I was debating whether to close my Citi checking accounts (moved over to Dollar Savings Direct, the other EmigrantBank online account) when I saw it.
Fine print on the first page:
1 Annual Percentage Yield (APY) is accurate as of 9/30/2008 and is subject to change without notice. The rate will apply only to accounts opened through citibank.com or by phone, and may change after the account is opened. Fees may reduce earnings.
You must apply online at citibank.com or by phone to open a Citibank® Ultimate Savings Account in one of the following qualifying relationship packages: Citibank® EZ Checking, Citibank Account, Citibank Everything Counts®, or Citigold® Account. Applicant must be a citizen or resident alien of the United States (U.S.) who is at least 18 years old with a valid U.S. taxpayer identification number. All accounts are subject to approval. Deposits are subject to Citibank's standard funds availability schedule.
2 No monthly maintenance fee applies when held as a stand-alone account in the Citibank Account relationship package. Other account charges may apply.
Terms and conditions related to this account are available in the Client Agreement.
The problem with all Citi bank accounts is that they have a moronic (profit-motivated) $2,000 limitation per day on ACH transfers to external bank accounts. In other words, Citi makes it extremely difficult for you to withdraw your money, and they are very happy to collect interest while you dribble the balance out, $2,000 at a time. (At that, they issue a fraud alert and lock out transfers based on the "suspicious" behavior of making consecutive $2,000 withdrawals. I still haven't gotten the lock lifted, after numerous assurances that it would be.)
RS4Rings
Back in Rehab
posted: Sep. 30, 2008 @ 2:14p
I just opened with Citi and that problem can be avoided by just having a checking account also
tuffghost
Senior Member
posted: Sep. 30, 2008 @ 2:21p
Wow this is awesome, prior to now it was 2.26% APY. I have several of these accounts Now I don't feel as bad using them. (I'm assuming the rate will be applied to existing accounts as well.)
Funny thing is the Ultimate Money Account is still at 3%... it used to be that the UMA earned a higher rate than the USA.
scott1961 said: I just opened with Citi and that problem can be avoided by just having a checking account alsoNo, it can't. Transfers between Citi accounts are fine, but anything out to another bank is the $2,000 dribble.
RS4Rings
Back in Rehab
posted: Sep. 30, 2008 @ 2:25p
hpmoon said: scott1961 said: I just opened with Citi and that problem can be avoided by just having a checking account alsoNo, it can't. Transfers between Citi accounts are fine, but anything out to another bank is the $2,000 dribble. So why not just transfer to the checking as much as you want to take out and then write a check?
Has anyone figured out whether this rate applies to people who already have a Citibank Ultimate Savings account (in other words, does it apply automatically to all holders of this account)?
I couldn't figure it out online, and the CSR I spoke to seemed to be not that on top of things.
If anyone figures it out, please let us know.
tuffghost
Senior Member
posted: Sep. 30, 2008 @ 2:31p
ohhenry1 said: Has anyone figured out whether this rate applies to people who already have a Citibank Ultimate Savings account (in other words, does it apply automatically to all holders of this account)?
I couldn't figure it out online, and the CSR I spoke to seemed to be not that on top of things.
If anyone figures it out, please let us know.
If not you could always open a new one, link it to your existing accounts, and transfer the money into it. I assume it would apply to existing accounts though.
RE: WHETHER THIS RATE APPLIES TO EXISTING ACCOUNTS
I assume it would apply to existing accounts though.
it should be for existing accounts since this APY is posted on the rates page I just spoke with a different CSR who seemed somewhat knowledgeable and he said that the interest rate on my existing Ultimate Savings Accounts is still 2.25% (or so), and that to get the 3.5% rate, I would have to open up a new account. Frankly, I don't like this level of complexity, etc.. I like the way Emigrant and ING do it, with all holders of the same accounts being subject to the same policies and rates (listed on the front page) regardless of when the account was opened. Clear, simple, straight-up.
If not you could always open a new one, link it to your existing accounts, and transfer the money into it. I am open to jumping through some hoops for rewards, but there's no way to know if they won't just decrease the rate the next day. I don't feel that dealing with a bank should be like dealing with airline tickets, all mysterious and everything . . .
