Citibank is one of those banks that charges a pretty penny for sending money overseas. If you're like me and trying to avoid giving them any more money than necessary, here's a breakdown of their fees and some tips on how to minimize them.
The Fee Structure
First off, let's talk about the different types of accounts you can have at Citi because they all come with different fee structures. If you have a Citigold or Citigold Private Client account, you're in luck—those outgoing wire transfer fees are waived. For Citi Priority account holders, it’s $25 to send money out and free to receive. Most other accounts will hit you with a $35 fee for sending and $15 for receiving.
But wait, there’s more! There are intermediary bank charges that can add another $20-$50 on top of whatever Citi is charging you. And don’t even get me started on the exchange rate markup banks love to apply.
How Small Businesses Get Hit Hard
If you're running a small business, these fees can be killer. I know several people who have switched to using Wise (formerly TransferWise) because traditional banks are just too expensive.
Tips to Avoid Paying So Much
So how do we avoid giving so much money to Citi? First off, do your transfers online. They charge less if you don’t go into the branch or talk to someone on the phone. Second, if you're just moving money between your own accounts, use Citi Global Transfers; those are free.
Lastly, consider alternatives. Non-bank providers usually have better rates and lower fees.
Cryptos as an Alternative?
I’ve been hearing more about people using cryptocurrencies for these kinds of transfers. I mean, it makes sense—most cryptos charge less than a dollar in transaction fees (if that), and some don’t charge anything at all (looking at you Nano). Just make sure you’re not getting hit with a bad exchange rate when converting back into fiat.
Final Thoughts
Citibank's international wire transfer fees can be daunting but knowing what you're up against helps a lot. By choosing the right account type and method for transferring funds—and maybe looking into crypto options—you can save yourself quite a bit of cash.
