HAB Bank (NYC/NJ/CA) Offers Competitive 12-Month CD

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Deal Summary: Promo Certificates – 6-months (1.78% APY), 12-months (2.18% APY), 24-months (2.46% APY), $1.5k minimum deposit, checking account required. UPDATE 2/15/18 – new money is required, but a checking account is not.

Availability: New York City metropolitan area, Northern New Jersey, and Southern California.

Over the week, the Los Angeles Times ran an ad for Promo Certificates (12-months, 2.18% APY; 24-months, 2.46% APY) at HAB Bank’s Southern California branches. I called the New York and New Jersey branches and confirmed that the same Promo Certificates/APYs are being offered at the Bank’s East Coast branches. DA reader, me1004, noted in a Forum post, that the ad lists a $5k minimum deposit, but according to HAB Bank’s Promotional Rates page, a “minimum balance of $1,500 is required to earn the posted APY." UPDATE 2/15/18 – Although the Promotion Rates page does not mention it, new money is required.

A checking account also needs to be opened, but according to CSR, “you don’t have to use it. You just have to open it.” HAB Bank’s Smart Checking requires a minimum $100 opening deposit, but has no minimum balance requirement, no monthly fee, and no minimum transactional requirement.

According to CSR, the Early Withdrawal Penalties are as follows:

  • 3 months interest – 12-months term
  • 6 months interest – 24-months term

Many thanks to DA reader, me1004, for his Forum post about the Promo Certificates.

Who Is HAB Bank?

In the past, there has been a fair amount of confusion about HAB Bank (Habib American Bank), and this confusion has increased recently due to Habib Bank Limited, the largest bank in Pakistan, being the target of New York State's Department of Financial Services (DFS) “enforcement actions.” In a September 7, 2017 press release, HAB Bank stated,

In light of recent news regarding HBL, HAB Bank, strongly affirms it has no direct, indirect or any affiliation whatsoever or shared ownership with Habib Bank Limited, a Pakistan-based financial institution with an office in Manhattan. HAB Bank is a U.S.-based community bank headquartered in Manhattan with FDIC membership. HAB Bank has no operations outside the US. The institution has operated continuously and successfully since its original incorporation in 1983 and has branches in NY, NJ and CA.

Furthermore, the DFS also released a statement on September 8, 2017:

Habib American, doing business as HAB Bank, is an FDIC-insured domestic commercial bank chartered by the New York State Department of Financial Services (DFS) and is not affiliated in any way with Habib Limited and was not subject to the enforcement action taken by DFS against Habib Limited on Thursday, September 7, 2017.

Availability

Headquartered in New York City, HAB Bank’s market area includes the greater NYC metropolitan area, Northern New Jersey, and Southern California.

Opening a Promo Certificate can be done at any of four New York branches, located in Manhattan, Long Island (Hicksville), and Queens (Jackson Heights and Richmond Hill), the single New Jersey branch, located in Iselin (Middlesex County), or two Southern California branches, located in Artesia and Los Angeles.

UPDATE 2/15/18 – The Promo Certificates can also be opened on the phone.

Bank Overview

HAB Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.52% (excellent) based on September 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $284.09 million, an excellent growth rate of 28.64%. Please refer to our financial overview of HAB Bank (FDIC Certificate # 25903) for more details.

HAB Bank is currently the 39th largest bank headquartered in New York, with assets in excess of $1.4 billion. HAB Bank’s holding company, Maham Beteiligunsgesellschaft AG is located in Zurich, Switzerland. (“Beteiligunsgesellschaft” is German for “investment company.”)

How the Promo Certificates Compare

When compared to the similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available within the Bank’s market area, HAB Bank’s 6-Months Promo CD APY currently ranks first.

Interest RateCD Length of TermCredit Union/Bank
1.78% APY6-Months Promo CDHAB Bank
1.71% APY6-Month CDLimelight Bank
1.65% APY6-Month CDLive Oak Bank

When compared to the similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available within the Bank’s market area, HAB Bank’s 12-Months Promo CD APY currently ranks first.

Interest RateCD Length of TermCredit Union/Bank
2.18% APY12-Months Promo CDHAB Bank
2.10% APY1-Year CDLive Oak Bank
2.05% APY14-Month CertificateINOVA Federal Credit Union

When compared to the similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available within the Bank’s market area, HAB Bank’s 24-Months Promo CD APY currently ranks first.

Interest RateCD Length of TermCredit Union/Bank
2.48% APY24-Months Promo CDHAB Bank
2.35% APY24-Month PurelyCDBankPurely
2.32% APY24-Month CDMutualOne Bank

The above rates are accurate as of 2/14/2018.

To look for the best CD rates, both nationwide in state specific, please refer to our CD Rates Table page.

Related Pages: New York CD rates, Los Angeles CD rates, 1-year CD rates, 5-year CD rates

Comments
RichReg
RichReg   |     |   Comment #1
"Smart Checking requires a minimum $100 opening deposit, but has no minimum balance requirement, no monthly fee, and no minimum transactional requirement."

Careful here...HAB charges for incoming wire transfers. Opened the checking today...(in prep for the CD)...so I had to insist that the wire fee be waived. Been finding a LOT of banks mentioned here that do this now....which is ridiculous considering the losing institution does most of the processing.
Reader
Reader   |     |   Comment #2
Charging a fee for incoming wire transfers is a ridiculous practice that seems to be gradually becoming the norm. Until a few years ago, no bank would charge for receiving a wire. Another objectionable fee is the $1 to $5 fee the banks charge each time they send you a hard copy statement of your account.
RichReg
RichReg   |     |   Comment #3
Can live with paperless statements, but fees for the convenience of liquidity under the guise of 'World's Highest High Money Market Rate' doesn't seem right to me. ACH service charges are another one. If you can't actually get the advertised rate because you have to move funds around a little bit here and there, well, then the product shouldn't be sold that way.
me1004
me1004   |     |   Comment #4
So Ken, with your update that the CD can be opened over the phone, does that mean it is now nationally available? Before that info, it was locally available because you needed to go into the bank. If it is nationally available, you might want to change the top info indicating otherwise.
Sam
Sam   |     |   Comment #5
The worst bank I have worked with .I applied for mortgage and in the beginning of the process they did well then after I paid the bank fees and signed the contract ,they turn everything hard and unbelievable .They asked me for documents aren’t existed at all because they have no experience with the city rules .I will never do bussiness with them and I’m trying to withdraw my application and get my money back
HAB Bank (NYC/NJ) Adds 12-Month CD Special
UPDATE 11/5/2017: Southern California is now offering a 12-month CD (1.78% APY) and 24-month CD (2.08% APY).

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UPDATE: While reading today’s Los Angeles Times, I saw a HAB Bank advertisement that goes against what CSR told me about the CD Specials being offered by the Bank’s Southern California branches. According to what’s on page 15, a 12-month (1.78% APY) and...

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