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 5.55% 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.
To put this yield into perspective, the national average for a 12 month CD sits at just 1.72% according to recent FDIC data, however, top yields from online banks and nationally available credit unions are inching over the 5.50% APY mark with State Bank of Texas’s 12 month CD offer being among the rate leaders.
The minimum deposit of $100,000 that the State Bank of Texas requires is quite high for a bank CD. Most online banks and credit unions set minimum deposit requirements between $0 – $2,500 – with the vast majority requiring minimum deposits of $1,000 or less.
The State Bank of Texas raised their minimum deposit requirement from $25,000 to the current $100,000 in the first half of 2023.
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you’ll need your bank or credit union’s routing number plus your bank account number from which the funds will be withdrawn.
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.
How Much Can You Make with a CD from State Bank of Texas?
The amount of money you can earn with the 12 month CD from State Bank of Texas is going to depend on your deposit size. Take a look at the table below showing earnings based on a few different deposit amounts.
|Deposit Size||CD Term and APY||Earnings|
|$100,000||12 months, 5.55%||$5,550.00|
|$150,000||12 months, 5.55%||$8,325.00|
|$250,000||12 months, 5.55%||$13,875.00|
How do State Bank of Texas CD Rates Compare?
To get a better idea of how the State Bank of Texas CD rate compares to other online CDs, take a look at the table below.