Citibank Plus - Fee Waiver Now $3000

[Coathanger]

I got an email from Citibank regarding the fee waiver on the Citibank Plus transaction account. The have increased the monthly salary credit from $300 to $3000, effective in six months.

Compare this to the main banks who will waive your fees with a balance of $3000!

However, what most annoyed me was that I have closed my Citibank Plus account over a month ago and am still recieving email from them.

 

[one9]

This is the email I got:

-----------------------------------------------------------------------
Your Monthly Fee waiver has been extended!
-----------------------------------------------------------------------


Dear x,

We are pleased to advise that the current Monthly Fee waiver for
Citibank Plus offered to you for the first 12 months, will now be
extended until 31 December 2007.

To avoid paying the Monthly Account Keeping fee ("Monthly Fee") after 31
December 2007, you will need to deposit a coughulative amount of $3,000
(such as your salary) directly into your Citibank Plus Transaction
Account each month.

We'd also like to take this opportunity to remind you that all external
credits and debits must be made to the Citibank Plus Transaction
Account. Funds can then be transferred from your Citibank Plus
Transaction Account into your Citibank Plus Linked Savings Accounts via
Internet Banking (Citibank Online) or Telephone Banking (CitiPhone).
So please ensure only your Citibank Plus Transaction Account number is
quoted to third parties for all future credits and debits.

We hope you continue to enjoy the benefits of Citibank Plus. And if you
have any questions, please feel free to call us on 13 24 84.


Yours sincerely

Suvrat Saigal
Director, Wealth Management

 

[kyle]

And with the fee waiver extension, they still charged my account with $5 for May 2007... :evil: :evil: :evil:

 

[XYZ]

I got a slightly different email, but same change. After encouraging people to credit their entire salary rather than just $500 to avoid the monthly fee, they will be able to more accurately market to their customers. And they could have removed the fee waiver all together, but this may well happen in the future.

Even at $5 per month, I think the account represents good value.

-----------------------------------------------------------------------
Notice of change to the Citibank Plus Monthly Fee waiver offer
-----------------------------------------------------------------------

Dear XYZ,

We are writing to let you know that the Monthly Fee waiver offer on your
Citibank Plus is changing. We would like to assure you that this change
will not take affect for another six months during which time you will
continue to receive the benefits of the current offer.

Effective 1 January 2008, to be eligible for the Monthly Fee waiver, the
minimum salary credit amount will be raised to $3,000 per month. Provided
that a coughulative amount of $3,000 is paid directly into your Citibank
Plus Transaction Account every month, we will waive the Monthly Account
Keeping fee ("Monthly Fee").

Your Citibank Plus remains one of the most competitive everyday bank
accounts in the market. It will continue to provide unlimited
transactions including the use of any bank's ATM in Australia and the
convenience of Visa Debit access.

We'd also like to take this opportunity to remind you that all external
credits and debits must be made to the Citibank Plus Transaction
Account. Funds can then be transferred from your Citibank Plus
Transaction Account into your Citibank Plus Linked Savings Accounts via
Internet Banking (Citibank Online) or Telephone Banking (CitiPhone).
So please ensure only your Citibank Plus Transaction Account number is
quoted to third parties for all future credits and debits.

We hope you continue to enjoy the benefits of Citibank Plus. And if you
have any questions, please feel free to call us on 13 24 84.


Yours sincerely

Suvrat Saigal
Director, Wealth Management

 

[drron]

However, what most annoyed me was that I have closed my Citibank Plus account over a month ago and am still recieving email from them.

Well expect to get a few more.I closed my ready credit account in february and just last week got my second letter since closing informing me that they have increased my credit limit.Intriguing as one of the reasons I closed the account was that they wouldnt increase it when I wanted it.

 

[Coathanger]

I had also applied for the Fee-Free Gold Card, but after their pretty low level of customer service I decided to withdraw my application. Seems that I made the right decision there.

In any case, my impression of Citibank just went down the tube. Their loss.

 

[jboey]

I think that the fee waiver at only $3000 and above is an unfair and very elitist policy. Why should people earning more than $3000 not have to pay the account keeping fees and those earning less than $3000 have to pay the fee? Its almost like a penalty for not earning above $3000 a month!. This policy caters for the rich to get richer.. It really bugs me that banks do this all the time! and to think that I thought Citibank would be different.....

