Beginning on Jan. 1, Citibank’s monthly fees on Citi rewards checking accounts will jump from $20 to $25, and fees on basic accounts will increase from $10 to $12.
You can avoid these fees as long as you have enough money on deposit. However, lines of credit, mortgages, credit card and loan balances will no longer be counted toward that limit — making it more difficult for other customers.
Balances in eligible linked deposit, retirement and investment accounts will continue to count towards the limit.
Minimum Deposit to Avoid Fees Now $10,000
Citi is reducing the combined average monthly balance you need to maintain during the prior calendar month from $15,000 to $10,000 to waive the monthly service fee and non-Citibank ATM fees. Once again, this total balance requirement pertains to qualified accounts: deposit (checking and savings), retirement and investment accounts.
“Citibank (C) continually evaluates the pricing of products and services and adjusts fees as necessary based on many factors, including servicing costs and marketplace pricing,” the bank said in a statement.
However, the fee hikes places Citi on the pricier side among competitors. Overall, the average monthly fee for a basic interest-bearing checking account (such as Citi’s rewards account) is currently $14.76, according to Bankrate.com. That compares to Citi’s new fee of $25.
The average fee for a non-interest bearing account (such as Citi’s basic account) is $5.26 a month, while Citi will soon be charging $12.
In September, Citi announced a new account that carries a $10 monthly fee but no overdraft fees. Checks are not included.