Main Street Bank is offering some competitive CD rates. The most competitive, which may be hard to believe, is the 24-month CD which has a 2.30% APY. Minimum deposit is $10,000. This rate is listed on the bank's front page as of 12/01/09.
If this were a local deal, I probably would not have mentioned it. However, it's available nationwide. I confirmed this yesterday with the bank's CSR. Here are some additional CD details from the CSR and from the application:
- The "open account" link points to a PDF application which must be either mailed or faxed
- You can fund the CD by mailing a check with the application or by an ACH transfer
- CD rate doesn't lock until they receive the application. CSR said you can add a note on the application to have them call you if the CD rate drops.
- Application has fields for two POD beneficiaries
- Option to pay monthly interest via ACH
- Early withdrawal penalty is 6 months of interest for terms greater than 12 months
- 10 day grace period at maturity
- At maturity you have the option to receive the funds by ACH according to the CSR
- CD rates listed on the website are only available for web customers
The bank does seem financially healthy which was another reason I reported on this lackluster deal. Its ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1984 (FDIC Certificate # 24979).
Other Competitive Certificate of Deposit Rates