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Citibank Savings Accounts

Name: Citibank Savings Accounts
Creator: Savvy
Published: 2022-05-27T16:22:16+09:30

More about Citibank savings accounts

What types of savings accounts does Citibank offer?

Compared to some of its competitors, Citibank has a limited range of savings products. The accounts open to new customers are:

Online Saver Account

This online savings account enables you to earn a high interest rate for the initial few months. You’ll earn an introductory interest rate of 1.35% p.a. for four months if your balance remains under $500,000. Once this high interest period ends or you exceed the balance cap, your variable rate drops to 0.60% p.a. Interest on this account is calculated daily and paid at the end of the month.

The Online Saver comes with no monthly fees or minimum balance requirements. Unlike some banks which only allow you to link to their everyday accounts, your Online Saver can be linked to a transaction account from any institution in Australia. You won’t be able to open this as a joint savings account.

Term Deposit

If you want more predictability in your savings growth, Citibank offers term deposits to new and existing customers. These are low-maintenance forms of investment tailored to the more risk-averse saver. You can lock your money in at a fixed interest rate and for a set term and let compound interest work its magic.

Citibank’s term deposit allows you to earn 0.65% p.a. interest over three, six, nine or 12-month terms. These term options are quite limited compared to other banks who offer terms of up to five years. Also, the bank requires you to make a minimum deposit of $10,000 when opening your term deposit, which is almost double what other institutions require. If you want to see how much interest you could earn on a term deposit, you can use Savvy’s compound interest calculator.

You won’t be able to deposit or withdraw from your term deposit until it’s reached maturity. However, if you need to access your funds or vary your terms, you can provide Citibank with 31 days' notice. If you are suffering financial hardship, you can talk to the bank about being granted faster access to your money.

How do I open a Citibank savings account?

Once you’ve found the best savings account for your money, you’ll need to provide your bank with your personal details and documents. Citibank requires you to provide the following details when opening your account online:

An Australian residential address
A valid email address
A contact phone number
A tax file number (TFN) or a valid exemption. This will avoid you being taxed at a high rate
Details of your desired linked bank account

You’ll also need to provide two forms of identification to open a savings account, with one of these being photo ID. If you’re opening an online savings account, you can submit this online. However, if you’re opening a term deposit, you’ll need to be identified at an Australia Post outlet. Eligible forms of ID include:

A driver’s licence
An Australian or foreign-issued passport
A Medicare card
A birth certificate
A utility bill

You must be at least 18 years old to open either an Online Saver or a term deposit with Citibank. These age limit conditions are more stringent than other banks, who generally allow anyone older than 14 years old to open an account. Aside from this, you must also be an Australian resident.

Pros and cons of Citibank savings accounts

PROS

Link up to any account

You can link your savings account to an everyday account from any bank in Australia, with no requirement to open a Citibank bank account.

No fees

Citibank doesn’t charge monthly account fees on their savings products, meaning you won’t run the risk of the interest you earn being eaten up by unnecessary costs.

No minimum balances

There’s no need to keep a minimum amount in your Online Saver. You can deposit as much or as little as you can afford into your savings account.

CONS

Lack of savings options

Citibank offers very few savings options to its customers, with only four personal banking products listed on its website. This is quite low compared to their competitors, who can have up to nine different savings options.

No joint availability for savings

While most banks allow couples to open joint savings accounts for a variety of reasons, Citibank only offers this arrangement on term deposits but won’t let you open them online.

High age restrictions

You must be over 18 years old to apply for a savings product with Citibank, which is substantially older than most other banks’ requirements.

Frequently asked savings account questions

What online and mobile app features does Citibank offer?

Citibank’s online banking portal and Citi Mobile App come with all the standard features such as electronic transfers and the ability to check your statements. You can also set up automatic deposits into your savings. The mobile app is available through the Apple or Google Play app stores.

What other types of savings accounts can I open?

While your options may be few and far between at Citibank, other banks offer many more types of savings accounts. These include business, kids’, student and pensioner savings accounts. You can even open a savings account for a newborn baby with other institutions.

How are savings accounts offered by credit unions different from banks?

Savings accounts opened with credit unions may have lower fees and higher interest rates than larger banks. Credit unions are non-profit organisations, meaning they can pass on the profits they make to their members in the form of higher rates and lower fees, while banks are for-profit. However, banks tend to have a large variety of savings accounts than credit unions. While credit unions promote a more personalised service, they tend to have fewer branches than the big banks.

How do I close a Citibank savings account?

If you decide to switch to another institution, you can request to close your savings account through Citibank online or by phoning the bank directly. It’s important to transfer your money into another fund before you terminate your account regardless of who you bank with.