State Bank of Texas (SBT) brought back its nationally available 12-month CD in December 2021 earning 0.85% APY which, at the time, was a competitive rate. In the past seven months, there have been six rates increases, adding a total of 140 bps. Currently earning 2.25% APY, the 12-month CD can be opened with a $25k minimum deposit and is capped at $250k.
According to CSR, the Early Withdrawal Penalty for the 12-month CD is a very mild 30 days of interest. Partial withdrawals are not allowed: only an early closure is permitted.
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, if so desired. Maturing funds can be distributed by ACH ($10 fee), wire transfer ($30 fee), cashier’s check to the address on file, wire, or transferred to another SBT account.
Unlimited beneficiaries (equal shares) can be named and a Social Security/Tax Identification number is required for each beneficiary.
Headquartered in Dallas, State Bank of Texas has been offering a variety of CDs on a nationwide basis for about five years. The only nationally available CD currently offered is the 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.
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.
State Bank of Texas has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.86% (excellent) based on March 31, 2022 data. In the past year, SBT has increased its total non-brokered deposits by $312.97 million, an excellent annual growth rate of 42.24%. Please refer to our financial overview of State Bank of Texas (FDIC Certificate # 27074) for more details.
Founded in 1987, State Bank of Texas continues to be 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 61st largest bank headquartered in Texas with assets in excess of $1.4 billion.
How the 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide and have minimum deposit requirements of $25k or less, one bank and one credit union have higher rates than currently offered on the SBT 12-Month CD. The following table compares the 12-Month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
|APY||CD Term (Early Withdrawal Penalty)||Credit Union/Bank|
|2.50%||1-Year Bread Savings CD, $1.5k min (EWP=180 days)||Bread Financial|
|2.32%||6-11 Month CD, $25k min (EWP=90 days)||Department of Commerce Federal Credit Union|
|2.25%||12-Month CD, $25k min (EWP=30 days)||State Bank of Texas|
|2.25%||12-Month CD, $1k min (EWP=90 days)||United Texas Bank|
|2.05%||14-Month CD Special, $1k min (EWP=180 days)||Premier America Credit Union|
The above information and rates are accurate as of 6/27/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.