Dedicated to Deposits: Deals, Data, and Discussion

4.68% 12-Month CD & 4.32% 6-Month CD at State Bank of India, New York

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Update 12/10/08: The CD rates have fallen. Please check the bank's website for the latest rates.

There were two big CD rate hikes at State Bank of India in New York today. The 6-month CD APY is now 4.32%, and the 12-month CD APY is 4.68%. These rates are way above other 6 and 12-month CD rates nationally available. However, the rates for the longer terms declined. Below is a summary of the rates listed at the bank's rate table as of 12/03/08. I've also included the old rates so you can see how the rates have changed. It almost looks like they may have intended the 6 and 12-month CD yields to be 3.32% and 3.68%. However, 4.32% and 4.68% are listed for all four tiers, so there appears to be no mistakes.

Old and New CD Yields as of 12/03/08

Term Old APY New APY Change
6 month 4.06% 4.32% +0.26
1 year 4.16% 4.68% +0.52
2 year 4.27% 4.01% -0.26
3 year 4.27% 4.22% -0.05
5 year 5.15% 4.73% -0.42

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 12/03/2008 to 12/09/08. 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 30 days of interest for the 6-month CD, 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 July post. A reader in a previous post mentioned that he has always used emails for communicating with State Bank of India, and they have almost always replied within 24 hours.

My last report on State Bank of India was in October when it was offering a 4.58% 1-year CD. 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
9 comments.
Comment #1 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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Comment #2 by Anonymous posted on
Anonymous
State Bank of India (FDIC Cert: 33664) is FDIC Insured.




State Bank of India has been FDIC insured since December 29, 1975.
It was established on July 5, 1955.
Its main office (headquarters) is located at:
19 South Lasalle Street, 2nd Floor
Chicago, Illinois 60603
County of Cook


State Bank of India has 1 Domestic Branches (Offices) located in 1 state(s) and 0 Foreign Offices. (Check to locate Branches (Offices) by state.)


State Bank of India's reported (or primary) website: Web site information not available

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Comment #3 by Anonymous posted on
Anonymous
I opened a CD today (12/8)at the NY office. It's a busy office so hence the delayed customer service.

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Comment #4 by Anonymous posted on
Anonymous
Do you have to be a New York resident to apply for this CD?

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Comment #5 by Jacek (anonymous) posted on
Jacek
The Chicago branch has different CD rates:
http://www.sbichicago.com/pdfs/CDINTERESTRATES12_08.pdf

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Comment #6 by Banking Guy (anonymous) posted on
Banking Guy
I've been told by the SBI banking rep that people in any state can apply by mail.

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Comment #7 by Anonymous posted on
Anonymous
I wouldn't put a dime in india bank. Bad customer service and you have to beg for your own money later on.

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Comment #8 by Anonymous posted on
Anonymous
STAY AWAY from the State Bank of India. There is NO customer service. Not worth any better rate for being aggravated.

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