CitiBusiness Savings Account 2024 Review
Your business may be looking to open a savings account to set aside money for future projects. Not all business savings accounts are created equal. Some pay relatively high interest rates and charge very few fees. Others barely pay any interest at all and charge several fees, some of which have high costs.
To help you make an informed decision on your company’s next savings account, here’s what you should know about the CitiBusiness Savings account.
Many businesses want to keep all of their accounts at the same bank. The CitiBusiness Savings account may make sense for your business if you already bank with Citi. Additionally, business owners with deposits over FDIC insurance limits may want to bank with a major institution.
Otherwise, businesses will likely be better off opening a high-interest online-based savings account that pays a higher interest rate.
CitiBusiness Savings Account Pros & Cons
Compare Best Business Bank Accounts Available Now
Find the best business accounts to manage your business funds better and improve your bottom line:
Compared to Other Business Savings Accounts
CitiBusiness Insured Money Market
The CitiBusiness Insured Money Market account is similar to the CitiBusiness Savings account as it also has a $10 monthly maintenance fee. The Money Market account requires a higher $5,000 minimum balance to waive the monthly maintenance fee, though. It also offers check writing capability, which the CitiBusiness Savings account does not offer.
The Money Market account’s interest rates are based on a tier account balance structure. Some of the higher tiers have higher interest rates than the CitiBusiness Savings account. Still, the rates offered aren’t anything special when compared to the better online bank business savings accounts.
Live Oak Bank Business Savings Account
The Live Oak Bank Business Savings Account offers a very competitive interest rate on all balances and doesn't charge a monthly maintenance fee, making it a strong option for companies that don't require branch access or cash deposits. However, it lacks the ability to make cash deposits and doesn't provide branch access, potentially limiting its suitability for businesses that deal with cash transactions or prefer in-person banking services.
Read the full review of the Live Oak Bank Business Savings Account.
Chase Business Total Savings
The Chase Business Total Savings account offers integration benefits for existing Chase customers with a focus on convenience through its wide branch network, though it presents drawbacks like a low interest rate and a monthly fee that can be waived under certain conditions. This account is less appealing for businesses not integrated into the Chase ecosystem, especially those seeking higher interest earnings.
Read the full review of the Chase Business Total Savings account.
Bank of America Business Advantage Savings Account
The Bank of America Business Advantage Savings Account is very similar because it is available from a national bank. However, it does provide slightly better branch access. Not surprisingly, it is also designed for existing Bank of America business clients seeking convenience, despite its low interest rates. It also has a monthly fee, which can be waived.
Read the full review of the Bank of America Business Advantage Savings Account.
Monthly Service Fee
The CitiBusiness Savings account charges a $10 monthly service fee. This fee can be waived if you maintain an average monthly balance of $500 per month.
Monthly Deposit Limits
Citi does not limit the amount of free deposits you get with a CitiBusiness Savings account.
Other banks often limit free deposits to 25 or less and charge a fee per additional deposit.
Cash Deposits Limits
Citi does not charge for cash deposits.
Most traditional banks offer a few thousand dollars of free cash deposits each month. After that, they charge for each additional $100 of cash deposited in a month.
Interest Rates
Citi does not disclose the interest rate for their CitiBusiness Savings account on their website. They only say that the rate is competitive. While the rate is higher than some national banks, it’s still extremely close to zero.
Businesses looking for a decent interest rate on a savings account will be better served looking for an online-based high interest rate savings account.
Other Account Fees
Traditional banks like Citi often charge several fees for their business bank accounts. Here are some other banking fees you may come across when using the CitiBusiness Savings account.
Other Service Fees - CitiBusiness Savings Account
| Type | Fee |
|---|---|
| Incoming wire transfer | $15 each |
| Domestic outgoing wire transfer | $55 each when assisted, $17 each when online |
| International outgoing wire transfer | $65 each when assisted, $27 each when online |
Account Access and Management
The CitiBusiness Savings account is a fairly simple business savings account. It does offer FDIC insurance. This helps protect your money up to FDIC insurance limits should the bank fail.
You get access to both online and mobile banking. This includes the ability to make mobile transfers. Your savings account can be linked to your Citi checking account if you wish to enable overdraft protection.
Citi also allows you to link your savings account to a debit card or ATM card, but you must request this feature.
How to Open
Citi does not support opening a CitiBusiness Savings account online or over the phone. Instead, you’ll have to visit a Citi branch.
Citi states you’ll need the following information to open an account:
- One government-issued photo identification, such as a driver’s license or passport
- Business formation document
- Business name
- Taxpayer identification number
- Transaction activity
- Number of employees
Additionally, certain associated individuals will need to provide the following information:
- Name
- Date of birth
- Residential address
- Citizenship status and country of residence and citizenship
- Social Security number or taxpayer identification number
- Percent ownership of the company
Associated individuals include:
- Account signers
- Authorized signers
- 10% or greater business owners
- Controlling persons
Choosing the Right Business Savings Account
Finding the right business savings account requires you to understand your company’s banking priorities. Here are a few major factors many businesses consider when choosing the right savings account for their company.
Interest rate
Looking for a business savings account with a competitive interest rate may be a top priority for many businesses. Expect to find the best rates at online-based business savings accounts. That said, some credit unions or smaller banks may also offer competitive rates.
FDIC or NCUA insurance coverage
Before you open a business savings account, make sure the bank offers FDIC or NCUA insurance. The insurance will protect your funds, up to the insurance limits, should the institution fail.
Any amount above the limits is subject to loss. Companies with funds in excess of limits should also look for a very stable bank.
Monthly maintenance fees
You shouldn’t pay a maintenance fee to save money. Most banks charge this fee, but it can often be waived with qualifying activities. Still, some banks don’t charge this fee at all.
Minimum balance requirements
Banks are often willing to waive a maintenance fee if you maintain a certain balance in your savings account. Every bank uses its own method to calculate the minimum balance. Some use an average balance and others use a minimum daily balance.
Transaction limits and excess transaction fees
Banks normally limit the number of withdrawals from a savings account. Most also limit the number of free deposits you can make each month. Once you use all of your free deposits, you have to pay a fee for each additional deposit.
Cash deposit limits and excess cash deposit fees
Many banks allow you to deposit a specific amount of cash each month without paying fees. If you deposit more cash than the free limit, expect to pay a small fee for each additional $100 of cash you deposit.
Physical bank locations and hours
If you want to work with a traditional bank, consider where the bank has branches and what hours the branches are open.
Other products
Business savings accounts are nice to have but are rarely the main reason you choose to work with a bank. If you’re shopping for all of your bank accounts, checking account features and fees may take priority over a savings account’s features or fees.
