term “America’s most convenient bank”). They are one of the 15 largest banks in the United States with $160 billion in assets, and provides customers with a full range of financial products and services at more than 1,100 retail stores throughout the Northeast, Mid-Atlantic, Metro D.C. and Florida.

Company History:

The company first opened its doors as Portland Savings Bank in Portland, Maine, in 1852, and later grew through a series of mergers and became Peoples Heritage Bank in 1983. At the turn of the millennium, the opportunity for growth presented itself again as Peoples Heritage Bank, through several acquisitions, expanded deeper into New England and took the name Banknorth.

Meanwhile, Cherry Hill, New Jersey-based Commerce Bank was turning Customers into Fans as America’s Most Convenient Bank. Founded in 1973, Commerce Bank expanded rapidly over the next 30 years into metro New York and Philadelphia, Washington D.C., and South Florida, winning new Customers with WOW! service and convenience.

In 2004, Banknorth caught the eye of TD Bank Financial Group of Toronto, Canada, a top 10 financial services company in North America. TD Bank Financial Group soon became Banknorth’s majority shareholder and the company became known as TD Banknorth. TD Bank Financial Group completed its purchase of TD Banknorth in 2007.

Looking to expand further in the U.S., TD Bank Financial Group acquired Commerce Bank on March 31, 2008, and the company rebranded as TD Bank, America’s Most Convenient Bank. TD Banknorth locations followed suit in September 2009, completing the merger of the two companies and uniting them under the TD Bank brand name.

Today, TD Bank, America’s Most Convenient Bank, remains focused on delivering award-winning Customer service and hassle-free products to Customers from Maine to Florida.

Current CD Rates offered by TD Bank:

Basic CD’s

- 9 month CD yielding 0.65% APY with a minimum deposit of $250 required. The current national average for 6 month CDs sits at roughly 0.78% APY (to put this offer in perspective).

- Other terms available, contact a local rep for current rates.

No Catch CD’s

- 6 month CD yielding 0.45% APY with a minimum deposit of $250 required and one penalty-free withdrawal allowed.

- 12 month CD yielding 0.40% APY with a minimum deposit of $250 required and one penalty-free withdrawal allowed.

Step Rate CD’s

- 3 year CD yielding 1.47% APY. Year 1 yields 0.90% APY, year 2 yeilds 1.24% APY and year 3 yields 2.24% APY.

- 5 year CD yielding 1.80% APY. Year 1 yields 0.75% APY, year 2 yeilds 1.00% APY, year 3 yields 1.74% APY, year 4 yields 2.23% APY and year 5 yields 3.20% APY.

* For the Step Rate CD the annual percentage yield is a Composite APY. The APY assumes each stated interest rate will be in effect for the length of time identified (one (1) year period).

TD Bank has locations in Connecticut, Washington D.C., New Jersey, New York, New Hampshire, Florida, Massachussetts, Maryland, Maine, Pennsylvania, Vermont and Virginia.

Also check out: TD Bank’s Checking Account Bonus

If you are strictly after the best interest rate then you have a variety of options that will provide you with similar yields. The question you need to ask yourself is, “what type of minimum balance can I keep?” Most money market accounts provide a given interest rate based on a certain account balance. The more money you are able to keep in these accounts, the higher the interest rate you will generally receive.

After sorting through dozens of interest rate tables belonging to banks and credit unions serving the state of Maine, we have found that in many instances you will lock in more competitive rates with national institutions rather than local ones (if you are eligible). Before committing to one of the banks/credit unions listed below, you may want to browse through our national money market rates tables.

Keep in mind, money market rates are time-sensitive in nature, therefor you may want to refer to the date of this article for accuracy. As with all money market accounts, the interest rates are variable and are subject to change without notice.

Top 2 money market rates in Maine:

(click on the institution for more information)

• Bar Harbor Savings and Loan: Bar Harbor, ME. Money market account yielding 2.02% APY with a minimum deposit amount of only $2,500. Any amount less than $2.5k will earn a 1.0% interest rate. Bar Harbor Savings and Loan was incorporated in 1902 by a group of local residents attempting to provide affordable home ownership to community members. They have just one location on main street in Bar Harbor. Contact: (207) 288-3658
• Oxford Federal Credit Union: Oxford, ME. Money market account yielding 1.25% APY with a minimum deposit of $10,000. If your account balance falls between $2,500 and $9,999 you will only receive an interest rate of 0.75% APY. If you live, work, worship, or attend school in Oxford County, Maine, then you are eligible for membership at Oxford Federal Credit Union. You must first open a Share Account with a minimum of $5.00 and proper identification. (Driver’s license, passport, state ID, etc.)  After opening a Share Account, you become eligible to take advantage of all their other products and services. Contact: (207) 369-9976

Both of the above institutions are federally insured by either the NCUA or FDIC. If you live in Maine and know of a better money market rate offered through your local institution, please share by leaving a comment.

Although the financial institutions we’ve listed below do the majority of their business in Maine, they still may have eligibility requirements which may prevent you from joining (even if you live in ME). Contact a representative to see if you can take advantage of their products.

How did we compile this list? As you are probably aware, higher CD rates tend to accompany longer maturities and since we did not want to strictly list long maturity CD’s we decided to list the deposit rates which beat the national average by the highest margins.

Top 3 CD rates in Maine

(clicking on the institution will bring you to their home page)

• Rainbow Federal Credit Union: South Paris, ME. 15 month promotional CD yielding 2.27% APY with a minimum deposit of $500. Besides this promotional offer, their rates are not that spectacular. The second most lucrative offer is a variable high interest money market account yielding 1.41% APY. Rainbow Federal Credit Union was established in 1958 and now operates in various counties throughout Maine. To join you must work, reside or attend school within our field of membership which includes a list of communities (visit their website), or have an immediate family member who is a Rainbow FCU member in good standing.
• Bar Harbor Savings and Loan Association: Bar Harbor, ME. 24 month CD yielding an APY of 2.53% with a minimum deposit amount of $1,000. Bar Harbor Savings and Loan also has a very noteworthy money market account yielding 2.02% APY (national average sits at 1.20% APY) with a minimum balance requirement of $2,500. They were originally established in 1902 by a group of local lawyers and farmers with a mission to promote savings for future home purchases within the community. Today the serve the communities of Mount Desert Island, Swans Island, Frenchboro, Cranberry Isles, Trenton, Lamoine, Hancock, Sullivan, Franklin, Surry and Ellsworth.
• Maine Savings Federal Credit Union: Milo, ME. 36 month CD yielding 3.0% APY with a minimum deposit of only $500. Their second best rate comes in the form of a 5 year certificate of deposit and is yielding 3.61% APY. Maine Savings Federal Credit Union serves various communities within the state. You will need to contact a representative to see if you’re eligible.

All of the above institutions are federally insured by either the FDIC or NCUA (credit union equivilent). If you live in the state of Maine and know of a better certificate of deposit interest rate offered through your local institution, please share by leaving a comment.