State Bank of India (California) (SBIC) has raised the rates on its Promo CDs: 13-month (2.22% APY) and 7-month (1.61% APY). Both Promo CDs require a minimum of $10k of new money to open, and are capped at $5m each.
The Promo CDs were added to SBIC’s product line in February, with fairly unremarkable rates: 13-month (1.81% APY) and 7-month (1.36% APY). Last week’s rate increase puts the 13-month Promo CD solidly in the middle of the latest CD Rate Summary’s nationally available 1-year CD category.
As stated in the Account Disclosure (part of the online application), the Early Withdrawal Penalty reads as follows:
CD TYPE 1 YEAR TO LESS THAN 36 MONTHS:
6 - month simple interest on the funds withdrawn.
Same Name, But Not Exactly The Same
In addition to the the State Bank of India (California), there is also the New York-based State Bank of India, and the State Bank of India, Chicago. According to the FDIC’s website,
State Bank of India is a foreign banking organization duly organized and existing under the laws of India. In the United States, the Bank maintains (a) a New York state-licensed, insured branch, (b) an Illinois state-licensed, insured branch, (c) a California state-licensed agency, (d) a representative office in Washington, D.C. licensed by the Federal Reserve, and (e) a wholly-owned bank subsidiary that is chartered in California, State Bank of India (California) Ltd.
The FDIC also notes that,
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.
But, the FDIC has determined that,
SBIC is subject to ongoing supervision, examination and regulation by the California Department of Business Oversight and the FDIC. SBIC is a community bank whose customers are primarily small and mid-sized businesses and residents located in the area serviced by the bank.
Bottom line – SBIC (FDIC Certificate # 23998) is a separate entity and has its own separate FDIC insurance coverage.
Headquartered in Los Angeles, State Bank of India (California) offers much of its product line just to California residents, but the Promo CDs are available nationwide to U.S. citizens, or "other U.S. persons," with a valid Social Security number.
As stated in the Account Disclosure,
You can make deposit using your debit or credit card, with an account that you own at SBIC, through ACH from an account at another bank, or by mailing a check. Initial funding on credit/debit is processed as a purchase. Subsequent deposits made using the credit/debit card will appear as cash advance on card statement.
State Bank of India (California) has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.51% (excellent) based on December 31, 2017 data. State Bank of India has an excellent capitalization level (19.49%), the result of holding $706.644 million in assets with $137.05 million in equity. Please refer to our financial overview of State Bank of India (California) (FDIC Certificate # 23998) for more details.
State Bank of India (California) was established in 1982 as a California State Chartered Bank. SBIC is currently the 78th largest bank in California, with assets in excess of $706 million and more than 18,400 customer accounts. So there will be no confusion,
State Bank of India (California) is a 100% wholly owned subsidiary of State Bank of
India, our parent bank. Although we are affiliated, we operate as two separate banks.
With total assets in excess of $7.5 billion, State Bank of India is the largest bank in India. SBI’s roots can be traced back to 1806, with establishment of the Bank of Calcutta (later known as the Bank of Bengal). In 1921, the Bank of Bengal, the Bank of Madras, and the Bank of Bombay merged, forming the Imperial Bank of India (IBI). The Reserve Bank of India gained a controlling interest in the IBI in 1955, and SBI was created as the successor to IBI.
How the Promo CD Compares
When compared to the 216 similar length-of-term CDs tracked by DepositAccounts.com, which require a minimum deposit of $10k or less and are available nationwide, State Bank of India (California)’s 13-month Promo CD APY currently ranks sixth.
The above rates are accurate as of 5/14/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.