How To Avoid Citibanks $10 Fee For Using Checking Plus Overdraft Protection
Posted on 11 February 2009 | Category: Banking, Citibank, Fees, ThankYou
Ok this fee came into force on November 7th 2008, other banks impose similar fees but thankfully it is fairly easy to avoid.
The first and maybe it is the most difficult is to avoid using it in the first place. Don’t see zero as zero, build a buffer into your finances so if you know you are low in your checking account, say $100, move some money in. Not the most exciting way but maybe this is tough love getting your budgeting back on track. If that won’t work for you read on.
Option 2. It hasn’t been communicated very well, big surprise, but the fee isn’t actually for using Checking Plus, it is for Citi moving the money for you. Huh! OK what do you mean. If you know you are going to go into your checking plus then just move money in from Checking Plus to your checking account yourself. You will still have to pay interest but you won’t be assessed the fee. It is exactly like moving money from one account to another and can be done the same way, at the teller, at the ATM or online or thephone.
Option 3. Our favorite, but only really a temporary solution. Ask to be upgraded to Citigold. Citigold customers are not charged the fee. You qualify to be Citigold if you have $100,000 in assets and/or second mortgage debt, or $250,000 if you include a 1st mortgage. If you don’t have these balances then you should expect a $25 per month service fee. If you are continually being hit with several $10 fees this may be the lesser of two evils. Thankfully while you think that over Citi waive the fee for the first 6 mths, by then you may have changed your budgeting habits, decided on whether the $25 fee and some of the other benefits are more worthwhile (including more Thankyou points) or you can trade back down from Citigold. Of course if you really are not sure then why not trade back up for another 6 mths…yes you can do that.