New York-based State Bank of India (SBI) offers a line of Senior Citizens’ CDs, which can be opened by individuals 60 years or older. 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.
Of the five Senior Citizens’ CDs offered, the 12-months (1.71% APY) has the most competitive rate. The 5-year is also quite competitive (2.47% APY). Although two balance tiers ($100k+ and $250k+) are listed, the 1.71% and 2.47% APYs apply to both tiers.
|2.47*%||$100k||$500k||State Bank of India||5 Year Senior Citizen CD|
|1.71*%||$100k||$500k||State Bank of India||12 Month Senior Citizen CD|
SBI offers simple interest or compounded interest on 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 Simple interest can be withdrawn at monthly, quarterly, or half-year intervals, and paid by wire transfer, check, or deposited into an SBI checking or money market account.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.
As stated on Senior Citizens’ CD page, the Early Withdrawal Penalty reads as follows:
Maturity period of 1 year to less than 3 years,
90 days interest will be recovered at the contracted rate.
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 Citizens’ CDs earning approximately the same APYs, but with a lower minimum deposit of $50k. While Chicago SBI has an online application, the Senior Citizens’ CDs currently cannot be opened online.
Headquartered in New York City, State Bank of India offers its product line nationwide to U.S. citizens, Green Card holders, and Resident Aliens. While most of its product line is available through its online application, the Senior Citizens’ CDs are currently not included in “most.” A Senior Citizens’ 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, which is 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 (NY) (FDIC Certificate #33682), as it is a branch of a foreign bank. State Bank of India (NY) has total assets of $7.5 billion and has been FDIC insured since 1971.
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 CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, State Bank of India’s 12-month Senior Citizens’ CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.71% APY||12-Month Senior Citizens’ CD ($100k min)||State Bank of India|
|1.56% APY||12-Months Jumbo Online Promo CD||M.Y. Safra Bank|
|1.55% APY||12-Month Jumbo Time Deposit ($100k min)||My e-BAnC by BAC Florida Bank|
The above rates are accurate as of 9/14/2017.