I have a question I think some people here can address well. Why do people opt for accounts like the Citigold?
Clearly, there has to be some compelling benefit. Is it the waived ATM fees at international locations? I can't seem to find what else is of significant interest. Even this, I doubt anyone is withdrawing often enough to justify hundreds of dollars in lost opportunity cost - you could for example open a 1% interest bearing account earning much more in absolute dollars elsewhere. A $100 AF reduction in the Prestige or some such, hardly makes a dent compared to interest. I am sure there are other things I am not accounting for properly - and would appreciate a brief education.
I am not trying to promote or ding one bank vs another, but consider as another example BofA. With the kind of balance needed for a Citigold account, you would qualify for preferred platinum honors, and while I care little for that, and there is no interest worth speaking of, there is the possibility of putting a Merrill Edge account to good use. Granted, that platform is not great, but 0 commissions? Last year, I paid a couple of thousand dollars in trading commissions to Fidelity! Easily beats any other account benefits I know of. Citi doesn't even seem to have a mainstream discount brokerage. Is it perhaps that people in a Citigold account are interested mainly in wealth management products, and very much prefer Citi?
I am far from being a possible client for any wealth management service, but am really curious to get to the bottom of this question. Your answers are appreciated.