Citibank is offering a $25 sign-up bonus for its new Ultimate Savings Account. This new Ultimate Savings Account has a yield of 4.65% APY which is just under the e-Savings Account rate of 4.75% APY. Unlike the e-Savings Account, this Ultimate has no checking account requirement.
Here's the bonus promotional page link. It appears that a $1 deposit would be sufficient for the bonus. This offer ends on 4/30/07. It's available only to first-time Citibank deposit account customers. The bonus will be credited to your account within 90 days from the end of the statement period in which your account was opened. Bonus will be reported to IRS as interest.
Higher bonuses are available if you don't mind opening the EZ Checking Account. Please refer to my Citibank bonus post for more information.
This Citibank savings account does have some advantages over ING Direct's savings account. First, the account can be fully serviced at any Citibank Financial Center. It still has to be opened online or by phone, but after it's opened, you're free to deposit money at a branch. Also, unlike ING Direct's savings account, it has a Citibank ATM Card.
The one downside to Citibank is the limitations they place on their bank-to-bank transfer system (what they call the Citibank Inter Institution Transfer service). Here's the limitations and fees page link for this system. Citibank doesn't make it easy to withdraw a large amount of money. Outgoing ACH transfers are limited to a maximum $5,000/day and $10,000/month for the standard 3-business-day service. It's even smaller for the next day service. At least both services are free. To go above these limits for an electronic transfer requires online wire transfers which have a $30 fee for outgoing transfers. Note, you should be able to do a push or pull using another bank's ACH system. Unlike ING Direct, I don't think Citibank blocks these.
Thanks to the reader who mentioned this bonus in the finding deals post.