Citibank Offers Up To 4.60% APY On IRA CDs

Citibank has made a concerted effort to encourage customers to consolidate all their banking activities within its platform. Through relationship features such as waived service fees, unlimited ATM fee reimbursement, and discounted personal loan rates, customers can potentially save a significant amount of money by banking exclusively with Citi.

Citibank offers a variety of CD account types, including standard fixed-rate options, flexible CDs, bump-ups, and IRA CDs. Additionally, special business CDs are available to eligible regions. Citi provides more term lengths than many of its competitors, offering 16 standard CD term options ranging from five months to five years, each with a unique annual percentage yield (APY).

For standard CDs, the minimum opening deposit is $500. Early withdrawal penalties vary by term length, with terms up to one year incurring 90 days' simple interest and terms over one year incurring 180 days' simple interest. Partial withdrawals are permitted but come with the full early withdrawal penalty. Additional deposits are not allowed, and automatic renewal occurs for the same term with a seven-day grace period.

The APYs for standard CDs range from 0.05% to 3.25%, with the highest rates for the 12-month term at 3.25%. The 24-month term offers a tiered APY of 0.50% for balances below $100,000 and 1.01% for balances of $100,000 or more. Longer terms of 36, 48, and 60 months all offer a 2.00% APY.

Citibank also offers special CD rates that are higher than its standard rates. These terms have the same penalties and restrictions as regular CDs but confer a notably higher APY. The special CD rates include a 3.25% APY for a three-month term, a 3.50% APY for a four-month term, and an 8-month term with a 4.00% APY for balances below $100,000 and a 4.25% APY for balances of $100,000 or more.

A No Penalty CD allows for the withdrawal of the full account balance early without incurring fees, making it a good choice for those who may need to access their funds for an upcoming expense. Citi offers a 12-month No Penalty CD with a 0.05% APY. The minimum opening deposit is $500, and partial withdrawals are not permitted. Automatic renewal occurs for the same term with a seven-day grace period.

Citi’s Step Up CD steadily increases the interest rate at predetermined intervals, with a composite APY of 0.10%. The 30-month Step Up CD starts at 0.05% for the first 10 months, increases to 0.10% for the next 10 months, and reaches 0.15% for the final 10 months. The minimum opening deposit is $500, and early withdrawal penalties apply.

IRA CDs from Citi provide potential tax advantages to help maximize returns. Almost every term length offers superior APYs compared to Citi’s other CDs. The minimum opening deposit for IRA CDs is $250, and additional deposits can be made at any time up to the annual contribution maximum. Early withdrawal penalties apply, and automatic renewal occurs for the same term with a seven-day grace period. The APYs for IRA CDs range from 0.05% to 4.60%, with the highest rates for the three-month term at 4.60% and the six-month term at 4.50%.

Citi offers fixed-rate business CDs with term options ranging from seven days to five years. The minimum opening deposit is $10,000, and early withdrawal penalties vary by term length. Additional deposits are permitted only during the grace period, and automatic renewal occurs for the same term with a seven-day grace period for terms of 30 days or longer.

When compared to competitors, Citibank’s CD rates are average for a big bank. Online banks may offer higher rates. For example, Discover Bank offers a 2.00% APY for a three-month term and a 4.00% APY for a 12-month term, while Northern Bank Direct offers a 4.50% APY for a six-month term and a 4.30% APY for a 12-month term.

Citibank, the third-largest bank in the country, offers a range of account types, including checking and savings accounts, money market accounts, CDs, personal loans, and credit cards. While Citibank is not known for its high CD rates, it may be worth considering for customers who have other accounts at the bank and wish to consolidate their finances. Relationship Tier benefits, such as waived monthly fees or ATM fee rebates, may be available for customers with considerable deposits. Citi’s physical branches are concentrated in major cities, and customers in other areas will likely do all their banking online.

Citibank CDs are FDIC insured up to $250,000, and customers cannot add money to their CDs after the initial grace period. When a Citibank CD matures, the account will typically renew for the same term, though the APY and specific features may be different.