As DA reader, CapitalClimate, noted in a recent Forum post, Virginia-based MainStreet Bank has added a new 15-month CD, which earns 2.80% APY. The minimum opening deposit is only $500, with no stated balance cap. The 15-month CD will automatically renew to a 12-month CD.
As stated in the Personal Fee Schedule, the Early Withdrawal Penalty for the 15-month CD reads as follows:
The penalty will be an amount equal to 90 days interest on the amount withdrawn.
Comments by IvoryMale prompted me to call for information about MainStreet Bank’s ACH transfers.
- CDs can be funded through an ACH transfer.
- While monthly interest can be paid out by check, no ACH transfer of monthly dividend is possible.
- The only options to access maturing CD funds are a wire ($20 fee) or cashiers check; no ACH.
Anonymous32 mentioned that MainStreet Bank does a hard credit pull when opening a CD. I knew I probably wouldn’t get an answer, but I asked CSR why a hard credit pull was necessary if I wanted to give the Bank a defined amount of money for a specific length of time. CSR didn’t know why, replying, “that’s the way the Bank does it."
Thanks to all the DA readers who commented on MainStreet Bank’s latest CD deal."
Headquartered in Fairfax, Virginia, MainStreet Bank offers its services and product line on a nationwide basis. U.S. citizens and resident aliens, 18 years or older, with a valid Social Security number are welcome to apply.
According to the Disclosure page on the online application, funding a CD online can be done “online by electronic transfer from a deposit account at another institution, transfer from an existing deposit account with MainStreet Bank, or a credit card (limits apply). You will also be able to bring in or mail a check.”
MainStreet Bank, has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.21% (excellent), based on March 31, 2018 data. In the past year, MainStreet Bank has increased its total deposits by $166.93 million, an excellent annual growth rate of 40.08%. Please refer to our financial overview of MainStreet Bank (FDIC Certificate # 57742) for more details.
About seven years ago, MainStreet Bank developed a separate online banking division, AirBanking®, which mixed “online banking, blogging, and social media to attract young professionals.” It seems the Bank has decided against maintaining a separate internet branch, and is instead using the “AirBanking” moniker to describe its personal banking products and services. AirBanking.com now redirects to MStreetBank.com.
MainStreet Bank is a fairly young institution, having been established in 2004. The Bank continued to grow during the Financial Crisis and is currently Virginia’s 23rd largest bank, with assets in excess of $843 million. In 2012, MainStreet Bank developed Aircharity®, a method that allows individuals and organizations to raise money via email, websites, and social media. Aircharity® permits MainStreet Bank customers to open accounts and accepts donations from both debit and credit cards, and electronic checks.
How the CD Compares
When compared to the 159 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are nationally available, MainStreet Bank’s 15-month CD APY ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.80% APY||15-Month CD||MainStreet Bank|
|2.65% APY||18-Month Share Certificate||CommunityWide Federal Credit Union|
|2.58% APY||Online 19-Month CD||MutualOne Bank|
The above rates are accurate as of 6/27/2018.
Searching for the best CD rates, either nationally available or state-specific? Please refer to our CD Rates Table page.