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As credit card issuers continue to revamp and adjust their products in the wake of the coronavirus outbreak, Citi is following suit with changes to the Citi Premier® Card. Updates include new benefits — such as increased earnings on regular purchases — as well as removal of a few notable benefits.
The card is known for great travel benefits and a modest annual fee, but is shifting to become a great credit card for everyday purchases.
Citi Premier® Card changes
The updated Citi Premier® Card will offer great points earning potential on everyday purchases such as gas stations, supermarkets and restaurants, complemented with a low annual fee. The updated earning categories should more closely match consumers' needs in the coming months. Lora Monfared, general manager of proprietary rewards products at Citi, said, “As our cardmembers’ needs evolve, we want to ensure we’re evolving with them and offering products that best meet their spending habits and deliver exceptional value.”
Here's a comparison of the current and upcoming earning categories for the Citi Premier® Card:
|Previous earnings||Current earnings|
|Restaurants||2 points per dollar||3 points per dollar|
|Supermarkets||1 point per dollar||3 points per dollar|
|Airfare, hotels and gas stations||3 points per dollar||3 points per dollar|
|Entertainment||2 points per dollar||1 points per dollar|
|All other purchases||1 points per dollar||1 points per dollar|
New hotel credit
The card also offers a new $100 annual hotel credit. This credit can be applied to a single hotel stay of $500 or more, excluding taxes and fees. This benefit can be used once per calendar year through ThankYou.com. The hotel credit, if used, nullifies the $95 annual fee.
Unfortunately, there are a few negative changes as well. A few earning categories and card benefits will end on April 10, 2021 for existing cardholders, and for all new cardmembers:
- 3 points per dollar on other travel such as cruises, tolls and parking (the rate will decrease to 1 point per dollar)
- 2 points per dollar on entertainment (the rate will decrease to 1 point per dollar)
- 25% more value on points redeemed for airfare, hotels, cruises and car rentals (points will now be worth 1 cent per point rather than 1.25 cents per point)
Is the Citi Premier® Card still worth it?
The changes unfortunately affect the value of Citi ThankYou points. With the 25% redemption bonus eliminated, cardholders will save less on travel. However, the ability to earn more points on regular purchases made at supermarkets and restaurants offsets some of the loss in value. And the bonus offer will remain the same: Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening.
These changes should encourage cardholders to maximize their points by transferring them to Citi’s various travel partners including JetBlue, Qantas, Qatar, Singapore Airlines and Virgin Atlantic Flying Club.
Citi Premier® Card
15.99% - 23.99% (Variable)
- Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
- NEW! Earn 3 Points at Restaurants and Supermarkets
- Earn 3 Points at Gas Stations, Air Travel and Hotels
- Earn 1 Point per $1 spent on all other purchases
- NEW! Annual Hotel Savings Benefit
- 60,000 Points are redeemable for $600 in gift cards when redeemed at thankyou.com
- No expiration and no limit to the amount of points you can earn with this card
- No Foreign Transaction Fees on purchases