Citibank SmartAccount®
What is it?
Citi® offers complete, integrated account service solutions that include complete and timely information, flexible account structures and seamless integration with our pooling and investment services. Companies with considerable daily cash flow activity, for whom immediate funds availability is vital to daily operations, will find this product of significant service
How does it work?
- Citibank SmartAccount is comprised of a set of integrated services that facilitates your liquidity management needs.
- Based on a Zero Balance Account (ZBA) concept, Citibank SmartAccount integrates two different types of accounts to maximize your working capital flows.
- Citibank SmartAccount uses a concentration account to which all collections are made. This account then credits the disbursement account(s) for payments made during the day.
- Citibank SmartAccount enables you to structure a scheme of accounts that meets the dynamic needs of your organisation. The concentration account is an interest-bearing account with both daylight and overnight overdraft facilities (Special conditions apply).
What are the benefits?
- Funds Availability®: Citibank SmartAccount permits you to have credit facilities to cover temporary cash shortfalls, through pre-established, automatic credit lines. This ensures that your most important payments are always made.
- Increased Returns®: Citibank SmartAccount enables you to combine a concentration account with accounts for collections and disbursements, so that you can centrally manage your funds and optimise your liquidity.
- Information®: In addition to your account statement, you will be able to monitor your Citibank SmartAccount activity directly on-line through the use of CitiDirect®, our electronic banking system.
- Customer Service®: With a local telephone call you can access our customer service area, CitiService®. You may request a visit from a product / technical specialist, information on the system's functionality, training for new users, or other services that will help you meet your local and/or international needs. Personalised service is provided in your own language.
What are the requirements?
In addition to completing our account opening documentation, the following are required for opening any of our chequing or savings accounts:
- Must be a corporate entity.
- A letter requesting the establishment of accounts, TTD and/ or USD, at Citibank® Trinidad and Tobago Limited.
- Certificate of Incorporation/Registration.
- Articles of Incorporation.
- By Laws.
- Notice of Directors.
- Proof of identification and address for officers, directors and account signatories
- 3 yrs. audited financials (or projected financials if new entity).
(* Account credit line availability may vary by country.)
Sweep Investment
What is it?
On NY Demand Deposit accounts, Citi's Sweep Investment will give you the power to automatically invest late arriving or uncommitted funds in an interest-bearing overnight Citibank, N.A. account.
How does it work?
- The sweep to the investment account is the last transaction of the day, so you never need to worry about conflicting demands on your money.
- Funds invested overnight are credited to your account as the first transaction of the next business day with principal and interest being returned to the account.
- Funds invested overnight in Puerto Rico are subject to US Sovereign Risk and are deposit insured.
What are the benefits?
- Automation saves time and provides convenience; no on-going investment decisions are required
- Earn interest on idle balances
- Overnight investment maintains liquidity
What are the requirements?
- You will need to have a New York Demand Deposit Account with Citibank N.A., New York.
- The necessary documentation needs to be completed.
- A minimum balance needs to be kept in the account for the sweep to be triggered.
Time Deposits
What is it?
Time deposits are bank obligations issued for a stated period of time at a fixed rate of interest.
How does it work?
Citi's time deposits offer you the benefit of a fixed rate deposit that generally delivers higher yields than overnight placements. The method of interest payment is actual/360 and is made available at maturity. In the case of early termination, Citi reserves the right to charge a termination fee to cover any resulting economic losses.
What are the benefits?
- Issued by Citibank, N.A. and other branches.
- Deposited with a bank rated A-1+/P-1/F1.
- Executed online or via our NY liquidity desk.
- Includes maturities from overnight to five years.
- Balances covered by Federal Deposit Insurance Corporation (FDIC) up to US$250,000.
What are the requirements?
- $100,000 minimum.
- U.S. investors and any investor booking with Citibank, U.S. branches.
- Valid W-8 or W-9 U.S. tax forms.
Earnings Credit Rate (NY DDA)
What is it?
An Earnings Credit Rate (ECR) is the rate used by banks to value balances clients maintain in non-interest bearing U.S. Demand Deposit Accounts (DDA). This value is then used to reduce the amount of fees a client is required to pay for bank services. The ECR is applied to 100% of balances held in a DDA.
How does it work?
The ECR is applied to the average daily balance at month's end, resulting in a credit that offsets. Transaction Service fees incurred in the U.S. ECR is applied to clients that are billed through the Account Analysis billing process and are balance-based as opposed to fee-based.
Two basic ways to calculate ECR are as follows:
Required Balance = Fee/ECR*365/Days in Month
ECR = Fee Equivalent/Average Positive Available Balance*12*100
What are the benefits?
- Full Federal Deposit Insurance Corporation (FDIC) insurance on balances.
- Reduce Expenses.
- Earn a competitive rate of return on idle cash balances.
- Full daily liquidity.
- Visibility and control via CitiDirect.
What are the requirements?
- Any client with a U.S. DDA account with Citi.