Citigroup CEO, however, seems to be willing to look beyond these costs to the goal of being a leader in online banking. He states that "It will become the dominant way of doing banking and with our better nationwide brand... we have the ability to go for it in ways others don't have."
A familar name and with local branches, Citibank's e-Savings account will be hard to beat. This should force smaller banks like EmigrantDirect to be competitive. Although no one seems to be in any hurry to reach 5% on savings accounts.
One issue with big banks like Citibank will always be customer service. They don't always follow through on their deals. The $200 Citibank checking account and credit card deal may be one. Several have reported having trouble in this deal.