Security State Bank Investment Checking/Savings Remain Competitive
Security State Bank’s (SSB) Investment Checking and Investment Savings accounts are offered as a package deal, with the following minimum opening deposits:
You must have an Investment Checking account and an Investment Savings account linked to it in order to open the accounts.
$100.00 minimum deposit is required to open the Investment Checking account and $100,000.00 minimum deposit is required to open the Investment Savings account on the day the accounts are opened.
The Investment Checking earns 3.00% APY on balances up to $10k, with balances greater than $10k earning 0.25%. (Investment Checking interest does not compound, as it is automatically transferred to the Investment Savings account at the end of the qualification cycle.) Investment Savings balances of $100k and above earn 0.60% APY.
To earn the stated APYs, the following two qualifications must be fulfilled:
- A minimum $100k balance in the Investment Savings account
- Be enrolled in and agree to receive e-Statements for both the Investment Savings and Investment Checking accounts
If the two qualifications are not met, the entire Investment Checking balance and Investment Savings balance earn 0.25% APY.
Both Investment accounts are fee-free: no monthly service fee or opening/closing fee. There is a limit of one Investment Checking and one Investment Savings account per tax ID number. Neither account can be used as a commercial account. The Investment Checking offers unlimited withdrawals (ATM, in-person, by mail or phone) and transfers “to another account in your name.”
How the Numbers Work
The maximum APY that can be earned requires an Investment Checking balance of $10k (3% APY) and an Investment Savings balance of $100k (0.60% APY), resulting in a blended 0.82% APY.
When the Investment Checking balance is between $0 to $10k, the blended APY is between 0.60% to 0.82%.
Once the Investment Checking balance reaches $10k, additional deposits into the Investment Savings will earn 0.60%. At that point, the blended APY will slowly fall from 0.82% to 0.60%, as the Investment Savings balance increases beyond $100k.
When the Investment Savings balance is less than $100k, ALL balances (both checking and savings) will earn 0.25% APY.
Annual Earnings of Combined Investment Checking/Investment Savings Accounts
The best case combined annual earnings of the Investment Checking (3.00% APY/$10k) and the Investment Saving (0.60% APY/$100k) is approximately $900 (0.82% APY/$110k).
Availability
Headquartered in Scott City, Kansas, Security State Bank offers its Investment Checking and Investment Savings accounts to all U.S. residents who have a valid Social Security number.
If you read the SSB blog post on Monday, you know there was some confusion as to which accounts are nationally available. The information I had received from CSR about the Interest Reward Checking/Savings accounts was incorrect and as DA reader, mgould16, pointed out, “[Interest Reward] Accounts are only open to residents of Kansas.” Thank you, mgould16.
In a Live Chat yesterday (and in a follow-up phone call with SSB), I was told that the Investment Checking/Savings account are definitely available nationwide.
Opening Investment Checking and Investment Savings accounts can be done online, or in person at either of two Kansas branches, located in Leoti and Scott City. There is no mention of any COVID-related branch restrictions mentioned on SSB’s website.
Bank Overview
Security State Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.00% (excellent, and not a typo), based on December 31, 2020 data. In the past year, the Bank has increased its total non-brokered deposits by $14.52 million, an excellent annual growth rate of 8.75%. Please refer to our financial overview of Security State Bank (FDIC Certificate # 18374) for more details.
Security State Bank is currently 51st largest bank headquartered in Kansas, with assets in excess of $234 million. Established in 1961, the Bank opened its doors for business with capital and surplus of $150k. Security State Bank is a full-service community bank, with a “variety of agricultural, commercial, and consumer lending products as well as deposit products.” (Banking trivia – there more than 30 banks across the country with “Security State Bank” in their name.)
How the Investment Savings Compares
This is another “oranges to bananas” comparison because of the way the Investment Savings account is structured. When compared to the Savings accounts tracked by DepositAccounts.com that are available nationwide, Security State Bank’s Investment Savings blended APY currently ranks first, regardless of balance requirements. (Blended APY is based on Investment Checking 3% APY, $10k maximum + Investment Savings 0.60% APY, $100k minimum.)
The above rates are accurate as of 4/7/2021.
To look for the best Savings Account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.
but why bother?