Just received the following official notice (from Citibank Estatement):
With effect from 2 December 2019, the base interest rate for the Citi MaxiGain Savings Account will be revised to 50% of the 1-month Singapore Dollar Interbank Offer Rate (1-month SIBOR). The bonus interest rate will also be revised to step up monthly from 0.05% p.a. to a maximum of 0.60% p.a.. You may refer to http://www.citibank.com.sg/maxigaintcdec2019 for more information.
I think basically this spells the end of the wonderful Citi MaxiGain Savings Account, especially if you are depositing less than $70k SGD, whereby one will only get the bonus interest rate of maximum 0.60% p.a.
A possible alternative that I am currently considering is ICBC Fixed Deposit, which gives an interest rate of 1.85% p.a., more than triple that of the new Citi MaxiGain Account.
Recently received the following update:
With effect from 2 January 2019, please note that the following changes will be made to your Citi MaxiGain Savings Account.
A base interest rate equivalent to 70% of the 1-month Singapore Interbank Offer Rate will be paid on the first S$150,000 of your MaxiGain account
A daily end of day balance of at least S$70,000 must be maintained to earn base interest
Bonus interest rate will be paid on the first S$150,000 of your MaxiGain account
Basically, for accounts below S$70,000, the maximum interest rate is now 1.2% provided there are no withdrawals. Hence, effectively it is like a Fixed Deposit with 1.2% interest with the slight benefit that you can still perform withdrawals if you want, but the interest rate drops to 0.6% (6 counters).
Previously, the interest rate was exceptionally fantastic at around 2.2% (depends on the SIBOR rate). This fantastic rate is still available for amounts of S$70,000 and above.
Possibly a short term fixed deposit like CIMB or ICBC may be a better choice now, for amounts below S$70,000. Both CIMB and ICBC have offers of around 1.9% interest rate for their fixed deposits.
Read our previous post: Best “Do-nothing” Saving Accounts in Singapore (Better than Fixed Deposit)