Citi announced today, April 8, that consumers can expect new rewards and major benefit changes for the Citi Premier℠ Card starting in summer 2020.
"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," Lora Monfared, general manager of proprietary rewards products at Citi, said in a statement.
"As such, we're excited to be launching a new rewards structure on our Citi Premier Card ... to provide additional earning potential within the categories that matter most to our cardmembers."
The Citi Premier Card will be undergoing several changes over the next year, with the first part launching August 23, 2020 and the last part April 10, 2021. The exact changes will differ between existing cardmembers and new cardmembers, which we break down for you below.
3X points on travel including gas stations, 2X points at restaurants and on entertainment, 1X points on all other purchases
60,000 bonus points after making $4,000 in purchases with your card within the first 3 months of account opening (worth $750 in airfare)
15.99% to 23.99% variable APR on purchases and balance transfers
3%, $5 minimum
Starting this summer, the Citi Premier Card is due to roll out some big changes for both existing cardmembers and new cardmembers, and they will be completed by next spring.
Starting Aug. 23, 2020, both new and existing Citi Premier Card members will earn a higher rewards rate at restaurants (3X, currently 2X) and supermarkets (3X, currently 1X). But some benefits will be extended for existing Citi Premier Card members through April 9, 2021 (which we outline below).
There will also be a new hotel benefit come Aug. 23, 2020. Both new and existing cardmembers will receive $100 off a single hotel stay of $500 or more (excluding taxes and fees) once per calendar year through Thankyou.com. This is a great way to offset the cost of staying at a hotel for several nights.
Often with new benefits, some old perks are removed, which will be the case for the Citi Premier Card. For existing cardholders (those approved before April 10, 2020), bonus rewards on other travel (such as cruises, tolls and parking) and on entertainment will be lowered to 1X (from 3X and 2X, respectively).
And all cardholders (both new and existing) will only have through April 9, 2021 to receive 25% more value on points redeemed for airfare, hotels, cruises and car rentals through the ThankYou Travel Center.
Here's a rundown of the changes taking effect over the next year, broken down by existing and new cardmembers.
If you're a Citi Premier Card member (approved before April 10, 2020), these changes will apply to you. The following changes will take effect on Aug. 23, 2020:
If you become a Citi Premier Card member on or after April 10, 2020, these will be your benefits starting on Aug. 23, 2020:
Though Citi is ending or lowering some benefits for the Citi Premier Card, cardmembers stand to gain more rewards for spending on groceries and restaurants.
The Citi Premier Card does have a $95 annual fee, but using the new $100 annual hotel benefit offsets it each year. If you don't plan on using that perk, you can consider alternative rewards cards that have no annual fee, such as the Citi® Double Cash Card, which offers 2% cash back: 1% on all purchases and an additional 1% after you pay your credit card bill.
Information about the Citi® Double Cash Card and Citi Premier℠ Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the cards prior to publication.