State Bank of Texas Jumbo Money Market: A High-Yield Home for Six-Figure Savings

If you've got a sizable chunk of cash sitting in a regular savings account, you're probably leaving money on the table. Right now, some smaller banks are offering rates that make the big guys blush. One that's caught my eye is from State Bank of Texas. They've got a Jumbo Money Market account paying a very competitive yield, but it's definitely not for everyone. Let's dig into whether this could be a good parking spot for your savings.

The Big Number and the Big Requirement

The headline is the 4.18% Annual Percentage Yield. That's a strong rate, especially when you consider the national average for savings accounts is often a fraction of that. However, the gatekeeper is a significant one: you need at least $100,000 to open the account and to earn that advertised rate.

There's no stated maximum balance, so if you have more, it all earns the same rate. It's worth noting that the bank's own page clearly states this rate is for "new money deposits only" and is "subject to change without notice after account opening." So, the rate you see today isn't guaranteed for the life of the account.

Fees and Fine Print You Can't Ignore

This is where you need to pay close attention. While the yield is attractive, the fee structure could eat into your earnings if you're not careful.

First, there's a monthly service charge of $20. The good news? It's easily avoidable. You just need to maintain an average daily balance of $25,000 or more. If you're opening this with the required $100k, that shouldn't be a problem. But if you plan to dip below that $25k mark regularly, the fee will kick in.

Second, there's a $25 fee if you decide to close the account within the first 120 days. Think of it as an early termination fee. Make sure you're committed to parking your money here for at least four months.

Finally, remember this is a money market account, not a checking account. Federal Regulation D typically limits certain types of withdrawals and transfers to six per month. Exceeding that limit could result in fees or even account conversion. Check with the bank for their specific policy on transaction limits.

Who This Account Makes Sense For

This isn't your everyday savings account. It's a specialized product for a specific saver.

It's ideal for someone who has a lump sum—perhaps from a home sale, an inheritance, or accumulated savings—that they want to keep liquid and accessible but earning a much better return than a typical bank savings account. The ability to do domestic and international wires is a plus for those who might need to move money.

You should also be comfortable banking primarily online with a smaller, Texas-based community bank. While they have physical locations, most account management will be remote if you don't live in the area.

How to Get Started and Move Your Money

The account is opened online. You'll need to provide all the standard personal and identification details. Funding the account can be done via ACH transfer from another bank, wire transfer, or by mailing a check.

A practical tip: When moving a large sum like $100,000, consider the transfer limits and timing. ACH transfers might have daily or monthly limits at your current bank, so a wire transfer could be faster for the full amount, though it may come with a fee from your sending institution. Always confirm the receiving instructions directly with State Bank of Texas before initiating a large transfer.

Bottom Line

• A top-tier 4.18% APY makes this a compelling option for large, idle cash balances.
• The $100,000 minimum is a high barrier to entry, making it a niche product.
• Avoid the $20 monthly fee by keeping your average balance above $25,000.
• Plan to keep the account open for at least 120 days to dodge the early closure fee.
• Always verify the current rate on the bank's official page before applying, as it can change.

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