The Citibank Term Deposit is a secure way to put a large sum of money on the side where it can still work on building your personal wealth. Plus, being a financial institution that operates internationally, you have the option of choosing between Australian or foreign currency term deposits.
If you wish to withdraw funds from or close your Citibank term deposit before it matures, you need to provide Citibank with at least 31 days notice unless financial hardship applies as defined by Citibank.
What are the features of the Citibank Term Deposit?
The Citibank Term Deposit is designed for serious investors who want a low risk way to continue seeing a return on their savings.
- Fees. With this account you will pay no establishment fees or a monthly maintenance fee.
- Balance minimum. The balance on this account must be at least $10,000.
- 31 day notice. With the Citibank Term Deposit you can withdraw your funds at any time provided that you give the bank at least 31 days notice of your intent.
- Terms. With this term deposit, you are allowed the option of terms ranging from eight days to five years. This can be with or without the 31 day notice period.
- Interest. Interest rates are tiered and grow with higher balances and longer term periods.
- Special offer. Citibank has a special six month term deposit offer with a 31 day notice that applies a high competitive interest rate to your balance.
- Interest payments. Interest is calculated on your balance everyday and you can choose to have it paid monthly, quarterly, annually or at maturity. Interest payments are made into a selected Citibank transaction or savings account, or can be combined with your principal balance when the account matures.
- Grace period. You have five business days once the account matures to let Citibank know whether you will be withdrawing your balance, or rolling it over into a new term deposit. If you instruct Citibank to roll the account over during that period you will be able to continue receiving the same interest rate on your deposit.
- Early withdrawal. Unless you are experiencing a financial hardship, you must give Citibank 31 days notice if you intend to withdraw all or part of your balance before the terms mature. This is only applicable for terms where there are at least two years remaining. The interest income will be reduced by 40% of what you have earned starting from the day the account was opened until the date that Citibank processes the request for account closure. Depending on how the balance is paid you could be subjected to other charges.
- Foreign currencies. You have the option of using Australian dollars or a foreign currency with Citibank’s term deposit.
- Nominate your own term, from 8 days to 5 years
- There is $0 establishment fee
- $0 account keeping fees to pay
- $10,000 minimum balance required
How do I apply for the Citibank Term Deposit online?
In order to apply for the Citibank Term Deposit you will need to speak directly with a representative from the bank. You can do this by visiting a branch, calling the bank or by clicking “Go to Site” and filling out a contact form. Check first to make sure that you are eligible for this account before proceeding with any of those steps:
- Minimum age. Applicants for this account must be at least 18 years of age.
- Residency requirements. Citibank must be able to verify that you are an Australian resident with a residential address.
- Depository requirements. You need to be prepared to deposit at least $10,000 Australian dollars in order for a term deposit to be opened in your name.
You will also want to have certain documentation available in order for your application to be process quickly:
- Tax file number. Your tax file number (TFN) or valid exemption is not required, but without it Citibank is obligated to deduct tax from your interest earnings at the top marginal rate.
- Identification. You will have to provide at least two forms of identification, one of which contains a photo, when applying. Citibank must also be able to confirm that you are currently in Australia before the account can be opened.
Once a Citibank representative has confirmed all of the information you have provided, they will deposit your funds into your account and provide you with the details needed to help manage it.