The Best CD Rates in Maine for 2025

Maine residents may turn to CDs to reach their savings goals, and there are plenty of banks in the state that offer them. Finding the most competitive CD rates takes some research, but we've got you covered. Read on to learn which Maine banks offer the best CD interest rates. 

The Best CD Rates in Maine

Bath Savings

Bath Savings is one of Maine's oldest financial institutions and you'll find a wide variety of CD options. In addition to standard CDs, you can open IRA CDs, special CDs and laddered CDs, all of which require at least $500 to open. Rates are competitive across the board but you'll get the best deal with longer-term CDs. 

Machias Savings Bank

Machias Savings Bank offers regular CDs with terms of 3 to 60 months and one special CD with a 7-month term. All CDs have a $500 minimum opening deposit requirement. Rates are well above average, though the 7-month special CD is a standout if you're looking to earn the most interest on your money. 

Bangor Savings Bank

Bangor Savings Bank offers standard CDs for adults and CD accounts for kids who want to get an early start on saving. You'll also find special CDs here, with terms of 9 to 54 months, that offer more bang for your buck. Standard and special CDs require a visit to a branch to open and have a $500 minimum deposit requirement. 

Lock In The Highest CD Rates Before Interest Rates Crash Again

The Federal Reserve plans to continue dropping interest rates. To ensure that you continue to generate reliable returns for years to come, consider a CD now to lock in the highest available rates:

Methodology

To choose the best CD rates in Maine, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Maine (based on FDIC June 2024 data) with more than 10 locations in the state--includes coverage and availability in major cities including Portland, Lewiston and Bangor.

The top recommendations are the results of analyzing the CDs based on the following criteria:

• Annual percentage yield (APY) for each CD’s corresponding maturity term
• The number of CD maturity terms available from the bank with which their corresponding APYs are competitive
• Minimum opening deposit requirements

How Do CDs Work?

CDs or certificate of deposit accounts work by paying you a set interest rate for a specific period, called a term. At the end of your CD term, you can roll your savings over to a new CD or withdraw it. 

A CD account can help you resist the temptation to dip into your savings early, since your bank may charge a penalty fee if you do so. Here are the benefits of CDs, at a glance:

• CDs have a guaranteed rate of return, so you can easily calculate how much room your money has to grow.
• Banks can offer a variety of CD options to meet different needs and savings goals. 
• Since rates are fixed, there's virtually no risk of losing money in a CD account.

CDs offer an alternative to high-yield savings accounts and money market accounts. These accounts can also pay interest, but they don't lock your money in; you can make withdrawals whenever you like. 

How to Choose a CD

Which Maine CD is the right one for you? Knowing what to compare can help you answer that question. Here are the most important factors to consider. 

Interest rate

As you shop around for CDs, the interest rate may be the first thing you notice. A higher rate is a good thing, but some banks pay more interest than others. 

Here are a few tips to keep in mind:

• Banks may set a minimum balance requirement to earn the highest advertised rate. 
• Unless you're opening a raise your rate or bump up CD, your rate should stay the same for the entire term. 
• CD rates can change at any time to track changes to an underlying benchmark rate. 

CD rates and maturity terms are tied together, since your term influences the rate you earn.  

Maturity term

A CD maturity term is the length of time the bank expects you to keep your money in the account. CD terms can be short, long or somewhere in between. 

Your choice of CD term usually ties in with how soon you think you'll need to access your savings. 

• Short-term CDs usually have terms ranging from 1 to 12 months, though some may have terms of 7 to 14 days. 
• Mid-term CDs have terms ranging from 1 to 3 years; these are good for funding larger financial goals. 
• Long-term CDs have terms of 3 to 10 years and are usually suited to money you know you won't need for a long time. 

The main thing to keep in mind when choosing a CD term is whether the bank charges an early withdrawal penalty. Banks can charge these fees if you take money out before your CD matures. 

