using etf to avoid citibank checking fees?

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Topic Author
gips
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Joined: Mon May 13, 2013 5:42 pm

using etf to avoid citibank checking fees?

Post by gips »

I've been using citibank for many years, their customer service used to be terrible but they've created a tier of service called citigold where if you keep $50k in bank accounts or $100k in brokerage they waive monthly fees and provide excellent service. Their savings account pays about .2% as opposed to the 1% I get elsewhere so the cost is about $400 per year which is too high.

It occurred to me that instead of investing $100k in my vanguard account and purchasing the total market fund I could buy the etf from ctii brokerage. My initial cost would be a $20 commission for purchase and then $20 for redemption.

anyone else do this with their bank?

tia,
clubby
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Joined: Fri Jan 31, 2014 8:20 pm

Re: using etf to avoid citibank checking fees?

Post by clubby »

Personally, I would never do business with a bank known for crappy customer service unless you deposit a certain amount. Because eventually all their customer service will revert to the mean.
livesoft
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Re: using etf to avoid citibank checking fees?

Post by livesoft »

Yes, I do this at my bank: WellsFargo where all trades are free for me and all checking accounts are free for me.
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veekay
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Re: using etf to avoid citibank checking fees?

Post by veekay »

I will never ever do business with Citibank again.

Besides their terrible customer service that has NOT improved, they outright lied to me and wasted hours of my time, on multiple occassions.

I emailed one of their executives about the experience and got the "Whatever, dude. We don't care" response.

Unfortunately, they hold my mortgage. I hope Citi goes bankrupt.

I still keep my credit cards with them only charging up a couple of dollars every few months or so to keep them open.

If I ever get advance notice of my death, I will max out those cards and donate the money to charity. That's how much I hate Citi. :twisted:
Topic Author
gips
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Joined: Mon May 13, 2013 5:42 pm

Re: using etf to avoid citibank checking fees?

Post by gips »

I'm sorry to hear that, I'd generally agree their customer service is not very good but again, I do find the citigold service to be excellent.
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tfb
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Re: using etf to avoid citibank checking fees?

Post by tfb »

What specifically do you like out of citigold? I use its basic checking, which is already free with 1 direct deposit and 1 bill payment. Actually it has a negative monthly fee because I get ThankYou points worth $5/month. I don't use much customer service. It just works.
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FNK
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Re: using etf to avoid citibank checking fees?

Post by FNK »

I have Citigold because I get it for free with my mortgage. Now that the mortgage is below $250K, I'm keeping a part of my EF in Citi to keep the account for a while... but I'm not locking up $50K. I considered moving some of my investments there, but got scared by thw Morgan Stanley fees.

The perks are nice, and the staff around here are really trying to be sharp and pleasant... but it's not worth $30/month. I've opened an Ally account and will be getting out of Citi within a year or so.
Topic Author
gips
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Re: using etf to avoid citibank checking fees?

Post by gips »

I agree it's not worth $30 per month hence looking for a way to keep it at a lower cost. Here's what I like:
- no fx fees using atms in other countries
- separate number for support with better communication skills and training
- on citi website I can find the citigold rep at each branch and make an appointment, reduces wait times
- I tend to use the same branch rep so he gets me in and out of the bank quickly. It's nice to have a face to the bank.

I'm thinking a $100k vanguard etf will give me the service for life, probably going to do it.
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