Citibank Savings Account Interest Rates: May 2024 (2024)

Vault’s Viewpoint on Citibank

• Citibank offers a generous APY for its high-yield savings account but a much lower APY for its basic savings account.
• Citi offers relationship tiers with additional benefits such as reimbursem*nt of non-Citi ATM fees and access to the Citi Personal Wealth Management team.
• Citi’s high-yield savings account is available nationwide.

Overview of Citibank Savings Accounts

The Citi Accelerate Savings account is a high-yield savings account, but it’s unavailable nationwide. You’ll have to look elsewhere if you live in California, Connecticut, Maryland, Nevada, New Jersey, New York, Virginia, and Washington DC, as well as certain parts of Florida and Illinois.

The annual percent yield (APY) is currently 4.35%. This is one of the highest savings rates currently available. But some online banks are currently offering better rates, including:

• CIT Bank
• UFB Direct
• SoFi

There is no minimum opening deposit, and the $4.50 monthly maintenance fee will be waived as long as you either have a Citi checking account or keep an average monthly balance of at least $500.

Depending on your location, Citibank also offers a basic savings account: the Citi Savings account. The standard APY applies, which is incredibly low: starting at 0.03% and increases slightly depending on the relationship tier you have with Citibank.

Citi Relationship Tiers

Each of Citi’s savings accounts offers relationship tiers. When you reach balance thresholds, including when combined with other Citi deposit accounts, you can earn additional benefits:

Pros of a Citibank Savings Account

• Citi Accelerate Savings accounts offer a competitive APY
• Accounts are simple to open and manage
• Benefits ramp up when combined with other accounts and with high average balances

Cons of a Citibank Savings Account

• Citi Savings account APYs are on the low side
• High-yield savings accounts are not available nationwide
• Monthly fee goes into effect if you don’t carry the $500 annual minimum balance or have a Citi checking account

How Much Can You Earn With a Citibank Savings Account?

The Citi Accelerate Savings account has a particularly high APY. So when you deposit or maintain a high balance, you can earn a substantial amount in interest.

Conversely, the Citi Savings account is best used as a place to park your cash. As with all Citibank accounts, deposits are FDIC insured up to $250,000 per depositor and for each account you hold, even when it is at the same bank. The APY on these accounts, though, won’t result in much added savings.

Here is how much you can make with the different Citi Savings accounts if you were to hold a $10,000 deposit for five years.

How to Open a Savings Account with Citibank

You can open a Citibank savings account in person at a branch, over the phone by calling 1-800-321-2484 from 9 a.m. to 11 p.m. ET, with the app, or online via the website. After choosing the account you want, follow the same basic steps:

1. Assemble documentation. In order to open an account, Citibank will need to confirm your identity. Have your government-issued photo ID, such as a driver’s license or passport, Social Security number and mailing address ready.
2. Prepare your personal and financial information. In addition to providing your full name, you will list your income information. Also know how much you will be depositing into your account.
3. Choose a joint or individual account. Citibank will give you the option to open a joint account or an individually owned account. With joint savings, you can add other people to the account. They will have the right to add and withdraw funds.
4. Submit the application. Citibank will send you a confirmation email or phone call after you submit your application. That prompt will confirm that your account is active.
5. Fund your account and start savings. After your application is accepted, you can make your initial deposit. The easiest way is to transfer funds from a bank account, which can from an existing Citibank account or from an account at another bank.

Alternatives to a Savings Account with Citibank

While you can get a competitive rate with Citibank’s high-yield savings account, it may not be the best option for your savings goals. Here are a few alternatives to consider.

Certificate of Deposit (CD)

If you intend on setting your money aside and not having access to it for a fixed number of months, a certificate of deposit (CD) can be an excellent alternative to a savings account. The APY is guaranteed, so you know you will earn a specific sum when the CD matures. But an early withdrawal penalty will be assessed if you take the money out before the CD matures.

Citibank offers three types of CDs: Fixed Rate CD, Step Up CD and No Penalty CD. Rates are highly competitive for a few Fixed Rate terms, including the 7-month, 9-month and 15-month CDs. But other banks provide higher rates, even for no-penalty CDs.

Money Market Account

Money market accounts can be great places to store your funds while earning a competitive interest rate. These vehicles combine some of the best aspects of checking accounts with savings accounts.

The APY on money market accounts is typically higher than for traditional savings accounts, though there are also minimum balance requirements. In addition to deposits, you can make up to six withdrawals and transfers per month. Unlike CDs, however, there is no early withdrawal penalty.

High-Yield Checking Account

If you’re looking for a checking account that will provide you with strong earning potential on balances, consider a high-yield checking account. The APYs are comparable to many CDs, but you’re not locking your funds away for a fixed time period.

High-yield checking accounts may come with more requirements than a conventional checking account. To get the elevated rate, you may need to use your debit card a specific number of times a month, have an additional account with the bank, and enroll in direct deposit.