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Main Street Bank CD Terminations

January 4th, 2011

It appears that Main Street Bank of Kingwood, Texas terminated a bunch of their CDs early on Christmas Eve a couple weeks ago. Their excuse for closing these accounts early is that FDIC regulations require strict capital requirements, and they must close these deposit accounts in order to meet their capital regulations.

Main Street BankCDs are usually only closed when a bank fails, but in the case of Main Street Bank, they are closing the accounts before failing. This actually might be the first case I’ve heard of where a bank has closed a CD early without failing. Certificates of deposit are a very trustworthy source of money and this is definitely a highly irregular case, so I wouldn’t be too afraid of your bank closing your CDs any time soon. This is a case where the FDIC should really step in and force Main Street Bank to uphold their agreement with the certificate holders. Our friends at Jumbo have the full story.

Needless to say, you might want to stay away from Main Street Bank. If you’re a customer of Main Street Bank, feel free to leave your review/dissatisfaction here: Main Street Bank Reviews

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