In this day and age, as we grapple with higher interest rates due to rising SIBOR, wouldn’t it be great if there were a savings account that has a floating interest tagged to SIBOR? The Citibank MaxiGain Savings account is actually a little known secret that provides an excellent interest rate for people who is keen to do a bit of work every month.
So this account is really very simple. There are 2 components to the interest rate – the first being 80% of the 1 month SIBOR rate, which is currently 1.52% as of 1 Oct (meaning an effective rate of 1.21%).
And the second is a step up counter (capped at 1.2%), which is essentially an increment of the current month’s balance compared to the previous month. So far there’s no minimum stated, so you can easily transfer $1 every month electronically to allow this step-up counter to increase to a maximum of 12. Do note if you decide to withdraw some money from the account, then the account balance will fall and the step-up counter will fall. If you are already at 6-12, then it will drop to 6. If you have 5 or less, then it will drop to 0.
For Citibank, the minimum balance to keep in the account is $15k, and the maximum is $150k for the bonus interest. If you are interested, do sign up through this link here and you may receive a bonus $750 if you sign up with a balance of $70k or more.