Of course, I hope that the CSR was wrong, and that my existing account will get the new 3.5% rate. If anyone finds out anything more on this issue, please keep us posted.
I have an e-savings and an Ultimate Money account with minimal money in them. I may try to switch the e-savings to an Ultimate Savings account.
somdave2005
Senior Member
posted: Sep. 30, 2008 @ 2:59p
ohhenry1 said: RE: WHETHER THIS RATE APPLIES TO EXISTING ACCOUNTS
I assume it would apply to existing accounts though.
it should be for existing accounts since this APY is posted on the rates page I just spoke with a CSR who seemed somewhat knowledgeable and he said that the interest rate on my existing Ultimate Savings Accounts is still 2.25% (or so), and that to get the 3.5% rate, I would have to open up a new account. Frankly, I don't like this level of complexity, etc.. I like the way Emigrant and ING do it, with all holders of the same accounts being subject to the same policies and rates (listed on the front page) regardless of when the account was opened. Clear, simple, straight-up.
If not you could always open a new one, link it to your existing accounts, and transfer the money into it. I am open to jumping through some hoops for rewards, but there's no way to know if they won't just decrease the rate the next day. I don't feel that dealing with a bank should be like dealing with airline tickets, all mysterious and everything . . .
Of course, I hope that the CSR was wrong, and that my existing account will get the new 3.5% rate. If anyone finds out anything more on this issue, please keep us posted.
I don't see why the 3.5% wouldn't apply to existing accounts...it's not like the 3.5% USA is a promotion or anything. The 3.5% rate is already updated in their rates list.
ohhenry1 said: RE: WHETHER THIS RATE APPLIES TO EXISTING ACCOUNTS
I assume it would apply to existing accounts though.
it should be for existing accounts since this APY is posted on the rates page I just spoke with a different CSR who seemed somewhat knowledgeable and he said that the interest rate on my existing Ultimate Savings Accounts is still 2.25% (or so), and that to get the 3.5% rate, I would have to open up a new account. Frankly, I don't like this level of complexity, etc.. I like the way Emigrant and ING do it, with all holders of the same accounts being subject to the same policies and rates (listed on the front page) regardless of when the account was opened. Clear, simple, straight-up.
If not you could always open a new one, link it to your existing accounts, and transfer the money into it. I am open to jumping through some hoops for rewards, but there's no way to know if they won't just decrease the rate the next day. I don't feel that dealing with a bank should be like dealing with airline tickets, all mysterious and everything . . .
Of course, I hope that the CSR was wrong, and that my existing account will get the new 3.5% rate. If anyone finds out anything more on this issue, please keep us posted.
I would guess the CSR is clueless. Citi changed the APR many times before and everyone got the same APR on the same type of account.
Why don't you short their stock then? since you're so sure...
markkundinger
Senior Member - 2K
posted: Sep. 30, 2008 @ 5:48p
ohhenry1 said: Has anyone figured out whether this rate applies to people who already have a Citibank Ultimate Savings account (in other words, does it apply automatically to all holders of this account)?
I couldn't figure it out online, and the CSR I spoke to seemed to be not that on top of things.
This has been USUALLY the case, unless citibank invents a totally new savings account, then everyone inherits the new rate. (higher or lower)
And their phone CSRs are kind of space monkeys.
The worrisome discrepancy now is the Delta between the USA (no annoying prereqs) and the UMA (needs checking and direct deposit/billpay)
VolcanOfNj
New Member
posted: Sep. 30, 2008 @ 9:17p
somdave2005, financial stocks cant be shorted anymore (temporarily at least) so SEC said!
JYX
Happy Member
posted: Sep. 30, 2008 @ 9:36p
I would agree that everyone including existing accounts will get the same new rate. I looked at their web site, and found nowhere mentioned that only new accounts would enjoy the new rate.
just apply one and trans from uma I hate how citi keeps switching this around on us though. First I had e-savings, then USA came out at a higher rate, then UMA came out at a higher rate. Annoying.
Anyone else get the promo in the mail today about a $100 bonus if you deposit $15k of new money and keep it there until 1/31/09? Works out to be 2.6% rate bonus if you hold it there for the minimum of 3 months (10/31-1/31) - $100/($15k*(3/12 months)). Must convert to Everything Counts, the Citibank Acct, or Citigold if you aren't already one of those levels. On top of 3.5% thats not a bad deal, but I would like to know which acct will have a higher rate for those 3 months.
