When interest yields are around 2%, its rare to find anybody paying more than 3%. So its a surprise to find Citibank paying just over 4% on an 18-month CD. However, there is a catch. The catch is that this yield is actually available on their secured credit card product. You apply for the card, put down a deposit which gets you 4.07% APY and get a credit line equal to the deposit. The card does have an annual fee of $29 but that’s small change given the huge differential in interest yield.
Based on the research done by the Bank Deals blog, Citi never bothered to change this product yield for over a year. Their regular CDs are all around the market yield of 2%.
Anyway, to cut a long story short, if you want to enjoy this deal, apply for the credit card and follow the instructions.
Product details – application form at the bottom of the page
Click the Disclosure link to see the rate. Now that this is out in the public, it is possible that Citi will wake up and revise the yield. So jump in while it lasts.
No comments:
Post a Comment