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4.58% 12-Month / 5.09% 36-Month CD Nationally Available at State Bank of India - New York


Update 9/17/08: The CD rates have fallen. Please check the bank's website for the latest rates.

State Bank of India in New York has again increased some of its CD rates. The rates on the 1, 2 and 3-year CDs were raised, and they're now near the top for nationwide CDs. Below is a list of the new and old rates, and how much they've changed.

Old and New CD Yields as of 9/03/2008

Term Old APY New APY Change
6 month 3.80% 3.80% -
1 year 4.42% 4.58% +0.16
2 year 4.47% 4.78% +0.31
3 year 4.89% 5.09% +0.20
5 year 5.30% 5.30% -

The minimum deposit is $5,000. In the past they used to have higher rates for larger deposits, but currently the rates are the same across for all tiers.

The rate table has a date range of 9/03/08 to 9/09/08. These CDs are offered through the bank's New York branch and can be opened by mail.

Some important details mentioned in the bank's CD page include:
  • They are not currently offering in-trust-for, POD and trust accounts.
  • For those who want interest payments, interest is paid quarterly to your transaction account at SBI.
  • Early withdrawal penalty is 90 days of interest for 1 and 2-year CDs, 180 days for the 3 year CD, and 270 days for the 5 year CD. The bank reserves the right to refuse such withdrawals.
  • 10 calendar day grace period at maturity of the CD
  • If you're a new customer applying by mail, you will need to provide a notarized copy of your driver's license (according to a commenter)
I and several readers have reported delays and issues in reaching the bank's customer service. The New York office appears to be understaffed. You can see more comments about their customer service in my previous post. A reader in my last week's post mentioned that he has always used emails for communicating with State Bank of India, and they have almost always replied within 24 hours.

I first reported on this bank in November 2005. They have often had competitive CD rates and have advertised on Bankrate.com. This is the US operation of State Bank of India and is FDIC insured (FDIC Certificate # 33682). According to Wikipedia, State Bank of India is the largest bank in India, and it's the second largest bank in the world measured by the number of branch offices.

Thanks to the reader who mentioned these new CD rates in the finding deals post.

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