It’s been more than 2½ years since I last wrote about Michigan-based Main Street Bank. At that time, Main Street Bank was offering a 12-month CD that was 5 bps short of being a rate leader. Since then, the Bank’s CD rates haven’t merited a blog post, but that changed at the end of last week. With several rate increases ranging from 50 to 130 bps, Main Street Bank CDs have become competitive once again.
Of the seven CDs offered, the 36-month CD (3.00% APY) and 48-month CD (3.15% APY) offer the best rates. Any of the Bank's CDs can be opened with a minimum $500 deposit and there is no maximum balance cap.
|3.15%||$500||-||Main Street Bank (MI)||48 Month CD|
|3.00%||$500||-||Main Street Bank (MI)||36 Month CD|
As stated on Main Street Bank’s Rates page, the Early Withdrawal Penalty (EWP) reads as follows:
Early withdrawals may result in a penalty equivalent to 90 days of interest if your term is between 6 and 12 months.
Early withdrawals may result in a penalty equivalent to 180 days of interest if your term is greater than 12 months.
Note: The Truth-in-Savings disclosure contains conflicting EWP information, listing CDs with terms of 60 months incurring an EWP of one year of interest. A Branch Manager assured me that the EWP for the 60-month CD is definitely 180 days of interest.
60-month CD EWP
The 60-month CD 3.25% APY is in the current top five APYs for nationally available 5-year CDs.
Adding to its intrinsic value is the 180 day EWP. Using DA’s Early Withdrawal Penalty Calculator, you can see what the effective yields are on a month-by-month basis. For example,
- 2.19% APY – closed at 18 months
- 2.46% APY – closed at 2 years
- 2.74% APY – closed at 3 years
- 2.88% APY – closed at 4 years
According to CSR, CDs can be funded through the online application by ACH, although there is a limit of $100k per transaction. Maturing funds are distributed by a cashier’s check – no ACH or wire transfer is available. A transfer to a Main Street Bank Savings Account (currently earning tiered APYs between 0.15% and .075% APY) is another option.
Main Street Bank’s Kasasa Cash account has been earning 2.25% APY on qualifying balances up to $25k for more than three years. Qualifying balances of $25k+ earn 0.25% APY, with non-qualifying balances earning 0.05% APY.
|2.25*%||-||$25k||Main Street Bank (MI)||Kasasa Cash|
|OTHER TIERS: 0.25% → $25k+|
- Be enrolled in and receive eStatement notices
- Have at least 12 debit card purchases post and settle
- Have at least one direct deposit, one ACH, or have one bill pay post and settle
The Kasasa Cash account requires a minimum $100 opening deposit and there are no fees associated with the account. There are unlimited reimbursements (up to $4 per single transaction) for nationwide ATM fees. An ATM receipt must be presented within thirty days of the transactions for reimbursements of ATM fees of $4.01 or greater.
Headquartered in Bingham Farms, Michigan, Main Street Bank offers its services and product line through its online application to U.S. Citizens, 18-years or older. “Minors, resident aliens and non-resident aliens may apply by contacting the financial institution.”
The online application can accommodate up to three beneficiaries, but Social Security numbers must be provided.
If you live in the northern suburbs of Detroit and prefer a brick-and-mortar experience, Main Street Bank has two branches located in Bingham Farms and Troy. Main Street Bank also has three Home Loan Centers (mortgages) located in Clinton Township, Northville, and Rochester.
Main Street Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.60% (excellent), based on March 31, 2018 data. In the past year, Main Street Bank has increased its total non-brokered deposits by $20.42 million, an excellent annual growth rate of 11.67%. Please refer to our financial overview of Main Street Bank (FDIC Certificate # 57878) for more details.
Main Street Bank was established in 2005 as the NSTAR Community Bank, a division of North Star Financial Holdings, Inc. The Bingham Farms-based Main Street Bank is not to be confused with the nearby Northville-based Main Street Bank, which was closed in 2008 by the FDIC. In 13 years, Main Street Bank has grown to become Michigan’s 56th largest bank, with assets in excess of $236 million.
How the CDs Compare
When compared to the 205 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationwide, Main Street Bank’s 36-month CD APY currently ranks third.
When compared to the 172 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationwide, Main Street Bank’s 48-month CD APY currently ranks fourth.
The above rates are accurate as of 8/20/2018.
Looking for the best CD rates, either nationwide or state-specific? Please refer to our CD Rates Table page.