In the past few months, short-term CDs have been in the spotlight, with rates rising everywhere. I was pleasantly surprised to see that State Bank of Southern Utah (SBSU) had raised the rate on its 60-month CD (2.78% APY) last week. The minimum deposit is $500, with no stated balance cap.
SBSU’s 60-month CD has been fairly uncompetitive for much of the last five years, with an APY of 1.75% from May 2013 to March 2017. In the past ten months, there have been two rate increases, adding a total of 201 bps.
According to CSR, the Early Withdrawal Penalty for the 60-month CD is 180 days interest. Using DA’s Early Withdrawal Penalty Calculator, you can see what the effective yields would be on a month-by-month basis. For example,
- 2.46% APY – closed at 4 years
- 2.34% APY – closed at 3 years
- 2.10% APY – closed at 2 years
Headquartered in Cedar City, State Bank of Southern Utah’s market area consists of six southwest Utah counties: Garfield, Iron, Kane, Piute, Sevier, and Washington.
Opening any type of account SBSU must be done at any of twelve full-service Utah branches located in Cedar City (2), Circleville, Hurricane, Kanab, Orderville, Parowan, Richfield, Santa Clara, St. George (2), and Tropic.
State Bank of Southern Utah has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.44% (excellent) based on September 30, 2017 data. In the past year, SBSU has increased its total non-brokered deposits by $21.02 million, an above average annual growth rate of 2.64%. Please refer to our financial overview of State Bank of Southern Utah (FDIC Certificate # 17964) for more details.
Currently Utah’s 23rd largest bank, State Bank of Southern Utah was established in 1957 “by community leaders who saw a need for a bank to service their local financial needs.” The backstory is a bit more interesting. In 1954, there was a dispute between the major stockholders of Bank of Southern Utah, which was the only bank in Cedar City at the time. As a result, the Bank’s stock was sold to First Security Corporation, a regional banking firm headquartered in Salt Lake City. It was two years later before the formation of State Bank of Southern Utah came about, when eleven directors were selected by a secret ballot. According to Wikipedia,
Each director provided $100 in personal funds to cover initial organization costs and committed to subscribe for 500 shares of stock. As soon as the Bank Commissioner of the State of Utah approved the application on February 25, 1957, the Articles of Incorporation were filed with the Secretary of State and an issue of common stock was made available to the general public, with a limit of 500 shares per person. The offering was quickly oversubscribed by 2,330 shares. Directors relinquished some of their stock purchase rights so that every interested subscriber could buy shares.
How the CD Compares
When compared to the 234 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available within the Bank’s market area, State Bank of Southern Utah's 60-month CD APY currently ranks second.
The above rates are accurate as of 1/31/2018.
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.