Citibank 18-Month CD Rate of 4.00%

Citibank is offering an 18-month CD rate of 4.00 percent with an annual percentage yield of 4.07 percent. This rate is probably one of the best CD rates available today for an 18-month CD.

Yes, there is a catch, this certificate of deposit is designed for people who are interested in building their credit history but you can still take advantage of this high CD rate even if you're not trying to build a credit history.

The way this certificate works is you open a secured Citi MasterCard with a balance between $200 (minimum opening deposit) and $25,000. The amount of money you deposit becomes your credit limit. During this time Citibank reports your account performance to the major credit bureaus, which is a good thing if you're trying to build a credit history as long as you're current on your account. After 18 months you become eligible for an unsecured Citi Platinum Select credit card.

If you close your certificate of deposit account before the 18-month period, any CD interest you earn up to that point will be posted to your CD account. However, your credit card account will be cancelled and your CD will be applied against your outstanding credit balance. Like all CD accounts there will be an early withdrawal penalty which will lower the amount of interest you have earned.

Even if you're not trying to build your credit history you should take advantage of the 4.07% APY. There is an annual credit card fee of $29 and the APR on purchases is 13.24 percent so of course you will also have to pay y0ur credit card bill off every month to make it worth it.

Citibank buried the CD rate information, to find the CD rate click on account disclosures right below the "Get PDF Application".