Virginia-based MainStreet Bank raised the rates on all its CDs today. Following an increase of 80 bps, the 3-year CD (3.25% APY) is currently the most competitive CD in the product line. Any MainStreet Bank CD can be opened with a $500 minimum deposit, and there are no stated balance caps.
As stated in the Personal Fee Schedule, the Early Withdrawal Penalty for the 3-year CD reads as follows:
The penalty will be an amount equal to 180 days interest on the amount withdrawn.
Funding and Accessing Maturing Funds
I spoke with the MainStreet Bank official who handles all online applications about funding.
- CDs can be funded through an ACH transfer, internal bank transfer, or by check.
- While monthly interest can be paid out by check, there is no ACH transfer of monthly dividend.
- The options to access maturing CD funds are a cashier’s check or wire ($20 fee); no ACH available.
In the past it had been reported that MainStreet Bank did a hard credit pull when opening a CD. According to my conversation this morning, there is no hard pull for opening CDs, only when opening a checking or savings account.
About two years ago, MainStreet Bank began offering a Kasasa Cash checking account, initially earning 2.00% APY on qualifying balances up to $15k. The rate was increased to 3.00% APY about a year ago, while keeping the $15k cap. Qualifying balances over $15k earn 0.25% APY, while non-qualifying balances earn 0.05% APY.
The monthly qualifying requirements do not include a direct deposit, which makes the Kasasa Cash even more attractive.
- At least 12 debit card purchases
- Enrolled in and receive eStatements
- Enrolled in and log into online banking
More details can be found on MainStreet Bank’s Kasasa Cash page.
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.
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 appears 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 leads to MStreetBank.com, definitive proof that AirBanking no longer exists as an autonomous entity.
MainStreet Bank, has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 1.46% (excellent), based on September 30, 2018 data. In the past year, MainStreet Bank has increased its total deposits by $255.84 million, an excellent annual growth rate of 47.43%. Please refer to our financial overview of MainStreet Bank (FDIC Certificate # 57742) for more details.
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 21st largest bank, with assets in excess of $1 billion. According to a recent press lease,
“We completed an over-sold private placement during the third quarter and are working diligently to put the proceeds to good use,” says Chris Brockett, President of MainStreet Bancshares, Inc. and MainStreet Bank. “We continue to see quality growth opportunities in the markets we serve.”
How the CD Compares
When compared to 208 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, MainStreet Bank’s 3-year CD APY ranks second.
The above rates are accurate as of 12/20/2018.
Searching for the best CD rates, either nationally available or state-specific? Please refer to our CD Rates Table page.