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)
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.