Esther D’Amico
Citi plans to implement its previously announced "relationship tiers" program in stages beginning this month for existing U.S. retail banking customers, a bank spokesperson tells Kiplinger.
The bank announced plans last year to start retiring U.S. retail bank account packages in favor of the tiers, which are similar to travel rewards programs offering more perks as balances increase, as Kiplinger previously reported.
The program went into effect last August for all new customers and existing customers were given the option to convert to the new program at that time as well, the spokesperson said. About 200,000 existing customers have taken advantage of the program so far, he said. Remaining customers will be converted over to the relationship tiers throughout 2024, he added.
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The announcement last August came after bank failures in early 2023 left many Americans unnerved and wondering whether their their bank deposits are safe, with some weighing their options for banks and credit unions. Citi, like a number of other banks, has offered fee breaks and other perks to customers who keep high balances in deposit and investment accounts.
The tiers provide services such as waived monthly service fees on checking and savings accounts, waived Citi fees at non-Citi ATMs, and professional financial planning services, Citi said in its August announcement.
“Similar to an airline or hotel rewards program, as a customer’s combined average monthly balance grows, clients may unlock relationship tiers, allowing access to more benefits and services from Citi Priority, Citigold or Citigold Private Client,” the bank said.
Combined balances to be tracked
“These latest changes are designed to create a more seamless experience for our customers and make it easier for them to get personalized advice and access their finances,” said Craig Vallorano, head of Retail Banking.
Under the program, the bank will track a customer’s combined average monthly balance and assign a relationship tier, automatically linking eligible deposit and investment accounts.
Customers who are not in a relationship tier can avoid paying monthly service fees by making monthly direct deposits of $250 or more in their checking accounts, having an average monthly balance of $500 or more in their savings accounts, or by having both a checking and savings account with Citi.
For families, Citi is offering customers enrolled in its Family Linking program the ability to move to a higher relationship tier by combining average monthly balances with those of eligible family members who live with them in the same household.
Citi said it began to eliminate certain retail consumer banking fees in 2022, including overdraft fees, returned item fees and overdraft protection fees. It also said that it planned to remove additional retail banking fees in the coming months.
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