Citibank Balance Transfer Review: Is it Worth Considering?
Citibank Balance Transfer Review: Is it Worth Considering?
ValueChampion Rating 
Pros
- Good rates for new customers seeking a 6-month balance transfer loan
Cons
- Not the best for current Citibank customers
- not the lowest rates for 3 or 12 month interest free periods
Citibank is a great option for new Citi customers seeking 6-month balance transfers, but is not as good for individuals seeking other interest-free periods or existing Citi customers. This is because the bank offers competitive rates on 6 month interest free balance transfers to new customers, while its offers to existing customers tend not to be competitive. Additionally, Citibank's balance transfers with 3 and 12-month interest-free durations are less competitive with other banks in Singapore.
| Summary of Citibank's Funds Transfer |
|---|
| Competitive offers for 6 month interest-free balance transfers to new Citibank customers |
| Minimum monthly repayment of 1% or S$50, whichever is higher |
| Transfer amount: S$500 - 90% of credit limit |
Table of Contents
What Makes Citibank Stand Out to Borrowers
Citibank offers competitive fee rates for its 6 month interest-free balance transfers. These transfers have processing fees of just 1.58% to new customers, making them among the cheapest balance transfer options. However, Citibank's offers aren't competitive for existing customers who have had any banking relationship with the company in the past 12 months. Also, Citibank's rates to borrowers seeking 3 and 12 month interest-free balance transfers are less competitive than its offers for 6 month interest-free transfers.
Additionally, Citibank charges relatively high interest rates upon the conclusion of its balance transfers' interest-free periods. These rates are 20.95% for Citibank Ready Credit customers and 26.9% for Citibank credit card customers. This indicates that borrowers that do not expect to repay their loans within 6 months should consider a 12 or 18 month balance transfer in order to avoid accruing a significant amount of interest after their interest-free period concludes.
Citibank's credit card balance transfer requires monthly repayments of 1% or S$50, whichever is higher. This is one of the lower requirements among balance transfers in Singapore. Meanwhile, the Ready Credit balance transfer requires a much higher monthly repayment of 3% or S$45, whichever is higher.
Summary of Citibank's Balance Transfer Costs
| Interest-Free Period | Processing Fee | Credit Card Balance Transfer EIR | Ready Credit Balance Transfer EIR |
|---|---|---|---|
| 3 months | 1.58% | 6.73% | 6.69% |
| 6 months | 1.58% | 3.65% | 3.60% |
| 6 months | 2.50% | 5.81% | 5.72% |
| 12 months | 5.50% | 7.87% | 7.58% |
| * rates for existing customers | |||
Who Can Apply: Eligibility Criteria
To be eligible for Citibank's balance transfers, borrowers must have annual incomes of at least S$30,000. Citibank offers balance transfers to both new and existing customers. With that said, the bank offers much more competitive rates to new customers.
Other Charges & Fees
In addition to its processing fee, Citibank charges a late payment fee of S$100 and a S$40 penalty for borrowers whose outstanding balance exceeds their credit limit.
| Fee | Fee Amount |
|---|---|
| Late Payment Charge | S$100 |
| Overlimit Fee | S$40 |
How to Apply for Citibank's Balance Transfer
Individuals interested in Citibank's balance transfers can apply online. Applicants must provide their NRIC/Passport number/FIN, annual income amount and contact information.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.