by BullMusicalParty
I opened the account up to save for a down payment on a house. I opened the account with a $90000 deposit from sale of investments and eventually had $115000 in it. When I initially went to withdraw the money I learned I had a daily cap of $10000. I said, okay that sucks but I’ll just make 6 transfers at the end of February and 6 at the beginning of March and make this work. My first transfer went through and subsequent transfers were canceled because of a limit. I then learned I had a $15000 monthly transfer limit on the account. To overcome this, I spent 50 minutes on the phone today and closed my account. I’m receiving a check for the full amount.
Short summary I would not recommend Citibank Accelerated Savings if you plan to deposit more than $15000 and would like to get access to your money. So unless you are looking for a banking product which lets your deposits never leave (okay leave in 15000 monthly increments) look elsewhere.
Editing to respond to comments
Question 1 – Why are you complaining versus taking personal responsibility for research you could of done?
I read the short marketing description of the product with the limit of 6 withdraws. I’m familiar with Regulation D and wasn’t surprised by the 6 monthly withdraw limit. I re-reviewed the marketing materials and they do not mention the $15000/month withdraw limit. After learning this new information about the limit, I’ve closed my account with Citibank so I can get a financial product which fits my needs. In my opinion that is taking responsibility.
Question 2 – Why did you do not do a wire transfer or ACH pull from another bank?
I didn’t do a wire transfer because of the fees. I didn’t do an ACH pull from another bank because I wanted the account closed after learning about the limit and getting a check seemed like the simplest way forward to end my relationship with Citibank. I also don’t immediately need the money. I’m currently staging the money 1 month before I need it.
Question 3 – Why didn’t you go to the branch to work this out?
Citibank doesn’t have a branch in my city. I opened the account online.
Question 4 – Why did you put $100K in a low yield saving account?
Citibank is currently #5 on bankrate’s top yield savings accounts.
Question 5 – Why are you so financially un-savvy to park so much money in a savings account when their are so many great options with higher returns?
I have a balanced portfolio where the majority of my wealth is spread in very low fee stock index funds. I keep a certain amount of cash on hand to plan for upcoming purchases such as a down payment of a house and to always be in a position to put a new roof on my current house. I also like to diversify away from a single company and if the day ever comes where I learn Fidelity, M1 Finance, or Vanguard is under investigation I know not all my fortune is residing with one company. I also think FDIC insurance is a useful tool to protect a small amount of your wealth.
Questions 6 – Would you recommend Citibank Accelerated Savings?
Yes, if you keep a balance of less than $10K.
Disclaimer: This content does not necessarily represent the views of IWB.