The main fees Citi charges and how to stop them
Citi's checking accounts charge a monthly service fee unless you meet one of their account requirements. The fee is $10 per month on most Citi checking products, but you can waive it by maintaining a minimum balance, setting up direct deposit, or keeping a linked savings account above a certain threshold. Which requirement works for you depends on your account type and how you use your money.
The three Citi checking accounts—Citibank Basic, Citibank Advantage, and Citibank Account—each have different fee structures and different ways to avoid the monthly charge. Basic and Advantage accounts waive the $10 fee if you maintain a $1,500 minimum daily balance or set up a recurring direct deposit of at least $500 per month. The Account product waives its $10 fee with a $15,000 minimum daily balance or the same direct deposit threshold.
If you cannot meet the balance requirement, direct deposit is the easier path for most people. Your employer's paycheck counts, but so do government benefits, pension payments, and regular transfers from another bank if they are set up as recurring deposits. You only need one direct deposit per month to waive the fee for that entire month.
Key Takeaways
- Citi checking accounts charge $10 per month unless you maintain a $1,500 minimum daily balance (or $15,000 for the Account product) or set up a recurring direct deposit of at least $500 per month.
- Direct deposit includes paychecks, government benefits, pension payments, and regular transfers from other banks—you need only one per month to waive the fee.
- If your balance drops below the minimum for even one day, you will owe the monthly fee for that month, so the balance requirement is harder to maintain than it sounds.
- Linking a savings account with a $500 minimum balance does not waive the checking fee on any Citi checking product, despite what some older guides claim.
- If you cannot meet any requirement, closing the account and moving to a bank with no monthly fees may cost less than paying $120 per year.
Why the minimum balance requirement is riskier than it looks
The $1,500 minimum sounds straightforward, but Citi measures it as your daily balance, not your average balance. That means if your account drops to $1,499 on even one day of the month, you owe the full $10 fee for that month. Most people's checking accounts dip below a set amount at some point—when a large bill clears, when you withdraw cash, or when a pending transaction finally posts.
You have no way to know in advance which day Citi will measure your balance, so you would need to keep $1,500 sitting in the account at all times to be certain. For people who live paycheck to paycheck or use their checking account as their main savings account, this is not realistic. If you have the cash to spare, the balance requirement works. If you do not, direct deposit is the safer choice.
Citi does not notify you before charging the fee, so you may not realize you fell below the minimum until the $10 appears on your statement. You can request a refund if it is your first time, but Citi does not may provide it, and repeated requests are unlikely to succeed.
Setting up direct deposit to waive the fee
Direct deposit is the most reliable way to waive Citi's monthly fee because it requires no balance threshold and no daily monitoring. You need to set up a recurring deposit of at least $500 from an employer, government agency, or another financial institution. Once it is set up, the fee waiver applies automatically each month that the deposit arrives.
To set up direct deposit from your employer, ask your payroll or HR department for Citi's routing number and your account number. They will need both to process the deposit. Your Citi account number is on your debit card and in your online banking portal. Citi's routing number varies by state, so confirm the correct one in your account settings or by calling customer service before giving it to your employer.
If you receive Social Security, SSI, VA benefits, or other government payments, you can set up direct deposit through the government agency's website or by calling them directly. The process is the same: provide your routing number and account number. Government deposits usually take one to two months to set up, so plan ahead if you are switching banks.
If you do not have an employer or government income, you can set up a recurring transfer from another bank account you own, as long as it is at least $500 and happens at least once per month. Use your bank's bill pay or transfer feature to schedule it on the same day each month. Citi will recognize it as a direct deposit and waive the fee.
What does not count toward waiving the fee
Citi's fee waiver rules are narrow, and several things people assume will work actually do not. Linking a savings account with a minimum balance does not waive the checking fee on any Citi checking product. Transfers you initiate yourself from another account do not count unless they are set up as recurring transfers through your other bank's system. ATM deposits, mobile check deposits, and cash deposits do not count.
A one-time direct deposit does not waive the fee for future months. You need the deposit to arrive every month to keep the fee waived every month. If you receive a bonus or tax refund as a one-time deposit, it will not protect you in the following months when no deposit arrives.
Maintaining a high balance in a linked savings account, keeping a credit card open with Citi, or having a Citi investment account does not reduce or waive the checking account fee. Each product has its own requirements, and they do not cross over.
Comparing Citi checking accounts and their fee structures
| Account Type | Monthly Fee | Balance Waiver | Direct Deposit Waiver |
|---|---|---|---|
| Citibank Basic | $10 | $1,500 minimum daily balance | $500 per month |
| Citibank Advantage | $10 | $1,500 minimum daily balance | $500 per month |
| Citibank Account | $10 | $15,000 minimum daily balance | $500 per month |
The Citibank Account product is designed for people with higher balances and more complex banking needs. Its $15,000 minimum balance requirement makes the direct deposit waiver the only practical option for most people. The Basic and Advantage accounts are more accessible, though the difference between them is mainly in features like check writing limits and customer service tiers, not in fee structure.
If you already have a Citi account and are paying the monthly fee, switching to a different Citi checking product will not lower your fee unless you also meet one of the waiver requirements. The fee is the same across all three products—only the thresholds change.
When to close your Citi account and move elsewhere
If you cannot meet the direct deposit requirement and cannot maintain the minimum balance, paying $10 per month adds up to $120 per year. Many banks and credit unions offer checking accounts with no monthly fee and no minimum balance. Moving your account takes about a week and costs nothing.
Before you close, check whether you have automatic payments or recurring transfers set up on your Citi account. You will need to update those with your new bank's routing number and account number. Your employer's payroll system will also need the new information if you have direct deposit set up. Plan the switch for a time when you do not have bills due in the next few days, so you have time to update everything.
Closing a checking account does not hurt your credit score. Citi may offer you an incentive to stay—sometimes a fee waiver for a few months or a small cash bonus—so it is worth asking customer service if they can help before you leave. If they cannot, moving to a no-fee bank is the smarter financial move.
Frequently Asked Questions
What counts as a direct deposit for Citi's fee waiver?
Paychecks, government benefits (Social Security, SSI, VA, unemployment), pension payments, and recurring transfers from another bank all count. The deposit must be at least $500 and must arrive at least once per month. One-time deposits like tax refunds or bonuses do not protect you in future months.
Can I avoid the fee by keeping money in a linked savings account?
No. Citi does not waive the checking account fee based on savings account balances. The only waivers are the minimum daily balance in the checking account itself or a recurring direct deposit of at least $500 per month.
What happens if my direct deposit is late one month?
If the deposit does not arrive during the month, you will owe the $10 fee for that month. Direct deposit is reliable, but delays do happen. If your employer or government agency is consistently late, the balance requirement may be a safer backup, or you may want to move to a bank with no monthly fee.
Can Citi refund the monthly fee if I did not know about the requirement?
Citi may refund the fee once if you call and explain, but they do not may provide it. Repeated requests are unlikely to succeed. The best approach is to set up direct deposit or confirm your balance before the end of each month.
Does closing my Citi checking account hurt my credit?
No. Closing a checking account does not appear on your credit report and does not affect your credit score. Only credit accounts like credit cards and loans show up on your credit history.