Availability:Los Angeles and NYC Metro areas
HAB Bank is offering a very competitive 1-year CD rate and a competitive 5-year CD rate. In addition, it has a promotional money market account with a top rate that’s guaranteed for 3 months. These deals are listed at the bank’s rates page as of 1/31/2015. The rates vary some between New York City and Los Angeles.
For Los Angeles, the 1-year CD has a 1.30% APY, and the money market account has a 1.20% APY. There’s no 5-year CD listed for California, but according to the CSR in the LA branch, they do have a 5-year CD with a rate that’s equivalent to the 5-year CD rate in New York City metro area (2.10% APY).
For the New York City metro area, the 1-year CD has a 1.25% APY, and the money market account has a 1.10% APY. The 5-year CD has a 2.10% APY.
According to the small print of the rates page, the minimum deposit is $1,500, and the CDs require "a qualifying consumer or business checking account." I was told by the LA CSR that a savings account can also be used to meet this requirement. She also said that the money market promotion has this same requirement. The 3-month rate guarantee was also mentioned by the CSR.
I can’t find any account disclosure online that lists any of the account details. According to the LA CSR, both the 1-year and 5-year CDs have an early withdrawal penalty equal to 3 months of interest.
A branch visit is required to open accounts. The California HAB Bank branches are located in Los Angeles and Artesia. In the New York City metro area, the bank branches are located in Manhattan, Jackson Heights, Hicksville, Richmond Hill and in Iselin, New Jersey.
HAB Bank Overview
According to the FDIC records, the bank has the official name of Habib American Bank. Its bank holding company is located in Zurich, Switzerland with the name "MAHAM BETEILIGUNGSGESELLSCHAFT AG". According to HAB Bank’s home webpage, it’s a "New York based community bank". I’m currently trying to get a better understanding of this bank’s history and foreign connections. I’ll have more on this later. One thing that is clear is that HAB Bank has been a FDIC member since 1984 (Certificate # 25093). So depositors should feel safe. Also, the bank is financially healthy. It has a health rating of an "A+" at DepositAccounts.com with a Texas ratio of 6.60% (excellent) based on September 30, 2014 data. Please refer to our financial overview page of HAB Bank for more details.
How the 1-Year CD Compares
HAB Bank’s 1-year CD rate is competitive as compared to CDs with similar terms that are nationally available:
The above rates are accurate as of 1/31/2015.
To look for the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table.