This is on top of a similar promo I got from them 3 months ago for 16k TY points for a $15k deposit, but that had no hold time requirement so I pulled it out after 2 months. (Similar relationship conversion/level required though)
thanks for pointing out that transfer out of Citi is limited to $2000 per day (standard) / $1000(Next day). There is also a $10000 monthly limit for standard.
Does it mean you can only take out $2000 Standard 5x per month?
mmyk72 said: thanks for pointing out that transfer out of Citi is limited to $2000 per day (standard) / $1000(Next day). There is also a $10000 monthly limit for standard.
Does it mean you can only take out $2000 Standard 5x per month?Yes, with respect to ACH (electronic, but not "wire") transfers. On top of that, their fraud department will almost always interpret consecutive $2,000 withdrawals to justify locking your account.
Meanwhile, Citi is very pleased to sit on your money which you could be earning better interest on elsewhere.
freebee
Senior Member
posted: Oct. 1, 2008 @ 2:33a
edited.
goldenkidx
Member
posted: Oct. 1, 2008 @ 3:49a
I opened the Ultimate Savings account. I am already a citi customer so it just appeared in my online banking and I transferred all my money to the account. I have to say it is odd that the rate for this is higher than for the "Ultimate Money Account". Most people don't check the rates a lot so they probably figure most people have the Ultimate Money Account. Now they can switch the higher rate to the Ultimate Savings Account so they don't have to pay a lot of interest back.
rpina1
Member
posted: Oct. 1, 2008 @ 4:35a
Before you run and open one, check for a bonus cash offer.
When I signed up last year it was over 4% and it had a $100 cash bonus for signing up.
goldenkidx
Member
posted: Oct. 1, 2008 @ 6:09a
I checked and all the promos are expired and/or point the the Ultimate Money Account. Anyone want to prove me wrong?
markkundinger said: UMA (needs checking and direct deposit/billpay)Since when? I have UMA without direct deposit. No minimum requirement on my checking or MM account either.
Ultimate Money Account To receive the 3.00% Rate, all you need to do is make at least two online bill payments each calendar month from your linked checking account in a qualifying relationship package.1
RS4Rings
Back in Rehab
posted: Oct. 1, 2008 @ 12:29p
winter said: Ultimate Money Account To receive the 3.00% Rate, all you need to do is make at least two online bill payments each calendar month from your linked checking account in a qualifying relationship package.1 Thats the same requirement I need to make for my Citi Accelerator Money Market. But get 3.75%. Many states are offering so people should to see if it's available in their state
hpmoon said: The problem with all Citi bank accounts is that they have a moronic (profit-motivated) $2,000 limitation per day on ACH transfers to external bank accounts. In other words, Citi makes it extremely difficult for you to withdraw your money, and they are very happy to collect interest while you dribble the balance out, $2,000 at a time. (At that, they issue a fraud alert and lock out transfers based on the "suspicious" behavior of making consecutive $2,000 withdrawals. I still haven't gotten the lock lifted, after numerous assurances that it would be.)
I have a checking account with them. I go into a branch, transfer all the money from savings to checking that I want to transfer (having a branch do this transfer does not count against your six monthly outbound transactions). Then I write a personal check from the checking account to my other account. How much interest do I lose?
25k x 3.5% APY = $875 in interest. That comes to about $17 lost in interest if youw rite a check and your funds are in non-interest bearing state for approx 7 days.
It is crappy, but you can also use a cashier's check if you want to make sure the funds are a bit more expidited. Or suck it up and do a wire transfer.
RS4Rings
Back in Rehab
posted: Oct. 1, 2008 @ 1:36p
hellyea81 said: 25k x 3.5% APY = $875 in interest. That comes to about $17 lost in interest if youw rite a check and your funds are in non-interest bearing state for approx 7 days.
It is crappy, but you can also use a cashier's check if you want to make sure the funds are a bit more expidited. Or suck it up and do a wire transfer. would not be a problem for me, Just transfer into my checking and take check across the street and put in my 3.50% checking account that pays interest same day. Then just send the money to wherever I want out of that account
tuffghost said: Wow this is awesome, prior to now it was 2.26% APY. I have several of these accounts Now I don't feel as bad using them. (I'm assuming the rate will be applied to existing accounts as well.)
