Citigroup Inc. announced its plans to further reduce fees in the coming months, following its decision to eliminate overdraft fees, returned item fees, and overdraft protection fees starting in 2022. In addition to this, the bank is launching a new relationship tiers program, which it likens to popular rewards programs offered by airlines and hotels.
A Program Based on Relationship Tiers
The relationship tiers program at Citigroup operates on the basis of a customer’s average monthly balance. As the balance grows, customers progress through different relationship tiers that offer various benefits. Some of these perks include waived monthly service fees on checking and savings accounts, as well as waived fees when using non-Citi ATMs.
Enhanced Direct Deposits for Benefits
For customers who do not qualify for any of the relationship tiers, there is an alternative solution. By making enhanced direct deposits of $250 or more each month, they can avoid monthly service fees on their Citi checking accounts.
Positive Market Response
Although the stock of Citigroup experienced a 9.3% decrease this year compared to a 14.3% increase in the S&P 500 index, there is a glimmer of hope. In premarket trades, Citi stock witnessed a modest 0.3% rise.
By implementing these changes and reducing fees, Citigroup aims to enhance its customers’ banking experience and provide more value for their accounts.
