Table Of Content
Certificates of Deposit (CDs) are a popular option for those looking to invest their money and earn a fixed interest rate over a set period. Two major banks that offer CDs to their customers are Wells Fargo and Citibank. There are some key differences in their rates, terms, and conditions that potential investors should be aware of.
In this article, we will review and compare Wells Fargo and Citibank's CD rates and discuss how they work, as well as examine early withdrawal fees and minimum deposit requirements.
Wells Fargo CDs | Citibank CDs | |
|---|---|---|
CD Range | 3.75%- 4.00% | 0.05% – 4.10% |
Minimum Deposit | $2,500 | $500 – $2,500 |
Early Withdrawal penalty | 1 – 6 months of interest | 90 -180 days of interest |
Term | 3 months – 13 months | 3 months – 5 years |
How Do CD Rates Compare?
The table compares the CD rates offered by Wells Fargo Bank and Citibank for specific terms.
Wells Fargo offers a few terms, and only two of them are attractive regarding rates. These are the featured CDs, and in order to get the highest level of rates, you'll need a relationship with Wells Fargo bank.
Overall, Citi offers better terms and better rates across most of them.
CD Term | Wells Fargo APY | Citibank APY |
|---|---|---|
3 Months | 2.00% – 2.01% | 0.05% |
6 Months | (5 months) | 3.25% |
9 Months | N/A | 4.10% |
12 Months | 4.50% – 4.76% (11 months) | 2.25% |
18 Months | N/A | 3.85% |
24 Months | N/A | 0.50% – 1.01% |
30 Months | N/A | 0.10% |
36 Months | N/A | 2.00% |
48 Months | N/A | 2.00% |
60 Months | N/A | 2.00% |
Only Citibank Offers No Penalty CD
When it comes to no penalty CDs, Citibank is a clear winner. Not only they offer this type of CD which is not so common, the rate is impressive.
Wells Fargo | Citi Bank | |
|---|---|---|
12 Months | N/A | 0.05% |
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Which Is Better If You Need An Early Withdrawal?
The early withdrawal penalty is designed to compensate the institution for the loss of interest and administrative costs associated with the early withdrawal, and vary depending on the institution and the length of time remaining until the maturity date.
As illustrated by the table below, there is no apparent frontrunner in terms of penalties for various terms since both banks provide comparable ones. Nonetheless, if you need a 3-month CD, Wells Fargo may be the preferable option as it has lower penalties.
CD Term | Wells Fargo | Citibank |
|---|---|---|
3 Months | 1 month of interest | 90 days of interest
|
6 Months | 3 months of interest | 90 days of interest |
9 Months | N/A | 90 days of interest |
12 Months | 6 months of interest | 90 days of interest |
18 Months | N/A | 180 days of interest |
24 Months | N/A | 180 days of interest |
30 Months | N/A | 180 days of interest |
36 Months | N/A | 180 days of interest |
48 Months | N/A | 180 days of interest |
60 Months | N/A | 180 days of interest |
Do Wells Fargo And Citibank Offer Alternatives to CDs?
A savings account can be an alternative to a CD because it offers greater flexibility and liquidity. Unlike CDs, which require a fixed term commitment, savings accounts allow you to deposit and withdraw money at any time without penalty.
Citi Accelerate Savings | Wells Fargo Platinum Savings | |
|---|---|---|
Savings Rate | 4.45% | 0.26% – 2.51% |
Minimum Deposit | $0 | $25 |
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
| $12
can be waived by maintaining a $3,500 minimum daily balance
|
Promotion | N/A
Minimum deposit of N/A needed. Expired on N/A
| None |
Comparing both banks, Citi offers a better alternative to CDs. Citi's Accelerate Savings Account offers a high interest rate and has no minimum deposit requirement or complicated fees. The account also provides overdraft protection and the ability to link to a Citi checking account. The account also offers automated transfers to make saving easy.
Wells Fargo offers two savings account – the Wells Fargo Way2Save Savings and the Wells Fargo Platinum Savings, which offers a higher rate. However, the rate is significantly lower than what you can get with Citi.
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.
Compare Citibank Certificate Of Deposit (CDs)
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Compare Wells Fargo Certificate Of Deposit (CDs)
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