Citibank Review: Savings, Checking, CD, and IRA CD and Money Market Accounts



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You might think of credit cards when you hear the name “Citi,” and you wouldn’t be wrong. This bank — one of the largest banks in the entire world — is well-known for its line of credit cards. But Citibank offers a variety of financial products, including several deposit accounts where you can safely store your cash. But are they any good? And how do their rates and rules compare to other banks?
We’re going to dive into Citibank’s deposit accounts in this review so that you can decide whether it’s right for you or not.
One important note: The rates for each of these accounts vary depending on where you live. To compare consistent numbers, we decided to report rates from South Dakota, because Citibank is headquartered there, in Sioux Falls. Rates are accurate as of Dec. 08, 2017. To see rates for your area, go to Citibank’s website and enter your state.



Here’s what we’ll cover in this review:
How Citibank’s checking and savings accounts work
Citibank checking accounts
Citibank savings accounts
Citibank CD rates
Citibank IRA CDs and IRA money market accounts
Overall review of Citibank




How Citibank’s checking and savings accounts work
You can’t really get an individual checking or savings account at Citibank. Instead, you have to apply for one of five account packages. That means that when you open a checking account, you’ll also get a linked savings account, and vice versa.
Some account packages come with a monthly maintenance fee, which applies to the account package as a whole. For example, if there is a $30 monthly fee and you don’t meet the requirements to waive it using either your checking or savings account, the fee will be taken out once that month from your checking account.
To make things less confusing, we’ll go through all of the account packages first describing the checking accounts, because these accounts differ the most between account packages. Then, we’ll describe how the savings account works within each of these packages.




Citibank checking accounts


Checking account offer
Citibank is currently offering a great sign-up bonus when you open a new qualifying checking account before December 31, 2017.
To get a sign-up bonus of $300, you’ll have to do three things. First, open a new checking account within a Citibank® Account Package. Second, you’ll have to fund it with at least $15,000 within 30 days of opening the account and keep the money there for at least 60 days. Third, you’ll have to set up a direct deposit into your new account for at least two consecutive months.
If you have a bit more cash on hand, you can earn a larger sign up bonus of $500. Instead, you’ll have to open a premium checking account in a Citi Priority Account Package and deposit $50,000 within 30 days and leave it for at least 60 days. You’ll need to set up a direct deposit for two consecutive months into this account as well to be eligible for the cash bonus.
When applying for a Citibank deposit account, you’ll need to provide basic information about yourself (including your Social Security number) and a valid form of ID. Both offers require you to be a “New-to-Citibank” customer.


Citigold® Package



Myriad exclusive deals and perks for people with a lot of cash

Checking account details:

Minimum opening deposit: $0
Interest rate: 0.03% APY
Monthly maintenance fee: None
ATM fees: None
ATM refunds: All ATM surcharges from non-Citibank ATMs are refunded for any statement period you are eligible for Citigold®.
Overdraft fees: None

The Citigold® account package is more than just a checking account. To qualify for this account package you’ll need to bring a lot of cash to the table: You’ll need at least $200,000 in all linked Citi accounts, whether they be in your deposit, retirement or investment accounts. If your balances dip below that amount, Citi will automatically convert your account to the Citi Priority account package.
But, if you can meet that high bar, you’ll be eligible for numerous perks, even if the interest rate on this savings account is admittedly quite low. You’ll get a personal team to help you navigate the intricacies of all this account package has to offer — and it offers a lot more than just free checks. You’ll get a personal financial adviser, a concierge service and numerous travel perks, as well as discounts and waived fees on various loans, lines of credit and investments. Plus, you can enroll your checking account in Citi’s ThankYou Rewards® program.
You can apply for a Citigold® account online, over the phone, or by visiting a local branch.
LEARN MORE 


Citi Priority Account Package



Nice perks for people with less — but still a lot — of money

Checking account details:

