Citizens Access, a new internet division of Citizens Bank (RI), has debuted its new Online Savings Account and a variety of competitive Online CDs. Let’s talk about the Online Savings Account first.
Online Savings Account
The Online Savings Account earns 2.00% APY on balances of $5k and above; balances between $0.01 and $4,999.99 earn 0.25% APY. Citizens Access reserves the right to close an Online Savings Account if the balance remains “below $5,000 for an extended period of time.” The minimum opening deposit is $5k.
|2.00*%||$5k||-||Citizens Access||Online Savings Account|
|OTHER TIERS: 0.25% → Up to $5k|
There are no fees associated with the Online Savings Acccount.
Unlike most banks, Citizens Access charges zero fees, no account
opening or maintenance fees, no ancillary service fees. No fees for anything.
When a new bank opens its doors, real or virtual, great rates and hot deals are de rigueur, but after a while the competitive edge dulls. Based on the number of times I saw the following sentiment expressed on Citizens Access’ website, perhaps this new online bank plans on being in the forefront for some time.
We offer market-leading rates, with no promotions or teasers.
Accessing Your Money
The Online Savings Account has no ATM/debit card and any withdrawal can be done by logging “in to your account, select Transfer Funds from the Move Money menu, and transfer the desired amount to your external bank.” You can also request a check be mailed to you. The limit for ACH transfers is $250k for each of the six monthly transactions allowed. In keeping with the Bank’s “no fees for anything,” there is no excess transaction fee beyond the monthly six withdrawals, but,
If you exceed these limits 3 or more times during any 12 consecutive monthly statement cycles on your savings account, we may close your account without prior notice. We may
do this sooner if you significantly exceed these limits in any one month.
Of the seven Online CDs initially being offered, the most competitive are the 12-month (2.50% APY), 3-year (3.00% APY), and 4-year (3.05% APY). Like the Online Savings Account, any of the Online CDs require a $5k minimum deposit.
There are no partial withdrawals allowed. As stated in the Deposit Accounts Agreement,
If we permit you to make an early withdrawal, your CD account will be closed and we may assess you an early withdrawal penalty if you close your CD account prior to its scheduled maturity date.
- Short-term CD (one year or less) - 90 days interest on the CD balance.
- Long-term CD (more than one year) - 180 days interest on the CD balance.
There is a 10 calendar-day grace period in which to access your matured funds. When opening a CD, the application process provides different maturity options, including naming an institution to receive the maturing funds. This can be a different account/bank than the funding account/bank. Citizens Access’ online banking portal allows you to manage all aspects of your CD, including changing the account/bank that will receive maturing funds.
Thanks to DA reader, mathewp, for his Forum post about this new internet bank.
In mid-May, Citizens Financial Group, Inc. announced its intention to “launch Citizens Access, a nationwide direct-to-consumer digital platform.” In other words, a new internet bank. One of the country’s oldest and largest financial institution, Citizens Financial Group, Inc. is also the parent company of Rhode Island-based Citizens Bank.
Opening an Online Savings Account can only be done online. There are two ways to fund a new Online Savings Account: either through an online funds transfer from a U.S. financial institution or by depositing a check (either electronically or via snail mail) drawn on a U.S. financial institution (no foreign checks are permitted).
Trust accounts are currently not available at Citizens Access, but account beneficiaries are permitted. According to CSR, Social Security numbers are required when naming a beneficiary.
As an online division of Citizens Bank, Citizens Access operates under Citizens Bank’s FDIC Certificate and shares its financial history.
Citizens Access/Citizens Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 4.16% (excellent) as of March 31, 2018. In the past year, Citizens Access/Citizens Bank has increased its total non-brokered deposits by $4.63 billion, an excellent annual growth rate of 5.76%. Please refer to our financial overview of Citizens Access/Citizens Bank (FDIC Certificate # 59757) for more details.
Note: According to Citizens Access’ Deposit Account Agreement,
Citizens Access is a division of Citizens Bank, N.A. Deposits of Citizens Access and
Citizens Bank, N.A. are combined and not separately insured for FDIC insurance purposes.
Citizens Bank traces its origins to High Street Bank, which was founded in 1828 in Providence, Rhode Island. In 1871, the Bank established its own savings bank, Citizens Savings Bank. Through more than 30 acquisitions and natural growth, Citizens Bank evolved from the fifth-largest bank in the smallest state in the U.S. into Rhode Island’s largest bank and the 21st largest bank in the country. The Bank’s expanded footprint, from New England into the Mid-Atlantic and the Midwest, encompasses more than 30 percent of the U.S. population.
How the Online Savings Compares
When compared to the Savings Accounts tracked by DepositAccounts.com that are available nationwide, Citizens Access’ Online Savings APY currently shares ranks second.
To search for the best Savings Account, both nationwide and state specific, please refer to DepositAccounts.com’s Savings Account Rates page.
How the Online CDs Compare
When compared to 210 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, Citizens Access’ 12-month Online CD APY currently shares the top spot with five 1-year CDs offered by three other internet banks and two easy membership credit unions.
When compared to 207 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, Citizens Access’ 3-year Online CD APY currently shares the top spot with seven CDs with terms around 36 months from three banks and four credit unions.
When compared to 175 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, Citizens Access’ 4-year Online CD APY currently ranks second.
The above rates are accurate as of 7/10/2018.
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.