[Coathanger]

I got an email from Citibank regarding the fee waiver on the Citibank Plus transaction account. The have increased the monthly salary credit from $300 to $3000, effective in six months.

Compare this to the main banks who will waive your fees with a balance of $3000!

However, what most annoyed me was that I have closed my Citibank Plus account over a month ago and am still recieving email from them.

[one9]

This is the email I got:

-----------------------------------------------------------------------
Your Monthly Fee waiver has been extended!
-----------------------------------------------------------------------


Dear x,

We are pleased to advise that the current Monthly Fee waiver for
Citibank Plus offered to you for the first 12 months, will now be
extended until 31 December 2007.

To avoid paying the Monthly Account Keeping fee ("Monthly Fee") after 31
December 2007, you will need to deposit a cumulative amount of $3,000
(such as your salary) directly into your Citibank Plus Transaction
Account each month.

We'd also like to take this opportunity to remind you that all external
credits and debits must be made to the Citibank Plus Transaction
Account. Funds can then be transferred from your Citibank Plus
Transaction Account into your Citibank Plus Linked Savings Accounts via
Internet Banking (Citibank Online) or Telephone Banking (CitiPhone).
So please ensure only your Citibank Plus Transaction Account number is
quoted to third parties for all future credits and debits.

We hope you continue to enjoy the benefits of Citibank Plus. And if you
have any questions, please feel free to call us on 13 24 84.


Yours sincerely

Suvrat Saigal
Director, Wealth Management

[kyle]

And with the fee waiver extension, they still charged my account with $5 for May 2007...

[XYZ]

I got a slightly different email, but same change. After encouraging people to credit their entire salary rather than just $500 to avoid the monthly fee, they will be able to more accurately market to their customers. And they could have removed the fee waiver all together, but this may well happen in the future.

Even at $5 per month, I think the account represents good value.

-----------------------------------------------------------------------
Notice of change to the Citibank Plus Monthly Fee waiver offer
-----------------------------------------------------------------------

Dear XYZ,

We are writing to let you know that the Monthly Fee waiver offer on your
Citibank Plus is changing. We would like to assure you that this change
will not take affect for another six months during which time you will
continue to receive the benefits of the current offer.

Effective 1 January 2008, to be eligible for the Monthly Fee waiver, the
minimum salary credit amount will be raised to $3,000 per month. Provided
that a cumulative amount of $3,000 is paid directly into your Citibank
Plus Transaction Account every month, we will waive the Monthly Account
Keeping fee ("Monthly Fee").

Your Citibank Plus remains one of the most competitive everyday bank
accounts in the market. It will continue to provide unlimited
transactions including the use of any bank's ATM in Australia and the
convenience of Visa Debit access.

We'd also like to take this opportunity to remind you that all external
credits and debits must be made to the Citibank Plus Transaction
Account. Funds can then be transferred from your Citibank Plus
Transaction Account into your Citibank Plus Linked Savings Accounts via
Internet Banking (Citibank Online) or Telephone Banking (CitiPhone).
So please ensure only your Citibank Plus Transaction Account number is
quoted to third parties for all future credits and debits.

We hope you continue to enjoy the benefits of Citibank Plus. And if you
have any questions, please feel free to call us on 13 24 84.


Yours sincerely

Suvrat Saigal
Director, Wealth Management

[drron]

Originally Posted by Coathanger

However, what most annoyed me was that I have closed my Citibank Plus account over a month ago and am still recieving email from them.

Well expect to get a few more.I closed my ready credit account in february and just last week got my second letter since closing informing me that they have increased my credit limit.Intriguing as one of the reasons I closed the account was that they wouldnt increase it when I wanted it.

[Coathanger]

I had also applied for the Fee-Free Gold Card, but after their pretty low level of customer service I decided to withdraw my application. Seems that I made the right decision there.

In any case, my impression of Citibank just went down the tube. Their loss.

[jboey]

I think that the fee waiver at only $3000 and above is an unfair and very elitist policy. Why should people earning more than $3000 not have to pay the account keeping fees and those earning less than $3000 have to pay the fee? Its almost like a penalty for not earning above $3000 a month!. This policy caters for the rich to get richer.. It really bugs me that banks do this all the time! and to think that I thought Citibank would be different.....

[NM]

Originally Posted by jboey

I think that the fee waiver at only $3000 and above is an unfair and very elitist policy. Why should people earning more than $3000 not have to pay the account keeping fees and those earning less than $3000 have to pay the fee? Its almost like a penalty for not earning above $3000 a month!. This policy caters for the rich to get richer.. It really bugs me that banks do this all the time! and to think that I thought Citibank would be different.....

Because Citibank makes more money out of those pumping $3000 a month through their card than they make from those only pumping $2000 a month through it. Credit card providers earn revenue from several means, including:

• Merchant fees which are a percentage of the credit card spend - more spend is more revenue for Citibank
• Annual fees charged to the card-holders
• Interest on overdue amounts

It would seem that Citibank has determined that the revenue earned from the merchant fees for people spending more than $3000/month is sufficient to off-set the annual fee waiver. Its nothing to do with fair. Its all about attracting the type of customer who will maximise the revenue for Citibank. Nowhere in Citibank's charter will it say they have to be fair to all potential customers. But they do have a responsibility to maximise their shareholder value, which this policy would seem to achieve.

[u747]

If Citibank did not forsee the need to raise the fee exemption threshhold (by 12 times) you would think that they would only apply the exemption at the higher rate to new customers. Or absorb it and fire the staff member who originally did the calculations to work out the $500 per month was sufficient.
If they did forsee the need for a fee increase and used the $500 per month to rope in customers and get them to change banking arrangements knowingly understanding that there would be the increase in a short time then I think this is unethical. They should have advertised the $500 per month fee exemption as an introductory offer and stated that it would go up to $3000 at some stage.
CitiBank seem not to be very upfront in disclosure and I can see why people on these boards have a low regard for CitiBank.

[NM]

Originally Posted by u747

... then I think this is unethical.

We are talking about a bank