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CITIBANK INTRODUCES INNOVATIVE DEPOSIT ACCOUNT; TAX SHELTERED PRODUCT OFFERS STOCK MARKET GROWTH WITH NO RISK TO PRINCIPAL

 NEW YORK, March 23 /PRNewswire/ -- Citibank announced today that it will introduce the Stock Index Insured Account, a new five-year deposit account for IRA and Keogh deposits of $10,000 or more, on March 26. The federally insured deposit account offers customers earnings equal to double the average percentage increase in the Standard & Poor's 500 Index over the term of the deposit, while guaranteeing a return of the principal no matter what happens to the stock market. This account, which is only for IRA and Keogh rollovers or transfers, will be available at all Citibank New York metro area, Rochester, and Buffalo branches on March 26 and at all other Citibank branches over the coming months, as well as by calling 800-328-CITI, ext. 7101.
 "This product is unique for consumer banking customers, since it offers potential stock market returns without stock market risk," said Anne Slattery, vice president and managing director, Eastern Region Retail Bank. "It allows customers the growth they're looking for without a level of risk that might not be appropriately suited for retirement funds."
 Customers place their funds in a tax deferred plan such as an IRA or Keogh. The deposit has a five-year term, during which time each month- end value of the S & P 500 Index is tracked. At the end of the term, the average of the monthly S & P 500 values is compared against the S & P 500 at the start of the period. The average percentage increase, if any, is then doubled and paid to the depositor with the principal.
 For example, if a depositor placed $20,000 in a Citibank Stock Index Insured Account when the S & P is at 400, and over the following 60 months the average month-end S & P Index is 560, the total change from the start would be 160, or a 40 percent increase. The percentage is then doubled and 80 percent of the original investment is paid ($16,000) along with the guaranteed principal, making the total value of the account at the end of five years $36,000.
 "We feel that the averaging technique, which cushions the impact of market downturns, really responds to the needs of the individual investor," said Ms. Slattery. "Keogh account depositors, too, will find it a very attractive product, and everybody benefits from having their principal assured of return."
 The principal in the Citibank Stock Index Insured Account cannot be added to during the term of the account, but new accounts can always be opened. The account is a tax-deferred qualified retirement account, so that earnings are not taxed until money is withdrawn from the plan. Since the product is a bank deposit account, the money is FDIC insured up to $100,000 in addition to other non-IRA and Keogh deposits. There are substantial principal penalties for early withdrawal.
 FACT SHEET
 CITIBANK STOCK INDEX INSURED ACCOUNT
 Stock Index Insured Accounts:
 The Citibank Stock Index Insured Account offers depositors a bank account that takes advantage of growth in the stock market with the assurance that they will not lose their original deposit if held to maturity.
 Rate of Return:
 Depositors will receive double the average percentage increase in the S & P 500 Index over the five-year term of the account, in addition to the original deposit.
 Eligibility Requirements:
 The Citibank Stock Index Insured Account is a five-year deposit account being offered for IRA and Keogh deposits of $10,000 or more.
 FDIC Insured:
 The Citibank Stock Index Insured Account is FDIC insured to $100,000 along with other IRA and Keogh deposits.
 Tax-Deferment:
 All earnings on deposits in the Citibank Stock Index Insured Account will be tax-deferred until money is withdrawn.
 Early Withdrawal:
 There is a significant penalty to principal for early withdrawals. During the first year it is 30 percent of principal withdrawn, which will be reduced each subsequent year by five percentage points.
 Availability:
 Citibank will receive deposits starting on March 26 in all New York Citibank branches and in all branches in Washington, D.C., and California in April. The product will be available at all other branches in the following months. Customers can also call a toll-free number (800-328-CITI, ext. 7101).
 An Example:
 If a depositor were to place $20,000 in the Citibank Stock Index Insured Account when the S & P 500 Index was at 400, and over the next 60 months the month-end S & P Index averages 560, then, when the account matures in five years, the difference between the opening Index of 400 and the 60-month average of 560 would be used to calculate the percentage increase. This 160-point difference represents a 40 percent increase over 400.
 Citibank will double that percentage increase and, as a result, the depositor's return would be 80 percent, or $16,000, on top of the original $20,000 deposit. The total value of the account at the end of five years would be $36,000.
 The Standard & Poor's 500 Index:
 The S & P 500 Index, established in 1957, is commonly used as a measurement of the overall performance of the stock market. The index is comprised of the market price of 500 widely-held common stocks. Historical data has demonstrated a general upward trend in the S & P 500 over time.
 -0- 3/23/93
 /CONTACT: Maria Rullo of Citibank, 212-559-0409; or Michael Sullivan of Ruder Finn, 212-715-1513, for Citibank/
 (CCI)


CO: Citibank ST: New York IN: FIN SU: PDT

GK-OS -- NY019 -- 8570 03/23/93 10:11 EST
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Date:Mar 23, 1993
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