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

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 39^th 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.

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.

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.

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.