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Citibank Term Deposits

Name: Citibank Term Deposits
Creator: Savvy
Published: 2022-09-15T16:36:22+09:30

Explore Citibank's term deposit offers and interest rates to help you compare your options with Savvy.

Written by , updated on September 11th, 2023

Founded in New York, the Citibank Group opened its first branch in Australia almost 60 years ago to provide general financial services to Australian citizens and institutions. Since its founding, the bank has expanded across the globe and now offers banking services in 100 countries. In Australia alone, Citibank has about one million customers and 1,200 workers across four capital city offices.

NAB bought the Australian arm of Citibank in late 2021, with the sale and transition finalised in June 2022. However, it’s still offering term deposits in its own name despite now being owned by one of Australia’s big four banks.

Find out if the interest rates and terms offered by Citibank on their term deposits suit your investment needs by comparing interest rates and terms here with Savvy. Start the process with us to help you get your investment journey on the right track.

*Please note that Savvy does not represent Citibank for its term deposit products.

Citibank term deposits explained

What term deposits does Citibank offer?

Citibank offers a range of term deposits from one month up to five years.

Citibank: common term deposit rates

Term length offered	Interest rate
1 month	0.50% p.a.
3 months	1.65% p.a.
6 months	2.70% p.a.
9 months	3.00% p.a.
1 to 5 years	3.50% p.a.

(Effective 23 September 2022)

Interest payment frequency

Interest can be paid either monthly, annually or at maturity. The rate won’t change depending on how often you receive your interest.

Minimum and maximum deposit limits

For a term deposit, you’ll need a minimum balance of $10,000. Unless by special arrangement, the maximum amount you’ll be able to invest is $250,000.

Early withdrawal penalty

If you wish to withdraw your funds early, you’re required to give 31 days’ notice to access your funds. In addition, the interest you’ll earn will be just 20% of the amount of interest you would have received had you left your money in place until maturity.

Maturity options

At the maturity of your deposit, you can do one of the following:

reinvest all your funds for another term of your choosing
withdraw some of your funds and reinvest the remainder for another term
withdraw all your funds and have them paid into your Citibank Plus transaction account along with the interest earned

How do I open a Citibank term deposit?

If you’re an existing customer, you can open a Citibank term deposit through your regular online banking platform. Open Citi Online using your normal customer registration number, go to the services section and select deposit services. Follow the prompts to open your term deposit.

If you aren’t an existing customer, you’ll first have to open a Citibank Plus transaction account before you can open a term deposit. To open a transaction account, you’ll need to visit a post office to get your identity verified (see requirements for opening an account below). Once your ID has been verified, you’ll be able to open your transaction account online or over the phone and, from there, your term deposit.

What are the requirements for opening a Citibank term deposit?

The requirements for opening a Citibank term deposit include:

You’ll need to be at least 18 years of age
You’ll need to be a single person
You’ll need to prove your residential address, phone number and email address
You’ll need to provide your tax file number so you’re not taxed at the highest rate
If you aren’t a Citibank customer, you’ll need to go to a post office with at least two forms of photo ID (such as your passport and driver’s licence) to get your identity verified

The pros and cons of Citibank term deposits

PROS

Competitive interest rates offered

The interest rates offered by Citibank are generous and compare well to the rates offered by similar-sized banks.

Full range of terms available

You’re able to invest your savings for terms ranging from one month up to five years, so whatever your investment horizon, there will be a term deposit to suit your needs.

Deposits for SMSFs and trusts available

Unlike some other banks, Citibank does offer term deposits for self-managed super funds and also trusts.

CONS

$10,000 minimum deposit

Some banks allow you to open a term deposit with as little saved up as $1,000, but Citibank requires you to have a minimum of $10,000.

Need to get your ID verified at a post office

You’ll have to visit a post office to get your identity documents verified if you are not already an existing Citibank customer.

No joint accounts possible

Citibank does not allow more than one person to open a term deposit, so if you’re a couple wanting to open a joint term deposit, you’ll have to look elsewhere.

More of your frequently asked questions about term deposits

What is a term deposit?

Although many people are familiar with the phrase ‘term deposit,’ not everyone knows what a term deposit is. A term deposit is an agreement between you and your bank or financial institution to lock away a set amount of money for a set period (known as the ‘term’ of the deposit) in return for a fixed rate of interest. As the interest rate and length of the deposit are fixed, you’ll be able to calculate in advance how much money your savings will earn during the life of the term deposit. When your chosen term is over, you can choose to either withdraw your funds and the interest earned or roll them over into another term deposit.

Should I go with a short-term or long-term deposit?

The decision as to whether to use a short-term or long-term deposit will depend on what your savings goals are. If you’re saving for a short-term goal, such as an annual holiday, a short term deposit would best suit your needs. However, if you’re saving up for a home deposit and you estimate it’ll take you five years to reach your target, you may decide to lock away your savings in a long-term deposit.

What is the maximum length of term deposit that I can take out?

Financial institutions in Australia offer term deposits up to a maximum of five years in length. Prior to 2007, ten-year term deposits were routinely offered to customers wanting to lock away their savings for an extended period. Following the Global Financial Crisis, these ten-year terms were withdrawn.

How can I work out how much interest I’ll earn on my term deposit?

You can use Savvy’s term deposit calculator to help you work out exactly how much interest your savings will earn over a set period. Just enter in the amount you wish to deposit, the term of the deposit and the interest rate offered, and the calculator will show you how much interest your savings will earn.

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