KS StateBank CDs Are New Rate Leaders


UPDATE: Earned interest can only be withdrawn if a CD is opened in-branch. See “Funding and Other Particulars” below.

Deal Summary: CDs ($500 min) and Online Jumbo CD Specials ($100k min) – 1-year (4.84% APY), 18-month (4.89% APY), 2-year (4.99% APY), 3-year (4.99% APY), 4-year (4.99% APY), 5-year (4.99% APY), 7-year (4.99% APY).

Availability: Nationwide

For the first half of the year, KS StateBank significantly increased it CD rates (100+ bps), but by the end of May, those rates fell between 35-50 bps. Rates began to rise again in late September and following today’s increases of 98-124 bps, most of the KS StateBank CDs have become rate leaders.

The KS StateBank CDs illustrate how direct CD rates are beginning to catch up with brokered CD rates. For those who want to lock into a near-5% very-long-term CD, the KS StateBank 7-year CD is definitely an option. There hasn’t been a non-callable brokered 7-year CD offered in months.

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  • 1-year CD – 6 months interest earned on the amount withdrawn
  • 18-month CD – 6 months interest earned on the amount withdrawn
  • 2-year CD – 9 months interest earned on the amount withdrawn
  • 3-year CD – 12 months interest earned on the amount withdrawn
  • 4-year CD – 15 months interest earned on the amount withdrawn
  • 5-year CD – 18 months interest earned on the amount withdrawn
  • 7-year CD – 18 months interest earned on the amount withdrawn

Funding and Other Particulars

  • Funding – ACH, wire transfer, check; CD must be funded within ten business days of application approval; APY is not guaranteed until fully funded.
  • Maturing Funds – ACH or certified check
  • UPDATE 11/11/2022: Interest – compounded and credited quarterly; earned interest can be withdrawn without penalty ONLY IF OPENED IN-BRANCH*.
  • Grace Period – 10 calendar days before automatic renewal.
  • Beneficiaries – up to ten, equal shares, Social Security numbers required for all beneficiaries.

*For each individual CD term-length, the Deposit Account Disclosure reads,

Compounding and Crediting: […] If the account was opened in-branch you can deposit the interest into an account that you designate.[…]

It does not state that if a CD is opened online the earned interest must remain on deposit, but by tacit omission that appears to be the case. I received an email from a DA reader describing his experience applying for a 5-year CD. Just prior to funding the CD, he decided to double-check that credited interest could indeed be withdrawn. The 800# CSR informed him that an internet CD’s credited interest could not be withdrawn. When I have more first-hand information, I will update this blog post.


Headquartered in Manhattan, Kansas, KS StateBank began offering a portion of its product line on a nationwide basis more than 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.

Bank Overview

KS StateBank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.46% (excellent) based on June 30, 2022 data. KS StateBank excellent capitalization level (12.52%), the result of holding assets of $2.34 billion with $292.58 million in equity. 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 eighth largest bank headquartered in Kansas, with assets in excess of $2.3 billion and nearly 28,000 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, no banks or credit union have higher rates than currently offered on most of KS StateBank CDs. The following table compares the KS StateBank 1-year and 3-year 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 11/8/2022.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Topeka CD rates, Wichita CD rates, Phoenix CD rates, 1-year CD rates, 5-year CD rates, IRA CD rates, nationwide deals

  |     |   Comment #1
I guess they didn't want to be the first one to the big 5.00% APY across the longer term certificates, huh? Gee, maybe we ought to start an internal DA poll to see if someone can pick the FI to be the one that does, so we aren't all bored after the mid-term elections are mostly decided later today.
  |     |   Comment #16
I hope my b. Cit, is paying attention, their’s is .50% on 5yrs., they do not seem to have an interest beyond 18mos.
  |     |   Comment #2
I had the same thought. why 4.99%, why not 5.00% if they are really trying to attract a lot of deposits.
  |     |   Comment #3
Who wants to be in a fishbowl? If one is serious about rates…what is .01 to them?
  |     |   Comment #4
I'm in for the 7 yr @ 4.99%. KS has an "A" Health Grade from Ken with a profile I prefer: A+ on Texas Ratio, A+ on Capitalization, C+ on Deposit Growth. Makes them hungry for deposits, hence the good rate. KS also has a 5 star rating from Bauer. When I go in with a direct bank for the long term, I like both DA and Bauer to line up.

I really favor the 7 yr term - for others, that long out can be a deal breaker. YMMV. I'm still layering in a ladder, with more dry powder to spare for December and possibly January.

The CD app online was well designed - feeding them the ACH data to pull from is definitely the best way to go. It's very rare to see that in my experience. Pen Fed has that functionality, and who else?

My computer hung up in the middle of the app. I called the 800 number, and got put on hold for 15 minutes while waiting for the CD guy. He was apologetic for the wait and explained they're already swamped (of course). Looked me up in the system, which had assigned me a code that referenced my app. The app allows you to reenter the place where you stopped, even if you haven't clicked a button on the app to save and close. That's the way these things should be coded.

