You Can Now Redeem Citi ThankYou Points in Real Time — but It’s Not a Good Idea

Jun 25, 2019

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Citi is a TPG advertising partner.

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:

Chase Sapphire Preferred® Card

WELCOME OFFER: 60,000 Points

TPG'S BONUS VALUATION*: $1,200

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Intro APR on Purchases
N/A
Regular APR
17.49% - 24.49% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

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