Citi now pays up to 4.35% on savings for its bigger customers

Citi has started paying much higher savings rates to clients who keep more money with the bank. The program, called Premium Boost, went live Monday, Oct. 26. Depending on the client's tier, the rate is 3.50%, 4.00% or 4.35%. Standard Citi savings pays 0.05%.

What changed

Citi announced Premium Boost in a Sept. 24 press release. It adds better savings rates to the perks that clients in its Relationship Tiers already get. Those perks include access to wealth guidance, waived fees on select banking services and lifestyle benefits.

Kate Luft, head of U.S. retail banking and Citigold at Citi, said the value clients receive should grow as their relationship with the bank grows.

The rates and the tiers

The tiers depend on your combined average monthly balance across checking, savings, CD and investment accounts. As of Monday, Citi's Banking Overview Page listed these Premium Boost rates, shown as APY, or annual percentage yield:

• Citi Priority, starting at $30,000: 3.50%
• Citigold, starting at $200,000: 4.00%
• Citigold Private Client, starting at $1 million: 4.35%
• Standard Citi savings: 0.05%

How to qualify

Being in a tier is not enough. You also have to meet a second test to get the Premium Boost rate.

• Priority and Citigold: $5,000 a month in direct deposits or other qualifying transactions in Regular Checking.
• Priority and Citigold, alternative: a $25,000 average monthly balance in eligible investment accounts with Citi Personal Wealth Management.
• Private Client: own a Citi Regular Checking account.

What to keep in mind

The savings rates are variable. That means Citi can change them, and the numbers above are only a snapshot from Monday. The material does not say how long they will last or what counts as a qualifying transaction beyond direct deposits.

For most households, the first question is which tier you fall into. If you are close to a threshold, or already bank with Citi, it is worth checking whether your deposits or investments meet the second test. If you do not qualify, the standard rate is 0.05%.