New Citi Premier Cashout Rate – Can the Rewards+ Sweeten the Deal?
I’m a big fan of Citi ThankYou Points, but things have gotten rough lately. The 25% extra point value for ThankYou Portal/Cruise & Tours redemptions was removed from the Premier effective 10 April. Citi ThankYou point cashout options haven’t been as user-friendly compared to their Amex and Chase counterparts. That’s changing a bit. Today’s DoC post notes that Premier cardholders can now redeem ThankYou points at a one cent per point (cpp) rate. But can we do better?
Citi Premier and Rewards+
Soon after discovering the new ThankYou point cashout rate, I thought of the Rewards+ card. Why? Because the Rewards+ has the Points Back feature. Rewards+ cardholders are entitled to 10% back of their redeemed points annually, up to 100k ThankYou points redeemed. Would cashing out via “Cash Rewards” or “Statement Credit” on the ThankYou site trigger points back?
First, I navigated to the ThankYou site, logged in, and selected the “Statement Credit” redemption option under the “More Ways to Redeem” menu. Next, I added a $10 amount and added it to my cart. I selected my Premier account as the one to receive the statement credit. It appears you can pick any credit card account grouped with your common ThankYou points number to receive the credit. On the next screen, I placed my order to complete the redemption process.
Results!
Immediately after the redemption, I received a Citi email confirming it. Three minutes later, the key email showed up! Citi Premier cashout via statement credit triggered the Points Back feature of the Rewards+. According to the email, I will receive the 100 points back from my 1k point redemption at the close of my next statement. This is in line with other points back emails I’ve received for different redemptions previously.
My Overall Take
While not an amazing improvement, I’m excited for this updated redemption option from Citi. Previously, Premier cardholders could only obtain a 0.5 cpp value from Cash Rewards or Statement Credit redemptions. Premier cardholders have been able to indirectly cash out via mortgage check, but today’s improved option is much more convenient.
Even better, cardholders with both the Premier and Rewards+ can effectively cashout at 1.1 cpp for the first 100k in redemptions annually. Thanks to this update and the card’s strong bonus categories, the Premier is now a 3.3% cash back card at supermarkets, gas stations, restaurants, air travel, and hotels if a cardholder also holds the Rewards+.
Citi Premier Cashout – Conclusion
This development is not groundbreaking, as Amex and Chase still offer superior cashout rates. But it’s an undeniable, immediate improvement to the Premier for many cashout fans. Previously, the only other easy way to get a 1 cpp cashout valuation was by holding the Citi Prestige. Now, the Premier matches the Prestige’s capability. Will Citi, therefore, improve the Prestige cashout rate? Indeed, I think the Prestige needs something new to entice us. That’s a bit of wishful thinking, but I’ll keep my eyes peeled. Regardless, it’s a great day for Premier cardholders, and even better for those who also hold the Rewards+. Do you now plan to cash out ThankYou points? Why or why not?
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If I get the Premier can I transfer my Sears Citi points to that card. And would it be worth it.
Julie,
I don’t have any firsthand experience there, but if you already have the ThankYou point-earning Sears card, that should work. Depending on your redemptions preferences, it may/may not be worth it.
Does AUs on the Rewards+ also get the 10% rebate on TYP redemptions?
I’ve never attempted a TYP redemption as an AU, so I can’t answer either way. If possible, just redeem from the primary cardholder’s account.
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Thanks for posting. The Premier + Rewards is a nice combo. It reminds me a bit of the WF Propel + Visa Signature although some of the spend categories are different.
Jane,
Interesting about WF. I haven’t obtained one of their cards yet.
A lot of interest in redeeming bank points for cash. If that is the primary interest, shouldn’t people be spending on these cards primarily
Chase Freedom Unlimited (3% dining, 3% drugstore, 1.5% rest, even 5% travel booked via Chase portal)
Double Cash (2% everything)
Apple Card (2% Apple Pay, 3% Uber/Uber Eats and other merchants)
Maybe Capital One Savor (4% dining) or Blue Cash Preferred (6% grocery)
Anthony,
You bring up great examples, but every person’s situation is different. Indeed, other cards than the ones you mentioned earn at higher rates, provide more flexibility, and/or have uncapped earning. But if the cards you brought up work for you, bravo. Likewise, if cashing out Citi ThankYou points works for others, great.
Freedom Unlimited now earns exactly as Anthony described.
Comment updated.
Exactly. If cash is the goal, plenty of cash back cards with great rewards.
Good news, and a great post. Thanks for pointing this out.
Cafesandalleyways,
Thanks for reading!
The rewards+ is one of my favorite cards. Hard to beat a card that gives you back 10% in redemption without any annual fee. It’s definitely a keeper and it’s also a great option for those looking to downgrade from an annual fee card.
Dabby,
I’m with you there. It’s a unique card that many don’t have time for, but I enjoy it. For what it’s worth, it takes me minimal time and effort to maximize the card.
I work too hard to get my points to cash them out at 1.1 per dollar, but anything that benefits cardholders is OK in my book. I use my TYPs for other things and actually have a couple specific things I reserve them for.
Glad you tried this out though as gathering data points is always good and can lead surprising directions.
Carl,
Sure thing! It’s always nice to have an easy cashout option if/when those redemptions you are oh-so-coy about dry up. 🙂
@Carl – sounds like you need to learn to work smarter not harder. Lots of easy, easy ways to earn tons of TYP.