THE FINE PRINTS

on Citibank Step-up Interest Account.

I was there to sign up for credit cards and I was introduced abt this savings account. heh since the happening saga over all the investment banks, I think it really make ppl more cautious... and it occurs to me too.

I've signed up the account but after reading the brochure and ALL THE FINE PRINTS... I can tell you a clearer picture abt this.

Generally, the selling point is, your interest steps up from 0.3% to 1.2% after 1 year, with a 0.075% every month. Condition is, every month the minimal balance has to be more than the previous month. If not there will be no increase in interest rate.

Preferably, credit your monthly salary into this account but if you don't want, just put in the minimal of $5oo every month, as I was told (seems like a good deal i think). However, with just 500 every month, you cannot maintain this account without additional charges.

Because, if you only put in 500, you'll enjoy free monthly service fee ($10) for 3 months only. After which, if your bank balance is less than 2000, you gotta pay $10 every month.
By simple math, 500 x 3 = 1500
SO.... how?

Another point, if your minimal balance falls below whatever you have last month, your interest rate will be reset. Reset to which level depends on the amount of money in your account. Example, if this occurs at the 10th month, with your interest rate at 1.05%, your interest rate will be reset to the 9th month interest rate, which is 0.975%, PROVIDED that you have at least 10,000 in the account. But 500 x 9 = 4500
SO... once again, the minimum 500 is not enuff for you to enjoy the attractive interest rates.

Lastly, I realised it is not so easy to enjoy that 1.2% interest after 1 year of stepping-up. Because you need to have a minimum of $20,000 after 1 year to get 1.2% interest. So by simple math, 500 x 12 = 6000
hmmm it looks kinda far from $20,000 rite?

oh well, the impression I get from the sales agent make it very attractive but now I dont think so. I'm going to cancel it.

Read the fine prints next time!