Maine State Credit Union is offering a competitive 5-year CD with a 3.50% APY. Also competitive are the 3-year and 4-year CDs which have APYs of 2.50% and 3.00%. The shorter terms are not quite as good. These are also available in an IRA and an Coverdell ESA. Minimum deposit is $500, and the early withdrawal penalty is 180 days of interest. These rates are listed at the credit union rates page as of 5/17/2010.
At the bottom of the CD rate table, it states the following "Certificates renew at the end of the quoted term with no grace period." That's is a bit unusual. The vast majority of CDs have a grace period of 5 to 15 days to allow you to close the CD without a penalty. I would guess they would take instructions before maturity to close the CD at maturity. Make sure to contact the credit union for the details.
Another nice thing about this credit union is that they offer a high-yield reward checking account that pays 4.07% APY for balances up to $25K as of 5/17/2010. This rate has held since my August 2009 post.
Membership is open to anyone who lives, works, worships, or attends school in Kennebec County or Somerset County. Also eligible are Maine State Employees. Please refer to the credit union's Become a Member page for the full details. Membership requires a minimum balance of $25 in the savings account.
Branches are located in Augusta and Waterville, Maine.
The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial, 4 stars (sound) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our Maine State CU rates and reviews page). All ratings are based on 12/31/09 financial data. The credit union is federally insured by the NCUA (Charter # 63377).
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