Dedicated to Deposits: Deals, Data, and Discussion

4.06% 12-Month / 4.32% 36-Month CD Nationally Available at State Bank of India - New York


State Bank of India in New York just increased its CD rates. The CDs with terms of one year and over are very competitive. For a $5,000 minimum deposit, the yields include a 4.06% APY for 12 and 24 month terms, 4.32% APY for a 36 month term and 4.58% APY for a 60 month term. For a $95,000 minimum deposit, the yields are 4.16% APY for 12 and 24 month terms, 4.47% APY for a 36 month term and 4.68% APY for a 60 month term. The rate table has a date range of 4/9/08 to 4/15/08. These CDs are offered through the bank's New York branch and can be opened by mail.

Some important details mentioned on the bank's CD page include:
  • They are not currently offering in-trust-for, POD and trust accounts.
  • Early withdrawal penalty is 90 days of interest for 1 and 2-year CDs, 180 days for the 3 year CD, and 270 days for the 5 year CD. The bank reserves the right to refuse such withdrawals.
  • 10 calendar day grace period at maturity of the CD

I called to find out when the rate would lock if you send the application by mail, and I couldn't get through to a service rep. I was redirected to rep who wasn't at his desk and I got his voice mail. I'll keep trying, but this is an indication that you shouldn't expect ING Direct-like service.

I first reported on this bank in November 2005. They have often had competitive CD rates and have advertised on My last report on this bank was in September 2007. The bank is FDIC insured (FDIC Certificate # 33682).

  Tags: New York, CD rates

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Comment #1 by Anonymous posted on
beaware of this ..

Early Withdrawal Possible
Deposits or withdrawals are not permissible before the maturity date. However, it has been our practice to permit withdrawals, except to certain corporate depositors. This practice is not binding on the Bank in the future and we reserve the right to refuse such withdrawals. We may require that all holders of a joint account authorize a premature withdrawal of the principal from a CD account. In any case, when premature withdrawals are permitted, the following penalty will be imposed:

Term of Deposit No. of Days for Which Interest will be Recovered
14 days 14 days
1 month to less than 1 year 30 days
1 year to less than 3 years 90 days
3 years to less than 5 years 180 days
5 years & over 270 days

The penalty will be calculated at the interest rate which the CD is earning. The penalty will be applied no matter how long the funds have been on deposit and may result in a reduction of the principal. A penalty will not be charged if the account holder dies or is declared legally incompetent.

Comment #2 by Anonymous posted on
I had a CD with State Bank of India about a year ago.

If you're a new customer applying by mail, you will need to provide a notarized copy of your driver's license.

It is difficult to reach someone in the New York office by phone, but they do return phone messages.

They proactively contacted me to advise me that the 1099-INT they had sent was incorrect, and that a corrected one was in the mail.

I also had to follow up on my wire transfer request at maturity. They did not send the wire on the maturity date even though I had sent wire instructions in advance.

It's a good bank but expect the kind of problems you get with dealing with a very small office.

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for sharing your experience with them.

Comment #4 by Mitch from NJ (anonymous) posted on
Mitch from NJ
I had a one-year CD with SBI about two years ago. Although the CSRs were courteous enough, it was exceedingly difficult to reach anyone in the NY office. On the positive side, if you wish to receive monthly interest on your CD, they will wire it to your bank at no charge.

Comment #5 by Anonymous posted on
I was concern with the withdrawal policy so I went over and asked them about it. I mention this to the CSR said no first but then verify with the branch manager. The CSR said they have never denied any customer from taking their money out with the 90 day penalty for 1-3 yr cd. While I was contemplating to open the CD another customer open one. He told me this bank is actually the biggest bank in India (government own) so don't worry about your money in this bank and FDIC insure. The atmosphere was very subdue and laid back like the old banks. Hope this help some people to decide to open or not.

Comment #6 by Anonymous posted on
This has nothing to do with the post here. But both my parents worked for State Bank of India, and their benefits are the best. As someone pointed above, they are indeed the largest bank in India, and they are definitely safe to bank with!