Citibank's savings account rates are lower than most online banks
Citibank does not offer a dedicated high yield savings account. The bank's standard savings products—including its basic Savings Account and Money Market Account—pay rates well below what online banks and credit unions currently offer. As of early 2024, Citibank's savings rates typically range from 0.01% to 0.02% annual percentage yield (APY), while online banks regularly pay 4% to 5% APY on savings accounts with no minimum balance.
Citibank's strength is in branch access and customer service, not deposit rates. If you already bank with Citibank for checking or loans, keeping a small emergency fund there may be convenient. But if your goal is to earn meaningful interest on savings, you will earn significantly more money elsewhere.
Key Takeaways
- Citibank's savings accounts pay 0.01% to 0.02% APY, which means $10,000 earns roughly $1 to $2 per year in interest.
- Online banks and credit unions pay 4% to 5% APY on savings accounts, earning $400 to $500 per year on the same $10,000.
- Citibank offers no high yield product, though its Money Market Account may have slightly higher rates than its basic savings account.
- Moving money between Citibank and an online savings account takes one to three business days but costs nothing and can be reversed.
How Citibank's savings rates compare to other banks
The gap between Citibank and online banks is substantial. A $50,000 savings balance earning 0.01% at Citibank generates $5 per year. The same balance at an online bank paying 4.5% generates $2,250 per year—a difference of $2,245 annually. Over five years, that gap reaches $11,000 or more.
Citibank's rates have not kept pace with the Federal Reserve's interest rate increases since 2022. While the Fed raised rates to combat inflation, online banks passed those increases to customers almost immediately. Citibank raised its savings rates only slightly and much later. This is a common pattern: large brick-and-mortar banks keep deposit rates low because they have high overhead costs (branches, staff, real estate) and do not need to compete aggressively for deposits.
Credit unions often pay rates closer to online banks, sometimes 4% to 5% on savings accounts. If you are a member of a credit union, check their current rates before opening a Citibank savings account.
Citibank's savings account options and what they pay
Citibank offers two main savings products: the Savings Account and the Money Market Account. Both are FDIC-insured up to $250,000, which means your money is protected if the bank fails. Neither product has a minimum balance requirement to open, though some Citibank branches may require a small deposit to fund the account.
The Savings Account is the basic option. It typically pays 0.01% APY and allows unlimited transfers out per month (though federal rules once limited this to six; that rule was suspended but may return). You can withdraw money at any Citibank branch or ATM without penalty.
The Money Market Account usually pays a slightly higher rate—sometimes 0.02% APY—but the difference is negligible. It may require a higher opening deposit at some branches. Both accounts charge no monthly maintenance fee if you maintain a small balance, though fees vary by location and account type.
Why you might keep money at Citibank despite low rates
Convenience is the main reason. If you already have a Citibank checking account and use the branch or ATM network regularly, keeping a small savings account there eliminates the need to transfer money between banks. You can deposit cash at a branch, which some online banks do not allow. You can also speak to a banker in person if you have questions.
Citibank has roughly 2,200 branches in the United States and access to a large ATM network. If you travel frequently or move often, this network may matter. Online banks have no branches, so all deposits and withdrawals happen by mail, mobile app, or ACH transfer.
The trade-off is clear: convenience costs you money. A $25,000 balance earning 0.01% at Citibank generates $2.50 per year. The same balance at an online bank earning 4.5% generates $1,125 per year. If convenience is worth $1,122.50 to you annually, keep the money at Citibank. Otherwise, move it.
How to move money from Citibank to a high yield savings account
The process takes minutes and costs nothing. Log into your Citibank account online or through the mobile app and look for "Transfer Money" or "External Transfers." You will need the routing number and account number of the online bank where you want to send the money. The online bank's website displays both numbers in the account setup section.
Enter the amount you want to transfer and submit. Citibank will send the money via ACH (Automated Clearing House), which typically takes one to three business days. The money leaves your Citibank account immediately but does not arrive at the online bank until the transfer clears. You can cancel a transfer during this window if you change your mind.
Some online banks offer a faster option: they can pull money directly from your Citibank account using your login credentials. This is called "account aggregation" and can complete in hours rather than days. Ask the online bank whether it offers this feature before you open an account.
What to look for in a high yield savings account
The APY (annual percentage yield) is the most important number. It tells you exactly how much interest you will earn in one year. Compare rates across multiple banks before deciding. Rates change frequently, so check again before you transfer money.
FDIC insurance is essential. Make sure the online bank is FDIC-insured and that your balance stays under $250,000 per account. If you have more than $250,000 to save, you can open accounts at multiple banks to stay within the insurance limit at each one.
Minimum balance requirements vary. Some online banks require $0 to open; others require $25,000 or more. If you have a small amount to save, choose a bank with no minimum. If you have a large balance, a higher minimum may not matter.
Withdrawal restrictions are rare but worth checking. Most online banks allow unlimited withdrawals, but some limit transfers to a certain number per month. Read the account terms before you open.
Frequently Asked Questions
Can I move money back to Citibank if I change my mind?
Yes. The transfer process works in both directions. You can move money from the online bank back to Citibank using the same ACH method. It takes one to three business days and costs nothing. There is no penalty for moving money between banks.
Will moving my savings hurt my credit score?
No. Moving money between savings accounts does not affect your credit score. Credit scores are based on borrowing and repayment history, not on where you keep your savings. Opening a new savings account may trigger a soft credit inquiry, which does not lower your score.
What if Citibank goes out of business?
Your money is protected up to $250,000 per account type by FDIC insurance. If Citibank fails, the FDIC will transfer your account to another bank or send you a check. This has not happened to a major U.S. bank since 2008, but the insurance exists for this reason. Online banks are also FDIC-insured, so your money is equally safe at either type of bank.
Do I need to close my Citibank savings account to open one elsewhere?
No. You can have savings accounts at multiple banks at the same time. Many people keep a small account at their main bank for convenience and a larger account at an online bank for interest. There is no penalty for having accounts at both.
Are there any Citibank savings products that pay more than 0.02%?
Not currently. Citibank's Money Market Account is its highest-paying savings product, and it typically pays only 0.02% APY. The bank does offer certificates of deposit (CDs), which lock your money away for a set period (three months to five years) in exchange for a higher rate. Citibank CD rates are still low compared to online banks, but they are higher than savings account rates. Check current CD rates if you have money you will not need for several months or longer.