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Citigold, Smith Barney, FMA, Private Banking, and Other Highend Banking with Citi

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   posted: Jan. 22, 2008 @ 1:34a
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Hello Everyone,

I thought to start this new topic because it is so hard to find detail information about Citibank's high-end baking services. Citigold starts at $100,000 in all Citi accounts ($250,000 if you include Mortgage). See below for others. Let me first put-up some websites:

Citigold: https://web.da-us.citibank.com/cgi-bin/citifi/portal/ps/detail.do?M_M=S&BS_Id=Citigold

Smith Barney FMA: http://www.smithbarney.com/products_services/fma/

As we all know, Dolmar is the greatest expert on high-end banking. So, I asked him a few questions in another thread. His answers are very informative. So, I am posrting them below:

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1. What are the fee structure of Smith Barney for Citibank customers?

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Retail Smith Barney accounts have level $500k-999,999, $1 million to $5 million and $5 million up. Private bank Smith Barney accounts are all reserved which is the lowest level at Smith Barney $500k.

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2. Suppose someone has a Citigold accout with about $250K. Will his/her new Smith Barney account will receive any special treatment regarding fees and services?

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No Citigold has 2 levels. $0-$499,999 and $500k+. At $100k you get some waivers and then more waivers at $500k. Extra waivers at $500k are free out going wires, free any style checks, 6 monthly ATM rebates, and larger Safety Deposit box. Citigold will count loan balances towards both levels in Citigold but will not count mortgages towards $500k level.

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3. What are the "reserved" status?

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$500k-999,999 in a Smith Barney brokerage accounts. Smith Barney will not count any loans balances towards the requirements of any of there levels. Reserved Status pretty much waives any fee you think of except Citi Chairman Card. It has unlimited ATM Rebates too.

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4. What is the FMA account? What are the benifits and perks?

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FMA has no perks the perks are based on your level with Smith Barney. FMA is a sweep checking account that has either tax-free sweep options or tiered FDIC bank deposit program with the highest tier $1 million + in assets with Smith Barney currently paying 4.60%.

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5. What it takes to open a Private Banking account? What are the benifits and perks?

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$5 million in deposit or $10 million with commercial loans. They do not count mortgages towards the balance requirements. They waive every fee if you qualify. You will pay for nothing at all.

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6. Coming back to Citigold, is Citigold the highest tier banking in Citi or is there anything above it? Is there any tier in Citigold?

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Answered in Question #2

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7. Do Citigold customers get special rate above advertised rate for CD or Savings accounts? If yes, is it automatic [or, how (and who) to ask about them]?

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Once in a while they will run a Citigold in branch special CD but not too often. Personally I have only seen this type of special when they open a new branch.

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Please post your questions. It is quite interesting to learn how different the regular banking and high-end bankings are.

Thanks,
bandyopa

Message edited by: bandyopa on 2008-01-22 01:37:25 CST
   posted: Jan. 22, 2008 @ 1:34a

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


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   posted: Jan. 22, 2008 @ 4:39a
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The archived thread on Citigold - Is CitiGold worth it? & 2006 Private Banking / Private Client Discussion Thread for reference.

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   posted: Jan. 23, 2008 @ 12:44a
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slimcustomer said:The archived thread on Citigold - Is CitiGold worth it? & 2006 Private Banking / Private Client Discussion Thread for reference.

Thanks very much. Those threads are a bit old though. Citi merged CIS with Smith Barney and, as Dolmar pointed, Citigold has 2 tires now. Please keep on posting. I will speak with a Smith Barnet rep soon. Will post if I hear anything new.

bandyopa

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   posted: Feb. 2, 2008 @ 10:21p
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In one of the threads, Dolmar mentioned that he got TY points for his accounts at Smith Barney in addition to the accounts at Citibank. I have just shifted over to Smith Barney and the only thing I see is that I can get points if I purchase items using my FMA debit card. Are they giving points in other ways also?

Thanks for compling these comments. They are great!

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   posted: Feb. 3, 2008 @ 2:16a
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Link

pqiyulbos That is the link stating you get thank you points. It requires your FMA account be linked a Citigold account opened by your broker. As long as you are reserved or better there is no fee's what ever on Smith Barney side nor on the Citibank side and you will get 1200 TY for you FMA Account + you can still keep your bank based Citigold account for another 1200 points monthly for a total of 2400 TYP per month for free.