Minimum opening deposit: $0
Interest rate: 0.03% APY
Monthly maintenance fee: $30
How to waive monthly maintenance fee: Keep at least $50,000 in linked Citibank accounts, including deposit accounts, retirement accounts and investment accounts.
ATM fees: None
ATM refunds: Not available
Overdraft fees: None

Unlike the Citigold® account, which has no fees, you’ll pay a high monthly fee of $30 with this account unless you can keep at least $50,000 in other linked Citi accounts. If you’re able to do that, though, you can still take advantage of many of the same perks offered to the premium Citigold® members.
You’re eligible to link your checking account with the Citi ThankYou® Rewards program. This account still waives all banking fees, and offers you discounts and waived fees off of investment products, loans, and lines of credit. And while you may not have an entire team waiting at your fingertips, you still have exclusive access to financial advisors to help you make investment decisions.
You can apply for a Citi Priority account online, over the phone or by visiting a local branch.
LEARN MORE 


The Citibank® Account Package



Average account with above-average requirements

Checking account details:

Minimum opening deposit: $0
Interest rate: 0.01% APY
Monthly maintenance fee: $25
How to waive monthly maintenance fee: Keep at least $10,000 in linked Citibank deposit, retirement or investment accounts.
ATM fees: $2.50 for each non-Citibank ATM use, unless you have at least $10,000 in linked Citibank accounts.
ATM refunds: None
Overdraft fees: $10 per day when funds are transferred to cover an overdraft.

If you can’t meet the high minimum balance requirements of the Citigold® or Citi Priority account packages, you might consider the Citibank Account. You can enroll your account in Citi ThankYou® Rewards, and your first order of checks is free.
But, you’ll still need to keep a high account balance of $10,000 in linked Citibank accounts to avoid paying the high monthly fee. In return, you earn interest on this account, but it’s a miniscule 0.01% APY.
You can apply for a the Citibank Account in online, over the phone or at a local branch.
LEARN MORE 


Basic Banking Package



A no-frills account—but watch out for high fees.

Checking account details:

Minimum opening deposit: $0
Monthly maintenance fee: $12
How to waive monthly maintenance fee: You can get out of the maintenance fee if you

1. are 62 years or older
2. make one bill payment from your account and one qualifying direct deposit into your account each month
3. keep at least $1,500 in your checking and/or savings account

ATM fees: $2.50 for each withdrawal at a non-Citi ATM.
ATM refunds: None
Overdraft fees: $10 per day when funds are transferred to cover an overdraft.

This account is truly a no-frills version of Citi’s premium checking accounts. Not only does it not pay any interest or earn any Citi ThankYou® Rewards points, but you’ll have to watch out for high fees, as well. If you can’t meet the minimum deposit or age requirements, you’ll also be shelling out $12 per month for this austere account.
You can apply for the Basic Banking account online, over the phone or at a local branch.
LEARN MORE 


Access Account Package



A high-fee checking account—that doesn’t let you write physical checks

Checking account details:

Minimum opening deposit: $0
Monthly maintenance fee: $10
How to waive monthly maintenance fee: There are three options:

1. Keep at least $1,500 in your account
2. Make a bill payment from your account
3. Have at least one qualifying direct deposit into your account each month

ATM fees: $2.50 for each withdrawal at a non-Citi ATM.
ATM refunds: None
Overdraft fees: None

