Update 8/5/13: The bank is now offering 1.10% APY at its branches in the NYC metro area. Also note, according to the small print under the bank's rate tables, the CD requires a qualifying consumer or business checking account.
HAB Bank (formerly known as Habib American Bank is listing a very competitive 1-year CD rate for its California branches. The CD has a 1.15% APY for a minimum deposit of $1,500. Unfortunately, a much lower rate is listed for the bank’s New York and New Jersey branches. This rate is listed in the bank's rates page as of 7/10/2013. Thanks to the reader who emailed me news of this CD rate.
California HAB Bank branches are located in Los Angeles and Artesia.
HAB Bank Overview
According to the FDIC records, the bank still has the official name of Habib American Bank. However, the bank explains on its homepage that it is rebranding to this new name:
To commemorate 30 years of service to the community, Habib American Bank is rebranding to new and fresher look.."HAB BANK".
HAB 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, HAB 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 stars (out of 5) with a Texas Ratio of 9.41% (above average) based on March 2013 data. Please refer to our financial overview of Habib American Bank for more details.
Searching for the Best CD Rates
The highest 1-year CD rate that’s nationally available is 1.10% APY at Connexus Credit Union, but this requires an active checking account with direct deposit. The second best rate is 1.05% APY at three internet banks, DollarSavingsDirect, GE Capital Bank and GE Capital Retail Bank.
Another good deal with a similar term is available at Doral Direct which is offering a 1.02% APY 18-month CD with a penalty-free withdrawal option. When there’s this kind of withdrawal option, the longer the term, the better. Please refer to my Doral Direct CD review for more details.
These rates are accurate as of 7/10/2013.
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.