facebookShould I put $200k in Citi gain max account even though the guaranteed in case the bank fails is about $70k only? - Seedly

Anonymous

02 Nov 2019

Saving Hacks

Should I put $200k in Citi gain max account even though the guaranteed in case the bank fails is about $70k only?

Wish to put more as the interest is 2%, but is it too risky?

Discussion (3)

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First thing is, Citibank has just changed the TOC for Maxigain. Please take some time to read! https://www.citibank.com.sg/global_docs/pdf/Max...
I used to be a big fan of Citibank Maxigain, but they just announced that their base interest rates will be a drop from 70% of SIBOR rate to 50% SIBOR rate. Furthermore, your bonus interest rates will drop by half to 0.05% - 0.6% max, so in fact base on current new TOC, your interest rates will be around 1.5% instead of 2.5%, so please take note.

But that says, it is safe for $75K but Citibank is currently on a decline from the new TOC from what it looks. Currently looking for a new savings vehicle once Citibank changed new TOC on Dec 2019.

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Kelly Trinh

01 Nov 2019

Backoffice technical at financial services firm

The Citi Maxigain does take some effort to get max value out of (conditions around avoiding withdrawals and there is an interest stepping so need to keep the money for a while)

However, if you feel the interest is worth, then I would go ahead - the concern you highlighted about SDIC is technically true... but it is Citibank! Even at the depth of the financial crisis in 2008 when their share price dropped 90%, they still didn't renege on deposits (this isn't a hard g'tee so take it how you want...).

(separate note - 200k in cash/call-deposits is a lot; so separately you maybe want to reconsider your overall asset allocation).

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