You Can Now Redeem Citi ThankYou Points in Real Time — but It’s Not a Good Idea
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
If a complicated and confusing redemption process is what was holding you back from reaping in the rewards, things just got a bit easier. Citi has teamed up with Mastercard to be the first major issuer in the US to allow cardmembers to apply their points against purchases in real time.
This new feature will become available in early July for Citi Prestige, Citi Premier Card, Citi Rewards+ Card and Citi ThankYou Preferred members.
So how does it work? When you make a purchase with your eligible Citi card (online or in-person), you’ll receive a notification through Citi’s app that will alert you if your purchase is eligible for an instant points redemption. You can then decide whether or not you want to redeem the points then or put it toward something else. There’s no limit to what you can redeem on — you could put it toward your $5 morning coffee or save it for a larger purchase, it’s up to you. Additionally, you can customize the alerts so that you only receive them for set amounts if that’s what you’d prefer.
The rewards will be similar to Citi’s Shop with Points offering with Amazon where cardmembers get 0.8 cents per point in value. Unfortunately, this is a poor redemption option, as TPG values ThankYou points at 1.7 cents apiece. You’re better off transferring to an airline partner and redeeming for flights, think United’s Polaris business class to Europe with Avianca Lifemiles.
If you really do want to redeem your points for straight cash, you’re better off using points for a statement credit, since you’ll get at least 1 cent per point that way if you have the Citi Prestige. However, those with the Citi Premier Card, Citi Rewards+ Card and the no longer available Citi ThankYou® Preferred Card will only be able to cash them out at .5 cents apiece. So, the new Pay with Points option may not be a good option for those without the Prestige.
Yesterday, Citi announced it would be slashing a slew of benefits like car rental insurance and trip delay protection starting in September.
For additional information to see which Citi card is best for you and to maximize the value of ThankYou points, check out these helpful links:
WELCOME OFFER: 30,000 Points
TPG'S BONUS VALUATION*: $600
CARD HIGHLIGHTS: up to $100 annual CLEAR statement credit, up to $100 annual LoungeBuddy statement credit, 3x points on travel and transit, 3x points on restaurants worldwide
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 30,000 Membership Rewards® points after you spend $2,000 on purchases on your new Card in your first 3 months.
- Earn 3X Membership Rewards® points on all eligible travel, from subway swipes and window seats to hotel stays and city tours.
- Earn 3X Membership Rewards® points at restaurants worldwide.
- Receive up to $100 per year in statement credits when you use the American Express® Green Card to pay for your CLEAR® membership at select airports and stadiums across the U.S. and Permissible Biometric Scanning Technology terms: eye scanning, irises scanning and fingerprints scanning.
- Use the American Express® Green Card to purchase lounge access through LoungeBuddy to any of the lounges in the LoungeBuddy network – no memberships, elite statuses, or first class tickets required. Earn up to $100 in statement credits per calendar year on your LoungeBuddy purchases.
- No Foreign Transaction Fees.
- $150 Annual Fee.
- Terms Apply.
- See Rates & Fees
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.