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1-Year CD, fixed 3.15% APY


siddharth18
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So State Bank Of India is offering 3.15% fixed guaranteed return on US dollar denominated, 1 year fixed deposits of $100k or more.

 

You're essentially loaning dollars to the biggest in India, that is majority owned by the Government and has been around for 200+ years.

 

I was wondering if anyone has insights on how to assess the counter-party risk here? Is there a way to find out SBI's dollar borrowing costs in the international bond market? Would be great if anyone can elaborate on how to think about it in terms of the worst case scenario.

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How is this accessible to US residents?

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I believe you have to be person of Indian origin - meaning either born in India or have some ties to India. If you have no ties, then I don't think you qualify.

 

FDIC insured?

 

Not at all lol. You'd be putting money in the Indian version of State Bank of India, not the American version (which is FDIC insured). In that case, I guess you would have a Indian version of FDIC guarantee, which is worth INR100,000 which is less than $2000.So basically, you're a unsecured creditor of State Bank of India, if things turn bad right?My goal was to find State Bank of India's dollar borrowing cost in the bond market. Knowing what the market thinks about SBI's creditworthiness would be an interesting data point. Is there an easy way to find this?

 

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