Citi to leave Australian banking: Credit cards, home loans, savings accounts to go

author-avatar By on April 16, 2021
Citi to leave Australian banking: Credit cards, home loans, savings accounts to go

A major change is set to occur in Australian banking, with Citi announcing it will be pulling out of all consumer banking products.

After 36 years in Australia, the global bank Citigroup announced yesterday it would be selling its consumer banking operation and exiting the country, with the intention of focusing purely on investment banking here. 

The bank will no longer offer credit cards, home loans, savings accounts and term deposits to Australian customers.. 

The move comes after Citi global chief executive Jane Fraser launched a review of Citi's retail banking operations in Australia earlier this year. 

Banks leaving the consumer market is rare in Australia, but Citi's departure comes less than six months since neobank Xinja announced it was it was handing back its banking license after failing to become sustainable.

Citi Australia CEO Marc Luet said Citi had commenced the sale process of its Australian consumer business, and had received interest from several potential buyers.

"During the sale process, there will be no change in the way Citi serves its consumer banking customers. Consumer operations will continue to operate as they do today," Mr Luet said. 

"We are committed to the Australian market and the move will allow us to focus our resources on businesses that can drive stronger growth, deliver scale and enhance returns over the long run.”

What happens to Citi customers now? 

The exact date of Citi's Australian exit is not yet clear, as this will largely depend on when the company is sold and to whom. 

For savings account, home loan and credit card customers, their products should simply move from bank to bank when Citi is bought. 

So Citi customers will simply have their products switched to the new bank, whoever that might be, or they can opt to switch banks themselves and refinance their mortgage ahead of time. 

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
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WIN YOUR HOME LOAN INTEREST FREE

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • WIN your home loan interest free and save up to $1.1 million. Refinance by 29 October. T&Cs apply.
  • Refinance Only. Fast online application, refinance in minutes, not weeks.
  • No Nano fees, Free 100% offset sub account. Mobile app. Visa debit card & instant payments.
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
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  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

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Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
VariableMore details
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100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Rates correct as of September 25, 2021. View disclaimer.

Citi credit cards

Citi is a big player in the credit card space, sitting at number five in customers and is only behind the big four banks. 

With 13% of the credit card market in total, Citi is highly competitive, but customers looking to switch now can compare some of the most competitive credit card products on the market. 

Citi home loans 

Citi is less of a major player for mortgages, as the latest monthly APRA data shows it's the 21st biggest bank for home loan lending with a bit over $4.1 billion and $2.44 billion in owner-occupied and investment lending respectively. 

The table below shows some of Citi's current lowest rate home loans - both fixed and variable. Customers can compare these loans to some of the most competitive interest rates around for investors and owner occupiers

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of September 25, 2021. View disclaimer.

Citi savings accounts & term deposits 

Citi also has the 17th highest amount of deposits in Australia, with more than $12 billion worth of residential deposits. 

Citi's highest savings account rate is a total rate of 1.10% p.a offered on its Online Saver introductory account for four months, before reverting to the base rate of 0.35% p.a. 

For term deposits, it offers a mere 0.75% p.a, well below some of the highest term deposit rates on offer. 


Photo source: Flickr

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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