Highland Bank (MN) 40-Month CD Special Is Still Competitive
About five months ago, Highland Bank added four CD Specials (9-month, 17-month, 25-month, and 40-month), all earning 5.15% APY, which was a rate-leading APY for the 40-month CD Special. Following a 10 bps increase, all four CD Special currently earn 5.25% APY, with the 40-month CD Special still competitive. A minimum $2.5k is required to open a CD Special, “with a minimum of 50% new funds not on deposit for prior 90 days with Highland Bank needed to obtain APY.” If the new money requirement is not met, the APY will be 4.90%. The CD Special is only available as a personal account and cannot be opened with public or institutional funds.
The 40-month CD Special is available as an IRA CD Special (Traditional, Roth), earning the same APY with the same deposit requirements.
According to CSR, partial withdrawals are permitted, but the principal is not protected. As stated on the CD Rates page, the Early Withdrawal Penalty read as follows:
- 40-month CD Special – 20 months interest on the amount withdrawn.
Availability and Account Opening
Headquartered in St. Michael, Minnesota, Highland Bank’s market area is the greater Minneapolis/St. Paul metropolitan area, offering accounts to U.S. citizens and resident aliens who have a valid Social Security number.
Opening a CD Special must be done in person at any of eight full-service Minnesota branches located in Blaine, Bloomington, Ely, Maple Grove, Minnetonka, St. Michael, St. Paul, and Woodbury. Appointments are available and can be scheduled online.
Funding and Other Details
The following information is from the Highland Bank website and a conversation with CSR.
- Funding – ACH, wire, cashier’s check, cash, internal transfer.
- Ownership – Individual, joint, or trust.
- Interest – Compounded/credited annually and at maturity; interest can be withdrawn penalty-free.
- Maturing Funds – Cashier’s check or internal transfer.
- Grace Period – 10 calendar days before automatic renewal “at closest regular term.”
- Beneficiaries – Unlimited, percentages can be assigned. Social Security numbers are required.
- Credit Check – Soft pull and ChexSystems.
Bank Overview
Highland Bank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 0.03% (excellent) based on June 30, 2023 data. In the past year, Highland Bank’s total non-brokered deposits decreased by -$29.3 million, a below average annual growth rate of -5.6%. Please refer to our financial overview of Highland Bank (FDIC Certificate # 16111) for more details.
Established in 1943 as the Security State Bank of St. Michael, Highland Bank is a local, privately-held community bank. The rebrand occurred following the 1995 acquisition of The Highland Bank (St. Paul). In 2008, Ridgedale State Bank (Minnetonka, home of Cargill) was acquired, expanding the market area into the western suburbs of the Twin Cities.
According to a August 2023 press release,
Highland Bancshares, Inc., parent holding company of Highland Bank, a locally and independently owned community business-focused bank, announces the successful completion of its merger of Boundary Waters Bank today. Boundary Waters Bank had branches located in Woodbury, Blaine and Ely Minnesota, which held approximately $100 million in deposits.
On December 9, 2022, Highland announced a decision to merge its two bank holdings, following the receipt of all requisite regulatory approvals. An estimated date of August 18, 2023 was anticipated and completed on time.
Highland Bank is currently the 30th largest bank headquartered in Minnesota, with assets in excess of $686 million and more than 14,000 customer accounts.
How the 40-Month CD Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available within the market area and have minimum deposit requirements of $10k or less, one bank and one credit union have higher rates than currently offered on the Highland Bank 40-Month CD Special. The following table compares the 40-Month CD Special to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 11/21/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
