Table Of Content
Bank of America and Citibank are two of the largest banks in the United States, each offering a variety of financial products to customers. Among these products are certificates of deposit (CDs), which offer a low-risk way to save money and earn interest over time.
In this article, we'll take a closer look at the CD rates offered by Bank of America and Citibank, as well as their early withdrawal fees and minimum deposit requirements. By comparing these important factors, you can determine which bank may offer the best CD options to meet your savings goals.
Citibank CDs | Bank Of America CDs | |
|---|---|---|
CD Range | 0.05% – 4.51% | 0.05% – 4.80% |
Minimum Deposit | $500 – $2,500 | $1,000 |
Early Withdrawal Penalty | 90 -180 days of interest | 90-365 days of interest |
Terms | 3 months – 5 years | 1 – 120 months |
Based on the comparison, Citibank generally offers higher CD rates than Bank of America, but Bank of America's CD terms are more flexible, with longer available terms of up to 120 months.
However, Bank of America requires a lower minimum deposit than Citibank for CDs. The early withdrawal penalty varies for both banks, and Citibank offers smaller penalty for some terms.
Bank of America vs. Citibank CD Rates
The table compares the CD rates offered by Citibank and Bank of America for various terms.
Citibank's APYs are generally higher than Bank of America's, except for a few featured rates for the 6-month, and 24-month terms where Bank of America's APYs are higher. Citibank offers a slightly higher rate for the 36-month, 48-month and 60-month terms
CD Term | Citibank APY | Bank Of America APY |
|---|---|---|
3 Months | 0.05% | 4.00% |
6 Months | 3.75% | 4.70% (Featured, 7 months) |
9 Months | 3.75% | 0.03% |
12 Months | 4.00% | 3.93% (Featured, 13 months) |
18 Months | 3.75%
| 0.03% |
24 Months | 2.00% | 2.96% (Featured, 25 months) |
30 Months | 0.10% | 0.03% |
36 Months | 2.00% | 0.03% |
48 Months | 2.00% | 0.03% |
60 Months | 2.00% | 0.03% |
120 Months | N/A | 0.03% |
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Only Citibank Offers No Penalty CD
For those seeking flexibility in their savings, a no-penalty CD could be a great option to consider.
Citibank is the only one between the two banks that offers a no-penalty CD with a highly competitive rate (0.05% APY as of September 2024), making it a top choice for individuals looking for this specific feature.
Citi Bank | Bank Of America | |
|---|---|---|
12 Months | 0.05% | N/A |
Which Is Better If You Need An Early Withdrawal?
If the account holder needs to withdraw the funds before the maturity date, the institution may impose a penalty, which can be a percentage of the interest earned or a specific number of days of interest.
As we can see in the table below, there is no clear winner here. Both Citibank and Bank Of America offer more or less the same penalties for the different terms.
CD Term | Citibank | Bank Of America |
|---|---|---|
3 Months | 90 days of interest | 90 days of interest |
6 Months | 90 days of interest | 90 days of interest |
9 Months | 90 days of interest | 90 days of interest |
12 Months | 90 days of interest | 180 days of interest |
18 Months | 180 days of interest | 180 days of interest
|
24 Months | 180 days of interest | 180 days of interest |
30 Months | 180 days of interest | 180 days of interest |
36 Months | 180 days of interest | 180 days of interest |
48 Months | 180 days of interest | 180 days of interest |
60 Months | 180 days of interest | 365 days interest |
120 Months | N/A | 365 days interest |
Do Bank of America And Citibank Offer Alternatives to CDs?
Citi Accelerate Savings | Bank Of America Savings | |
|---|---|---|
Savings Rate | 4.45% | 0.01% – 0.04% |
Minimum Deposit | $0 | $100 |
Fees | $4.50/$10 per month
Can be waived if you maintain an average combined monthly balance of $500/$1,500 in your eligible accounts, make one enhanced direct deposit or one qualifying bill payment per statement period
| $8 per month
Can be waived by maintaining a balance of $500+, becoming a Preferred Rewards member or linking to your B of A Advantage Banking account. Fees are also waived for enrolled students aged under 24
|
Promotion | $100 – $5,000
Minimum deposit of $10,000 – $1,000,000+ needed. Expired on 07/07/2023
| None |
A savings account can be a good alternative to a CD when you need flexibility with your savings, such as when you may need to withdraw funds before the maturity date of a CD. Savings accounts typically have no penalties for early withdrawal and may offer higher interest rates than traditional checking accounts.
Citi's Accelerate Savings Account offers a high-interest rate of 4.45% with no minimum deposit requirement and a simple fee structure, making it a good option for savers who want to earn a high interest rate without complications. This account also provides overdraft protection, all-in-one banking, and the ability to set up automated transfers from a linked checking account.
However, Bank Of America doesn't offer a reasonable alternative to CD. Its savings account rates is very low and not attractive.
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The Smart Investor CDs Comparison Methodology
In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.
- CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
- CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
- Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
- Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.
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