State Bank of India, New York is the new rate leader for 5-year CDs available nationwide. Yesterday, the bank raised its 5-year CD yield from 2.00% to 2.10%. Its shorter-term CDs are much less competitive. Minimum deposit is $5,000. Early withdrawal penalty is 270 days of interest. This rate and a description of the CD features are listed in the bank's CD accounts page as of 10/03/2013. According to this page, rates should remain effective at least through October 8.
Available Nationwide by Mail
I first reported on the State Bank of India New York in 2005. They have long offered competitive CD rates, and they can open CDs by mail for people in any state.
The main downside with the New York branch is the lack of online banking. When I called the bank last year, I was told they will mail you a document of the CD after you mail in the application and check. The rate will lock at the time they receive the application. Also, they require you to have one of the forms notarized. At maturity, they require you to mail or fax a letter instruction. They can either mail you a check or do a wire transfer. Be sure to contact the bank for the latest information. For contact info refer to the “whom to contact” section of the bank’s bank's CD accounts page.
State Bank of India is a foreign bank, but it has U.S. branches with FDIC insurance in New York, Chicago and California. State Bank of India New York has been a FDIC member since 1971 (FDIC Certificate # 33682). According to CNNMoney, State Bank of India is the largest bank in India.
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.