Citi Dividends Changing Terms

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?

3 thoughts on “Citi Dividends Changing Terms”

  1. I use the Costco American Express True Earnings Business card. 4% on gas, 3% restaurants, 2% travel, 1% on everything else. The "drawback"? Checks arrive on February statement for use at Costco before August 31. Since I am a HUGE Costco shopper this is not a problem. I also have the Costco Executive membership that pays for itself plus more each year.

  2. We have the Costco regular Amex card and earned a whopping $260 back this past February. However we did help my parents buy a tv. 🙂 I wish the Chase Cash Plus cards were still available for you, both my hubby & I have that one and it works really well. Chase's Freedom Card with Ultimate Rewards sounds like what your Citi card is changing too. I did some checking and if you spend a lot on your credit cards (of course paying off every month) the Amex Sapphire card might be the way to go? They have a calculator that can tell you your earning potential based on your category earnings – if you spend at least $6500 in a year you earn 5% on gas, groceries & drugstore and 1.25% on everyday purchase totals over $6500 the rest of the year. Don't know how much you spend, but it might be something to look in to.

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