Citibank Plus - Fee Waiver Now $3000

Discussion in 'CitiBank Rewards Program' started by Coathanger, Jun 19, 2007.

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  1. Coathanger

    Coathanger Member

    Sep 11, 2006
    157
    25
    Sydney, Australia
    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.
     

  2. one9

    one9 Active Member

    Sep 14, 2005
    591
    8
    This is the email I got:

     
  3. kyle

    kyle Active Member

    Mar 8, 2006
    783
    87
    MEL
    And with the fee waiver extension, they still charged my account with $5 for May 2007... :evil: :evil: :evil:
     
  4. XYZ

    XYZ Newbie

    Jun 20, 2007
    3
    0
    Melbourne
    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 cumulative 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
     
  5. drron

    drron Enthusiast

    Jul 4, 2002
    17,556
    15,608
    Sunshine Coast
    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.
     
  6. Coathanger

    Coathanger Member

    Sep 11, 2006
    157
    25
    Sydney, Australia
    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.
     
  7. jboey

    jboey Newbie

    Jun 25, 2007
    2
    0
    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.....:mad:
     
  8. NM

    NM
    Moderator

    Aug 27, 2004
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    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.
     
  9. u747

    u747 Newbie

    Jun 25, 2007
    2
    0
    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.
     
  10. NM

    NM
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    Aug 27, 2004
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    We are talking about a bank :p
     
  11. straitman

    Moderator

    Apr 27, 2003
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    NM,

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

    ... particularly when using words like 'ethics' etc. :rolleyes:
     
  12. NM

    NM
    Moderator

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    I think that some words may not exist in their dictionaries :rolleyes:

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

    beardoc Established Member

    Jul 13, 2005
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    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.
     
  14. straitman

    Moderator

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    Good point :!: :oops:
     
  15. jboey

    jboey Newbie

    Jun 25, 2007
    2
    0
    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.
     
  16. NM

    NM
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    Yes, same theory works. The bank makes more money if you have more money in your account etc.
    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.
     
  17. u747

    u747 Newbie

    Jun 25, 2007
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    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).
     
  18. XYZ

    XYZ Newbie

    Jun 20, 2007
    3
    0
    Melbourne
    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.
     
  19. Cyberdog100

    Cyberdog100 Intern

    Dec 29, 2006
    70
    0
    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!
     
  20. oz_mark

    oz_mark Enthusiast

    Jun 30, 2002
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    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!
     
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