Citizens Bank's current financial standing
Citizens Bank is not in financial trouble in the sense of being on the verge of collapse or facing imminent failure. The bank remains solvent, continues to operate branches and digital services, and processes customer transactions normally. However, the bank has faced specific operational and regulatory challenges in recent years that are worth understanding if you hold an account there or are considering opening one.
The bank's parent company, Citizens Financial Group, is publicly traded and reports earnings quarterly. Like most large regional banks, Citizens has dealt with rising interest rates, deposit competition, and cost pressures. These are industry-wide challenges, not signs of distress unique to Citizens.
What has drawn attention are enforcement actions and operational issues—not solvency problems. Understanding the difference matters: a bank can be operationally messy or under regulatory scrutiny without being unsafe for your deposits.
Key Takeaways
- Citizens Bank remains solvent and continues normal operations; your deposits are insured by the FDIC up to $250,000 per account type.
- The bank has faced regulatory enforcement actions related to customer service failures and compliance issues, not capital shortfalls.
- Operational problems have included account closures, fee disputes, and delays in processing transactions—frustrating but not indicators of insolvency.
- If you bank with Citizens, monitor your account regularly and report unauthorized activity within 60 days to preserve your fraud protection rights.
Regulatory enforcement actions and what they mean
Citizens Bank has received enforcement orders from the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) in recent years. These orders typically require the bank to fix specific problems—like improving customer service systems, correcting fee practices, or strengthening compliance procedures.
An enforcement order is not the same as a bank failure warning. It means regulators found violations or deficiencies and are requiring documented fixes. The bank must submit plans, hire compliance staff, and undergo audits to prove the problems are solved. This is uncomfortable for the bank and can result in fines, but it is a normal regulatory tool.
Citizens has also faced criticism for account closures—closing customer accounts without clear notice or explanation. This is a customer service and compliance problem, not a sign the bank itself is failing. However, it does mean the bank has had internal systems that were not working as they should.
Deposit safety and FDIC insurance
Your deposits at Citizens Bank are protected by FDIC insurance up to $250,000 per depositor, per bank, per account type. This protection is backed by the federal government and does not depend on the bank's financial health. Even if Citizens Bank failed tomorrow, the FDIC would pay out insured deposits.
Account types are insured separately, so you can have $250,000 in a checking account, $250,000 in a savings account, and $250,000 in a money market account at the same bank and be fully covered. Joint accounts are insured separately as well—$250,000 per co-owner.
If you have more than $250,000 at Citizens, only the amount over that limit is at risk in a failure scenario. That said, Citizens is a large regional bank with significant capital, and a failure is not a realistic near-term risk based on current information.
What operational problems have affected customers
Citizens customers have reported specific issues over the past few years. These include unexplained account closures, disputes over overdraft fees, delays in processing wire transfers and ACH payments, and difficulty reaching customer service. These are real problems that affect your ability to use the bank, but they are different from the bank being insolvent.
Account closures have been particularly frustrating because the bank sometimes closed accounts with little notice and without clear explanation. Customers affected by this have had to move their money elsewhere and deal with the disruption. If this happens to you, the bank must return your funds, but the process can be slow and stressful.
Fee disputes have centered on overdraft practices and how the bank calculates and applies fees. Some customers have reported being charged multiple overdraft fees on the same transaction or being charged fees after the bank had already declined the transaction. These issues have led to complaints to the CFPB and lawsuits.
How to monitor your Citizens Bank account for problems
If you bank with Citizens, check your account regularly—at least weekly. Look for unauthorized transactions, unexpected fees, or changes to your account status. Set up account alerts through the Citizens app or website so you are notified of large transactions, low balances, or failed transfers.
If you spot fraud or an unauthorized transaction, report it to Citizens within 60 days of the statement date. This deadline is important: if you wait longer, the bank may not be required to refund the money. Call the number on the back of your debit card or log into your account to report the issue.
Keep records of all communications with the bank—emails, chat transcripts, call dates, and names of representatives you spoke with. If there is a dispute, these records are your proof of what happened and when you reported it.
When to consider moving your money
You do not need to move your money based solely on regulatory enforcement or operational complaints. Enforcement actions are common across the banking industry, and Citizens is not uniquely troubled. However, you might consider switching if you have experienced a specific problem—like an unexplained account closure, repeated fee disputes, or poor customer service that is not being resolved.
If you are unhappy with Citizens for any reason, you can move your deposits to another bank. This process typically takes a few days to a week. You will need to open an account at the new bank, then either transfer money yourself or ask the new bank to help you move direct deposits and automatic payments.
Before switching, make sure your new bank does not have its own problems. Check recent CFPB complaints, read customer reviews, and understand the fees and features you are getting. Moving to a different bank with similar issues does not solve the problem.
What Citizens Bank's financial reports actually show
Citizens Financial Group publishes quarterly earnings reports and annual financial statements. These documents show the bank's capital levels, loan quality, deposit balances, and profitability. As of the most recent reports, the bank maintains capital levels above regulatory minimums and continues to be profitable, though margins have tightened like they have across the industry.
The bank's loan portfolio includes mortgages, auto loans, and commercial loans. Non-performing loans (loans where customers are not making payments) have risen slightly in recent quarters, which is normal in a higher-interest-rate environment. This is not unusual and does not indicate the bank is in crisis.
Deposit levels have fluctuated as customers move money to higher-yield savings accounts and money market funds elsewhere. This is an industry-wide trend, not specific to Citizens. The bank has responded by raising rates on savings products to compete.
Frequently Asked Questions
Is my money safe at Citizens Bank?
Yes. Your deposits are insured by the FDIC up to $250,000 per account type. Even if the bank failed, the FDIC would pay out your insured deposits. Citizens is a large regional bank with adequate capital, and a failure is not a realistic near-term risk.
What should I do if Citizens closes my account?
The bank must return your funds, usually within a few business days. If you do not receive your money, contact Citizens customer service and ask for a written explanation and timeline. If the bank does not respond, file a complaint with the CFPB at consumerfinance.gov.
Can I get my money back if I was charged unfair fees?
You can request a refund by contacting Citizens customer service. If the bank refuses, you can file a complaint with the CFPB or pursue a dispute through your state's banking regulator. Keep records of all fees and communications with the bank.
Should I move my money out of Citizens Bank?
Not based on regulatory enforcement alone—that is common across the industry. Move your money if you have experienced a specific problem that the bank is not fixing, or if you are unhappy with the service or fees. Otherwise, your deposits are safe.
How do I report fraud at Citizens Bank?
Call the number on the back of your debit card or log into your account online. Report unauthorized transactions within 60 days of the statement date. Provide details of the fraudulent transaction and follow the bank's dispute process. Keep records of your report.