DA readers may remember my February blog post about State Bank of Texas’ (SBT) 1-year Jumbo CD (1.25% APY, $25k; 1.35% APY, $100k) and Jumbo Money Market (1.25% APY, $100k). Initially, these rate specials were only available in the Chicago area, then were offered nationwide, and then were withdrawn completely in early August. I’m pleased to report that SBT has recently made these products available nationwide, yet again.
|1.55%||$100k||-||State Bank of Texas||Jumbo 12 Month CD|
|1.45*%||$25k||-||State Bank of Texas||12 Month CD|
|OTHER TIERS: 1.30% → $5k - $25k|
|1.25%||$100k||-||State Bank of Texas||Jumbo MMDA|
According to CSR, the Early Withdrawal Penalty for the 1-year Jumbo CD is one month’s interest.
SBT’s Personal Banking page states the following concerning the Jumbo Money Market account:
Minimum balance of $100,000 required to earn the stated rate, no interest paid if balance falls below $100,000. Monthly maintenance fee of $20.00 if the average daily balance falls below $25,000.00.
Headquartered in Dallas, State Bank of Texas’ market area includes the Dallas metropolitan area and the Chicago metropolitan area, but SBT has recently made the above mentioned products available nationwide.
Opening the 1-year CD, 1-year Jumbo CD, and/or the Jumbo Money Market can be done in person at any of the four Texas branches located in Dallas, Garland, Irving, and Richardson, or the single Illinois branch located on Chicago’s North Side.
As SBT's online banking platform is currently dedicated to account management and bill payment services, out-of-state customers have to open a new account either by mail or fax.
State Bank of Texas (FDIC Certificate # 27074) has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 13.50% (above average) based on March 30, 2016 data. SBT has an excellent capitalization level of 18.99%, a result of holding $680.14 million in assets with $128.13 million in equity. 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 $680 million and has not reported a quarterly operating loss in almost 30 years.
How the CD Compares
When compared to the 163 similar length-of-term CDs tracked by DepositAccounts that are available nationwide, State Bank of Texas’ 12-month Jumbo CD APY currently claims the top spot, regardless of minimum deposit requirement.
How the Money Market Account Compares
When compared to the 135 Money Market Accounts tracked by DepositAccounts that are available nationwide, State Bank of Texas’ Jumbo Money Market APY currently ranks first, regardless of minimum deposit requirement.
The above rates are accurate as of 8/30/2016.