I’ve been a faithful Citi Dividends cardholder for a few years now. I signed up a few years ago, enticed by the cashback rewards. Before Citi, I had used a couple of different rewards cards, but eventually settled with Citi as the cashback rewards made this a great card, especially considering that there was no annual fee and that we don’t pay any interest charges, paying off our balance every month.
Citi recently sent a notification that the terms of the card are changing. For the past few years, they paid 2% cash back on the ‘bonus’ categories including gas, groceries, and cell phone bills and 1% on everything else. Beginning July 1st, they will still pay 1% on everything, but the ‘bonus’ percentages will turn into a ‘rotating’ category program where different categories will offer ‘bonus’ money for three month periods. The first period (July 1st – September 30th) pays 5% on some categories, most notably restaurants.
My dad asked me how this will affect our usage. At this point, both my wife and I have between $25-35 in rewards on our cards. Since Citi will only pay you after you reach $50 in rewards, we are going to continue to where we at least get a reward. After that, I think we will probably keep the card and use it selectively on the ‘bonus’ categories that we spend money on anyways. I would think we might look for another cash back card that offers higher rewards especially on gas and groceries, as it’s been nice to get those extra rewards for so long.
Does anybody know of any good cash back rewards cards that pay above 1% rewards across the board or on various categories?
Will anybody be cutting up their Citi Dividends card as a result of this announcement?Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.