Noticing some fine prints behind my Citibank credit card, I scanned through the changes in terms of service with regards to interest rate pretty quickly.

Citibank has joined the ranks of Standard Chartered and Amex offering clients with good paying records to lower their interest rates; and penalising those who aren’t responsible paymasters.

Known as tier pricing, Citibank credit card customers with good paying habits would be rewarded in terms of lowered interest if they have been paying their bills regularly. We’re looking at the due date with at least the minimum sum payable; Should you miss paying at least twice, your interest rate could hit as high as 27% per annum, which means 2.25% compounding interest, 0.25% higher than of the old 2% which works out to be 24% per annum.

And for customers who honor their bills regularly, it’s 1.5% per month, 18% per annum, which means massive savings. I happen to fall in this category, hopefully yours too!