Citibank Maxigain Savings Account

[SKenny]

hey guys, in view of this rumour posted earlier.. is it advisable to wait til july to open the account? i was planning to do it next week..

I went down to Citibank last week, and they told me about the new $70k limit for Maxigain.

Also the base interest will be 70% of 3 mth Sibor instead of the current 80%.

Take effect on 1st July.

 

[SKenny]

Someone may have asked this before
How they calculate/count lower balance of the month?
Let's say I am at the counter 2
1 May - balance 100K
10 May - withdraw 20K
12 May - deposit 25K
31 May - balance 105K
How they calculate my $ for May?
average daily balance? or 80K since I withdraw 20K.

Interest is calculate on a daily basis.

The step-up counter eligibility is based on the closing month amount.

Hopes this help.

 

[jnashville]

I went down to Citibank last week, and they told me about the new $70k limit for Maxigain.

Also the base interest will be 70% of 3 mth Sibor instead of the current 80%.


Take effect on 1st July.

So once sibor goes higher and higher, citibank can just change to 60 percent....50 percent..

Clap clap.

 

[SKenny]

So once sibor goes higher and higher, citibank can just change to 60 percent....50 percent..

Clap clap.

Technically, yes.

To be fair to Citibank, this is the first time they are changing the rate. Plus the current sibor rate is high (1.5%). If you combine the counter interest, total interest can be more than 2.2%.

I understand that citibank is not really keen to push this product due to the high rate. That is why you hardly see adverts on this product.

There is no lock-in period, and we can always take the money out if we do not like the terms. I would not complain too much as I do not want them to withdraw this product!

 

[doody_]

I already earned good interest for more than 2 years since I started the thread back in Feb 2016. IMO still worth to get this account. Treat it as a FD with flexibility to withdraw anytime and keep your interest earned.

 

[mdax23]

I went down to Citibank last week, and they told me about the new $70k limit for Maxigain.

Also the base interest will be 70% of 3 mth Sibor instead of the current 80%.

Take effect on 1st July.

3 mth sibor would be higher than 1 mth sibor

 

[tmkedmw]

Comes 1 July, revision is from 80% of 1 mth sibor to :

1st version : 70% of 1 mth sibor
2nd version : 70% of 3 mth sibor

 

[PC-User]

Comes 1 July, revision is from 80% of 1 mth sibor to :

1st version : 70% of 1 mth sibor
2nd version : 70% of 3 mth sibor

Sure not typo? Got so good meh?

 

[tmkedmw]

Sure not typo? Got so good meh?

we will be "worse off" with either version 1 or version 2, as

80% of 1 mth sibor is still higher than version 2's 70% of 3 mth sibor.

80%(1mth sibor) > 70%(3mth sibor) > 70%(1mth sibor)

 

[SKenny]

Comes 1 July, revision is from 80% of 1 mth sibor to :

1st version : 70% of 1 mth sibor
2nd version : 70% of 3 mth sibor

Sorry, it should be 1 month sibor. My bad.

 

[demoforce1]

Interest is calculate on a daily basis.

The step-up counter eligibility is based on the closing month amount.

Hopes this help.

So in my sample earlier, it is count as $105K
What happened if I do this:
1-May = 20K
2-May = withdraw 15K
31-May = deposit 16K
My last amount would be $21K which is higher than 1-May balance, then I'll get step count?

 

[PC-User]

we will be "worse off" with either version 1 or version 2, as

80% of 1 mth sibor is still higher than version 2's 70% of 3 mth sibor.

80%(1mth sibor) > 70%(3mth sibor) > 70%(1mth sibor)

Yeah lah. I meant where got reduce then increase back one?

If bank want to revise also we can't do anything mah. Like OCBC 360 also revised last time.

 

[maumu]

how significant is the 10% drop?

let's say 1mth sibor is 1.4%, then 80% of that is 1.12% vs 70% of that is 0.98% (+ 1.2% is still more than 2%...)

it would take a significant cut, or a drop of sibor rate, to bring it below or equal 2% if that is their goal.

it's still the best 150k savings account out there.

 

[Hwsemb]

I went down to Citibank last week, and they told me about the new $70k limit for Maxigain.

How about will there be any interest to be earned for deposit less than the new $70k requirement?

If no interest, perhaps should close off the account even if need to pay $50 early account closure fee.

 

[swordsly]

How about will there be any interest to be earned for deposit less than the new $70k requirement?

If no interest, perhaps should close off the account even if need to pay $50 early account closure fee.

Yea lor.
If they do change the terms, then isn't it like a new agreement? I wonder if they will waive the early account closure fee.

 

[Mecisteus]

To be fair to Citibank, this is the first time they are changing the rate. Plus the current sibor rate is high (1.5%). If you combine the counter interest, total interest can be more than 2.2%.

First time with this account. But Citi had done before with the older step up account.

This interest rate revision is expected on every special banking account. Just compare the rates with the market.

So enjoy while it lasts.

 

[heng_ah]

How about will there be any interest to be earned for deposit less than the new $70k requirement?

If no interest, perhaps should close off the account even if need to pay $50 early account closure fee.

The new $70k requirement is to maintain your Priority Customer status. You lose your status and become non-Priority customer when balance falls below $70k. This has nothing to do with interest calculation.

 

[cloverpark]

The new $70k requirement is to maintain your Priority Customer status. You lose your status and become non-Priority customer when balance falls below $70k. This has nothing to do with interest calculation.

What's the advantage of having the priority status? Higher interest rate for maxigain?

 

[compro_1975]

Advantage is u got a persinal banker...

I phoned mine ytd and he claims the plan is shelved... i kinda dont trust citi as my welcome bonus isnt in!

 

[jnashville]

The new $70k requirement is to maintain your Priority Customer status. You lose your status and become non-Priority customer when balance falls below $70k. This has nothing to do with interest calculation.

wah different people say different thing.

so below 70k got interest or dont have???

one say CSO mention new interest revision of 70 percent sibor rate and must have minimum 70k, another one say only lose status of non Priority customer and nothing to do with interest calculation. O_O