Citi vs. Bank of America: Which bank is better for you?

Citi is the clear winner if you’d like to open a CD — there’s more variety and higher CD rates.
For savings and checking accounts, it could be a tight race between the two banks.
Bank of America is more likely to address customer issues, but it’s also been involved in public scandals.
Read Insider’s bank reviews of Citi and Bank of America.

Citi and Bank of America are national brick-and-mortar banks with a variety of checking and savings accounts.

To help you figure out which bank is better for you, we’ve compared different types of bank accounts. We’re also reviewing both institutions for trustworthiness, so you may see how each responds to customer issues and whether it’s been involved in public controversies.

Pros and cons of Citi

ProsCons

National bank with 690 branches and access to 72,000 fee-free ATMs

High interest rate on the Citi Accelerate Savings (need at least $1 in account to earn interest)

Possible to waive monthly service fees

Competitive interest rate on 6-month CDs, 11-month CDs, and 5-year CDs 

Different types of CDs (no-penalty and Step Up CDs)

Citi groups its bank accounts into packages, so you’ll need to open both a savings and checking accountDoesn’t offer a money market accountMonthly service fees if you don’t qualify to waive themCiti Accelerate Savings is only available in 42 statesF rating from the Better Business Bureau due to government action taken against the business and high volume of customer complaints

Pros and cons of Bank of America

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ProsCons

Around 4,200 branches and 16,000 ATMs

Savings features on savings account (Earn up to 10% cash back through BankAmeriDeals and Keep the Change® feature lets you round up debit card purchases)

$100 opening bonus on  Bank of America Advantage Banking until June 30, 2022

Possible to waive monthly service fees

A+ rating from the Better Business Bureau

Low interest rates on savings accountDoesn’t offer a money market accountMonthly services feesBank account history includes settlements involving racial discrimination and unauthorized bank creation

Citi vs. Bank of America checking account comparisons

Below, we’ve compared two of the lowest-fee checking accounts available at each bank.

 Citi Access AccountBank of America Advantage Plus Checking AccountMinimum opening deposit$0$100Monthly service fee$10 or $0$12 or $0How to waive the monthly service fee

Meet at least one of these requirements each month:

Make at least one direct deposit of any amountMake one bill payment Maintain an average monthly balance of $1,500 or more in all Citi accounts and investment accounts

Meet at least one of these requirements each month:

Make $250 or more in direct depositsMaintain an average daily balance of $1,500 or more in your checking accountEnroll in the Preferred Rewards programSign-up bonusNone$100Next stepsCiti Access AccountBank of America Advantage Plus Checking Account

Winner: Citi

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Citi Access Account narrowly beats Bank of America in this category since its checking account has a $0 opening deposit, but your best option could come down to which bank account makes it easier to waive monthly service fees, and whether you prioritize a sign-up bonus.

Citi vs. Bank of America savings account comparisons

Citi offers two savings accounts — Citi® Accelerate Savings and the  Citi® Savings Account. Meanwhile, Bank of America has one savings account option.

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We’ve compared Citi® Accelerate Savings to the Bank of America Advantage Savings Account since these accounts are available in most states and have similar monthly service fees.

 Citi® Accelerate SavingsBank of America Advantage Savings AccountAPYCiti® Accelerate SavingsBank of America Advantage Savings AccountMinimum opening deposit$0$100Monthly service fee$4.50 or $0$8 or $0How to waive the monthly fee

Fulfill one of the following requirements each month:

Maintain an average monthly balance of $500 or more (for Elevate, Basic, or Access account packages)Maintain an average monthly balance of $50,000 or more across all your Citi accounts (for the Citi Priority account package)Maintain an average monthly balance of $10,000 or more across all your Citi accounts (for the Citi account package)Automatically waived if you have a Citigold account

No monthly service fee during the first 6 months

After that, you must fulfill one of the following requirements each month:

Maintain an average daily balance of at least $500 Link a Bank of America Advantage Relationship Banking AccountEnroll in the Bank of America Preferred Rewards ProgramAre under the age of 18Are under the of 25 and a student

 

CaveatsAvailable in 42 states (you won’t be able to open an account in CA, CT, IL, MD, NV, NJ, NY, VA, certain parts of FL, certain parts of Puerto Rico, or Washington, DC)Will also need to open a checking accountNoneNext stepsCiti® Accelerate SavingsBank of America Advantage Savings Account

Winner: Tie

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Choosing between the two will depend on your preferences since these accounts are distinct for different reasons. The Citi® Accelerate Savings may be ideal for earning a high interest rate, but you’ll need to live in an eligible state and also be opening a bank account package. Meanwhile, the Bank of America Advantage Savings Account may be a better choice if you’re only looking to open a savings account or find it easier to waive monthly service fees at Bank of America.

Citi vs. Bank of America CD comparisons 

 Citi Fixed Rate Certificates of DepositBank of America Standard Term Certificate of DepositTerm lengths1 month to 10 years28 days to 10 yearsMinimum opening deposit$500 to $2,500$1,000APYCiti Fixed Rate Certificates of DepositBank of America Standard Term Certificate of DepositEarly withdrawal penalties90 to 180 days interest7 to 365 days interestTypes of CDsStandard CDs, Step Up CDs, and No Penalty CDsStandard CDs

Winner: Citi

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Citi Fixed Rate Certificates of Deposit pay higher interest rates than Bank of America CDs, regardless of which term you choose. It will also be your default option if you’re searching for step-up CDs (A CD where the interest rate increases over time) or no-penalty CDs.

Citi vs. Bank of America trustworthiness and BBB rating

We use ratings from the Better Business Bureau to evaluate how a bank resolves customer issues.

Bank of America has an A+ rating from the BBB, while Citi has an F rating because it’s received a high volume of customer complaints and had government action taken against the business.

A good BBB rating won’t guarantee that you’ll have a perfect relationship with a bank. Talk to current customers or read online customer reviews to see if a particular bank will be a good fit for you.

Both Bank of America and Citi have been involved in recent public controversies.

Citi has been in the following public settlements:

In 2019, Citi accidentally sent $900 million to customers. In 2020, the bank was required to pay $400 million in a settlement with the Comptroller of the Currency. The OCC stated the bank had inefficient banking practices.

Bank of America has been in the following cases: 

In 2020, the Department of Justice claimed that Bank of America denied home loans to adults with disabilities based on their disability. Bank of America paid around $300,000 to people who were refused loans and needed to implement a new non-discriminatory policy.In 2019, Bank of America paid $4.2 million in a settlement with the US Department of Labor to people who claimed the bank discriminated against female, Black, and Hispanic applicants in the hiring process.

Winner: Bank of America

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Bank of America wins in this category since it is more likely to address customer issues, but keep in mind it’s also been involved in public controversies. You might want to learn more about ethical banking if you prioritize finding an institution that fits your values.

Frequently asked questions

Is Bank of America or Citi better?

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You might favor Citi if you’re searching for a brick-and-mortar bank that pays a solid interest rate. Citi 6-month, 11-month, or 5-year CDs are offering a great interest rate right now. If you live in one of 42 states that have the Citi® Accelerate Savings, you’ll also be able to earn a higher interest rate than with the average savings account. 

Bank of America could be a better choice if you find it easier to waive monthly services fees on a particular account. For example, the Bank of America Advantage Savings Account doesn’t charge a monthly service fee during the first six months and waives the fee automatically for anyone under age 18.

Is Bank of America or Citi bigger?

Bank of America is available in more states than Citi. Bank of America also has 4,200 branches in the US, while Citi only has 690 locations.

Read the original article on Business Insider

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