Citibank CDs are an investment tool with highly attractive APYs at certain term lengths and a lower minimum deposit requirement than you’ll see at most traditional banks. Additionally, the bank offers several unique CD offerings, including step-up and no-penalty CDs. If you’re looking for a fixed-rate investment product from the 18th largest bank in the U.S., a Citibank CD might be what you want.
Citibank, founded in 1812 in New York, has been around for over two centuries. The banking giant offers a wide array of products and services to individuals, small businesses and large corporations. Currently, Citibank has over 200 million customers and does business in more than 160 countries. With this level of experience, you should expect a high level of service if you choose to invest in a Citibank CD.
Citibank at a glance
|Bank||Min. Deposit||1-Year APY||3-Year APY||Penalty|
|Citibank||$500||0.25%||0.20%||90 days interest on CDs up to 12 months; 180 days interest on CDs longer than 12 months|
What we like about it
One of the biggest standouts at Citibank is the three-month CD option. If you’re an investor looking for a short-term investment, you’ll really like the .45% APY offered on this 90-day CD. Citibank also offers some unique CD options, including the no-penalty CD. You can get an APY of 0.20% on a 12-month account with absolutely no penalty if you need to withdraw your money early, as long as it’s not in the first six days.
Additionally, the minimum opening deposit for a Citibank CD is only $500. While this is more than some of the no-minimum online bank options like Capital One, it is much lower than what you’ll see at traditional banks. For example, Bank of America and Chase both require a $1,000 minimum, and Wells Fargo requires an even larger $2,500.
Things to consider
For investors with larger sums of money, there are no perks for bigger investments. While the company’s website indicates there are perks, all of the current rates are the same regardless of how much you have invested. As long as you can meet the $500 minimum, you have access to the highest rates possible.
What you need to know
A CD from Citibank is available from three months to five years, with monthly increments available up to 15 months, and then wider gaps between options up to the five-year mark. APY rates are available from 0.05% to 0.45%, depending on the term rate that you select.
It’s important when shopping Citibank CD rates that you check all term lengths because the rates may vary drastically without a lot of change in time. For example, a seven-month CD has an APY of 0.10%.
Because of the varying APY rates at different terms, it isn’t easy to classify how the bank matches up against other options. At some term lengths, like the shorter three-month mark, the bank is highly competitive and on par with some of the industry leaders. However, at other lengths, the bank lags behind other options.
Citibank CDs are available to all consumers, even if you are not a current bank customer. But keep in mind that you may be able to get better rates if you pair your CD with an existing Citibank account.
Early withdrawal penalties
The early withdrawal penalties at Citibank are clearly laid out and are some of the lowest available, especially on longer-term investments. For any CD a year or less in term length, the maximum penalty is 90 days of interest. For any Citibank CD over a year, the maximum penalty is 180 days of interest.
Comparatively, this gives a lot of savings to longer-term investors that suddenly need access to their funds. For example, if you have a five-year CD with Citibank and have to access your funds at the four-year mark, you will incur a 180-day interest penalty. In other words, you’ll lose three months of interest earnings, but you will get to keep the remaining three years and nine months. If you had the same account with Chase Bank, you would lose a full year of interest instead of just three months.
Other CD products
Citibank has three types of CDs available — standard CDs, step-up CDs and no-penalty CDs. The step-up CDs offer rate increases every 10 months for the duration of the 30 month CD, which is a unique way to see your savings ramp up. The composite APY for the life of the CD is 0.30%.
The no-penalty CD is a 12-month Citibank CD account that guarantees you an APR rate of 0.20%. But the big perk is that if you need to access your money early, the bank will not charge you an early withdrawal penalty as you would see on all other account options. For people that are looking to save but aren’t sure if they can leave their funds untouched, this could be a great option.
Citibank does not have any additional rate guarantees on any of its three CD products. However, that does not mean your APY rate is not guaranteed after you make your investment. Whatever rate you lock in when you make your investment is the rate you are guaranteed for the life of your investment.
Some banks will allow you to get a better rate if it shows up in the first few days after you lock in your rate. For example, TIAA Bank guarantees the best rate for the first 10 days of your account with the yield pledge promise.
How do I pick the best CD?
Many people believe the only thing you should look for when picking out a CD is the best rate possible. While the rate is important, there are other factors that you should consider like the available term lengths, any additional fees, the minimum deposit required and the penalties for withdrawing your funds early. By looking at all of these factors together, you can make the right decision about where to invest your money best.
The bottom line
Citibank CDs come with a low minimum investment, attractive APYs at some term lengths and a lot of flexibility with how long of an investment you’re looking for. Additionally, some of those rates may increase when you include your CD as part of an investment product with the bank. If you’re looking for competitive rates from a traditional bank that also offers a myriad of other financial services, Citibank may be what you’ve been searching for.
Meta – Citibank offers traditional CDs, step-up CDs and no-penalty CDs at different term lengths with competitive APY rates and lower early withdrawal penalties.