The federal funds rate increases make it more expensive to borrow money, but it has given a boost to savers. For example, Citi increased the APY for its Accelerate Savings Connect account to 3.40%.
It is an excellent time to be a saver. Federal Reserve officials raised the federal funds rate again on December 14th, 2022, for the seventh time this year. The rate increased by half a percentage point, which nudged financial institutions to increase the interest rates they pay savers on deposit accounts.
Citi offers up to 3.40% APY
Citi increased the APY on its Accelerate Savings account to 3.40%. Accelerate Savings is a high-yield savings account with a high APY and no minimum initial deposit. However, it does charge a $4.50 monthly service fee if your balance drops below $500.
Citi’s APY is competitive, but other financial institutions offer higher APYs and don’t have a monthly fee. SuperMoney’s comparison tools allow you to filter offers based on the features that matter the most to you.
Citi offers cash bonuses to new clients
A high APY is not the only way to earn rewards on your savings for Citi customers. You can also earn up to $2,000 in cash bonus by opening a Citi Priority Checking Account and completing the required activities.
To earn this limited-time offer of $200 to $2,000, you need to open a Citi Priority Checking Account from 7/18/22 through 1/9/23 and deposit qualifying funds ($10K to $300K) within 20 days of account opening and maintain your balance for an additional 60 days from the 21st day to unlock your bonus. Only New-to-Citibank checking customers can take advantage of this offer.
However, you don’t need to have $10K+ in savings to start earning rewards from opening a checking account. Here is a list of some of the best checking accounts with rewards currently available.
Key takeaways
- The federal funds rate increase has caused banks, credit unions, and other financial institutions to increase their interest rates on deposit accounts.
- Citi has increased the APY on its Accelerate Savings account to 3.40%.
- Citi offers a limited-time cash bonus of up to $2,000 for new customers who open a Citi Priority Checking Account and meet certain requirements.
- It is smart to compare multiple financial institutions when shopping for savings and checking accounts.
About Citi
Citibank is a global financial services company with over 200 years of experience serving customers in more than 160 countries. With a focus on innovation and customer service, Citi offers a range of products and services, including banking, credit cards, loans, and investments.
