Citibank CD rates: August 2023
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Published 1:47 a.m. ET Aug. 1, 2023
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Citi is one of the largest and oldest banks in the United States. It offers a wide range of financial services, including a competitive set of certificate of deposit (CD) accounts, although you can find better rates from other institutions.
Annual percentage yields (APYs) and account details are accurate as of April 6, 2023 and could differ depending on your location.
Citibank CD offerings include:
- Fixed Rate CD: An APY of 0.05% to 4.30% for terms of three months to five years.
- Step Up CD: 30-month CDs with rates that increase every 10 months, from 0.05% to 0.10% to 0.15%.
- No Penalty CD: 12-month CDs with a fixed APY of 4.05% and no early withdrawal penalty.
Overview of Citibank CDs
A CD is a type of savings account that earns interest on a lump sum deposit over a set period. You deposit the funds all at once and typically can’t withdraw the principal until the end of the CD’s term without incurring a penalty. CDs tend to have higher interest rates than checking, savings and money market accounts.
Citibank offers three distinct types of CD accounts: Fixed Rate, Step Up and No Penalty.
The Fixed Rate CD is a typical CD with a guaranteed interest rate for a fixed term. The Step Up CD offers a guaranteed interest rate that increases every 10 months while your money is in the account. The No Penalty CD is a fixed-rate CD with no early withdrawal penalty.
The Fixed Rate CDs offer savers a variety of term lengths (19 in all), giving savers an opportunity to pick the length that best suits their needs. Whether you need to hold a deposit for four months, or for five years, you’ll find an option.
However, not all terms offer a competitive rate, eroding some of the value of such an array of options. For instance, the three-month fixed rate CD has a 3.00% APY, while the APY on an eight-month term, for instance, is just 0.05%.
The minimum deposit on all of Citibank’s CDs are low enough that most savers can get going without too much trouble, though the early withdrawal penalties on the Fixed Rate CDs and the Step Up CD are expensive. Savers, then, should only apply for those products if they’re reasonably confident they won’t need the money.
If that’s not you, the No Penalty CD is a better option. However, you’ll need to take out your entire balance and do so only after the first 6 calendar days of your initial deposit. Therefore make sure you use money that you know you will not need within a week.
How Much Can You Earn With Citibank CDs?
How much you can earn from a CD depends on the size of your deposit, your interest rate, the term of the CD and whether you renew the term after its maturity date. Like any interest-bearing product, the bigger your deposit and the longer you leave it in the account, the more you can earn.
Here’s an example of what you might be able to earn with a $10,000 contribution in each Citibank CD (assuming no early withdrawals).
How Citibank CDs Compare
Citibank Fixed Rate and No Penalty CDs offer significantly higher interest rates for some term lengths than the national average reported by the FDIC.
For example, a three-month Fixed Rate CD offers a 3.00% APY, while the national rate is just 0.57%. A one-year Fixed Rate CD offers 4.15%, while the national rate is just 1.28%.
The APY on other term lengths on Citibank’s Fixed Rate CDs, though, are less competitive. Other financial institutions offer higher rates, some with fewer fees, than Citibank.
Therefore you should shop around before making a final decision.
About Citibank
Citibank is a New York-based multinational financial services company that was originally founded in 1812 as City Bank of New York, with business interests in more 160 countries and jurisdictions around the world.
It is currently the third largest commercial bank in the nation, according to the Federal Reserve, and has more than 660 domestic branches, with another 143 international locations.
Customers use Citibank for everything from credit cards to business loans to wealth management.
Some additional ways you could save, alongside of or instead of in CDs, include: a traditional savings account, high-yield savings account, money market account, retirement account or taxable investment account. Each mode for saving comes with varying potential returns, risk and requirements, and a financial planner can help you determine which accounts will work together to help you meet your financial goals.
A CD ladder strategy is a method of dividing your savings across multiple certificates of deposit with varying maturity dates—one year, three years, five years—then renewing each into a longer-term CD, such as five years. The strategy gives you access to cash out about once per year without penalty, as each CD reaches its maturity date, while taking advantage of the fixed interest rate on the remainder of your funds.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
