The State Bank of Texas, founded in 1987, has a unique and interesting background.

They are the largest Indian-American owned bank in the country which found their niche in the hospitality industry. Today, they are that sector’s largest lender.

For consumers looking to earn interest on a personal deposit account, the State Bank of Texas has two noteworthy FDIC-insured options with rates significantly above the national average. They are:

• a 12 month CD yielding 4.65% APY with a minimum deposit requirement of $25,000.
• a money market account yielding 3.56% APY with a minimum deposit requirement of $100,000.

For this review, we’ll be focusing solely on the 12 month CD given it has one of the highest yields on the market.

Although based out of Texas, consumers nationwide can take advantage of these products.

State Bank of Texas CD Rates + Account Details

The State Bank of Texas only offers consumers one certificate of deposit at this time. It is a 12 month CD with an outstanding rate if you can meet the steep minimum deposit requirement.

CD Rate

To put this yield into perspective, the national average for a 12 month CD sits at just 0.90% according to recent FDIC data.

📌 Important Note: Given the FED’s latest prime rate hike of 0.75% on November 2nd, we expect CD rates to rise over the coming months. See our predictions here.

The minimum deposit of $25k that the State Bank of Texas requires is quite high for a bank CD. Most online banks and credit unions require minimum deposits of between $0 – $2,500 – with the vast majority having $0, $1 or $500 minimum deposit requirements.

Interest

The interest on this CD is compounded and paid monthly via ACH transfer. You can also have this added back annually if you wish to renew the CD.

Funding Your Account

To open an account you must be at least 18 years old with a valid driver’s license or other government issued ID. You will also need your social security card handy if you do not know your number. Opening the account usually takes around 20 minutes.

To transfer funds you’ll need to send a physical check or wire the funds. For the latter, you’ll need your bank or credit union’s routing number plus your bank account number from which the funds will be withdrawn.

Physical Locations

If you’d prefer to open a CD in person you’ll need to stop by one of the State Bank of Texas’s 9 locations. They have 5 locations in Texas – most notably Houston and Dallas – as well as 4 locations in Chicago, IL – mainly at the airports. See all of their locations here.