State Bank of Texas Offers Rate Leading 12-Month CD
In the past few years, State Bank of Texas (SBT) has been periodically offering limited-time nationally available special rate CDs. The current offering is a 12-month CD that earns 0.85% APY with a minimum $25k opening deposit.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 0.85*% | $25k | $250k | State Bank of Texas (SBT) | 12 Month CD - Limited Time Special |
The last time the 12-month CD was available was in the spring, but only residents of Harris County, Texas (and seven contiguous counties) were eligible for the 0.85% APY ($100k minimum). The rates available to the rest of the country at that time were definitely not that special: 0.55% APY ($25k) and 0.65% APY ($100k).
According to CSR, the Early Withdrawal Penalty for the 12-month CD is 30 days of interest.
Funding the 12-month CD can be done by ACH transfer, wire, or check. Monthly interest can be paid via ACH to a checking account at any bank. Maturing funds can be distributed by ACH, cashier’s check to the address on file, wire, or transferred to another SBT account.
Availability
Headquartered in Dallas, State Bank of Texas has been offering a variety of CDs on a nationwide basis for more than four years. At this time, the only nationally available CD offered is the limited-time 12-month CD.
The first page of the online application reads,
Please note that you must be 18 years of age and classified as a US Person to apply online.
According to the IRS definition of U.S. Persons, the following are eligible to open a 12-month CD:
- A citizen or resident of the United States
- A domestic partnership
- A domestic corporation
- Any estate other than a foreign estate
- Any trust if: a court within the United States is able to exercise primary supervision over the administration of the trust, and one or more United States persons have the authority to control all substantial decisions of the trust
- Any other person that is not a foreign person.
In addition to opening a CD online, SBT has five Texas branches located in Dallas, Garland, Houston, Irving, and Richardson, and a single full-service Illinois branch located on Chicago’s North Side.
While SBT has a presence at Chicago’s Midway and O’Hare airports, the vast majority of those “branches” are kiosks that only offer currency exchange services. The one exception is the O’Hare location in Terminal 5, on the Lower Level outside of security next to arrivals. No airline ticket is required for entry to the Terminal 5 location.
Bank Overview
State Bank of Texas has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 7.27% (excellent) based on September 30, 2021 data. In the past year, SBT has increased its total non-brokered deposits by $252.13 million, an excellent annual growth rate of 36.82%. Please refer to our financial overview of State Bank of Texas (FDIC Certificate # 27074) for more details.
Founded in 1987, 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.
In the past ten years, SBT acquired Millennium State Bank of Texas, National Republic Bank of Chicago, and Seaway Bank, becoming the largest Indian-American owned bank in the country. SBT is currently the 77th largest bank headquartered in Texas, with deposits in excess of $1.2 billion.
How the CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts that are available nationwide and require a minimum deposit of $25k or less, State Bank of Texas’ 12-month CD APY currently claims the top spot.
The above information and rates are accurate as of 12/9/2021.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
