State Bank of India is a foreign bank, but it has U.S. branches with FDIC insurance in New York and Chicago. I first reported on the New York branch in 2005. They have long offered competitive CD rates. Currently, the NYC rates aren't noteworthy. However, the CD rates at the Chicago branch are very competitive. The best rates include:
- 1.51% APY 3-year CD
- 1.21% APY 2-year CD
- 1.16% APY 1-year CD
- 0.80% APY 6-month CD
These require a minimum deposit of $95,000. For a $2,500 minimum deposit, the rates are 10 basis points lower.
The bank also has a money market account with a 1.00% APY.
These rates are listed at the rate sheet at the SBI Chicago deposit department page as of 11/30/2012. According to the rate sheet, these rates are effective through December 4, 2012.
The bank's deposit department page, provides links to a guide to open new accounts, a CD application form and an account disclosure.
Earlier this year I called the Chicago branch's toll-free number at 800-724-5780. I had to go through an automated answering service, but I was able to connect with a CSR without much wait. I was told they accept applications by mail from people in any state. 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 Overview
There's also a branch in California that's called State Bank of India (California), but its CD rates are currently not as competitive as the NYC or Chicago branches.
The New York, Chicago and California branches all have separate FDIC charters. However, for the New York and Chicago branches, the FDIC states the following:
State Bank of India, New York, NY (FDIC Cert# 33682) and State Bank of India, Chicago, IL (FDIC Cert# 33664) are branches of the same banking institution. Therefore, deposits held in these two branches do NOT receive separate FDIC insurance coverage. Deposits held in the same capacity at each office would be added together prior to applying the insurance limit for that ownership type.
How These CD Rates Compare
For 1-, 2- and 3-year terms, PenFed has the highest rates that are nationally available. These include a 1.26% APY 1-year CD, 1.36% APY 2-year CD and a 1.61% APY 3-year CD. For internet banks, the highest 1-year CD APY is 1.12% at ableBanking and the highest 3-year CD APY is 1.35% at Discover Bank. These rates are accurate as of 11/30/2012.
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.