This is a bit of a bizarre account. In exchange for a slightly lower fee ($2 less), you can get basically the same thing as the Basic Banking account but without the ability to write physical checks. If all you need to do is pay bills online, this account might work for you — but as soon as you need to write a physical check, you’re out of luck with this account.
Besides, the requirements to waive the monthly fee are almost the same, though the Access Account lets you slide by with one fewer bill payment/direct deposit per month. If you meet the requirements to have the Access Account maintenance fee waived, why not at least upgrade to the Basic Account and the ability to write physical checks?
If you do decide that this account is right for you, you for a Citi Access account online, over the phone or at a branch.
LEARN MORE 
How Citibank’s checking accounts compare
Citibank’s premium account packages (Citigold® and Citi Priority) offer a lot of perks by way of waived fees and free services. However, unless you have deep pockets, you’ll likely be limited to considering The Citibank Account, Basic Banking or Access Account. These accounts come with high monthly account maintenance fees unless you can qualify for one of the ways to waive these pesky fees.
All of Citi’s checking accounts — even the ones with the nice premium perks — offer very low yields, especially compared to high-interest checking accounts available elsewhere .




Citi® Savings



Generally lackluster interest rates on savings account packages


Minimum opening deposit: $100
Monthly maintenance fee: For Basic and Access savings accounts, an additional $4.50 monthly maintenance fee applies if they are not linked to checking accounts. For account packages with linked checking and savings accounts, the fee may be charged to the checking account (see above account package descriptions for details).
How to waive monthly maintenance fee: For Basic and Access savings accounts, maintain a $500 minimum balance in your savings account or open the savings account with a linked checking account. Requirements for getting maintenance fees waived on other account packages are listed above.

Citi Savings Account (for Citigold®, Citi Priority and The Citibank Account)





  Annual Percentage Yield (APY) by Account Balance




$10,000-
$24,999.99 $25,000-
$49,999.99 $50,000-
$99,999.99 $100,000-
$499,999.99 $500,000-
$999,999.99 $1,000,000+


Promotional Interest Rate 0.10% 0.10% 1.00% 1.00% 1.00% 1.00% 1.00%


Standard Interest Rate 0.04% 0.04% 0.08% 0.08% 0.10% 0.13% 0.13%




*As of Dec. 08, 2017

Basic Banking Package





APY by Account Balance




$10,000-
$24,999.99 $25,000-
$49,999.99 $50,000-
$99,999.99 $100,000-
$499,999.99 $500,000-
$999,999.99 $1,000,000+


Standard Interest Rate 0.04% 0.04% 0.06% 0.06% 0.06% 0.06% 0.06%




*As of Dec. 08, 2017

Access Account Package





APY by Account Balance





$10,000-
$24,999.99 $25,000-
$49,999.99 $50,000-
$99,999.99 $100,000-
$499,999.99 $500,000-
$999,999.99 $1,000,000+


Standard Interest Rate 0.04% 0.04% 0.06% 0.06% 0.06% 0.06% 0.06%




*As of Dec. 08, 2017

To qualify for the promotional interest rates offered with some of the packages, you’ll need to meet a few requirements. You’ll need to open a new savings account (within an account package) and fund it with at least $25,000. You’ll also need to be 18 years or older, and provide Citibank with a W-9 or W-8BEN. Unfortunately, these promotional interest rates only last for 90 days after you open your account, after which they revert to the much lower standard interest rates.
You can apply for a Citi Savings account online, over the phone or at al branch.
LEARN MORE 
How Citibank’s savings accounts compare
Although Citibank offers good rates as high as 1.00% APY, it’s for a very short period of time and only if you bring a large amount of cash to the table and still meet other requirements.
Once the promotional period has passed, you’ll be left with piddly interest rates in account packages that may not meet your needs and potentially carry high fees to boot. If you’re looking for a low-fee and high-interest-rate savings account, you can do much better with other banks and credit unions like those in the roundup of the best online savings accounts .




Citibank CD Rates



Small earnings, but small early withdrawal penalties as well.


Minimum deposit amount: $1,000
How interest is calculated: Interest is calculated and paid monthly for CDs with terms longer than one year. For CDs with terms of one year or less, interest may be calculated and paid at maturity.
Early withdrawal penalties: For CDs with terms of one year or less, you’ll pay 90 days’ worth of interest. For CDs with terms of over one year, you’ll pay 180 days’ worth of interest. However, you can withdraw the interest at any time without paying a penalty.
When the CD matures: It’ll automatically renew for another CD of the same term length but with the current interest rate.
Grace period: After your CD matures and renews to another of the same term, you have seven calendar days to add or withdraw the funds penalty-free or change the CD to a different term length.

