It’s been about a year since I last wrote about New York-based State Bank of India (SBI) Senior Citizen CDs. In addition to higher rates, the Senior Citizen CDs now have a lower minimum opening deposit ($25k) and no longer have tiered rates. What hasn’t changed is that you still have to be 60 years or older to open a Senior Citizen CD. Joint accounts are available, but “each of the account holders to meet the eligibility criterion separately.” In other words, all named account owners have to be at least 60-years old at the time of application.
According to the Senior Citizen CD page and CSR, beneficiaries (with Social Security numbers) are now allowed.
CDs for “young” customers (those under 60) have APYs that are a uniform 10 bps lower than the Senior Citizen CDs and a lower minimum deposit of $5k.
SBI offers simple interest or compounded interest on all its CDs. Simple interest can be withdrawn at monthly, quarterly, or half-year intervals, and paid by wire transfer, check, or deposited into an SBI checking or money market account. Compounded interest will be calculated at quarterly intervals and paid out at maturity.
Accessing funds at maturity can also be done through wire transfer, check, or deposited into an SBI checking or money market account. CD closure instructions must be sent to SBI via email – no phone or snail mail interactions allowed. There is a 10 day grace period.
Partial withdrawals are not permitted, only early closure. As stated on Senior Citizen CD page, the Early Withdrawal Penalty reads as follows:
Maturity period of deposit:
1 year to less than 3 years – 60 days interest
3 year to less than 5 years – 120 days interest
5 years – 180 days interest
Same Name, But Not Quite The Same
In addition to the New York-based State Bank of India, there is also a 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.
The Chicago SBI also offers the Senior Citizen CDs earning approximately the same APYs, but with a lower minimum deposit of $2.5k. While Chicago SBI has an online application, the Senior Citizen CDs currently cannot be opened online.
Headquartered in New York City, State Bank of India offers its product line nationwide to U.S. citizens, resident aliens, and Green Card holders. While most of SBI's product line is available through its online application, “Currently, online account opening for Senior Citizen Certificate of Deposit is not functional.” A Senior Citizen CD can be opened at the NYC branch located on Park Avenue or by mail.
The Senior Citizens Certificate of Deposit page details the application process, described as “Follow these 3 simple steps and open an account with us.”
DA does not have any health information about State Bank of India (FDIC Certificate #33682), as it is a branch of a foreign bank. State Bank of India has been FDIC insured since 1971.
State Bank of India’s roots can be traced back to 1806, beginning with the 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.
SBI is India’s largest bank and, according to the Bank’s website, grew exponentially last year.
On 1st April, 2017, the Bank merged five of its Associate Banks and Bharatiya Mahila Bank with itself. With this first ever large scale consolidation in the Indian Banking Industry, the Bank entered the league of top 50 global banks with assets worth more than USD 531 billion, 209,572 employees, 500 million customers and 740 million accounts.
How the Senior Citizen CD Compare
When compared to 202 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, State Bank of India’s 1-year Senior Citizen CD APY currently ranks second.
When compared to 199 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, State Bank of India’s 2-year Senior Citizen CD APY currently ranks third.
When compared to 174 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, State Bank of India’s 5-year Senior Citizen CD APY currently ranks third.
The above rates are accurate as of 10/15/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.