State Bank of Texas Ups Jumbo MMDA Rate
UPDATE 10/31/2017: No longer available.
In the past 16 months, I have written about State Bank of Texas’ (SBT) Jumbo MMDA three times. Since February 2016, the competitive Jumbo MMDA was available only in Chicago, then offered nationwide, then withdrawn completely for a short time, and then reinstated as a nationally available product in late August.
Last week, SBT raised the rate on the Jumbo MMDA to 1.55% APY on balances of $100k+, and CSR confirmed that it is still available nationwide.
The Jumbo MMDA is a fairly straightforward account, with no unusual conditions or requirements, but it does require a minimum $100k opening deposit. SBT’s Personal Banking page states:
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.
Availability
Headquartered in Dallas, State Bank of Texas’ primary market area includes the Dallas metropolitan area and the Chicago metropolitan area, but the Jumbo MMDA is available nationwide.
Opening a Jumbo MMDA 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.
A “New Account Form” will be emailed to out-of-state customers that can be returned by mail, email, or fax. According to the New Account Form, funding the account can be done by wire, check, or ACH. If beneficiaries will be added, Social Security numbers are required.
Bank Overview
State Bank of Texas has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 14.48% (above average) based on March 31, 2017 data. In the past year, SBT has increased its total non-brokered deposits by $298.51 million, an excellent annual growth rate of 64.42%. Please refer to our financial overview of State Bank of Texas (FDIC Certificate # 27074) for more details.
Thirty years after opening its doors for business, 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 is currently the 65th largest bank in Texas, with assets in excess of $959 million. Beginning in 1990, SBT acquired two Texas banks and two Illinois banks, the most recent acquisition being Seaway Bank and Trust Company (Chicago) in January 2017.
How the Jumbo MMDA Compares
When compared to the 210 Money Market Accounts tracked by DepositAccounts.com that are available nationwide, State Bank of Texas’ Jumbo MMDA APY currently ranks first, regardless of minimum deposit requirement.
The above rates are accurate as of 6/26/2017.
To look for the best Money Market Account rates, both nationwide and state specific, please refer to our Money Market Account rates table or our Rates Map page.
Oh crap, I'm short twelve bucks....
lot of work for pennies
If one is lucky enough to have $200,000 cash, the extra interest would equal $480 per year. That's $40 per month.
(Not quite pennies, as you put it. But of course, is $40 per month to someone who has $200K worth it to that person regarding the time and effort it would take to open up this SBT account, etc.?)
Self-Help Credit Union lowered their Money Market rate from 1.31% APY to 1.26% APY (for balances under $500K). (I am guessing that after the news that they raised their rate to 1.31% hit here at Deposit Accounts and at FatWallet, they were inundated with new money.)