Kansas-based KS StateBank has raised the rates on all its Internet Only Jumbo CD Specials. The Jumbo CD Specials all require a $100k minimum deposit.
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.
There are also "regular" versions of the Jumbo CD Specials that earn the same APYs, but only require a minimum deposit of $500.
|2.20%||$500||-||KS StateBank||5 Year CD|
|2.00%||$500||-||KS StateBank||4 Year CD|
|1.85%||$500||-||KS StateBank||3 Year CD|
|1.65%||$500||-||KS StateBank||2 Year CD|
|1.35%||$500||-||KS StateBank||1 Year CD|
The Deposit Account Disclosure describes the Early Withdrawal Penalty (EWP) as follows:
If you withdraw any of the principal before the maturity date, we may impose
a penalty of _____ Months interest earned on the amount withdrawn.
The individual EWPs for each term length are,
- 1 year – six months EWP
- 2 year – nine months EWP
- 3 year – 12 months EWP
- 4 year – 15 months EWP
- 5 year – 18 months EWP
The Deposit Account Disclosure also states that,
On CDs that are opened online, the only interest option available is to have the interest credited to the CD quarterly.
Accessing Funds Following Maturity
I’ve seen how some banks that offer CDs online make the funding process easy by utilizing an ACH transfer, only to make gaining access to matured funds difficult. According to CSR, upon CD maturity, you can “send a secured message through the online banking platform with instructions to have your funds transmitted by ACH transfer or certified check.” Easy.
Headquartered in Manhattan, Kansas, KS StateBank’s market area has become nationwide through its online application. The complete product line is not available nationally, but does include checking, savings, and money market accounts, as well as several CDs.
As stated previously, all the Internet Jumbo CD Specials are only available online. The corresponding Regular CDs can be opened at any of six Kansas branches located in Junction City, Manhattan (4), and Wichita. KS StateBank also has a branch in Phoenix, Arizona, a result of the acquisition of Sonoran Bank in 2012.
KS StateBank has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 3.49% (excellent) based on December 31, 2016 data. In the past year, KS StateBank has increased its total deposits by $152.25 million, an excellent annual growth rate of 13.64%. 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 in Kansas, with assets in excess of $1.6 billion. The acquisition of Sonoran Bank, N.A. (Phoenix, AZ) occurred in 2012. In January 2015, the Bank re-branded and became KS StateBank, in an effort to better reflect the Bank’s increasing presence as an internet bank.
How the Internet CD Specials Compare
Of all KS StateBank’s CDs, the 2-year (both Jumbo and Regular) is the most competitive. Therefore, when compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, KS StateBank’s 2-year Regular CD and Internet Jumbo CD Special APYs currently rank fifth, regardless of minimum deposit.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.90% APY||25-Month Special CD ($1k min)||Veridian Credit Union|
|1.75% APY||25-Month Certificate ($50 min)||Bethpage Federal Credit Union|
|1.65% APY||2-Year CD ($500 min)||KS StateBank|
|1.65% APY||2-Year Jumbo CD ($100k min)||KS StateBank|
The above rates are accurate as of 5/19/2017.