Key Features

• Fixed rate: The interest rate is locked in at account opening for the full term of the CD.
• Term options: Multiple maturities are available, typically ranging from short-term (30 days) to several years, enabling alignment with business cash flow plans.
• Principal protection: Principal is preserved when the CD is held to maturity, assuming the issuing bank remains solvent.
• FDIC insurance: Eligible deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable limits, depending on account ownership categories and aggregation rules.
• Predictable income: Interest payments may be credited to the CD account, transferred to another insured deposit account, or paid to the business on a defined schedule.

Benefits for Businesses

A Business CD at Citigroup is tailored to organizations that require a low-risk place to park excess cash while earning interest. Major benefits include:

• Certainty of return: With a fixed rate over the term, businesses can forecast earnings and plan budgets with greater accuracy.
• Enhanced treasury management: CDs can be laddered across different maturities to balance liquidity and yield.
• Simplicity and stability: CDs are straightforward instruments without market-value volatility that affects investments like equities or bond funds.
• Integration: Citigroup’s business banking platform enables consolidated reporting and operational convenience for managing CDs alongside other deposit and cash management services.

Typical Terms and Considerations

Before opening a Business CD, businesses should evaluate term length, interest compounding, early withdrawal policies, and renewal procedures:

• Term length: Choose a maturity that aligns with anticipated cash needs. Shorter terms offer more flexibility; longer terms often provide higher yields.
• Interest calculation: Interest may compound daily, monthly, or annually; confirm the compounding frequency and how interest is credited.
• Early withdrawal: Withdrawing funds before maturity typically incurs an early withdrawal penalty, which can reduce or eliminate earned interest and affect principal in certain circumstances.
• Automatic renewal: CDs commonly renew automatically at maturity into the prevailing rate for the chosen term unless instructions to the contrary are provided.
• Minimum deposit: Minimum opening balances and rate tiers may apply; review account terms for specific thresholds.

Eligibility and Account Opening

Citigroup’s Business CD is available to a broad range of legal entities, including corporations, limited liability companies, partnerships, nonprofit organizations, and governmental entities, subject to account documentation and regulatory requirements. Proper business documentation, authorized signer verification, and tax identification are required during account opening.

Businesses should consult their relationship manager or business banker to determine specific documentation requirements, available term structures, and the process for funding and managing the CD.

Security and Insurance

Deposits in eligible accounts are covered by FDIC insurance up to applicable limits. FDIC insurance coverage is subject to aggregation rules and depends on the account ownership category and beneficiary designations. It is important for businesses to review how their deposits are held and whether multiple ownership categories or separate legal entities affect coverage.

Citigroup maintains comprehensive operational and cybersecurity controls to protect account access, and businesses are encouraged to use available account management tools, including dual authorization, transaction alerts, and regular reconciliation practices, to reduce operational risk.

How Businesses Typically Use CDs

• Short-term reserves: Park surplus cash that is not required for immediate operating needs.
• Project funding: Align CD maturity with expected capital expenditures or project timelines.
• Payroll and tax planning: Secure funds for upcoming payroll cycles, tax obligations, or known liabilities.
• Cash laddering: Build a ladder of CDs maturing at staggered intervals to maintain liquidity while optimizing yield.

Common Questions

Can interest be paid out to another account? Yes. Interest payment options typically include crediting to the CD, transferring to another deposit account, or periodic payment to the business.

What happens at maturity? CDs generally renew automatically for the same term at the current rate unless the business provides different instructions prior to the maturity date.

Are there penalties for early withdrawal? Yes. Early withdrawal penalties apply and vary based on term and bank policy. Review the specific penalty schedule before opening the CD.