Sundays are usually my relatively slow email day, both in quantity and quality. Yesterday proved to be the exception, as I received a rather interesting email from a DA reader, who forward an advertisement he saw in yesterday’s Chicago Tribune.
According to the ad, State Bank of Texas (SBT) is offering a 1-year CD earning 3.35% APY – that’s right, 3.35% - and a Jumbo Money Market (1.25% APY, $100K minimum deposit). A quick call to the Chicago branch at 9:01 this morning confirmed my suspicions that it was indeed a misprint: the correct APY for 1-year CD is 1.35%.
The minimum deposit for the 1-year CD is $100K, with no maximum balance cap. According to the Bank’s Manager, the Early Withdrawal Penalty is one month’s interest.
|1.35%||$100k||-||State Bank of Texas||Jumbo 12 Month CD|
|1.25%||$100k||-||State Bank of Texas||Jumbo Money Market Deposit Account|
|1.25%||$25k||-||State Bank of Texas||12 Month CD|
This errant ad in the Chicago Tribune brings up a good point – can you actually get the "good deal," when it’s an error? I wrote about this in a May 2014 blog post and while the following guidelines may not work in this particular instance, it’s a good framework on which to base a game plan.
- First, go directly to a Branch Manager, and if possible, go in person with a copy of the ad. A Branch Manager often has the authority to offer you more than what’s officially available.
- Act quickly. Banks are more likely to honor a bank ad mistake if you visit a branch soon after the ad is published.
- Check multiple branches. Some branch managers may be more open to honoring the incorrrect ad.
- Don’t be greedy. The bank may change their mind in honoring the ad mistake if your deposit is too large.
If you attempt to open this CD at the advertised rate, let me know what happens.
Thanks to the DA reader who saw this offering in Sunday’s Chicago Tribune.
Update 3/9/16: SBT is now offering these specials at all of its branches. In addition, these specials can be opened by mail or fax from people in any state.
Headquartered in Dallas, State Bank of Texas’ market area includes the Dallas metropolitan area and the Chicago metropolitan area.
At this time, SBT's online banking platform is dedicated to account management and bill payment services.
State Bank of Texas (FDIC Certificate # 27074) has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 12.18% (above average) based on September 30, 2015 data. In the past year, SBT increased its total deposits by $234.63 Million, an excellent annual growth rate of 85.64%. Please refer to our financial overview of State Bank of Texas for more details.
Nearly 30 years after its establishment, State Bank of Texas is still a family-owned and operated bank. After 20 years in the hotel industry, SBT’s founder, Chan Patel, set out to create a bank for the immigrant community, particularly those in the hospitality industry. At the time, $2 million of capital was required to start a bank; Patel had $1 million of his own to invest but needed to find investors for the remaining $1 million. Using the novel approach of offering a lifetime career as a professional banker and a Director’s position in exchange for a $100K investment, Patel raised the monies within two weeks. SBT currently holds assets in excess of $664M+ and has not reported a quarterly operating loss in almost 30 years.
How the CD Compares
When compared to the 429 similar length-of-term CDs tracked by DepositAccounts that are available to Illinois residents, State Bank of Texas’ 12-month CD APY currently shares the top spot, regardless of minimum deposit requirement.
How the Money Market Account Compares
When compared to the 389 Money Market Accounts tracked by DepositAccounts that are available to Illinois residents, State Bank of Texas’ Jumbo Money Market APY currently shares the top spot, regardless of minimum deposit requirement.
The above rates are accurate as of 2/22/2016.
To look for the best nationwide Money Market Account rates and the best Money Market Account rates in your state, please refer to our Money Market Account rates table.