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Citibank offers 19 “Fixed Rate” certificate of deposit (CD) terms, ranging from three months to five years. The bank’s CD rates tend not to be competitive among online banks, and Citi requires a $500 minimum deposit to open a CD.
Here’s an overview of Citi Certificates of Deposit rates. Rates may vary by location. For the purposes of this article, we’ve used the New York City ZIP code of 10001. Annual percentage yields (APYs) are accurate as of May 3, 2024.
Overview of Citibank CDs
Citibank’s Fixed Rate CDs require a minimum $500 opening deposit, which is modest compared to some other major national banks requiring deposits of $1,000, like the Bank of America Fixed Term Certificates of Deposit. However, many other online banks offer more favorable CD rates with similar or lower opening deposit requirements.
Interest on CDs at Citibank is compounded daily and credited to your account monthly (for CDs with terms longer than one year; for CDs with terms of one year or less, interest is paid either monthly or at the end of the CD term). You can choose to withdraw interest at any time during the term after it’s been credited to your account, but keep in mind that this will reduce your balance and lower the amount of interest you earn.
If you need to withdraw your principal funds from a Citibank Fixed Rate CD early, there’s a substantial early withdrawal penalty. For CDs with terms of one year or less, you’ll forfeit 90 days’ simple interest. For CDs with terms greater than one year, you’ll forfeit 180 days’ simple interest.
In addition to its Fixed Rate CDs, Citibank offers the Citi Step-Up CDs. With this CD, your interest rate automatically increases every 10 months, paying a composite 0.10% APY over the 30-month term. The bank offers the 12-month Citi No-Penalty CD as well, which allows you to withdraw your full balance and interest without penalty at any time after the first six days after you deposit funds into your account. The No Penalty CD currently earns 0.05% APY.
Terms for Citibank’s Fixed Rate CDs are plentiful, making it easy to find a CD term that aligns with your savings timeline.
How Much Can You Earn With Citibank’s CD Rates?
With such low yields, don’t expect to earn much interest on your Citibank Fixed Rate CD. Before investing in a CD, make sure to crunch the numbers and see how much interest you could earn.
To find out what you can earn with Citibank’s CDs, use our CD calculator:
How Citibank’s CDs Compare
While Citibank’s Fixed Rate CDs rates are comparable to rates offered by other large national banks, they’re significantly lower than the best CD rates currently available. Many of Citibank’s CD rates are also lower than the national average CD rates. According to April 2024 data from the FDIC, the average rate on a three-month CD is 1.65%, but a Citibank CD with the same term earns just 0.05% APY.
If you’re interested in using CDs as part of your savings strategy, you can find better rates than Citibank offers. This is a great reminder to shop around before buying a CD. Researching CDs at several banks and credit unions can help you find the best rates and terms to match your savings goals.
How To Open a Citibank Account Online
Opening a Citibank CD account online is a straightforward process.
- Visit the Citibank website and select the CD account type that best suits your needs.
- Select “Apply Now” to begin the application process.
- Provide the required personal details and contact information.
- Verify your identity and provide any additional requested information, like your employment or income.
- Fund your new CD account with the minimum deposit amount by linking an external bank account or, if you have one, a Citibank account.
- Set up online access to manage your CD through online banking.
- Review and agree to the agreements and disclosures.
Pro Tip
While CD accounts offer guaranteed returns, you could risk losing out on higher returns after locking in your deposits. One strategy to offset this risk is to create a CD ladder by opening multiple CDs with different maturity dates. This way, you have access to cash through your shorter-term CDs that you can then reinvest at a higher rate if rates increase.
About Citibank
Citibank, the retail banking subsidiary of Citigroup, Inc., is the fourth-largest bank by assets. This U.S.-based bank is well known for its retail banking and credit card offerings. It serves more than 110 million clients in the U.S., Mexico and Asia. Citibank offers a wide variety of products, ranging from CDs, checking and savings accounts to mortgages and investment products.
Other Options for Citibank CDs
If you decide Citibank’s fixed-rate CDs aren’t right for you, you can also consider the bank’s step-up CD and no-penalty CD.
This CD is only available with a 30-month term and requires a $500 minimum opening balance. As a step-up CD, it offers an interest rate increase every 10 months. You’ll earn 0.05% APY for the first 10 months, 0.10% APY for the following 10 months and 0.15% APY for the final 10 months for a composite 0.10% APY over the course of the 30-month term.
Citibank’s no-penalty CD is a 12-month CD with a $500 minimum opening deposit requirement that allows for one penalty-free withdrawal. You must withdraw your entire balance if you choose to make an early withdrawal. While this CD offers more flexibility, it only pays 0.05% APY.
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Frequently Asked Questions (FAQs)
How much interest does Citibank pay on a savings account?
Citibank offers two types of savings accounts: the Citi Access Savings Account and the Citi® Accelerate Savings. The interest rate on a Citi Access Account varies by ZIP Code, and the interest rate on a Citi Accelerate Savings Account is 4.45% APY. These accounts are only open to residents of certain states.
Is Citibank a credit union?
No, Citibank is not a credit union. Credit unions are member-owned nonprofits, while Citibank is a for-profit bank.
When you build a CD ladder, you purchase multiple CDs with different terms. With this type of strategy, your CDs mature regularly, offering more liquidity than a single CD.
Should I open a CD or a high-yield savings account?
When choosing between a CD and a high-yield savings account, consider your liquidity needs. If you don’t need access to your cash regularly, a CD could be the better option. But if you need to make more frequent withdrawals, you may want to opt for a high-yield savings account.
CDs purchased through banks and credit unions are considered safe investments. Banks are backed by FDIC (Federal Deposit Insurance Corporation) insurance, and credit unions are backed through NCUA (National Credit Union Administration) insurance. Both protect you in the event of bank failure. Citibank is a member of the FDIC (FDIC certificate No. 7213), and its CDs are FDIC-insured up to $250,000 per depositor for each account ownership category in the event of a bank failure.
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