Dedicated to Deposits: Deals, Data, and Discussion

4.58% 12-Month CD Nationally Available at State Bank of India - New York

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State Bank of India in New York is again offering some attractive CD rates. The most competitive is the 1-year CD which has a yield of 4.58% APY. Below is a list of the new and old rates, and how much they've changed.

Old and New CD Yields as of 10/16/2008

Term Old APY New APY Change
6 month 3.80% 4.06% +0.26
1 year 4.32% 4.58% +0.26
2 year 4.42% 4.58% +0.16
3 year 4.58% 4.58% -
5 year 5.15% 5.20% +0.05

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 10/15/2008 to 10/21/08. These CDs are offered through the bank's New York branch and can be opened by mail.

Some important details mentioned in the bank's CD page include:
  • They are not currently offering in-trust-for, POD and trust accounts.
  • For those who want interest payements, interest is paid quarterly to your transaction account at SBI.
  • 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)
I and several readers have reported delays and issues in reaching the bank's customer service. The New York office appears to be understaffed. You can see more comments about their customer service in my previous post. A reader in my last week's post mentioned that he has always used emails for communicating with State Bank of India, and they have almost always replied within 24 hours.

I first reported on this bank in November 2005. They have often had competitive CD rates and have advertised on Bankrate.com. 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.

Thanks to the reader who emailed me news of these CD rates.

  Tags: New York, CD rates

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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
Most of the banks such as State Bank of India (Bank of India, Bank of Maharashtra, Indian Bank etc.) are Indian government owned and guaranteed (nationalized 100%). As another commenter has said, you get security but compromise service. Their online operations as well as B&M operations are not going to be as slick or responsive (even in the USA) as any bigger US bank. But your money will be safe.

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Comment #2 by Anonymous posted on
Anonymous
Fed okays NY office for State Bank of India



Sunday, January 27, 2008
WASHINGTON: The Federal Reserve Board on Friday said it approved the State Bank of India’s application to open its third full US branch, in New York City’s Jackson Heights neighbourhood.

The Fed said in a statement that the application by India’s largest bank meets requirements of the International Banking Act, the Bank Holding Company Act and other applicable federal laws.

The proposed branch would offer a range of banking services, including deposit accounts and small business loans, and investment advisory and trade-related services, the Fed said.Jackson Heights, in the city’s Queens borough, has long been home to Indian immigrants.

The State Bank of India already has one branch in New York, one in Chicago, an agency office in Los Angeles, and a representative office in Washington.The Indian government owns about 63.8 per cent of the Mumbai-based bank, the country’s largest with about $187.5 billion in total assets.

It primarily engages in corporate and retail banking and trade finance, as well as providing life insurance, merchant banking, brokerage, credit card processing, and credit information. It has offices in 32 countries. The Fed said the bank’s home country supervisors are actively working to establish a consolidated supervisor and maintains anti-money laundering programmes.

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