Hope that helps you and answers your questions.

Edit I think the reason you have to get a Citigold account is because maybe Citigroup is trying to show shareholders that there cross selling platform works which both old Ceo and current CEO has been taking heat on as many large institutional investors would like Citi to spin off Smith Barney as it is currently under valued because it is based on a Bank PE which is lower than Brokerage PE.

Personally I see no reason for anyone with a Reserved FMA or better to bother with a Citigold account as the benefits from Reserved status at Smith Barney are better than even Citigold $500k level.

Message edited by: dolmar on 2008-02-03 13:05:23 CST
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   posted: Feb. 3, 2008 @ 5:02a
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Hey dolmar, dou you know off hand if a 401k balance with CitiStreet would qualify to get to 500k in assets with Citi?

Message edited by: WalStMonky on 2008-02-03 05:07:12 CST
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   posted: Feb. 3, 2008 @ 12:09p
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WalStMonky said:Hey dolmar, dou you know off hand if a 401k balance with CitiStreet would qualify to get to 500k in assets with Citi?

I am pretty sure 401k do not count at Smith Barney because if you look at Citigold they exclude 401k but will count balances in IRA/Roths.

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   posted: Feb. 4, 2008 @ 10:06p
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dolmar said:Link
Personally I see no reason for anyone with a Reserved FMA or better to bother with a Citigold account as the benefits from Reserved status at Smith Barney are better than even Citigold $500k level.

I did not realize you can get 2400 points per month by opening an FMA Card and second Citigold account through Smith Barney. When you get the Smith Barney FMA Card, do you automatically get the second 1200 Thank you points per month or do you have to open duplicate CDs, checking accounts and other qualifying Citi products to get the full second set of 1200 points per month?

Citi says Citigold gets you an exclusive 24/7 toll-free customer service number, priority processing on first mortgage and home equity applications, preferred interest rates on selected deposit products, waived fees, discounts on online outgoing wire transfers, foreign currency transactions and safe deposit box, preferred mortgage pricing that gives you $500 towards closing costs and preferred pricing for both home equity line of credit and Checking Plus® (variable rate) overdraft protection.

What benefits do you get through Reserved at Smith Barney that are better than Citigold? According to the Smith Barney website, Reserved only gets you Unlimited account fee waivers, Access to 24/7 Reserved Client Service Center, and Accelerated earning of reward points.

Message edited by: Thoreau on 2008-02-04 22:11:23 CST
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   posted: Feb. 4, 2008 @ 11:28p
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FMA cards can only issued against FMA accounts and not brokerage accounts from inside of the bank.

Reserved status gets you all the following waivers:

Fees Waived for Reserved Clients:
One of the most comprehensive fee waiver programs in the industry Account Fees
•Basic Account
• IRA, Simple IRA,
Educational Savings Account, 403(b)
•FMA®, Business FMA, FMA Plus
•Smith Barney Premier Pass Elite
• Women & Company® Membership
FMA check fees
•Returned Check
• Check Copies,
Stop/Bounce
• Wallet Checks, Wallet Reorder
•Duplicate Checks
• Executive and Corporate Checks
• Personal Deposit Tickets
FMA Card Fees
• Unlimited Outside ATM Fee Waivers*
•Free Card Replacement
•Expedited Shipping
•World Wallet®
Service Fees
• Quicken® Download and Bill Pay
• Legal Transfers, Safekeeping & Safety Deposit Box
• Domestic & International Wires
•Dividend Reinvestment
*Up to $3.50 per transaction in the U.S.


FMA currently pays 4.07% in BDP vs Citigold Checking pays 1.98%. FMA was paying 5% back in Sept vs Citigold was still paying 1.98%. personally I have never taken a mortgage from Citibank as my mortgage broker has always been able to beat whatever Citibank offers me. Currently best rate Citibank has 5% 0 Point 15 year mortgage vs my mortgage broker can get today 4.75% 0 Point 15 year mortgage. And in the past spread was larger for example when I got my 7/1 Arm back in 2003 Chase gave me 3.125% vs Citi quoted me 4%.

