Both Citibank High Yield and Citi Accelerate Savings Accounts have an excellent annual percentage yield that can reach 0.04% (Citibank Basic) and 0.50% (Accelerate). However, you can still find better rates from online banks if you can take the risk.
An Overview of Citi Basic High Yield and Citi Accelerate Savings Account
Citibank’s Basic High Yield Savings and Accelerate Savings have one of the lowest monthly maintenance fees for any bank account at $4.50. Plus, you can have your monthly fees waived on these high-yield savings accounts. This feature makes Citibank’s offers two of the most popular U.S. consumer banking choices.
You can learn more about both of these accounts with this handy table. Consult this table if you’re ready to finalize your savings account decision.
|Citi Accelerate Savings interest rate||0.50% APY|
|Citi Savings interest rate||0.04% APY|
|How they compare||The average national rate for savings accounts is 0.06% APY.|
|Monthly fees on Citi Accelerate Savings and Citi Savings||$4.50.|
|How to avoid monthly savings fees||If you opened your account in the Basic, Access or Elevate Account (where available) package, maintain $500 average monthly balance, orHave your savings account linked to a Citi checking account. (There may be a monthly fee for the linked checking account, which can be waived by either meeting transaction requirements or maintaining certain average balances.)|
|Minimum opening deposit for savings||None.|
What is Citibank High Yield Savings?
Citibank has its respective high-yield accounts that guarantee larger deposit interest rates to keep your cash afloat in any storm. These accounts guarantee stability and consistency over profit. Plus, you can deposit and withdraw any amount at any time.
Owning a Citibank bank account gives you access to other Citibank services. Plus, you can waive your monthly fees by linking your Citibank checking account.
Currently, Citibank has one of the highest APYs on their accounts versus other traditional banks. However, its High Yield and Citi Accelerate Savings Account cannot match the high APY of an online savings account.
Here are the pros and cons of Citibank’s offers. These may also apply to their checking account selection.
- APY: Citi Accelerate Savings Account has 0.50% APY. Alternatively, Citi Basic High Yield can offer 0.04% APY. These two figures are much higher than its competitors, such as Chase Savings’ 0.01%APY standard rate and Wells Fargo’s 0.01% APY standard rate.
- Monthly Service Fee: Citi Accelerate Savings Account and Basic High Yield both charge $4.50 monthly. However, you won’t have to pay them if you can comply with the fee-waiving requirements above.
- Minimum Deposit: Citi Accelerate Savings Account and Basic High Yield does not require any minimum deposit.
- Insurance: Both accounts have a $250,000 FDIC insurance in case something happens to your deposits or the exchange.
- Easy Requirements: You can submit all your requirements online through Citibank’s dedicated application portal
- Link Ready: You can link your Citibank interest checking account to your savings accounts. Users who do this have the bank automatically waive their monthly service fees.
- Better APY Online: You can get better APY from online banks. Citibank and other traditional consumer banks in the country have rigid practices. Alternatively, online banks have better flexibility that allows them to perform other actions that favor consumers.
- Other Banks Have Good APY With Linked Accounts: Wells Fargo can give their respective savings accounts higher APY above 0.04% after you link any Wells Fargo interest checking account. On the other hand, Chase provides you higher CD APYs if you link your checking account.
Deposit and Withdrawal Options
You can perform direct deposits, mobile check deposits, and mail-in deposits on both Citibank High Yield and Accelerate accounts. Citibank’s mobile app has a mobile check deposit feature that allows you to take a photo of your check and have it deposited.
All Citibank accounts allow you to withdraw money through their branches and ATMs. Your Citibank savings has its respective debit card. Alternatively, you can transfer your cash to another Citibank account or other U.S. bank accounts through its mobile application.
How Do Citibank’s Savings Accounts Compare With Others?