 

[NM]

I think that the fee waiver at only $3000 and above is an unfair and very elitist policy. Why should people earning more than $3000 not have to pay the account keeping fees and those earning less than $3000 have to pay the fee? Its almost like a penalty for not earning above $3000 a month!. This policy caters for the rich to get richer.. It really bugs me that banks do this all the time! and to think that I thought Citibank would be different.....

Because Citibank makes more money out of those pumping $3000 a month through their card than they make from those only pumping $2000 a month through it. Credit card providers earn revenue from several means, including:

• Merchant fees which are a percentage of the credit card spend - more spend is more revenue for Citibank
• Annual fees charged to the card-holders
• Interest on overdue amounts

It would seem that Citibank has determined that the revenue earned from the merchant fees for people spending more than $3000/month is sufficient to off-set the annual fee waiver. Its nothing to do with fair. Its all about attracting the type of customer who will maximise the revenue for Citibank. Nowhere in Citibank's charter will it say they have to be fair to all potential customers. But they do have a responsibility to maximise their shareholder value, which this policy would seem to achieve.

 

[u747]

If Citibank did not forsee the need to raise the fee exemption threshhold (by 12 times) you would think that they would only apply the exemption at the higher rate to new customers. Or absorb it and fire the staff member who originally did the calculations to work out the $500 per month was sufficient.
If they did forsee the need for a fee increase and used the $500 per month to rope in customers and get them to change banking arrangements knowingly understanding that there would be the increase in a short time then I think this is unethical. They should have advertised the $500 per month fee exemption as an introductory offer and stated that it would go up to $3000 at some stage.
CitiBank seem not to be very upfront in disclosure and I can see why people on these boards have a low regard for CitiBank.

 

[NM]

... then I think this is unethical.

We are talking about a bank

 

[straitman]

We are talking about a bank

NM,

Do you mean that banks have a different dictionary to the rest of us :?:

... particularly when using words like 'ethics' etc.

 

[NM]

NM,

Do you mean that banks have a different dictionary to the rest of us :?:

... particularly when using words like 'ethics' etc.

I think that some words may not exist in their dictionaries

And I am sure its not just banks, but they are a good example.

 

[beardoc]

If Citibank did not forsee the need to raise the fee exemption threshhold (by 12 times) you would think that they would only apply the exemption at the higher rate to new customers. Or absorb it and fire the staff member who originally did the calculations to work out the $500 per month was sufficient.
If they did forsee the need for a fee increase and used the $500 per month to rope in customers and get them to change banking arrangements knowingly understanding that there would be the increase in a short time then I think this is unethical. They should have advertised the $500 per month fee exemption as an introductory offer and stated that it would go up to $3000 at some stage.
CitiBank seem not to be very upfront in disclosure and I can see why people on these boards have a low regard for CitiBank.

I think the extension is a welcome thing, albeit with new conditions - after all, the alternative if they didn't change things was going to be that there was no fee waiver after 12 months.

I had a problem with the Citibank Plus account - it was that they advertised it with the fee waiver being trumpeted, but nothing in those advertisements except that "Terms and Conditions apply". You could not know that the fee waiver was for 12 months only, and if you applied online, and did not call them (as I did), you would not know that the fee waiver was only for 12 months until you applied - this was my primary problem - there was a problem with initial disclosure.

This is why I haven't signed up - I combine two products from HSBC and Elders Rural Bank to get access to my money with no ongoing fees.

 

[straitman]

I think that some words may not exist in their dictionaries

And I am sure its not just banks, but they are a good example.

Good point :!:

 

[jboey]

NM,

I was referring to the account keeping fees on the Citibank Plus account (saving a/c not credit card) which as previous commentors have mentioned that it was initially advertised as waived. However, I guess your theory is still applicable with a savings a/c which is that Citibank has the ability to reinvest our savings or etc, hence the more you bank in, the more money citibank has to reinvest, thus covering your a/c keeping fee.

