Earn 4.07% APY on an 18 month CD tied to a Citibank secured credit card.

This is a great deal for anyone looking to build up their credit history, but also to just get one of the highest yield CD rates on certificates of deposit out there today.

Citibank’s Secured MasterCard is designed to help people build their credit history for future borrowing needs by earning a competitive annual interest rate on a CD (Certificate of Deposit) as a cardmember, who can then become eligible for an unsecured Citi card after 18 months. But with such a high yield, this CD/Credit Card combo really works for anyone.

Build Your Credit Score and Earn a Competitive Interest Rate

Deposit an amount, from $200 to $25,000 into a Citibank CD (Certificate of Deposit). Your Citibank credit card limit then becomes equal to the amount of money in your CD. Citibank will report your account performance to major credit bureaus, and after 18 months, you could become eligible for an unsecured Citi Platinum Select credit card. You can see that this would be a perfect solution to help a student build credit while saving for college, or as a great way to get a high interest rate without using the charge card for any purchases. Because there is no minimum income or co-signer required, it’s simple to qualify for this credit card, so you can start building a credit history and save money at the same time. For other ideas on how to establish a credit history, check out RateNerd.com’s guide to credit “Your Credit Sucks“.

How to get the 4.07% APY CD Rate

The minimum deposit is $200. As of April 1, 2008, the interest rate on your CD will be 4% with an Annual Percentage Yield (APY) of 4.07%. You must keep your CD account open for 18 months. If you close your CD account before the 18-month period is completed, any interest earned up to that point will be posted to your CD account. However, your credit card account will be cancelled and your CD will be applied against your outstanding credit balance. Like all CD accounts, this account has a penalty for early withdrawal which could reduce the earnings on the CD account from the APY stated above. There are no additional fees on the CD account other than this early withdrawal fee.