Hi all,

Not sure if this has already been posted (I tried a search but failed to find it):

Ultimate Savings Account

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.)

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.

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?

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.

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.

fat419 said:citi will fail

Why don't you short their stock then? since you're so sure...

somdave2005, financial stocks cant be shorted anymore (temporarily at least) so SEC said!