However my arguement would be that if Citibank intends to remain competitive in the Australian market, attracting people who are able to credit their citibank plus a/c with a monthly salary/remuneration above $3000 (and for most of us, after tax) would be targeting only a minority of the Australian population. Keeping in mind that the average Australian only earns $40,000 ++ per year, the average Australian would not be able to get the a/c keeping fee waived. This is what I mean by a policy for the rich. And while individuals a/c may not be their biggest priority or money earner, I think they should not be treating their customers like dirt.

Also, what really bugs me is the email that was sent out to tell us of this new policy failed to mention how much the a/c keeping fee would be. Hence it could be even more than $5.

 

[NM]

I was referring to the account keeping fees on the Citibank Plus account (saving a/c not credit card) which as previous commentors have mentioned that it was initially advertised as waived. However, I guess your theory is still applicable with a savings a/c which is that Citibank has the ability to reinvest our savings or etc, hence the more you bank in, the more money citibank has to reinvest, thus covering your a/c keeping fee.

Yes, same theory works. The bank makes more money if you have more money in your account etc.

However my arguement would be that if Citibank intends to remain competitive in the Australian market, attracting people who are able to credit their citibank plus a/c with a monthly salary/remuneration above $3000 (and for most of us, after tax) would be targeting only a minority of the Australian population. Keeping in mind that the average Australian only earns $40,000 ++ per year, the average Australian would not be able to get the a/c keeping fee waived. This is what I mean by a policy for the rich. And while individuals a/c may not be their biggest priority or money earner, I think they should not be treating their customers like dirt.

Indeed they are targeting people on a higher income. They make money out of them. Just like high rollers at a casino are often provided free accommodation, meals and drinks, and just like high value (status) FF members receive benefits like lounge access, additional baggage allowance etc.

now changing the rules after drawing people in is where I have concerns.

 

[u747]

...now changing the rules after drawing people in is where I have concerns.

Yes this is where I have concerns as well. While banks are banks, there are some banks that are less upfront than others. (See some of the discussion regarding Redicredit facility fees etc).

 

[XYZ]

At the time of opening my Citibank Plus account in May last year, I expected to be charged a monthly fee, however no fee was ever charged. I was later sent an email explaining that they would waive the fee if a salary credit of $500 or more was made each month. From memory they gave a few months notice of this change taking place.

Citibank are free to target customers as they choose. They are also free to change terms and conditions and fees. Generally, banks are required to provide 30 days notice to changes in fees (depending on the change), and in this instance Citibank has provided six months notice to customers.

I thinnk that's pretty fair and sufficient time to change your banking if required. Granted, this is frustrated but the account remains competitive within the market of flat-fee accounts. I'd rather pay Citibank $5 per month for Citibank Plus and have access to all bank ATMs (this includes international ATM withdrawals, only foreign currency fee applies) than ANZ or Commonwealth who would charge a monthly fee, other ATM fees and international ATM fees and foreign currency charges as well.

I know that Citibank have a tainted repuation on here from their ReadyCredit promotion but feel that they have acted fairly in this instance. I've had my moments with Citibank, having banked with them since the 90s... I even got to speak to someone in Australia when I rang them last week.

 

[Cyberdog100]

For all those not wanting to pay the $5 per month, I'd suggest getting a HSBC Online Savings account. No monthly account keeping fee, no minimum balance ($5k needed to open the account though, but not after), and 5 free withdrawals from ANY ATM in Australia, unlimited free HSBC ATM withdrawals and online banking payments and transfers.

All up for me it represents the best value transaction account I can find. They also pay about 4.5% interest i think it is, which is great for a general transaction account!

 

[oz_mark]

For all those not wanting to pay the $5 per month, I'd suggest getting a HSBC Online Savings account. No monthly account keeping fee, no minimum balance ($5k needed to open the account though, but not after), and 5 free withdrawals from ANY ATM in Australia, unlimited free HSBC ATM withdrawals and online banking payments and transfers.

All up for me it represents the best value transaction account I can find. They also pay about 4.5% interest i think it is, which is great for a general transaction account!

It is $2K to open the account (and the interest is 5% if you have more than $5K in the account). Only issue I saw with it was the rather limited number of HSBC ATM's around!