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

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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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL OFFER

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%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
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
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS
NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 be 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. *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. Rates correct as of June 29, 2022. 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

Lender

Variable
More details
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Basic Variable Home Loan (LVR 80%-90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
Variable
More details
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Standard Variable Home Loan (LVR < 80%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
Variable
More details
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Basic Variable Investment Loan (Principal and Interest) (LVR 80%-90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
Fixed
More details
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Fixed Home Loan 1 Year (LVR 80%-90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
Fixed
More details
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Mortgage Plus Fixed Home Loan 1 Year (LVR 80%-90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

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 be 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. *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. Rates correct as of June 29, 2022. 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. 

Lender

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Online Saver (Amounts < $499999)

    001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Life Saver

      This table is includes a snapshot of the provider's products, not all of them. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed. Rates correct as of June 29, 2022. View disclaimer.


      Photo source: Flickr

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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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