This is the fourth blog post about the KS StateBank CDs since mid-February. While all of the KS StateBank nationally available CDs have experienced significant rate increases in the past three months, the longer-term CDs have had dramatic increases of between 110-125 bps during the same time frame.
This week’s increases of 15-30 bps have once again placed the KS StateBank CDs near the top of every term-length category in the current CD Rates Summary.
The non-Jumbo CDs are also available as IRA CDs (Traditional, Roth), earning the same APYs and with the same funding requirements, but can only be opened in-branch.
The Jumbo CD Specials (earning the same APYs as the CDs) require a $100k minimum deposit and can only be opened online.
The “Notes” section for the Jumbo CD Specials on the Deposit Rates page states,
Must be opened online. Not available as an IRA.
Cannot be opened in the name of a trust. Consumer accounts only.
The Deposit Account Disclosure states that,
On CDs that are opened online, the only interest option
available is to have the interest credited to the CD quarterly.
The following is a summary of the Early Withdrawal Penalties, as stated in the Deposit Account Disclosure.
- 1-year CD – 6 months interest earned on the amount withdrawn
- 18-month CD – 9 months interest earned on the amount withdrawn
- 2-year CD – 9 months interest earned on the amount withdrawn
- 3-year CD – 12 months interest earned on the amount withdrawn
- 4-year CD – 15 months interest earned on the amount withdrawn
- 5-year CD – 18 months interest earned on the amount withdrawn
The following sentence from page 15 of the Deposit Account Disclosure gives KS StateBank the right to deny an early withdrawal.
We will consider requests for early withdrawal and, if
granted, the penalty provided in the Schedule will apply.
Funding can be done through ACH, wire transfer, or by check. A CD must be funded within ten business days of the online application being approved. The APY is not guaranteed until the CD is fully funded.
According to CSR, up to ten beneficiaries can be designated on the online application. Social Security numbers are required for all beneficiaries.
Accessing Funds Following Maturity
KS StateBank has a relatively easy procedure to gain access to maturing funds. According to CSR, prior to the CD maturing, you can “send a secured message through the online banking platform with instructions to have your funds transmitted by ACH transfer or certified check.” When your CD is opened, an online banking account will automatically be opened for your convenience in contacting the Bank.
Headquartered in Manhattan, Kansas, KS StateBank began offering a portion of its product line on a nationwide basis about six years ago. Currently, all U.S. residents, 18 years or older, “are welcome to apply for our Simple Savings, Advantage Money Market and Certificates of Deposit.”
As previously stated, the Internet Jumbo CD Specials are only available online and can only have individual or joint ownership. The non-Jumbo CDs can be opened online, or at any of six full-service Kansas branches located in Junction City, Manhattan (4), and Wichita. KS StateBank also has a branch in Phoenix, Arizona, obtained through its 2012 acquisition of Sonoran Bank.
KS StateBank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.85% (excellent) based on December 31, 2021 data. In the past year, KS StateBank has increased its total non-brokered deposits by $87.73 million, an excellent annual growth rate of 4.93%. Please refer to our financial overview of KS StateBank (FDIC Certificate # 19899) for more details.
Established in 1969 as Kansas State Bank of Manhattan, KS StateBank has grown to become the seventh largest bank headquartered in Kansas, with assets in excess of $2.3 billion and more than 27,000 customer accounts. In 2012, the Bank acquired Sonoran Bank, N.A., located in Phoenix, Arizona. The KS StateBank re-brand occurred in January 2015, in an effort to better reflect the Bank’s increasing presence as an internet bank.
How the CDs Compare
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, only one bank and one credit union have higher rates than currently offered on most of KS StateBank CDs. The following table compares the KS StateBank CDs to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
The above information and rates are accurate as of 5/13/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.