In the past few years, State Bank of Texas (SBT) has been periodically offering nationally available special rate CDs. Currently, the only nationally available CD is a 12-month, with rates that aren’t that special (0.55% APY, $25k; 0.65% APY, $100k), but residents of Harris County (and seven contiguous counties) qualify for 0.85% APY ($100k minimum) on the 12-month CD.
|0.85%||$100k||-||State Bank of Texas (SBT)||12 Month CD - Houston area only|
|0.65*%||$100k||$250k||State Bank of Texas (SBT)||12 Month CD|
|OTHER TIERS: 0.55% → $25k - $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 checking. 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.
Headquartered in Dallas, State Bank of Texas has been offering a variety of CDs on a nationwide basis for about four years. At this time, SBT has only one nationally available CD (12-month), but that CD, earning an extra 20 bps, is available “for residents of Harris County, TX and contiguous counties.” (The contiguous counties include Brazoria, Chambers, Fort Bend, Galveston, Liberty, Montgomery, and Waller.)
Since I last wrote about SBT, an online application has been added to the Bank’s website, which is a definite improvement over the “New Account Form” SBT used to email to new customers. Residents of the eight eligible counties can also open the 12-month CD at the Houston branch on S. Gessner Road. (A mask is required to enter the Houston branch lobby.)
State Bank of Texas has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.67% (excellent) based on December 31, 2020 data. In the past year, SBT has increased its total non-brokered deposits by $63.1 million, an excellent annual growth rate of 9.3% 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. In addition, SBT is currently the 82nd largest bank headquartered in Texas, with deposits in excess of $977 million.
How the CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts that are available in the greater Houston metro area, State Bank of Texas’ 12-month CD APY currently claims the top spot, regardless of minimum deposit requirements.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|0.85% APY||12-Month CD ($100k min)||State Bank of Texas|
|0.80% APY||1-Year Fixed CD ($500 min)||Lafayette Federal Credit Union|
|0.75% APY||13-Month Promo Share Certificate ($25k min)||Gateway First Bank|
The above information and rates are accurate as of 4/22/2021.
To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.