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  3. Would You Trust Your Money In The State Bank Of India?


Answers
CTM
CTM   |     |   99 posts since 2010
Louisa -

If your question is about the bank being FDIC insured, there is no question ... they are.

Ken posted a link to the FDIC information on the SBI (IL) branch, which also lists the certificate for the SBI (NY) branch.  There is also a separate certificate (23998) for the SBI (CA) branches, which can be found here: https://research.fdic.gov/bankfind/detail.html?bank=23998&name=State%20Bank%20of%20India%20(California)&searchName=%22state%20bank%20of%20india%22&searchFdic=&city=&state=&zip=&address=&searchWithin=&activeFlag=&tabId=2

Additionally, "Member FDIC" and "FDIC Insured" have the exact same meaning.  You can see the FDIC page here: https://www.fdic.gov/bank/individual/online/safe.html

I fully concur with Shar - FDIC Insured is FDIC Insured!
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gbtexas
gbtexas   |     |   73 posts since 2013
I've looked ar bank of India several times over the years. Each time I'd have an emptiness. Why? Insufficient information. On the other hand, Barclays has a very long history in the U.S. And it customarily has decent rates. So until more, much more, is genuinely known about Bank of India, I'll continue with my reservations. 
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J_Norton
J_Norton   |     |   11 posts since 2011
I have had CDs with the State Bank of India Chicago branch with no problems.
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Louisa
Louisa   |     |   8 posts since 2016
Good to know! Thanks.
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me1004
me1004   |     |   780 posts since 2010
For the question, I generally "trust" my money in any institution where the deposit is FDIC insured. Even if it goes under, you don't lose your money.

However, with Ken's post now, I'm wondering. I see at the bank's Website, it does note it is a "member FDIC." As far as I know, that means your deposits are FDIC insured, but with what Ken is saying, I wonder if that really is what it means.

For me, my bottom line is whether the money is FDIC insured, backed by the US government.

I actually looked at opening an account there some years back, but did not. I don't recall way not, but I think for issues other than FDIC insurance.
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Louisa
Louisa   |     |   8 posts since 2016
Thanks, me1004! May I ask what it is specifically that Ken said that's causing your doubt?
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me1004
me1004   |     |   780 posts since 2010
Well, all the details and complications in the article Ken linked to, by Sheryl Nance-Nash, such as this paragraph:

Given their significance, U.S. regulators have a say in supervision. Do realize though, that the regulations they must comply with depend on much, like whether its U.S. units are chartered in the U.S. or overseas. That’s something you should be sure to know before you put your money in that bank.
. The article is actually a bit unclear, it talks about things you better know before you get involved, but it never quite says whether FDIC insurance covers regardless. I think FDIC insurance does cover regardless, but if so, I don't know why the warning about "some" supervision, and that you better know where it is chartered, and the other details in the article -- it warns but doesn't make it clear why.
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CTM
CTM   |     |   99 posts since 2010
The article is typical of those by Sheryl Nance-Nash, but that is another story.

While you chose to pick a quote about supervision, just three paragraphs later in the article you will find the following which addresses the original question:

DepositAccounts.com, through an email interview, asked Corder to sort through the jargon and answer possible concerns you might have. For example, if you open a CD at one of these banks, even if it is FDIC insured are they any risks compared to a domestic bank with a domestic parent company? "FDIC-insured is FDIC-insured. It doesn’t matter whether the parent is domestic or foreign," says Corder.

That is the bottom line.
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Louisa
Louisa   |     |   8 posts since 2016
Thanks, everyone for your informative responses! Am I the only
one who thinks 2.27 APY is too good to pass up?! :)
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gbtexas
gbtexas   |     |   73 posts since 2013
You just might be. If this were one such as ally, or chase, or any other domestic bank or credit union covered by gov't insurance, then I might not want to pass it up. But bank of India?  No thanks. 
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Inflation_Hawk
Inflation_Hawk   |     |   107 posts since 2016
The Indian government owns a controlling interest in all of these various "State Banks of India".   If I was an Indian national living in the US, then this bank might have some value-add over an American bank.   The same thing goes for the Bank of China in New York.  It's a Chinese state-owned operation.   For a Chinese national, it would offer some convenience in transferring assets back and forth from China.  

In general, I hate banks.  At least the American ones contribute something to the American economy.   All of the profits of these foreign state-owned banks go back to the foreign government's coffers.   Besides that, Mountain America Credit Union is currently offering 2.30% for a 5 year CD.   You can bet anything they make off of your CD is being plowed back into the American economy. 
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ChrisCD
ChrisCD   |     |   134 posts since 2010
Although, I would love it if all banks returned their profits to the American economy, I don't mind if a bank wants to return some of it to my economy in the form of a higher rate.  The bank is FDIC insured.  There is no risk to your principal assuming you stay under FDIC insurance limits.  The bank has operated since 1955 and has had FDIC insurance since 1971.  Our institutional investors have utilized this bank for years with no major issues. 
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Louisa
Louisa   |     |   8 posts since 2016
Thanks ChrisCD for this helpful response. Thanks to everyone who responded!
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Shar
Shar   |     |   21 posts since 2016
No, not after my experience today.  I had a CD mature today and went into the Chicago branch in person to open a CD with them.  I ended up walking out.  I just posted a review.  They have the best nationally-available rate in the US right now for a 5-year CD, but I did not feel secure with them having my money and it was not worth my peace of mind.
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Ken Tumin
Ken Tumin   |     |   6,003 posts since 2009
I'm not sure why, but we currently don't have FDIC info of this bank. Here's the FDIC link. It's categorized as a "U.S. branch of a Foreign Institution." We have more info on these types of these banks in this article.
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Louisa
Louisa   |     |   8 posts since 2016
Thanks so much, Ken! Can you tell if the U.S. units of this bank are chartered in the U.S. or overseas?
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Shar
Shar   |     |   21 posts since 2016
It has an FDIC insurance number. I do not see why this bank is being held with suspicion. I have a lot of money with Barclays, which is an English bank, and I feel my money is quite safe. FDIC insured is FDIC insured.
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topkapi56
topkapi56   |     |   49 posts since 2011
Yep, I have accounts with both Barclays and the Bank of India.  No problems or concerns with either. 

Having the account with Barclays makes travel throughout Europe much easier.
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Louisa
Louisa   |     |   8 posts since 2016
Thanks, topkapi56!
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Ricochet
Ricochet   |     |   422 posts since 2010
May have better luck with looking at
Comptroller of Currency site and the links to FDIC
Found way to deep info. Even how they would respond to a bank run on deposits
if failure or a crisis was looming.
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paoli2
paoli2   |     |   2,513 posts since 2011
When I select a bank or credit union it has to go beyond it being "insured".  I need to know it has the highest ratings on places like Bankrate and Bauers.  I don't use any medication made in India for the same reason I won't buy their CDs.  Recently, I got my local drugstore to switch an antibiotic I was taking which was made in India for an American company I had more faith in.  Just me and I am sure most people are unconcerned about these matters but it's how I feel about dealing with foreign countries.  I don't think they are as strict with their rules and regulations as we are in the US.
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Louisa
Louisa   |     |   8 posts since 2016
Thank you, paoli2!
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