MainStreet Bank Adds Nationally Available 15-Month CD - Expired
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The penalty will be an amount equal to 90 days interest on the amount withdrawn.
ACH Ins-and-Outs
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."
Availability
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.
Opening a CD at MainStreet Bank can be done online, or at any of five Northern Virginia branches, located in Arlington, Fairfax (2), Herndon, and McLean.
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.”
Bank Overview
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.
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.
https://www.mstreetbank.com/kasasa/
I did not see eligibility requirements listed, asked about out of state submissions for 15 m CD
https://www.mstreetbank.com/disclosures/personal-fee-schedule/
Bank-to-bank transfers: $2.50 per transfer (inbound and outbound)
https://www.mstreetbank.com/disclosures/bank-bank-transfer-service-agreement/
Bank-to-Bank Transfer Service Agreement
Eligible Account Types for Transfers:
* MainStreet Bank checking accounts, savings accounts, Money Market checking and Money Market savings accounts.
*Checking accounts, savings accounts, Money Market checking and Money Market savings accounts held at a financial institution or credit union in the United States that are able to accept ACH transfers.
*Investment and brokerage accounts from other institutions.
we use it to transfer out the money when the cd matures? I wonder how much is the cashier check option.
https://www.mstreetbank.com/disclosures/personal-fee-schedule/
"While monthly interest can be paid out by check, no ACH transfer of monthly dividend is possible."
(That information was based on a conversation with a bank employee.)
It's generally been noticed by some, if not all, that September 21st is the effective date of Section 301 to the "Economic Growth, Regulatory Relief, and Consumer Protection Act." (PL 115-174). Section 301 is entitled, "Protecting consumers’ credit" and covers, in part, placement of security freezes, fraud alerts (up to one year), etc. on credit reporting agencies...apparently it is free for an individual to place and remove freezes with statutory time frames for action. There are also provisions dealing with a "protected consumer" which includes minors and "an incapacitated person or a protected person for whom a guardian or conservator has been appointed." Provisions also address the representative thereof.
https://www.congress.gov/115/bills/s2155/BILLS-115s2155enr.pdf
Unbelievable!
Tell them on the account set up form how much you want to fund the CD with. When done they will send to small deposits to the account you want linked and the funding source. You have 7 days max to verify the micro deposits. They will pull the full amount for the CD plus the $50.00 to fund the checking account. After that you can remove funds from the checking leaving .01 cent minimum, but you must have at least 1 transaction per year to keep the checking account from going dormant.
When the CD term is up the funds can be deposited to the checking account then moved out via ACH initiated from the external bank to avoid the $2.50 ACH charge and the $20.00 wire fee. If you like notify them to close the checking account if no longer needed.
I did not see an option to deposit the monthly interest to the checking account instead of being credited to the CD monthly.
Well Done, following up on this CD.
Thanks
Also, the $2.50 ACH is only for OUTGOING transfers initiated by the bank. And they can either ACH your interest out on a monthly basis or cut you a check (OR reinvest it).
Just my usual question:
Was the ACH transaction to fund your account timely so as not to lose any interest?.....
However, I did get a message on their message board that my application was denied due to a "credit freeze" at the credit bureau. They did not specify which credit bureau and more importantly I HAVE NO CREDIT FREEZE at any of the credit bureaus. In order to initiate a credit freeze the individual has to initiate the freeze and I did not. So, I called the bank, and guess what, I had to leave another voice mail.
Main Street Bank does not answer the phone, does not return multiple voice mails, and cannot properly process a simple application.
I don't care how good their offer is, I am done with this bank. Beware of them.
703-218-5180
703-481-4567
703-218-5160
703-481-4578
703-218-5190
Duly noted!!
I opened the account easily, printed the signature card and in 15 months will provide them wiring instructions as to where the funds should be transferred to. The compounded APY is 2.8% the actual rate is 2.76% (interest is credited and compounded monthly).
Separately, does anyone know what is required to designate a relative as a beneficiary at Main St. Bank -- DOB only or is SS# required? I may need to call Monday for an answer.
I selected ACH funding of the account from my “external account” but don’t know when this transfer will be done. Do they do micro deposits that I have to verify so they can pull the funds or do they just do an ACH debit to fund the account?