Citibank e-Savings now paying 3.00% APY
Citibank has received over $3-billion in deposits since the launch of the e-Savings account. You know its catching momentum when Citibank has over $3,000,000,000 in new deposits.
Recently Citibank e-Savings will be changed their already very competitive rate from 4.75% to 5.0% (as of Monday, June 26, 2006). Citibank e-Savings also added consumer benefits like Free Online Bill Pay, Online Fraud Protection, Free wireless alerts, and easy access to money. The Citibank e-Savings account remains hot and promises to stay that way.
The e-Savings account comes with the 5.00% APY rate when you set up a Free Citibank EZ Checking account. If you already have a checking account then there is no need to do this. Keep in mind that the maximum amount you can deposit is $250,000. Most consumers deposit far less than $100,000 to make sure its insured by the FDIC up to $100,000 so this maximum should not matter much.
You can only open this money market account online and not at a Citibank branch. No minimum balance is required to earn the rate and there is no fees with this account. Another advantage to this e-Savings account is you get access to their ATM network where you can get cash without paying a Citibank surcharge.
Competition to Citibank e-Savings?
Yes. There are plenty of competing online savings accounts and traditional banks. They are offering competing rates but Citibank offers a secure website, traditional walk-in locations, and with this latest rate change the absolute highest rate compared to advertisers on the Bankrate chart.
Will Citibank e-Savings keep the rate high?
Interest rates seem to keep going up so you can bet that Citibank will continue to be a leader in high interest saving accounts.
What is the catch?
The Citibank e-Savings account high APY may not last. Always pay attention to your account statements and call customer service every month to get the latest interest rate paid into your account and compare that to other banks or credit unions.
Do I need to open up two Citibank accounts?
Yes. Citibank e-Savings account requires you to have a checking account to qualify for the high yield interest rate. This is basically opening up two accounts but they are easy to transfer money in and out. They also appear on the same statement.
Open up a ING Direct Account today (comparable rate to Citibank)
Compare to other High Yield Savings Accounts or Money Market Accounts
Update: This is an old article. Citibank has since reduced their rates along with the fed cuts.