Citi to offer bonus miles in 2020 for those opening a digital savings account
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Citigroup announced Monday that it plans to offer a high-interest online savings account to American Airlines co-branded credit card holders in early 2020.
According to CNBC, to encourage cardholders to enroll in “Citi Miles Ahead,” the issuer will offer up to 50,000 bonus miles as a welcome bonus and a 25% boost on miles earned through the card (capped at $50,000). Based on current TPG valuations, that welcome bonus will be worth $700.
The new digital savings account will be exclusive to customers who both don’t have a physical branch in their area and who also have either the American Airlines AAdvantage MileUp℠ Card card, the Citi® / AAdvantage® Platinum Select® World Elite Mastercard®, the CitiBusiness® / AAdvantage® Platinum Select® Mastercard® or the Citi® / AAdvantage® Executive World Elite™ Mastercard®.
The information for the Citi AAdvantage Platinum card and CitiBusiness AAdvantage Platinum card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
In the past, Citi has run account promotions using either AA miles or ThankYou points as enticements. Earlier this year, the bank offered 40,000 bonus AAdvantage miles when cardholders opened up certain types of bank accounts with Citi. In order to be eligible for that offer (which expired at the end of July), cardholders had to be new-to-Citibank banking customers and had to deposit and retain $15,000 in their account for 60 days.
Since the new savings account promotion hasn’t officially launched yet, information like the minimum bank deposit required to enroll has yet to be announced. However, if you’re looking for 50,000 AAdvantage bonus miles now, the Citi / AAdvantage Executive card is offering exactly that after $5,000 in spending in the first 3 months for new cardholders.
The Citi Miles Ahead account will likely be similar to the existing Citi Accelerate account, minus the lower interest rate and slightly higher welcome bonus. Citi has yet to announce what the exact interest rate will be, but the 2% interest rate offered on the Citi Accelerate online savings account may hint at what we should expect. The bank also uses its state-by-state footprint to determine where the Citi Accelerate account is offered, so we may see the same pattern for this new offering.
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Based on TPG’s most recent valuations, the 50,000 miles are worth $700. In addition, you can earn 10,000 Elite Qualifying Miles (EQMs) toward elite status after spending $40,000 in a calendar year. As of July 23, 2017 this is the only card that offers Admirals Club lounge access so if you are an AA flyer this card might make sense for you. Aside from lounge access the primary cardholder will receive a Global Entry application fee credit every 5 years, first checked bag free for up to 8 travel companions on domestic itineraries and a 25% discount on eligible in-flight purchases on American Airlines flights.
- Earn 50,000 American Airlines AAdvantage® bonus miles after spending $5,000 in purchases within the first 3 months of account opening
- Admirals Club® membership for you and access for up to two guests or immediate family members traveling with you
- Earn 10,000 AAdvantage® Elite Qualifying Miles (EQMs) after you spend $40,000 in purchases within the year
- No Foreign Transaction Fees on purchases
- Earn 2 AAdvantage® miles for every $1 spent on eligible American Airlines purchases and 1 AAdvantage® mile for every $1 spent on other purchases
- First checked bag is free on domestic American Airlines itineraries for you and up to 8 companions traveling with you on the same reservation
- The standard variable APR for Citi Flex Plan is 15.99% - 24.99%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.