Citibank e-Savings Account - 4.75%
Citibank has come out guns blazing with their e-Savings Account having an interest rate of 4.75% (compared to Emigrant Direct’s 4.5%). Will we see ED pop up to 4.75% in response to Citibank’s move and the recent Fed hike? Who knows, but from the look of it the e-Savings Account mirrors every other online savings account with a few important differences.
Easier Access to Funds
One stark difference that might trump any minor interest rate differences is that you can, you actually must, link your e-Savings Account to a Citibank EZ Checking account. Compared to ING and Emigrant which have no checking account capabilities, this means instant access to your savings account money compared to the usual 5 business day delay when you transfer money from the ING/ED account to your external account. I’m not sure how this compares for other online savings accounts (HSBC?).
Must Link To Checking Account
You must link your account to a “qualifying relationship package” which includes “Citibank® EZ Checking, Citibank Account, Citibank Everything Counts® and CitiGold®.” The fees on those accounts still apply! On the EZ Checking, you must maintain a minimum balance of $1,500 across all of your accounts (unsure if e-Savings applies but the list does include Money Market accoutns, which is what e-Savings is) to avoid the minimum balance fee. If e-Savings does apply, then effectively you have a $1,500 minimum balance requirement on the account that can accrue interest. If it doesn’t, then you have a $1,500 minimum balance that will not accrue interest sitting in your EZ Checking account.
My Thoughts
I’d call to see if the e-Savings balance counts towards the $1,500 minimum requirement for EZ Checking (I suspect it does) and if so, this seems like a pretty attractive offer if you don’t already have your money in a high yield online savings account. If you don’t, I suggest you also open up one at ING Direct to get a $25 referral bonus, email me if you’d like a referral.
Thanks CK for the heads up.
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There are 10 comments, add your thoughts now!
No problemo.
Hmm … this might be enough to incite me to move my $ from ING!
One downside to the Citibank e-Savings is that if, somewhere down the line, somebody leapfrogs Citi and offers > 4.75%, Citibank charges you $3 to transfer money out.
That’s why my finger is still hovering over the trigger before I transfer everything out of HSBC (which recently bumped from 4.5% to 4.65%) over to Citi.
So because of Citi’s $3 to transfer out policy, I’m thinking of instead going with GMAC Bank’s Money Market, also currently offering 4.75%. They have a $500 minimum though, but no fees to move money in or out.
I think $500 minimum is hardly any issue but that also prevents you really from moving that final $500 out of the account to another, higher rate.
Don’t worry about transfer out.
You can always use other bank’s transfer in to withdraw money.
The 1500 minimum can be waived if you have two bill payment.
You can set up automatic bill payment and avoid the fee.
I called up the citibank folks and the rep told me the $1,500 minimum balance is across ALL accounts, including the E-Savings account. So, as long as you have at least that much in the savings, then it’s all good. I was a bit worried about this thinking I would need to have it in checking.
However, the $3 transfer out fee is kinda bad, but the instant access with a linked checking outweighs that, IMO.
Why is everyone worrying about the transfer out fee? Transfer the money to your Citibank EZ Checking and then just write a check. I’ve been hit with too many issues because of the 3 business day transfer time from my HSBC to my Citibank checking….. I’m SO switching!
I have been using Citibank online for a few years now, and I have always made online transfers/withdrawals without any fee incurred to pay bills, etc. Specifically, I have recently transferred into an ING account with no $3 fee. I also called and checked into it, and the $3 fee does not apply with an online transfer such as this…
In any case, this new e-savings seems like a no-brainer and I plan to take everything out of the ING account and put it into my new e-savings.
On a separate note, Citibank’s online banking has been great — you can add virtually any payee and they will automatically send them a check –saving a miser such as myself from buying several year’s worth of stamps.
It is really frustrating to access my e saving account through your website .
there is so much junk poping up .
I am already an e-savings account holder and have been trying to get my balance. I just cannot access it.
Please tell me clearly (not just an automatic response ):
1. the exact adress of the website.
2. How can I register to access e-mail account.
3.what are the exact steps to take to access my account.
another frustrtion is you ask for card number instead of account number , which means you have to carry your card all the time.
I want to access this as soon as possible .
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