Citi, one of the largest and oldest banks in the U.S., offers competitive yields on certain certificates of deposit (CDs). However, most of its available terms come in well below the best CD rates available on the market.
Annual percentage yields (APYs) and account details are accurate as of June 20, 2024 and could differ depending on your location. For the rates below, we’re using zip code 07030.
Overview of Citi® Certificates of Deposit
Citibank has a wide variety of terms and several different types of CDs.
Fixed rate CDs. Citi offers 19 terms from which to choose, ranging from three months to five years, offering 0.05% to 4.65%. Each offers fixed rates and charges early withdrawal penalties.
Citi® No Penalty CD. Citi has a 12-month no-penalty CD, which only earns 0.05%. (That’s well below the best no-penalty CD rates, however.) The benefit of a no-penalty CD is that you can access your money at any time without paying a fee. With rates so low, though, the juice isn’t worth the squeeze. Note that if this CD renews, it will not have the no penalty feature.
Citi® Step Up CD. Citi’s step-up CD offers a yield of 0.05% for the first 10 months, 0.10% for the next 10 months and then 0.15% for the final 10 months of the 30-month term. That yield structure is uncompetitive and also comes with an early withdrawal penalty.
| CITIBANK CDs | |
|---|---|
Minimum opening deposit | $500 |
Term lengths |
|
Compounding schedule | Daily |
Early withdrawal penalty |
|
Grace period | 7 days |
Pros and Cons of a Citibank CD
Pros
- Some competitive yields. While most of Citi’s nearly two dozen CDs offer lackluster yields, there is some gold to be mined. For instance, its 6-month CD comes with a 4.65% yield, which is competitive with the best 6-month CDs on the market.
- Low minimum balance requirement. You can get started with an initial deposit of just $500, which is affordable for many new savers.
- Big bank advantages. Citi has hundreds of branches and tens of thousands of fee-free ATMs available, along with a robust customer service operation and a well designed mobile app.
Cons
- Overall yields. Most of Citi’s CD offerings, though, come with abysmal yields. Even the feature 9-month CD only offers a yield of 3.75%, which is well below the best 9-month CDs available.
- Early withdrawal penalties. Should you need your cash before your CD term expires, you’ll have to fork over a sizable chunk of interest, depending on the length of your term. Many banks provide a no-penalty CD option as an alternative, but Citi’s yields so little that you’re better off with the best high-yield savings accounts.
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. 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.
| CD TERMS | APY | EARNINGS ON $10,000 |
|---|---|---|
3 months | 0.05% | $1.25 |
4 months | 0.05% | $1.25 |
5 months | 0.05% | $2.08 |
6 months | 4.65% | $230.09 |
7 months | 0.05% | $2.92 |
8 months | 0.05% | $3.33 |
9 months | 3.75% | $248.46 |
10 months | 0.05% | $4.17 |
11 months | 0.05% | $4.58 |
12 months | 2.00% to 3.00% | $200, $300 |
12 months (No Penalty) | 0.05% | $5.00 |
13 months | 0.10% | $10.83 |
14 months | 0.10% | $11.67 |
15 months | 4.00% | $502.48 |
18 months | 3.75% | $567.74 |
2 years | 2.00% | $404 |
30 months | 0.10% | $25.02 |
30 months (Step Up) | 0.10% composite | $25.02 |
3 years | 2.00% | $612.08 |
4 years | 2.00% | $824.32 |
5 years | 2.00% | $1,040.81 |
Where will CD rates go? Check out our CD rates forecast
How Citibank CDs compare
The best yields on Citibank Fixed Rate CDs generally compare favorably to the options available at the nation’s big banks, although you’ll find better options from the best CD rates on the market.
Here’s a look at Citi vs. Bank of America Featured CDs, Capital One 360 certificates of deposit and Chase relationship certificates of deposit.
The following rates reflect the offerings for a deposit of $10,000 in the zip code 07030.
| CD TERM | CITIBANK CD RATES (APY) | BANK OF AMERICA FEATURED CD RATES (APY) | CAPITAL ONE 360 CD RATES (APY) | CHASE RELATIONSHIP CD RATES (APY) |
|---|---|---|---|---|
6 month | 4.65% | 4.75% (7 month) | 4.25% | 3.00% |
12 month | 2.00% to 3.00% | 4.75% (13 month) | 5.00% | 2.00% |
24 month | 2.00% | 3.20% (25 month) | 4.00% | 2.50% |
36 month | 2.00% | 0.05% (37 month) | 4.00% | 2.50% |
48 month | 2.00% | 0.03% (Fixed Term CD) | 3.95% | 2.50% |
60 month | 2.00% | 0.03% (Fixed Term CD) | 3.90% | 2.50% |
What to look for when comparing CDs
When comparing CDs, you first want to decide on what term will best fit your needs. For instance, consider putting your Christmas budget into a six-month CD in June.
If you’re just looking to earn the highest yield possible, string together a CD ladder.