My credit got hit immediately, I assume it's a hard check but I'm not sure. That's not preferable, but also not a deal breaker for me. I would have preferred a monthly interest credit rather than quarterly, and a 12 month EWP rather than 18 month, but overall, again, I'm glad to see this rate on the longer term.
  |     |   Comment #5
You may regret that 18 month EWP. Of course the FI would love to see you break it! . Better opportunities will present themselves in the coming months.
  |     |   Comment #10
No free lunch. If you want 7 yr, you either go broker and risk the market exposure if you want to bail, or live with the direct's EWP. It would never be less than 12 months, and 18 is very much in keeping with FIs for this long a term.

As for better opportunities, I certainly hope so. It's been my experience though that that particular ladder point, the 7 yr rung, is the hardest to fill. When a right bank comes along with the right rate for that spot, better to secure some now and add later if possible.
  |     |   Comment #13
As 5/6% 5/7 yr CD’s may be close to topping out at these rates brokered purchased CD’s will be more favorable to liquidate when the fed begins lowering rates…which will not be far behind once a recession surfaces. As 5 yr rates then quickly move lower it will be quite easy to sell that brokered CD at a profit…if one must liquidate it.
  |     |   Comment #18
Went with Kansas as no noncallable Fidelity 5 yr cds available now-
Looks like the election led to people snatching them up
  |     |   Comment #7
How did you open up the 7YR CD online? It said you could only open up the Jumbo CDs online.
  |     |   Comment #9
Jumbo CDs can only be opened online, i.e. they can't be opened in-branch. Regular CDs can be opened online or in-branch.

"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."
  |     |   Comment #17
Just opened one online- very easy Said it's pending and they will be in touch
  |     |   Comment #8
Isn't the Texas Ratio C+?
  |     |   Comment #11
No, the Texas Ratio Trend is C+. The Texas Ratio itself is A+.


"The Texas Ratio for KS experienced no significant changes from 2.58% as of June 30, 2021 to 4.46% as of June 30, 2022, resulting in a negative change of 72.98%." Hence the trend. But this metric has to be understood in context. 4.46% is excellent. No worries on this score.
  |     |   Comment #27
andybuji, have they ever finalized opening of your account? I applied on Nov 9 and am still waiting for the follow up email with the next steps.
  |     |   Comment #28
samsol, I applied on 11/8 and got this email on 11/11:

"Thank you for applying for an account with KS StateBank.

Your application has been approved and account(s) will be available upon receipt of ACH Payment within 3-5 days. If ACH funding cannot be completed due to failure of the transaction, KS StateBank reserves the right to close the account."

That's all so far.
  |     |   Comment #29
I applied 11/8 and the funds were withdrawn today 11/14.
  |     |   Comment #31
Did you get an email before they pulled I got one saying a rep would be in touch
  |     |   Comment #32
dale26s...Yes, identical to the one andybuji received. Still no account #.
  |     |   Comment #30
same- appled Nov 9 and havent heard anything- when this happened with another credit uion last week, they eventually told me I could not join bc I had too many accounts[rater chaser that I am] Thinking maybe same here esp since i gave ach info and did not get the kind of email andy buji got indicating they will pull the funds
  |     |   Comment #6
Another bank that raises their rates to the highest in the country and are surprised they are swamped with applications (CFG comes to mind). Rates will probably decline before they get through half the applications.
  |     |   Comment #12
Anyone notice this well I can tell U this Duck does not like fees of any kind :(
Bank to Bank Transfers
Incoming Transfer: Free Outgoing Transfer: $3.99/each

Like this costs them anything
  |     |   Comment #22
that includes ACH transfer, I assume. every time you withdraw $ through ACH, there is a $3.99 fee. that is bad.
  |     |   Comment #14
Do you have to wait until end of term, like 5 years, to withdraw interest or interest can be withdrawn early?
  |     |   Comment #15
Open as many 7 year CDs as you can at this point. After last night, its looking more and more like the whole thing will crash in the next year or so, and then you run the risk of having another 4 years of ZIRP after that into 2028....7 years will bring you out to 2029, which hopefully by then the Rs will focus on the economy only and not all this other silly stuff that turns people off. Open a 2-5 year for a little bit more interest, and it will mature at the worst time.
  |     |   Comment #19
The 7 year CD is interesting because you may end up regretting it short term if rates keep rising but long term may still end up being a winner if the FED decides to go back to ZIRP(I hope not). I can't really argue against 5% long term.
  |     |   Comment #20
The stock market is already anticipating higher rates thru the middle of next year and prepared for a S/P @ 3000/3200 so the Fed has no reason to get soft on raising rates. 5 year plus CD's at 5% will start appearing soon with more frequency..with a 6 month EWP.
  |     |   Comment #21
Good info. I hope my bank, cit, wakes up.
  |     |   Comment #23
How does the automatic renewal work? Lets say I do a 7 year and forget to cancel it during the 10 day grace period it will automatically renew for another 7 years?
  |     |   Comment #24
Thank you for putting in so much info. like can't be opened in a Trust and the compounding quarterly, etc.
  |     |   Comment #25
I love that you included so much great information. Like can't open in a Trust and the big one for me is how the interest is paid, example: paid Quarterly.
  |     |   Comment #26
If you push money into a savings account and open a CD by phone using the money in the savings account, can the interest be transferred to the savings account quarterly? If not, this is a deal breaker for me. I know the interest has to compounded if the CD is opened online.
  |     |   Comment #33
Online Account Opening