Citigold Checking Plus rate is 17% so if you consider getting charged 17% for overdraft a special rate then good but FMA margin is Prime +1 for Reserved Clients with $1 million+ in assets currently margin rate is 7.5% so that is 9.5% lower. And for Reserved Clients with $500 but less than $1 million margin rate is prime +3 which is still 9.5% vs 17%.

I only have 1 of each product but my accounts are from Private Bank so I get consulted statements which include all my accounts including credit card, bank, brokerage, loan etc so they are all linked together and I am getting 2400 TYP per month. Not sure if the retail Smith Barney accounts allow for you to consolidate all your statements into 1 like the private bank does.

Message edited by: dolmar on 2008-02-04 23:33:24 CST
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   posted: Feb. 6, 2008 @ 3:41p
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dolmar said:

Personally I see no reason for anyone with a Reserved FMA or better to bother with a Citigold account as the benefits from Reserved status at Smith Barney are better than even Citigold $500k level.

Accounting is the reason to have a separate checking and investment accounts. In our family we view and treat our investing accounts as savings (or capital account in business terms) and the checking account as operational. We also have accounts at ING for specific savings goals such as property tax and water bills (which are billed every quarter). I can understand the simplification of using just one account such as the FMA. It is very convenient to write checks off an investment account to easily pay for large ticket items.

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   posted: Feb. 6, 2008 @ 4:05p
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So I went chat with the Smith Barney rep inbside a Citibank branch in Chicago downtown area on Friday. I have to say, I was not at all impressed with the person (and he is a second VP).

Anyway, he tells me that Smith Barney have decided to eliminate all discounts in brokarage commisions. This will be announced within a month or so. The new plan is to promote Smith Barney as a full service broker with high commisions. He tries to pitch me (very strongly) an "advisoty account" where the account holder pays $1000 or 1% of total assets per year as a net fee. All commissions and fees are waived. But this account is not self-serviced, and I have to call him each time I want to buy or sell something. He was supposed to email me the details, but, I haven't heard anything back yet. Doesn't look like an efficient banker.

I couldn't get any information about FMA or Chairman's card from him. He even didn't know that Chairman's card is now American Express branded (he thought it was a Master Card).

Anyway, Dolmar Hi! questions for you:

1. Is there any difference between the Smith Barney repts inside Citibank brances and at a Smith Barney location?

2. Suppose I open a FMA account. Do I get any discount on brokarage commision?

3. What are the difference between FMA and Citigold if I don't use the brokarage?

Thanks,
bandyopa

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   posted: Feb. 6, 2008 @ 5:44p
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pqiyulbos said:dolmar said:

Personally I see no reason for anyone with a Reserved FMA or better to bother with a Citigold account as the benefits from Reserved status at Smith Barney are better than even Citigold $500k level.

Accounting is the reason to have a separate checking and investment accounts. In our family we view and treat our investing accounts as savings (or capital account in business terms) and the checking account as operational. We also have accounts at ING for specific savings goals such as property tax and water bills (which are billed every quarter). I can understand the simplification of using just one account such as the FMA. It is very convenient to write checks off an investment account to easily pay for large ticket items.

Again I still do not understand your point? I personally have 3 FMA Plus accounts. I use 1 solely for investments, 1 for my IRA and one solely as a checking account. All 3 FMA accounts are linked to all my Citibank Bank accounts. I can make instant transfers online, at any ATM machine, via teller or over phone. I have 1 ATM card which see all the accounts.

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   posted: Feb. 6, 2008 @ 5:59p
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bandyopa said:1. Is there any difference between the Smith Barney repts inside Citibank brances and at a Smith Barney location?

Pretty much every broker has the title VP. Not kidding my broker assistant has title VP printed on her card. While my broker title is "Senior Cash Management trader and marketer". I almost never talk to broker assigned to my account as he normally only handles fortune 100 clients cash management. He once told me normally he is trading blocks of $5-10 million of cash management bonds. So being a VP means nothing at Citigroup. Normally all brokers when they first get there licensee work in bank branches or discount brokerage firms. No millionaire is going to trust someone who been a broker 1 day with millions of dollars. The better brokers at Smith Barney, Merill, Morgan, Goldman, Bear etc won't even talk to you unless you been referred to them and have a couple of million investable dollar.

$250k brokerage account is not even a large account at some of the discount brokers today. Vanguard, Schwab, Fidelity, TD Ameritrade all require $500k+ for thier highest level. Sorry not trying to be rude about it either.

bandyopa said:2. Suppose I open a FMA account. Do I get any discount on brokarage commision?