Let’s take a look at how Citibank accounts contend against the monthly fee and other rates of rival traditional and online banks.
|Comenity Direct High Yield Savings Account||0.55%||$0|
|Citibank Accelerate||0.50%||$4.50 (with monthly fee waive options)|
|Citibank High Yield Savings||0.04%||$0|
One Save bank has one of the highest APYs in the U.S. banking market. Thus, customers who can risk working with online banks will find it a better option than Citibank’s offers. On the other hand, long-time Citibank users will find its Accelerate account a better choice among all the banks listed here.
1. What’s the difference between Citibank Accelerate and its High-Yield Savings Account?
Citibank Accelerate focuses on delivering the highest traditional U.S. bank APY possible. It has reached 0.70% APY at one point.
In addition, linking a Citi checking account to your Accelerate savings gives you ThankYou Points. You can use these points on Citi’s partner merchant’s products and services.
Citibank’s standard high-yield accounts provide you its ordinary APY rate. It focuses on savings stability and flotation. Therefore, it has a lower APY versus Accelerate.
2. What’s the interest rate on a Citibank High Yield Savings?
Citi’s high-yield savings account has a 0.04% APY on any amount you deposit. Chase and Wells Fargo offer lower standard APY rates at 0.01%.
Online banks have a higher yield than traditional banks. One Save Bank has a 1.00 APY on their savings account.
3. Why Choose a High-Yield Account?
High-yield accounts maintain your cash’s value despite currency inflation or deflation. In addition, you can gain some small profits on the side.
However, high-yield accounts cannot reach an investment portfolio’s profit figures. They’re a great place to deposit and safeguard your cash against economic fluctuations.
4. Are High Yields Crucial for Savings Accounts?
High APY plays a big role in maintaining your cash’s value over time. APY is the winning argument against saving money in your wallet or cash box because it indicates the bank’s efforts to keep your cash afloat during inflation and deflation.
Most consumers have high APY misconceptions. For example, some savers believe high APYs can give them profit. The truth is otherwise because APYs ensure your cash has a “safety net” in case of inflation.
All savings accounts are low-risk investments. Thus, banks will never make stock market-style investments using your savings account cash.
5. Should I Link My Checking Account to My Citibank Savings?
Yes, you should.
All Citibank checking accounts can waive your Citibank savings monthly fee. Plus, you can use your Citibank Savings to catch overdrafts and avoid any next-day payment fees.
6. Can You Earn Money By Using Savings Accounts?
Your savings account does earn money with its changing APY. However, banks reinvest your cash to keep its value afloat. Thus, the money you earn can increase, but only in small increments.
For example, you can invest $1,000 in your 0.01% APY savings account. In a year, it’s going to earn a guaranteed $0.010.
7. What’s the Difference Between CDs and Savings Accounts?
Certificates of Deposit (CDs) are term deposits. These are cash that banks can use for a set amount of time. Therefore, your CDs have a bank-guaranteed maturity date, rate, and amount that you can withdraw.
On the other hand, bank savings accounts are containers. Banks can touch your money to make sure it stays afloat. However, they cannot use it for investments for an indefinite time. Thus, CDs have a higher return than traditional savings accounts.
8. Does Citibank Have Notable Checking Accounts?
Citibank has many notable checking accounts you can use for your financial needs or link to your new savings account. Learn more about them here.
- Elevate: Earn high yield checking balances and waived monthly and ATM fees. No minimum deposit required
- Private Client: Get the benefits of Elevate plus a Wealth building team, charitable estate planning, trust services
- Citigold Package: The benefits of Private Client plus access to market insight and global investment facilities.
Summing Everything Up
Citibank’s high-yield accounts are worth having if you’re already a Citibank user. However, you can get higher rates from online banks and other non-standard rates from other savings accounts.
Here are the pros and cons of using Citibank’s high-yield accounts:
- Accessible: No minimum deposit is required
- Higher than average APY
- Flexible account opening
- More opportunities for higher APY from online banks
- Non-standard rates from other banks can provide you with higher APY
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