We are not accepting online account applications at this time. Please be aware that it if you have submitted an application it may take three to five business days to process your new account.
  |     |   Comment #34
I was told by someone in charge that they shut down the online application because they were inundated with requests and weren't expecting that big of a response. That person also said that once they get caught up they would open it back up but I wasn't given a 100% guarantee. I opened a couple of them last week and I was told they were approved and just waiting for the ACH to fund them.
  |     |   Comment #36
As of 11/16/22 those 4.99 APYs have gone down to 4.89. Supply and demand at work. CSR this morning said that they will still open new CD accounts at the brick-and-mortar bank locations.
  |     |   Comment #37
OUCH!!! to add insult to injury since I saw your post #36 other day out curiosity looked this morning the 3-7 are down to 4.40/4.47 :'(

Edit: KS was more than a little overwhelmed as they also closed/suspended the online account application
  |     |   Comment #38
They just processed my CD application (from later Thursday) today. They maintained the rate for the CDs that we applied for a week ago.
  |     |   Comment #39
err... from *last* Thursday. The rate should still be 4.99% apy for those still waiting, who applied in time.
  |     |   Comment #40
never got an email saying i am a member but the $100 to join was ach-ed...huh?
  |     |   Comment #41
Check your junk folder. If email is really not there, you can wait a day or just call them - due to too many calls, wait times were about 10-15 minutes when I called. CSRs are quite helpful and to the point from my experience.
  |     |   Comment #42
CSR’s super helpful. Spoke to them yesterday, day before Holiday, and they stayed with me from online opening to approval. Got 7 year each for my wife and me. 4.99apy in hand better for us than 5+-6+ In the bush. Everyone’s situation different!!
  |     |   Comment #43
So happy I jumped on the 7 year 4.99% APY when it came around...
Thank you, Ken!
KS StateBank Pushes All CD and Jumbo CD Rates Upward
Deal Summary: CDs ($500 min) and Online Jumbo CD Specials ($100k min) – 1-year (2.00% APY), 18-month (2.30% APY), 2-year (2.60% APY), 3-year (2.85% APY), 4-year (2.90% APY), and 5-year (3.00% APY).

Availability: Nationwide

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...

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KS StateBank Boosts All CD and Jumbo CD Rates Again
Deal Summary: CDs ($500 min) and Online Jumbo CD Specials ($100k min) – 1-year (1.80% APY), 18-month (2.00% APY), 2-year (2.35% APY), 3-year (2.70% APY), 4-year (2.70% APY), and 5-year (2.70% APY)

Availability: Nationwide

In February, KS StateBank dramatically increased its nationally available long-term CDs ($500 minimum) and Online Jumbo CD Specials ($100k minimum) rates. With increases of 105-110 bps, the 3-year, 4-year, and 5-year CDs became overnight rate leaders.

KS StateBank began the month of May by raising all its CD...

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KS StateBank Ups Long-Term CD and Jumbo CD Rates Again
Deal Summary: CDs ($500 min) and Online Jumbo CD Specials ($100k min) – 3-year (1.75% APY), 4-year (1.90% APY), and 5-year (2.10% APY)

Availability: Nationwide

In February, KS StateBank substantially increased the rates on its nationally available long-term CDs ($500 minimum) and Online Jumbo CD Specials ($100k minimum). With increases of 105-110 bps, the 3-year, 4-year, and 5-year CDs became overnight rate leaders. (Somewhat surprisingly, the CDs and the Online Jumbo CD Specials earn the same APYs.)

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Large Rate Hikes On Long-Term CDs at KS StateBank
Deal Summary: CDs ($500 min) and Online Jumbo CD Specials ($100k min) – 3-year (1.60% APY), 4-year (1.75% APY), and 5-year (1.90% APY)

Availability: Nationwide

KS StateBank is again offering nationally available, competitive long-term CDs ($500 minimum) and Online Jumbo CD Specials ($100k minimum). The entire CD product line had substantial rate hikes this week, with the 3-year, 4-year, and 5-year CDs having increases of 110, 110, and 105 bps, respectively. Somewhat surprisingly, the CDs and the Online...

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KS StateBank Changes Availability Of Checking PLUS
Deal Summary: Checking PLUS, 1.50% APY on qualifying balances up to $25k.

Availability: Online market area includes Arizona, Kansas, and Missouri.

The last time I wrote about KS StateBank’s reward checking account (RCA), Checking PLUS, was in early 2016. At that time, KS StateBank had just started offering Checking PLUS on a nationwide basis. The Checking PLUS online market area was recently changed to Arizona, Kansas, and Missouri.

My first Checking PLUS blog post was way back in 2008 and DA...

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