MainStreet Bank Brings Back Rate-Leading 15-Month No Penalty CD
In March, Northern Virginia-based MainStreet Bank (MSB) introduced a competitive 15-month No Penalty CD (NP CD) earning 5.00% APY, with a $50k minimum opening deposit, and a one-time penalty-free withdrawal. By mid-April, the NP CD was no longer available.
MSB has brought back the 15-month No Penalty CD with an improved rate (5.25% APY), a lower opening deposit ($500), unlimited withdrawals, AND unlimited additional deposits. There is no minimum or maximum dollar amount for either a withdrawal or an additional deposit.
Availability and Account Opening
Headquartered in Fairfax, Virginia, MainStreet Bank previously offered its services and product line on a nationwide basis through an online application. Since my March 2023 blog post, the online application has been removed from the MSB website. The bank official I spoke with was not sure how an out-of-area individual can open a new MSB account. As the promised call-back did not happen yesterday, I will be calling MSB later this morning to get an answer.
UPDATE 8/4/2023: After a few phone conversations and emails, it seems the No Penalty CD can be opened by out-of-area individuals through some back-and-forth emails and the MSB secure upload system. The first step would be to call MSB indicating your interest in opening a No Penalty CD and providing contact information. Everyone I spoke with indicated there may (emphasis on “may’’) be an online application exclusive to the No Penalty CD that has not been launched yet.
Opening an MSB 15-month No Penalty CD can be done by phone (877-924-7360 or 703-481-4589) or at any of five Northern Virginia branches, located in Arlington, Fairfax, Herndon, Leesburg, and McLean.
Funding and Other Details
Funds must be on deposit at MSB before a NP CD can be officially opened. If you already have an MSB checking or savings account, you can transfer the funds by ACH. If you don't have a MSB checking or savings account, you will have to wire the funds to the MSB general ledger account.
Withdrawing funds can be done by through a wire ($20 fee) or by cashier’s check to the address on file. An immediate transfer to an MSB liquid account is also possible and probably the easiest way to get quick access to your funds. A request for an early withdrawal can be done by calling a Private Banker or by secured email.
How quickly you receive the funds from an early withdrawal depends on the method of distribution: an internal transfer being almost immediate. A cashier’s check will be issued within two business days. A wire will be sent within one business day and an ACH can be done within 2 business days, if you have a MSB checking/savings account.
If the NP CD is closed within 90 days of account opening, there is a $50 early account closure fee.
A good strategy for the No-Penalty CD is to have a checking/savings account at MSB, so you can quickly get the funds into a liquid account.
Interest is compounded/credited monthly and can be withdrawn at any time penalty-free.
Unlimited beneficiaries can be designated with equal shares. Social Security numbers are not required.
There is a 10 business day grace period before automatic renewal.
Credit Check – Soft pull, ChexSystems
Bank Overview
MainStreet Bank, has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 0.00% (excellent and not a typo), based on March 31, 2023 data. In the past year, MainStreet Bank has increased its total non-brokered deposits by $4.92 million, an above average annual growth rate of 0.41%. Please refer to our financial overview of MainStreet Bank (FDIC Certificate # 57742) for more details.
Established in 2004, MainStreet Bank is one of the youngest banks in Virginia. MSB continued to grow during the Financial Crisis of 2007-2008 and is currently Virginia’s 16th largest bank, with assets in excess of $2 billion and more than 150,000 customer accounts. MSB identifies as a community bank, “funneling our resources back into Northern Virginia and surrounding communities.” According to the Community Bank page, MSB recent involvement in the community includes,
- Collecting and donating food towards hunger relief
- Donating and wrapping holiday gifts for children in under-served communities and low-income families
- Educating parents and children on financial matters at local schools
- Fundraising for scholarships for families of fallen officers and police equipment
- Providing animal-assisted therapy to children
- Providing elementary school students with dictionaries
- Raising money for Jill’s House — a nonprofit providing overnight care to children with intellectual disabilities
- Serving food to the homeless
How the 15-Month No Penalty CD Compares
When compared to other nationally available no-penalty CDs tracked by DepositAccounts.com that have a term of at least 11 months, no banks or credit unions have a higher rate than the rate offered on the MainStreet Bank 15-month No Penalty CD. The following table compares the 15-month No Penalty CD APY to the four highest-rate No Penalty CD APYs from other banks with nationwide market areas.
The above information and rates are accurate as of 8/4/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our Best CD Rates Table page. For the best no-penalty CD rates, please refer to our No Penalty CD Rates Table of the liquid account summary.
