Dedicated to Deposits: Deals, Data, and Discussion

5.35% 60-Month / 4.06% 12-Month CD Nationally Available at State Bank of India - New York


State Bank of India in New York recently increased some of its CD rates. It now has the highest 5-year CD yield available nationwide with a 5.35% APY. Other competitive CD rates include a 4.06% APY 1-year CD, a 4.32% APY 2-year CD and a 4.84% APY 4-year CD. The minimum deposit is $5,000. In the past they used to have higher rates for larger deposits, but currently the rates are the same across for all tiers.

The rate table has a date range of 7/9/08 to 7/15/08. These CDs are offered through the bank's New York branch and can be opened by mail.

Some important details mentioned in the bank'sCD 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
  • If you're a new customer applying by mail, you will need to provide a notarized copy of your driver's license (according to a commenter)

Before my last SBI post, I had 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. Some comments from readers in that post who had SBI CDs also described similar issues with the customer service. Here are some of the comments:
It is difficult to reach someone in the New York office by phone, but they do return phone messages.

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

Although the CSRs were courteous enough, it was exceedingly difficult to reach anyone in the NY office.

It appears the banking reps are professional but are stretched thin.

I first reported on this bank in November 2005. They have often had competitive CD rates and have advertised on This is the US operation of State Bank of India and is FDIC insured (FDIC Certificate # 33682). According to Wikipedia, State Bank of India is the largest bank in India, and it's the second largest bank in the world measured by the number of branch offices.

  Tags: New York, CD rates

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Comment #1 by Ravi Shah (anonymous) posted on
Ravi Shah
It would be very helpful if the links you give in your articles, open in a new window.

Nice reviews of the latest rates ! Thanks dude !

Comment #2 by Anonymous posted on
Ravi, you can right click on any link on any site and open it in a new tab or new window.

Comment #3 by Anonymous posted on
M. Shah suggest you adjust your browser settings. Doubt Banking Guy can do that for you.

Now on topic of this post:

It's a good deal. But I am concerned re potential failure of either Fannie or Freddie, or both. If it happens interest rates will spike upward. I have cash available. But think I will await developments - at least a little longer. Do not see much downside potential for rates on the near horizon. But with the Fannie/Freddie failure threat, maybe there is some upside opportunity.

Comment #4 by Anonymous posted on
You got that right. Articles today are saying a Fannie + Freddie bailout by Uncle Sam would double our already gargantuan public debt. That would change everything. No more of this artificially low interest rate crap we're seeing now. What I want to know is this: what entity is gonna bail out the formerly solvent United States of America?? Maybe the A-rabs will save us. They have all the money now. All we'll have to do is pledge our souls as collateral.

Comment #5 by Anonymous posted on
F&F trouble today showed up on Wall St. too. Cash is king for now. Stuff is happening or is about to happen. If rates go up I will be ready to jump in on a good CD.

Comment #6 by Anonymous posted on
anon @ 12:43,
Arabs have just a piece of papaer on which currency is printed, We can demonetise all paper held outside USA, Arabs and China are rich only as long as we let them feel rich,
WWII started when German economy was threatened by
foreign lenders, We are strong enough to face any bill collectors with impunity.

Comment #7 by Anonymous posted on
What is a Fannie and Freddie Failure?

Comment #8 by Anonymous posted on
What happens if a foreign bank (such as the State Bank of India) which has a small US presence decides to close those locations? Do I have to follow it to a foreign country to recover my deposit?


Comment #9 by Ravi Shah (anonymous) posted on
Ravi Shah
Foreign Banks such as State Bank of India are also FDIC Insured. So we do not need to follow back to India.

Comment #11 by Anonymous posted on
I cannot get anyone to return my phone calls or emails. Tried to fax to them today and cannot do that either; HOWEVER, they did received my check and cashed it!

Comment #12 by Rachel (anonymous) posted on
Cannot anyone to return my phone calls or emails; HOWEVER they have cashed my check. Poor service!!!

Comment #13 by Mary (anonymous) posted on
Do they have IRA accounts?

Comment #14 by Banking Guy (anonymous) posted on
Banking Guy
I don't think they offer IRAs. I have some new info on this bank with new rates at this post.