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Citibank fires back as Savings Price Wars escalate

By Yash Murthy 24 November 2009 10:05amSavings accounts, banking, competition

War! That mad game the world so loves to play – Jonathan Swift

The assassination of Archduke Franz Ferdinand by Gavrilo Princip in 1914. Germany’s blitzkrieg through Poland in 1939. Coca-Cola’s launching of ‘New Coke’ in 1982. The “I’m a Mac” ad campaign launched by Apple in 2006. All sparks that lit the fuse of war, whether military, cola or computer driven.

Swift’s words have rung true once again, as Citibank today launches its new Online Saver account, and in doing so, sparking the powder keg that is the savings account market. The once stagnant savings account market has been rocked in recent months, with UBank’s high interest rate without terms or conditions setting a seemingly unassailable benchmark for the competition against the backdrop of steady Reserve Bank rate rises pushing savings rates higher and higher. Whilst Citibank’s rate is only promotional for 6 months, it does see the first savings account rate from any competitor to better what UBank’s USaver base rate has to offer.

Stay tuned as we bring you more updates from the front lines over the coming days as we run the rule over the new Citibank Online Saver and see what UBank’s response will be. Fingers crossed we don’t get caught in the crossfire.

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2 Comments

  1. Great article Yash, I really like your style. Are you single?

  2. Peter Johnson @ 2009-11-24, 11:01

    Still reckon the USaver’s a better product, though hopefully this savings account war pushes the rate higher!

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