Update 2/22/2010: Citi's website now states the maximum CD deposit is $5,000.
Citibank continues to offer a 4.07% APY 18-month CD as part of its Citi Secured MasterCard program. I first posted on this deal in early August. The 4.07% APY is still listed as of 12/22/09 in the Additional Disclosures. The link to this disclosure is located at the bottom of the Citi Secured MasterCard page. It's surprising to see the rate still this high. As I mentioned before, it's possible that the credit card division didn't give much thought about CD rates. It may be an example of an oversight by the bureaucracy of a large company.
I described the CD details in this September post. A few important details include:
- $25,000 maximum deposit
- Must also apply for secured credit card which has an annual fee of $29 (Will likely require two $29 charges during life of CD)
A reader mentioned this Bankrate article on secured credit cards if you want to learn more about these. They're intended for those with poor credit history, and there have been reports that Citi will reject your application if your credit is too good. However, several readers who have very good credit have reported success in opening this CD. Not all have been successful. A few have reported that they were denied because of TeleCheck. As one reader commented, their online application is new, and apparently quite clunky. You might have better luck applying by mail. Another thing to note is that most everyone who has contacted Citibank about this promo has been disappointed by their customer service.
One bit of uncertainity is how timely will the funds be received at maturity. One reader reported the following:
Be aware folks that receiving your funds timely will be challenging. I talked to the "presidential office" to find out the details which are not published. It appears there is a half dozen scenarios when the CD matures. The worst could be in excess of six weeks or longer. The best scenario is the following. Citi sends out notice 30 days prior to maturity. At least 60 days prior to maturity stop charging. When you receive maturity notice notify Citi you do not want to renew. This gives 4-6 weeks without charge card activity. The check will be mailed 7-14 days later. You need to start the clock prior to maturity date. Also it was recommended to use the card at least once every 6 months otherwise Citi may cancel the card.