Citibank Offering 2.5% APY on Money Market in Boston

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I just got 2.5% on a money market from the Citibank branch on Boylston Street in Boston. I don't know if the rate is national but here are a few things I learned in the process.

I just got 2.5% on a money market from the Citibank branch in a suburb of Boston. I don't know if the rate is national but here is something I learned in the process about "new" money."

The minimum deposit was $25,000 which was fine because I had to roll-over about $100,000 from a maturing CD.  I had $50,000 coming due at Citi and $50,000 at another bank. At first they told me the 2.5% rate was only for new money which was ridiculous.  I was going to have to remove the $50,000 I had at the bank and replace it with another $50,000.  The woman at the bank also admitted there was nothing stopping me from taking the money, depositing it in another bank for a few days, and then brining it back.  No wonder these banks are having problems!

Eventually they relented and told me I could deposit the full $100,000, new money be damned.  So there's a lesson for everyone.  The banks may say new money but it's awfully difficult to enforce and when push comes to shove, most will relent.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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