Citibank Step-Up Interest Account

SGDividends was asked by his friend to review his Citibank Step-Up Account. Here's the analysis: Basically,in short, go for POSB MySavings Account. It's better and simpler. Read more below for the reasons. (Yeah we know Citibank sounds more glam than POSB, and dont get me wrong.. i love Citibank especially their commercial..Cos Dreams never sleeps..keeps me awake at night.)

See the above chart.
Citibank: You can only get 1.2% after 12 months (Thats if you can get there..without being stepped down in any of the months!)
POSBank: You can get up to 1.5% after you opened your account and after your first $1500 is giro deposited into your account . (This rate actually depends on how much you elect to put in a month. See table rate. ) Before the high interest rate kicks in, you will be earning 0.45%.

See above chart
Citibank: Your interest will be reduced to either the base interest 0.3% or 0.75% or 0.975% (depending on which stepped up month you are) if your minimum balance, measured as the lowest balance at ANY day of the month is less than your previous month's minimum balance.

POSBank: Your interest will be reduced to the lowest of 0.45% for that month ( If you withdraw any amount, even $10)

See above chart
Citibank: You have to maintain at least $20,000 to earn 1.2% thereafter,having stepped up for 12 months. OR instead of having to maintain $20,000, you have to have a consistent minimum balance more than your previous month.

POSBank: You will continue to earn 1.5% as long as $1500 of savings is giroed into your account for that month. ( or any other interest rate depending on how much you elect to giro)

The Bomb: You have to maintain $2,000 in your Citibank account or else you will be charged $10 service fee monthly.(This is if you stop your auto salary credit. If you do not stop, this monthly service fee does not apply). POSBMySavings , you need a minimum of $500 or else charged $2 service fee monthly. $2,000 minimum vs $500 minimum.... Your Guess is as Good as Mine which to go for!

Furthermore, we hate it when things are complicated. K.I.S.S (keep it simple stupid) unless you have something to hide.