If you can qualify for a Citi Secured MasterCard, you can take advantage of a great CD.
How about 4.07% APY for an 18-month certificate of deposit at time only a few credit unions are paying that much on 60-month CDs.
Secured credit cards are often thought of as a way for dinged-up consumers who can’t qualify for a regular credit card to establish a pattern of regular payments and rebuild tattered credit scores.
In most instances they give the bank a modest amount of money, say $500 that becomes the credit limit for a secured credit card and serves as collateral in case they default.
Citi however, is only interested in consumers who have never had a credit card before and need to establish a credit history.
If you’ve ever had credit before, even if it was only one card and the account is now closed, a Citi rep told us you’ll be turned down.
But should you be in the market for your first credit card, and have a substantial amount of cash available for investing, this could be the deal for you.
Citi will allow you to secure the card with up to $25,000 in one of those lucrative certificates of deposit.
The $29 annual fee is quite modest, and the 13.24% interest rate on purchases is also very reasonable. (Although the interest you earn on the CD will be quickly eaten up if you carry a balance on this card.)
If you close the CD before the 18 months are up, you’ll pay an early withdrawal penalty and the credit card will be cancelled.
Make all of your payments for 18 months and Citi will move you into an unsecured Citi Platinum Select card as you wave good-bye to that great rate.