Quick tip. Consider opening terms at different banks when constructing your CD ladder so you earn the highest possible yield. You can track your savings in a basic spreadsheet or with a budgeting app
The higher the interest rate the better, but also look for minimum balance requirements and make sure you can meet them.
Lastly, take notice of early withdrawal penalties. Most CDs will have this penalty attached, but it can often be hard to find. Reach out to customer service and confirm if you are unsure.
How to open a Citibank CD account
1. Choose your CD
Citibank’s CDs range from three months to five years. Pick the one right for you on Citibank’s website and hit the “apply now” button beside the CD.
2. Log in or sign up for Citibank
If you’re a current Citibank customer, you can log in with your username and password. Otherwise you’ll need to set up your Citibank account and provide identifying information such as your name, Social Security Number and address. The bank also requires you to give data on your employment and income.
3. Fund your CD
Unless you are funding the CD with another Citi account, you will need to link an external account. Once linked, you can transfer your desired deposit amount into the CD. Keep in mind there is a $500 minimum balance requirement.
4. Set up online access
This step is only for new users who need to choose a username and password for their new Citibank CD account. This will allow you the option of viewing and making changes to your CDs via the website or on the Citibank app.
5. Sign paperwork
The last step is to review and sign the agreements and disclosures Citibank requires.
Documents you’ll need
You may need to look up some information, but you likely won’t have to submit any documents. Current customers can login and skip having to input some personal information:
- Name and date of birth.
- Social Security number or Taxpayer Identification number.
- Employment and income information.
If you don’t have this information at hand, you can find the appropriate documents and have them at your disposal.
Quick tip. Only consider a CD if you’re comfortable living without the money for the full length of the term. If you have an inkling you may need to dip into the principal, you’re better off opening a traditional savings account.
Alternatives to Citibank CDs
If you’re uncomfortable committing to a CD, consider these other savings options:
High-yield savings account
With rates currently competitive with CDs and far fewer restrictions, the best high-yield savings accounts may be tempting enough to deter you from CDs.
Many have no fees and don’t require a minimum balance. But, unlike CDs, the interest rate is variable and can change at any time. The yield on the Citi® Accelerate Savings is 4.35%.
Money Market Account
Money Market Accounts are a cross between a checking account and a savings account. The best money market accounts often earn interest rates similar to a savings account while providing easier access via a debit card or checks.
However, as with savings accounts, the interest rate is variable and can change at any time. Citibank doesn’t offer personal money market accounts in the U.S.
Pay off high-interest debt
If you have money you feel comfortable putting into a CD, compare the interest you would earn to the interest you would save if you used that money to pay off debt instead. If the APR on your debt is higher than what you would earn on a CD then you may be well served to use the money to reduce your debt instead.
Is a Citibank CD worth it?
Citibank CDs don’t always have the most competitive rates. Its highest CD yield is competitive with what other big banks offer, but other terms are severely lacking.
Depending on the term you desire, you may be better off going with another bank. Choosing the CD with the highest yield, regardless of the financial institution, could be your best bet. (Assuming, of course, that you have FDIC protection.)
Here are some of the best CD rates by term:
- Best 3-month CDs.
- Best 1-year CDs.
- Best 3-year CDs.
- Best 5-year CDs.
- Best 10-year CDs.
A Citibank CD may only be worth it if you want a higher rate than what its savings accounts offer and the convenience of sticking with Citibank outweighs what you’d earn by opening a CD at another financial institution.
About Citibank
Citibank is a New York-based multinational financial services company that was originally founded in 1812 as City Bank of New York. It has business interests in almost 100 countries and jurisdictions worldwide.
It is currently the fourth largest commercial bank in the nation, according to the Federal Reserve, and has more than 650 domestic branches, with another 115 international locations.
Citibank offers everything from credit cards to business loans to wealth management.
Frequently asked questions (FAQs)
Yes, a CD from Citibank is FDIC-insured (certificate number 7213). This means your deposit accounts are protected against bank failure up to $250,000 per owner, per account type.
Review the terms and current rates of CDs. The best rate for you may not be the highest rate that Citibank has to offer. With a CD, you also want to consider the term. If you have to break the CD before it matures, you will end up paying a penalty and reducing the interest earned overall.
As an early withdrawal penalty, CDs with terms of 1 year or less are charged 90 days of interest. CDs with terms greater than 1 year are charged 180 days of simple interest.
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 of saving has varying potential returns, risks 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 involves dividing your savings across multiple certificates of deposit with varying maturity dates — for example, opening three CDs each at one year, three years and five years. Then, as the CD matures, renew each into a longer-term CD, such as five years.
The strategy allows you 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.
Each CD at Citibank has a minimum deposit of $500.
The grace period for a Citibank CD is 7 days. This means that after the CD matures, it will roll into a new CD, but you have 7 days to cancel the new CD with no penalty.
Yes, Citibank has a No-Penalty CD. It has a 12-month term and an APY of only 0.05%. If you feel you will need the funds within the next 12 months, you may be better off using a high-yield savings account.