Funny thing is the Ultimate Money Account is still at 3%... it used to be that the UMA earned a higher rate than the USA.
ETA: 6 month CD is also now up to 4% APY.
eh. citi plays game. when ultimate savings came out, it was the highest. a couple months after that, UMA debuted and that was higher than the savings. Glad I didn't close my Ultimate Savings when I moved everything but $0.85 over to UMA.
mh83
Senior Member
posted: Oct. 1, 2008 @ 3:10p
hpmoon said: The problem with all Citi bank accounts is that they have a moronic (profit-motivated) $2,000 limitation per day on ACH transfers to external bank accounts. In other words, Citi makes it extremely difficult for you to withdraw your money, and they are very happy to collect interest while you dribble the balance out, $2,000 at a time. (At that, they issue a fraud alert and lock out transfers based on the "suspicious" behavior of making consecutive $2,000 withdrawals. I still haven't gotten the lock lifted, after numerous assurances that it would be.) If your external bank has a more favorable ACH service, you can use it to pull money out of Citi. I haven’t encountered any problems pulling large amounts out of my Citi accounts.
ninas
New Member
posted: Oct. 1, 2008 @ 8:34p
I had the checking, e-savings, and the UMA account with Citi and I did an online opening for the USA (Ultimate Savings Account). They did a hard on Transunion; wasn't expecting this as I never got a hard for opening online other than with my first account opened.
kgkg
Member
posted: Oct. 1, 2008 @ 9:57p
ninas said: I had the checking, e-savings, and the UMA account with Citi and I did an online opening for the USA (Ultimate Savings Account). They did a hard on Transunion; wasn't expecting this as I never got a hard for opening online other than with my first account opened.
If you open it by phone, it may not cause a hard pull.
thok
Tired Member
posted: Oct. 1, 2008 @ 10:45p
Xeon852 said: zoym said: thx, op.
just apply one and trans from uma I hate how citi keeps switching this around on us though. First I had e-savings, then USA came out at a higher rate, then UMA came out at a higher rate. Annoying.
Anyone else get the promo in the mail today about a $100 bonus if you deposit $15k of new money and keep it there until 1/31/09? Works out to be 2.6% rate bonus if you hold it there for the minimum of 3 months (10/31-1/31) - $100/($15k*(3/12 months)). Must convert to Everything Counts, the Citibank Acct, or Citigold if you aren't already one of those levels. On top of 3.5% thats not a bad deal, but I would like to know which acct will have a higher rate for those 3 months.
This is on top of a similar promo I got from them 3 months ago for 16k TY points for a $15k deposit, but that had no hold time requirement so I pulled it out after 2 months. (Similar relationship conversion/level required though)
Yes, that seems to be the pattern with them, they invent a new type of savings acc't with a higher rate, slowly lower rates across the board, lather, rinse, repeat. But in this case it doesn't appear to be a new account, or if it is they didn't bother to change the name. That leads me to believe that the rate is increased for everybody.
One of my big gripes about Citi's online system is that you can't click on an account and see what rate you're currently getting on that account. I still have no idea what my "Money Market Plus" account (with all of $5.75 in it) is paying. It would be nice to click on the "Ultimate Savings" account link and see my balance and "3.5%" somewhere on the page.
I'll have to call tomorrow and see if my CSR can tell me the rate.
ninas
New Member
posted: Oct. 1, 2008 @ 11:41p
kgkg said: If you open it by phone, it may not cause a hard pull.
I guess I'll have to give that a try next time. The e-savings and the UMA were opened online after lgging into my account (more than a year ago)--> no hards. Thought it would be the same with the USA since I logged in when opening. Thanks for the suggestion anyhow.
ninas said: I had the checking, e-savings, and the UMA account with Citi and I did an online opening for the USA (Ultimate Savings Account). They did a hard on Transunion; wasn't expecting this as I never got a hard for opening online other than with my first account opened.
Odd... I opened online yesterday, and the hard pull hasn't appeared on my credit report yet; I'm using CreditSecure via AMEX. Did you make sure to sign in first, and then use your citibank account screen navigation to 'open new account' and open the USA from there? That's how I did it.
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