Citibank says that it offers different rates depending on which account package you open up a CD with. (That’s right — you can’t just go to the bank and open a CD. You need to have an existing account with them first.) But, as you’ll see below, the rates actually are the same for each type of account package.
CD Rates for Citigold® account holders





CD Term APY by Deposit Amount




Below $10,000 $10,000-
$24,999.99 $25,000-
$49,999.99 $50,000-
$99,999.99 $100,000+


3
month 0.05% 0.05% 0.05% 0.05% 0.05%


4
month 0.05% 0.05% 0.05% 0.05% 0.05%


5
month 0.05% 0.75% 0.75% 0.75% 0.75%


6
month 0.07% 0.07% 0.07% 0.07% 0.07%


7
month 0.07% 0.07% 0.07% 0.07% 0.07%


8
month 0.07% 0.07% 0.07% 0.07% 0.07%


9
month 0.10% 0.10% 0.10% 0.10% 0.10%


10
month 0.10% 0.10% 0.10% 0.10% 0.10%


12
month 0.15% 0.15% 0.15% 0.15% 0.15%


13
month 0.20% 0.20% 0.20% 0.20% 0.20%


18
month 0.25% 1.01% 1.01% 1.01% 1.01%


2
year 0.25% 0.25% 0.25% 0.25% 0.25%


30
month 0.25% 0.25% 0.25% 0.25% 0.25%


3
year 0.50% 0.50% 0.50% 0.50% 0.50%


4
year 0.50% 0.50% 0.50% 0.50% 0.50%


5
year 0.50% 0.50% 0.50% 0.50% 0.50%




*As of Dec. 08, 2017

CD Rates for Citi Priority account holders





CD Term APY by Deposit Amount




Below $10,000 $10,000-
$24,999.99 $25,000-
$49,999.99 $50,000-
$99,999.99 $100,000+


3 month 0.05% 0.05% 0.05% 0.05% 0.05%


4 month 0.05% 0.05% 0.05% 0.05% 0.05%


5 month 0.05% 0.75% 0.75% 0.75% 0.75%


6 month 0.07% 0.07% 0.07% 0.07% 0.07%


7 month 0.07% 0.07% 0.07% 0.07% 0.07%


8 month 0.07% 0.07% 0.07% 0.07% 0.07%


9 month 0.10% 0.10% 0.10% 0.10% 0.10%


10 month 0.10% 0.10% 0.10% 0.10% 0.10%


12 month 0.15% 0.15% 0.15% 0.15% 0.15%


13 month 0.20% 0.20% 0.20% 0.20% 0.20%


18 month 0.25% 1.01% 1.01% 1.01% 1.01%


2 year 0.25% 0.25% 0.25% 0.25% 0.25%


30 month 0.25% 0.25% 0.25% 0.25% 0.25%


3 year 0.50% 0.50% 0.50% 0.50% 0.50%


4 year 0.50% 0.50% 0.50% 0.50% 0.50%


5 year 0.50% 0.50% 0.50% 0.50% 0.50%




*As of Dec. 08, 2017

CD Rates for The Citibank Account, Basic Banking, and Access Account packages





CD Term APY by Deposit Amount




Below $10,000 $10,000-
$24,999.99 $25,000-
$49,999.99 $50,000-
$99,999.99 $100,000+


