State Bank of India, New York did something today that is rare. It increased its CD rates. They aren't anything to get excited about, but in today's environment, any rate increase is a pleasant surprise. The most competitive rate is now 1.91% APY for a 5-year CD. The rate increased 10 basis points today. Minimum deposit is $5,000. Early withdrawal penalty is 270 days of interest. This rate and a description of the CD features are listed in the bank's CD accounts page as of 6/13/2012. According to this page, rates should remain effective through June 19.
Available Nationwide by Mail
I first reported on the State Bank of India New York in 2005. They have long offered competitive CD rates, and they can open CDs by mail for people in any state.
The main downside with the New York branch is the lack of online banking. When I called the bank in February, I was told they will mail you a document of the CD after you mail in the application and check. The rate will lock at the time they receive the application. Also, they require you to have one of the forms notarized. At maturity, they require you to mail or fax a letter instruction. They can either mail you a check or do a wire transfer.
State Bank of India is a foreign bank, but it has U.S. branches with FDIC insurance in New York, Chicago and California. State Bank of India New York has been a FDIC member since 1971 (FDIC Certificate # 33682). According to CNNMoney, State Bank of India is the largest bank in India.
How This CD Rate Compares
This 1.91% APY 5-year CD is now the highest 5-year CD rate that's nationally available at a bank. The next highest 5-year CD rates are 1.81% APY at The National Republic Bank of Chicago and 1.80% APY at Barclays.
Higher rates are available at all-access credit unions. The highest 5-year CD rate is 2.20% APY at Justice Credit Union and Credit Union of New Jersey. Both of these are Jumbo CDs which require a $100K minimum deposit.
These rates are accurate as of 6/13/2012.
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.