The Citi ThankYou® Premier Card has re-launched from our partner Citi, with an improved sign-up bonus and purchase rewards structure. You can now earn 50,000 bonus points after spending $4,000 in purchases within the first 3 months of account opening. The highlights:
- Earn 50,000 bonus points after spending $4,000 in purchases within the first 3 months the account of account opening.*
- 50,000 ThankYou® Points are redeemable for $625 in airfare on any airline, anytime with no blackout dates when booked through the ThankYou travel center or $500 in gift cards when redeemed at thankyou.com
- Earn 3X Points on Travel, Including Gas Stations
- Earn 2X Points on Dining Out and Entertainment
- Earn 1X Points on All Other Purchases
- No expiration and no limit to the amount of points you can earn with this card
- Points Transfer allows you to transfer points to participating airline and hotel loyalty programs.
- No Foreign Transaction Fees on purchases*
- Annual fee is waived for the first year. $95 annual fee afterward. $0 fee for additional users.
Triple points include both air/hotel/car rental and daily commute items. The triple (3X) points on on travel includes hotels, airfare, taxis, car rental, public transportation, parking, cruises, and even gas. When combined with the 25% travel premium, makes that equivalent to a 3.75% reward towards gas and travel booked through Citi Travel Center. The double (2X) on restaurants (includes bars and fast food) and entertainment (sporting events) makes that 2.5% towards travel booked through Citi Travel Center.
Bonus details. The initial sign-up bonus was formerly 30,000 ThankYou points, and while we have seen 50,000 and 60,000 for short periods before, it is a historically high number. Note the following fine print:
Bonus ThankYou Points are not available if you have had a ThankYou Preferred, ThankYou Premier or Citi Prestige card opened or closed in the past 24 months.
Note there is talk that the Citi Prestige card will change their sign-up bonus soon to 75,000 ThankYou points, but there will also be a $450 annual fee that is not waived (and a $250 airfare fee credit).
What can you do with 50,000 ThankYou Points? Citi has been trying to improve the value and flexibility of ThankYou points, so here is a rundown of what you can do with 50,000 of them. Bonus ThankYou Points not available if you have had a Citi ThankYou Premier card opened or closed in the past 18 months.
$625 towards flexible airfare, hotel nights, car rentals, and cruises. With the new Citi Premier card, you get a 20% discount on the standard number of points needed for a travel redemption. The reverse math means 1 ThankYou point = 1.25 cents towards travel. Note that this 25% bonus applies all of your points from all Citi cards linked to the same ThankYou account, thus boosting the value of all your other points.
That means 50,000 ThankYou points will get you $625 in airfare, hotel nights, car rentals, and cruises book through the Citi Travel Center, which in my experience had the same total price with taxes as compared to Expedia, Orbitz, etc. Since you can book any flight that can be otherwise purchased with cash, there are “no blackout dates”.
This can be even more flexible because you can use it across multiple flights, multiple passengers, and you can even do partial redemptions. Let’s say you found a ticket that want for $200 = 16,000 points, but only have 10,000 points available. Citi now lets you pay the difference, so in this case you can get your $200 ticket for 10,000 points and $75. This makes it much easier to use up all of your points at a 25% premium.
$500 in gift, $500 check towards student loan or mortgage. You can view your redemption options at ThankYou.com. I took a quick look and it takes 10,000 ThankYou (TY) points to redeem for a $100 gift card to retailers like Gap, Banana Republic, Barnes & Noble, Bath and Body Works, Bed Bath & Beyond, Cabelas, CVS Pharmacy, Kohl’s, Land’s End, LL Bean, Sears, Lowe’s, Home Depot, Staples, and Walmart. So with 30,000 TY points, you could get five $100 gift cards from different stores.
Want something closer to cash? For a check mailed to you, it is 8,000 points for $50 (1 points = 0.625 cent). The best deal is a check mailed towards your mortgage payment or student loan (made out to your lender), which is 7,500 points for $75 (1 points = 1 cent).
Hotel points and airline miles transfer options. Citi ThankYou points are also now available to transfer to certain airline mileage programs on a 1:1 basis including JetBlue, Cathay Pacific, EVA Air, Etihad, Flying Blue by Air France and KLM, Singapore Airlines, and Thai Airways. For example, 50,000 TY points can get you 50,000 Singapore Airlines KrisFlyer miles. If you know how to redeem this points wisely, you can get a lot of value for international flights.
Bottom line. The increased 50,000 point sign-up bonus with the annual fee waived for the first year is historically high. I choose to focus on the flexible value where 50,000 points = $625 in airfare on any airline, anytime with no blackout dates when booked through the ThankYou travel center. The airline points transfer partners are may get you better value for international flights (or JetBlue for domestic). I like the new rewards structure but a cardholder would need a fair amount of spending in the bonus categories (gas, airfare, hotels, dining out) in order to offset the $95 annual after the first year where they waive it.
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© MyMoneyBlog.com, 2017.