Building a CD ladder can help you get around the fee. You open multiple CDs with different term lengths, so that a maturity date is always on the horizon. 

Minimum opening deposit

You might be wondering how much money you need to open a CD. The short answer is that it varies. 

Banks may require $100 to $1,000 to open a new CD, but opening deposits can go higher. For instance, you might need $2,500, $5,000 or more. With jumbo CDs, which are designed for larger amounts, you may need $100,000 to open a single CD. 

The best CD for you is one that you can afford to open, without tying up all of your money. Remember that if you're laddering CDs, whether it's with the same bank or different banks, you'll need to be able to cover the opening deposit requirement for each one. 

Early withdrawal penalty

As mentioned, banks can charge early withdrawal penalties for CDs. The fee varies by bank. For example, you might pay:  

• A flat fee
• A fee that's equivalent to some or all of the interest earned
• A combination of both

Some banks don't charge these fees, or they offer no penalty CDs. With a no-penalty CD, you can withdraw money before maturity with an added fee. 

Before you commit to a CD, check the fee schedule to see if you might be charged a fee for early withdrawals. Even if you don't plan to pull money out early, it's good to know what it might cost you to do so if you have a financial emergency. 

Flexibility options

CDs come in different flavors, just like ice cream. In addition to standard or regular CDs, banks can also offer: 

• No penalty CDs, which allow for early withdrawals without a fee
• Bump-up or raise your rate CDs that let you increase your rate once or twice during the CD term
• Add-on CDs that let you make monthly deposits to your account after opening
• Jumbo CDs, which are designed to hold larger amounts of money
• IRA CDs, which are CDs that follow the tax rules of Individual Retirement Accounts
• Special or promotional CDs, which offer higher rates for a specific term

More CD options mean more flexibility for you as you plan how to tackle your financial goals. You might stick with just one type of CD, or try out different ones to see which is the best fit for your situation. 

Make Sure to Compare with Online Banks

We've highlighted some of the best Maine banks for CDs, but don't count out online banks. Online banks don't offer branch banking, but they can offer other benefits, such as:

• Higher interest rates for CDs and other savings accounts
• Lower account deposit requirements or minimum balance requirements
• Fewer fees
• Convenient access through online and mobile banking

You might open an online CD and a CD at a traditional bank if you want higher rates and in-person banking. Check out the best online banks for CD savers nationwide. 

FDIC Insurance

FDIC insurance protects depositors up to $250,000 in case of a bank failure. Banks don't fail that often, but if they do, the FDIC helps their customers get their money back. 

Most banks, including online banks, are FDIC-insured. You can tell if a bank is covered by checking for the FDIC logo on its website, or spotting FDIC signs at a branch. You don't need to sign up for this coverage; it's automatic. 

What about credit union CDs? FDIC insurance doesn't extend to credit unions, but you're not out of luck. The National Credit Union Administration (NCUA) offers similar coverage to credit union customers. 

FAQs

Is CD interest taxable? 

CD interest is taxable at the federal level and in states that assess personal income tax and/or tax interest and dividends. At the end of the year, your bank should send you a Form 1099 showing how much interest you earned on your CDs. You'll use this form to complete your federal tax return and your Maine state income tax return. 

How much money can you put in a CD?

Banks may set opening deposit requirements for CDs, but they can also cap how much money you can put in. For example, you might be limited to $100,000, $250,000 or $1 million, depending on the bank. Keep in mind that amounts over the FDIC coverage limit are typically unprotected if the bank fails. 

Are CDs safe?

CDs are generally safe and secure, since it's difficult to lose money and the FDIC protects your deposits. In exchange for safety, CDs tend to earn lower rates of return than investments like stocks or bonds. 

Can you have bank and credit union CDs?

You can have CDs at banks and credit unions, there's no rule against it. You might choose to open CDs at both if you have a large amount of cash to save and want to stay within FDIC and NCUA coverage limits. You'll need to join a credit union to open a CD account; membership requirements vary.