Dedicated to Deposits: Deals, Data, and Discussion

Top CD Rates Are Back at Habib American Bank in CA, NY & NJ - Local Only

POSTED ON BY

HAB Bank

Update 1/13/2011: The CD rate tables for California are no longer listed at the bank's website. Please contact the bank for the latest rates.

Habib American Bank is again offering several very competitive CD and IRA CD rates. The highest rates are currently available at the bank's California branches in Los Angeles and Artesia. These include a 1.50% APY 9-month CD, a 2.00% APY 2-year CD and a 2.75% APY 5-year CD. IRA CD rates are 25 basis points higher. In New York and New Jersey, the rates are around 25 basis points lower. A checking account is required for non-IRA CDs. Minimum deposit is $1,500. A branch visit is required.

Below is a summary of the best CD rates as shown on the bank's rates page as of 1/11/2011:

California CD and IRA Rates as of 1/11/2011:

  • 2.75% APY 5-year CD (3.00% IRA)
  • 2.50% APY 4-year CD (2.75% IRA)
  • 2.25% APY 3-year CD (2.50% IRA)
  • 2.00% APY 2-year CD
  • 1.80% APY 18-month CD (2.05% IRA)
  • 1.50% APY 1-year CD (1.75% IRA)
  • 1.50% APY 9-month CD (1.75% IRA)

New York & New Jersey CD & IRA Rates as of 1/11/2011:

  • 2.50% APY 5-year CD (2.75% IRA)
  • 2.25% APY 4-year CD (2.50% IRA)
  • 2.00% APY 3-year CD (2.25% IRA)
  • 1.75% APY 2-year CD (2.00% IRA)
  • 1.50% APY 18-month CD (1.75% IRA)
  • 1.30% APY 1-year CD (1.55% IRA)

My last review of this bank was in June 2010. They had offered several top CD rates during that time, but after the summer ended, the rates fell. When I last checked with the bank in June, I was told that there's only a 3-month early withdrawal penalty.

Branches are located in New York City and Hicksville, New York; Edison, New Jersey; and Los Angeles and Artesia, California.

Habib American Bank Overview

Habib American Bank appears to be similar to State Bank of India. It's an American bank that's a subsidiary of a large foreign bank. Instead of India, Habib American Bank's parent is headquartered in Pakistan. According to Wikipedia:

Habib Bank Limited commonly referred to as "HBL" and head-quartered in Habib Bank Plaza, Karachi, Pakistan, is the largest bank in Pakistan. The bank has a network of over 1450 branches in Pakistan and 55 branches worldwide.

In 1984, HBL opened its USA bank:

HBL established Habib American Bank in New York with a branch each in Manhattan and Queens, and a US International Banking Facility. HBL also opened a branch in California.

Even though it has international connections, Habib American Bank is a FDIC member (FDIC Certificate # 25093). In addition to being a FDIC member, its financial health appears to be strong. It has an overall health score of 4 out of 5 with a Texas Ratio of 6.06% (excellent) based on September 2010 data. Please refer to our financial overview of Habib American Bank for more details.

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

  Tags: HAB Bank, New York, California, New Jersey, CD rates, IRA rates

Related Posts

Comments
5 comments.
Comment #1 by Inforay posted on
Inforay
On its website it is stated: "Important Notice To All Customers
Habib American Bank has chosen not to participate in the FDIC's Transaction Account Guarantee Program. Customers of Habib American Bank with noninterestbearing transaction accounts will continue to be insured up to $250,000 under the FDIC's general deposit insurance rules."  What does this mean?  Is it that only noninterest bearing accounts are covered by FDIC?  Does that mean that CDs which bear interest are not covered by FDIC?

1
Comment #2 by Anonymous posted on
Anonymous
Why would anyone in their right mind bank with an institution headquartered in Pakistan? Don't they read the news? There is no transparency in that country, which is habitually on the verge of financial collapse until it gets bailed out time and again by the IMF and World Bank. Google BCCI for details on the nature of Pakistan's shady banking.

2
Comment #3 by KenBDG posted on
KenBDG
@Inforay, this just refers to non-interest bearing checking accounts. All other accounts including CDs have the standard FDIC coverage. I have more details in this blog post

1
Comment #4 by Inforay posted on
Inforay
Thank you Ken.  This is the most useful blog that I have ever found with the most up-to-date information.

1
Comment #5 by Anonymous posted on
Anonymous
Per the Los Angeles Branch, the 18 month APY CD rate has dropped from 1.80% to 1.35%.  The one year APY CD rate remains at 1.50%.

1