[Update June 23, 2020: Citi lowered the rate on their Accelerate Savings account to 1.20% APY from 1.35% APY.]
[Update: The Citi Accelerate High Yield Savings Account had its rate lowered to 1.35% APY. Down from 1.40% APY.
[Update: The Citi Accelerate High Yield Saving Account lowered its rate again at the end of May from 1.55% APY to 1.40% APY.]
[Update: The Citi Accelerate High Yield Savings Account saw its rate lowered at the end of April to 1.55% APY. Down from 1.60% APY.]
[Update: The Citi Accelerate High Yield Savings Account rate lowered to 1.60% APY from 1.70% APY on or around March 23rd. This marks the second rate decrease in a month since the FED moved rates back to zero.]
[Update: The Citi Accelerate High Yield Savings Account rate lowered to 1.70% APY from 1.85% APY on March 10, 2020.]
Some of the big retail banks are still competing for consumer deposits with better than average APYs despite an abysmal savings rate environment over the last several years. Not to mention the Fed’s commitment to keep rates near zero.
Citibank, the retail banking division of Citigroup, is one in particular that has remained competitive.
In February of 2019 they launched a noteworthy online savings account dubbed the Citi® Accelerate High Yield Savings Account that still holds a respectable APY compared to its peers in 2020.
Today the account comes with a standard interest of 1.19% and an APY of 1.20% on minimum monthly balances of at least $500.
The Citi Accelerate High Yield Savings account is one of the highest yielding, FDIC-insured accounts available.
Setting up a Citi Accelerate Savings Account
Prior to setting up your Citi Accelerate Savings Account you’ll need to first open one of Citibank’s five banking packages.
Below are the 6 packages to choose from. All come with the Citi Accelerate Savings Account:
- Citi Gold – For high net worth clients. In order to have a Citigold Account Package, you must have at least $200,000 across eligible linked deposit, retirement and investment accounts. There are no monthly service fees for Citi Gold clients.
- Citi Priority – Also tailored to higher net worth individuals or joint account holders. Package includes a regular or interest checking account and Citi Accelerate Savings Account upon opening. Must maintain a combined average monthly balance of $50,000+ in eligible linked deposit, retirement and investment accounts to avoid $30 monthly service fee.
- The Citibank Account – Package includes a standalone Citi Accelerate Savings Account upon opening. Link to a regular or interest checking account and maintain required balances to help avoid monthly service fees. Must maintain a combined average monthly balance of $10,000+ in eligible linked deposit, retirement and investment accounts to avoid $25 monthly service fee.
- Citi Elevate Account – Package includes an interest checking account and Citi Accelerate Savings Account upon opening.
- Basic Banking/Access Account – Package includes a standalone Citi Accelerate Savings Account upon opening.
Citibank claims that the APY you receive is determined by a multitude of factors including your physical or residential address and/or deposit amount.
That said, we ran a few search scenarios using their rate comparison widget to “compare savings rates across packages by amount” (you can find this on their Citi Accelerate page) and found a consistent 1.19% interest and 1.20% APY across multiple zip codes and various deposit amounts.
The only exception to this is when searching states in which the Citi Accelerate Savings Account is not available. In these states you are offered a standard Citi Savings Account as an alternative. This account comes with a lower, but still respectable APY.
If you live in an eligible state and see a different APY for the Citi Accelerate Savings Account based on the criteria you’ve selected then please let us know about it in the comment section.
More on the APY below.
Who’s eligible for the Citi Accelerate Savings Account?
Only residents in the following states are eligible for the Citi Accelerate Savings Account:
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
Citi Accelerate Savings Account APY – 1.20%
As mentioned above, while Citibank stipulates rates and APY will vary depending on region and/or deposit amount, we don’t see that to be the case currently in any eligible state.
Below are a few examples we’ve run to give you an idea. The rates in the screenshots are slightly outdated but you can see that we get the same APY regardless of location. The same is true today with the 1.20% APY offer.
First, we tried a Seattle-area zip code and assumed a deposit of $10,000 or less. Our results – 1.19% standard interest rate and 1.20% APY.
Second, we tried a Detroit-area zip code and assumed a deposit between $100,000 and $499,999.99. Our results – 1.19% standard interest rate and 1.20% APY.
Last, we tried a Charlotte, North Carolina zip code and assumed a deposit of $1,000,000 or more. Our results – 1.19% standard interest rate and 1.20% APY.
As you can see above, regardless of location, account package types or deposit size, the Citibank Accelerate High Yield Savings Account seems to provide the lucrative 1.20% APY across all variables.
Keep in mind this is a variable rate and is subject to change at anytime. Interest is compounded daily and paid out monthly.
Citi Accelerate Fees, Requirements and Account Details
If you can keep a monthly minimum balance of at least $500, then Citi will waive the $4.50 monthly service fee that comes with the account.
You’ll also want to note that there is no check writing with the Citi Accelerate Savings Account and as a customer you’re limited to six outgoing transfers or withdrawals per month (per federal regulations).
The account is FDIC-insured up to $250,000 against bank insolvency.
Accessing your Citi Accelerate Savings Account
Citibank has taken pride in building industry-leading digital banking products and tools. In 2018 Citibank was named (again) as the “World’s Best Digital Bank” by Global Finance.
Once you have your username and password, you can login anytime, anywhere to your account here – https://online.citi.com/US/login.do.
You can also download their native app(s) on IOS or the Google Play Store.
The app has 1.6 million user reviews on IOS and holds a 4.9 star rating out of 5.
The app has ~415,000 user reviews on Google Play and holds a 4.7 star rating out of 5.
If you don’t feel burdened by linking this account to one of their five Citibank account packages, then the APY alone makes it a decent option.
At 1.20% APY it beats the current national average by a significant margin. The current average savings rate hovers around 0.06% APY nationally to put this in perspective.
Be sure to monitor your average monthly balance closely if you think it could near the $500 mark as a $4.50 monthly service fee could wipe away interest earnings and even parts of the principal.