First off I stated before and I will state it again FMA accounts are only offered via Private Bank or Retail SB branches(than means from brokers out side of the bank). You need $500k min just to waive the fee's for an FMA account there is no way you are getting any discounts from anyone at Smith Barney if you barely qualify for fee waivers at Smith Barney. Smith Barney is full service brokerage firm. They do not offer self service discount trading option at all. Personally I mostly buy bonds so Citigroup is a good fit for me as they are largest bond underwriter in the world. Few stocks/mutual funds I have bought I buy via my MRA account at BOA.

bandyopa said:3. What are the difference between FMA and Citigold if I don't use the brokarage?

$500k min balance requirement to waive the fees vs $100k. Tiered interest rate with highest tier requiring $1 million + in assets at Citigroup but paying 4.18% FDIC. And no broker will open an FMA account so you can use it as checking account only as servicing your account will not be worth there time. FMA accounts require everything be done by the broker. Unlike Citigold account can be serviced by anyone at the bank.

Message edited by: dolmar on 2008-02-07 01:55:17 CST
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   posted: Feb. 29, 2008 @ 9:40a
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The rates on the Bank Deposit program with an FMA account are tiered:
Tier 1 3.62%
Tier 2 2.00%
Tier 3 1.75%
Tier 4 0.40%
http://www.smithbarney.com/research/investment_ideas/rate_monitor/

Does Smith Barney consider the amount in your FMA account only when deciding what Tier you fall into, or do they look at your entire balance in all Smith Barney accounts?

To get 1200 points for the FMA account, do you need to make any minimum transactions with the FMA card? Or, is it an automatic 1200 points with reserved status whether you use the FMA card or not?

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   posted: Feb. 29, 2008 @ 12:12p
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Thoreau,

The tiers are based on your aggregate holdings (SB calls this consolidation relationship).
Tier 1- $1M+
Tier 2- $500k to $1M
Tier 3- $250k to $500k
Tier 4- less thank 250k

I hope this helps.

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   posted: Mar. 7, 2008 @ 3:58p
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In the archived thread "Is CitiGold worth it?", dcyahoo said, "My wife and I each get 1200 ThankYou points every month because of CitiGold."

Can someone clarify the best way to structure accounts to maximize TY points for me and my wife? Our $200K mortgage is with Citi, so I'm thinking we may have an easy way to rack up 2400 points a month by committing only $50K to Citi deposit accounts. My plan is to open a joint savings account and then open (and link) 2 individual checking accounts (one for me, one for the wife) to double our monthly TY points. Will this work?

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   posted: Mar. 7, 2008 @ 4:07p
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Each checking account is it's own "package". As such, you would need to open two checking accounts, two savings accounts (one linked to each checking account). Likewise, the mortgage would only count on ONE checking package. Each checking account will need to have it's own direct deposit, etc.

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   posted: Mar. 7, 2008 @ 4:25p
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andrewli said:Each checking account is it's own "package". As such, you would need to open two checking accounts, two savings accounts (one linked to each checking account). Likewise, the mortgage would only count on ONE checking package. Each checking account will need to have it's own direct deposit, etc.

Thanks for the quick reply. So maybe we can get by with $100K in deposits?

Me: $200K mortgage, $50K Savings+Checking to qualify for CitiGold.
Wife: $50K Savings+Checking PLUS my linked $50K in deposits to qualify for CitiGold.

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   posted: Mar. 7, 2008 @ 4:33p
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Yep, that looks like it will work. Just make sure your banker setups the "Household Relationships" properly in the computer and it will combined all of your balances + her balances in order to come up with the total balance in the household. (Worst comes to worst, if you get hit with a fee, call the banker up and they can fix it then and credit you).

It sometimes takes 1 full statement cycle for the household relationship to be fully updated.

Keep in mind that the number of services that 'qualify' are based on the checking account, as I mentioned previously, so under the below situation, you would have 300 points/month (Checking, Savings, Debit Card, Mortgage) and the other would get 150 points/month (Checking, Savings, Debit Card). You can play with the calculator here: https://web.da-us.citibank.com/popups/rrcalc/calc.html

Message edited by: andrewli on 2008-03-07 16:34:13 CST
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