Citibank is offering a $2,000 bonus to new customers
For the past year, the Federal Reserve has worked tirelessly to tame record-high inflation. As a result, the Federal Funds Rate has been consistently raised in increments of 25 to 75 basis points to get the economy running smoothly again. The catch: Rising interest rates increase the cost of borrowing. But this isn’t all bad news for savers and checking account holders. Having fewer borrowers means banks are looking for other ways to attract new customers, often in the form of higher annual percentage returns (APYs) or lucrative checking account bonuses.
One of the highest checking account bonuses available today: Citibank’s New to Citi Checking Cash Bonus Offer.
Citibank checking account cash bonus: $2,000
For a limited time, Citibank is offering a cash bonus of $200, $500, $1,000, $1,500, or even $2,000 to new customers who open a checking account with Citibank, Citi Priority, Citigold, or Basic Banking by April 4, 2023.
To qualify for the bonus you must:
- Are a new customer (18 years or older) and have not held a Citi checking account in the last 180 days. Your checking account must be opened by phone or online using a residential or private address (not a mailing address) in an approved location. Offer valid in most US states and select markets in Florida and Illinois.
- Sign up for the New-to-Citi Checking Cash Bonus offer the same day you open your new checking account. You can register online or by calling a Citibank representative.
- Make a qualifying deposit on day 20 (or day 30 if you opened your account over the phone) after opening your account. Citibank checks your balance, which determines the maximum bonus you can potentially earn. Cash deposits, Citi Global transfers, Citi debit cards, and transfers between Citibank accounts are not eligible. You must fund your account using advanced direct deposit, checks or wire transfers.
- As long as you maintain a balance of at least $10,000 in your eligible checking account each day for 60 calendar days from day 21, you remain eligible for a bonus. However, if your balance falls below this threshold for even one day during this ‘maintenance period’, your maximum bonus will change.
- To remain eligible, your checking account must be open and in good standing from the time of opening until receipt of your bonus, which should be paid out within 30 days of meeting all eligibility requirements.
Is it worth opening a Citibank account for the bonus?
Citibank’s new checking account bonus is one of the more lucrative offers out there right now, but it may not be right for every account holder.
According to the most recent Survey of Consumer Finances, Americans hold an average of $41,700 in their transaction accounts (including checking, savings, money market, calling accounts, and prepaid debit cards). The high minimum deposit requirement to qualify for the maximum $2,000 bonus is a staggering $300,000, which is probably unattainable for most consumers.
One more thing to note: the checking accounts that qualify for this bonus all charge monthly service fees. Granted, these fees can be waived by meeting certain minimum balance requirements, but the lowest requirement is $1,500 and up.
If you have the cash available, this bonus offer comes into its own could it’s worth it. And by and large, Citibank is a larger bank with a massive ATM network, a developed mobile and online banking platform, and a long list of financial products and services for individuals and businesses alike.
However, if you don’t have at least $10,000 to deposit in your account and at least $1,500 per month in your account to qualify for the $200 minimum bonus offer, it probably makes more sense to explore other bonus options with lower deposit balance requirements and possibly higher ones bonuses A bonus can be a nice short-term boost, but a new account is a long-term commitment and should be considered carefully.
“Any financial institution you do business with is required to collect nonpublic information, including your social security number and details about your employment, assets, and income,” says Herman (Tommy) Thompson, Jr., board-certified financial planner at Innovated Financial Group , LLC. “Each new account is another opportunity for cybercriminals to gain access to your information. So you have to ask yourself if a $500 account opening bonus at a new institution is worth the hassle of keeping track of a new account, a new app on your phone, and more of your data floating around in cyberspace.”
Other ways to make more money
Checking account bonuses are offered by some financial institutions (usually for a limited time) to encourage new customers to open an account. This usually comes in the form of a cash bonus deposited directly into your account after meeting a certain minimum balance, direct deposit or qualifying purchase requirements. But there are other ways to make money:
- Lock your money in a Certificate of Deposit (CD): A CD is a type of savings account that offers a high fixed interest rate on a single deposit for a set period of time. The catch: Withdrawing your money before your CD is due at the end of its term is likely to result in hefty fees, so this option may only be worth it if you know you won’t need your money by then.
- Place your savings in a high-yield savings account: High-yield savings accounts offer slightly more flexibility than CDs and yield higher annual percentage returns (APYs) than traditional savings accounts. Also, in a high-inflation environment, savings accounts are likely to have even higher APYs – more than 10 times the national average.
- Open a money market account: A money market account is another type of savings account that offers the best features of checking and savings accounts. These accounts typically offer much higher APYs than checking accounts, but in many cases include some of the same features, including writing checks, accessing debit cards, and the ability to withdraw and deposit through ATMs.
take that away
A lucrative bonus can help boost your checking account and be a nice incentive to open a new account, but it shouldn’t be the sole deciding factor in opening a new checking account. Make sure you understand the eligibility requirements for all bonuses, prizes and fees offered before deciding on a new account.
