State Bank of India Raises Rates on 6 Month CD to 4.32% APY and 12 Month CD to 4.68% APY

The State Bank of India has been very aggressive with their CD rates and today they made a major move. They now have the top 6 month CD rate at 4.32% APY and the top 12 month CD rate at 4.68% APY.

The minimum deposit is $5,000.

These CDs are offered via the State Bank of India's New York branch, which is a subsidiary of State Bank of India, the largest bank in that country. The bank's New York branch is FDIC insured (FDIC Certificate # 33682). We looked for a Bauer rating for the bank and couldn't find one for some reason. But the fact that they are listed at the FDIC website does mean that they are a legitimate bank, although we note that there appears to be an open issue whether branches other than the New York branch are covered by the New York branch's FDIC Certificate.

While a CD can be opened online or via mail, the application must be printed out and mailed back to the bank. Customer service is also a bit spotty. I've called over there and was able to get someone via phone but we've called on other occasions and have had trouble getting through. I suspect that they are pretty overloaded. Still, if you are persistent you should get through.

A couple of additional points of CDs at the State Bank of India:

• 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.
• If you're a new customer applying by mail, you will need to provide a notarized copy of your driver's license.

This is not a slick operation but there high rates make this a bank that warrants a look, as long as you aren't looking for white glove service.

Check the best online 6-month CD rates or check the best online 1-year CD rates.