3 month 0.05% 0.05% 0.05% 0.05% 0.05%


4 month 0.05% 0.05% 0.05% 0.05% 0.05%


5 month 0.05% 0.75% 0.75% 0.75% 0.75%


6 month 0.07% 0.07% 0.07% 0.07% 0.07%


7 month 0.07% 0.07% 0.07% 0.07% 0.07%


8 month 0.07% 0.07% 0.07% 0.07% 0.07%


9 month 0.10% 0.10% 0.10% 0.10% 0.10%


10 month 0.10% 0.10% 0.10% 0.10% 0.10%


12 month 0.15% 0.15% 0.15% 0.15% 0.15%


13 month 0.20% 0.20% 0.20% 0.20% 0.20%


18 month 0.25% 1.01% 1.01% 1.01% 1.01%


2 year 0.25% 0.25% 0.25% 0.25% 0.25%


30 month 0.25% 0.25% 0.25% 0.25% 0.25%


3 year 0.50% 0.50% 0.50% 0.50% 0.50%


4 year 0.50% 0.50% 0.50% 0.50% 0.50%


5 year 0.50% 0.50% 0.50% 0.50% 0.50%




*As of Dec. 08, 2017

If you already have an account package with Citi and you’d like to apply for a CD, you can do so online, over the phone or at a branch. All you’ll need to provide is basic information about yourself (including your Social Security number), have a physical address in the United States, and have a valid form of ID.
If you have “issues with your credit history” or are depositing more than $100,000 into your CD, you cannot do so online or over the phone — you’ll have to go and visit a Citibank branch in person.
How Citibank’s CDs compare
Citibank offers very low rates on its CDs, especially compared to high yield CDs you can get elsewhere without having to mess around with account packages.
One clear advantage of Citibank CDs is that the early withdrawal penalties are relatively low. For example, the early withdrawal penalty on a five-year Citibank CD is 180 days’ worth of interest. Discover Bank — which offers much better CD rates — charges a whopping 18 months’ worth of interest if you withdraw the cash early from Discover’s five-year CD. However, Citi’s CD rates are so low, you’d be better off putting money in a high-yield savings account — the best ones offer rates higher than Citi’s CDs — and not worrying about early withdrawal fees. That wouldn’t necessarily be a good strategy in a falling-rates market, but since rates hit a historic low after the financial crisis, we’ve been in a rising-rates market.
Unless you a) already have an existing account with Citibank, b) don’t want to go through the hassle of opening a CD at another institution (it’s not hard, we promise), and c) think that there’s a high likelihood that you’ll withdraw the money early and don’t want to open accounts elsewhere, we wouldn’t recommend a Citibank CD.




Citibank banking IRA



Guaranteed low returns, especially when compared to equity investments

Citibank offers banking IRAs in two flavors: as CDs (with the rates listed in the section above), or as a money market account at an interest rate of 0.20% APY*. These rates are extremely low, especially when compared to higher-yielding IRA CDs .
In general, the returns on IRA CDs and money market accounts don’t even come close to the kind of gains you need to be making while growing your retirement accounts, and Citibank’s banking IRAs are no exception. For example, equities (i.e., stocks and bonds) earn average returns of around 7% per year — far higher than the piddly 0.50% APY that you can get in a best-case scenario with a Citibank CD.
In fact, the rates that Citi offers for banking IRAs are far lower than typical inflation levels (around 3% per year). This means that even if you opt for the highest rates that Citi offers, your money won’t even keep pace with inflation over time and you’ll be left with less and less each year (albeit at a guaranteed rate).


Overall review of Citibank
Although Citibank offers some great credit cards (such as the Citi® Double Cash Card and Citi® Simplicity Card ), they fall short in the deposits department.
Citibank does offer some nice perks, such as some accounts being eligible for Citi’s ThankYou® Rewards program. The Citigold® and Citi Priority account packages come with features that can save you money and make your life easier, if you have the deep pockets required for these account packages.
All-in-all, while there are some bright spots to Citibank’s accounts, you can earn higher rates and pay lower fees at other banks and credit unions.


The post Citibank Review: Savings, Checking, CD, and IRA CD and Money Market Accounts appeared first on MagnifyMoney .

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