Are Citi bank accounts that were at 5% now at 4.75% too?

Question

I cannot find where it says my APY in my online account.

I see new accounts are at 4.75% now.

Thanks!

Answer 1

Yes, if you are talking about Citi's e-Savings accounts.

The 5.0% APY rate was dropped to 4.75% a while back. Just make sure you don't break your covenants with Citi otherwise they automatically downgrade you to "Day to Day" where you earn 0.70%. Since these are deposit rates, they are going to change all the time.

In case you care why, here's why:
Interest rates during autumn last year due to fears of inflation. With the cooling in oil prices, housing and some other commodities, inflation is less of a risk than before. As a result, short-bond rates started to fall as inflation fears subsided. Also economic weakness has market watchers are predicting a cut in rates sometime this year to head off more weakness. Bond prices move inversely to interest rates, so investors had looked to invest ahead of a Fed cut. I don't believe the Fed will cut this year, so I'm neutral on bonds.