Why You Should NOT Use Citi ThankYou Points for Cash Back!

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Because of the great sign-up offers on the Citi AT&T Access More, Citi Prestige and Citi ThankYou Premier cards, readers have asked if they can redeem Citi ThankYou points for cash back.

You CAN do it.  But that doesn’t mean you should!  It’s NOT a good deal.

And there are plenty of other cards that will earn more cash back.

Let’s look at why it’s not a good idea!

What’s the Deal?

Link:   Citi AT&T Access More

Link:   My Review of the Citi AT&T Access More

Link:   Citi Prestige

Link:   My Review of the Improved Citi Prestige Offer

Link:   Citi ThankYou Premier

Link:   My Review of the Improved Citi ThankYou Premier Offer

Citi ThankYou points are only worth 0.5 cents each when redeemed for cash back or a statement credit.  So it’s like getting 0.5% cash back.

If you want cash back in the form of a check, you can redeem Citi ThankYou points in these increments:

• $50 for 10,000 Citi ThankYou points
• $100 for 20,000 Citi ThankYou points

If you prefer statement credits, you can redeem your points as follows:

• $10 for 2,000 Citi ThankYou points
• $15 for 3,000 Citi ThankYou points
• $25 for 5,000 Citi ThankYou points
• $50 for 10,000 Citi ThankYou points
• $100 for 20,000 Citi ThankYou points
• $175 for 35,000 Citi ThankYou points
• $250 for 50,000 Citi ThankYou points

This is a terrible use of Citi ThankYou points!

You can get much more value redeeming them for paid flights or transferring them to airline and hotel partners (if you have a Citi Chairman, Citi Prestige or Citi ThankYou Premier card).  Or even redeeming them for gift cards!

For example, Citi ThankYou points are worth:

• 1.6 cents per point (if you have the Citi Prestige card) when redeemed for American Airlines paid flights through the Citi Travel Center
• 1.33 cents per point (if you have the Citi Prestige card) when redeemed for travel on other airlines through the Citi Travel Center
• 1.25 cents per point (if you have the Citi ThankYou Premier card) when redeemed for airfare, hotels, car rentals, and cruises through the Citi Travel Center
• ~1 cent per point when redeemed for retail gift cards (still not a great deal, but better than 0.5 cents per point!)
• 0.75 cents per point when used for Select & Credit statement credits (for dining, entertainment, utility bills, gas, grocery, and drug store purchases made in your current billing cycle)
• Potentially much more when you transfer them to airline and hotel partners and use them for Big Travel, like First Class tickets on Singapore Airlines

But I Do a Lot of Spending in Bonus Categories!

Even if you make the most of bonus spending categories, redeeming your Citi ThankYou points for cash or a statement credit is still not a good deal compared to other cards.

Suppose you earn 3X Citi ThankYou points with the Citi Prestige or Citi ThankYou Premier on travel purchases.  Or 3X points on retail websites with the Citi AT&T Access More card.

Even if you earn points at a rate of 3 points per $1 you spend, you’ll only get a value of 1.5% back.  (3 points per $1 x 0.5 cents per point)

There are lots of other cards that will earn more.  For example:

• American Express Fidelity Investment Rewards – earns 2% cash back everywhere when you deposit award points into a Fidelity Investment Account
• Barclaycard Arrival Plus World Elite Mastercard – earns 2X points everywhere, worth 2.1% back when redeemed for travel statement credits of $100 or more
• Citi Double Cash Card – earns 1% cash back when you make a purchase, and another 1% cash back when you pay it off
• Discover it® Miles – earn 1.5% back on purchases, matched at the end of the first 12 months of card membership

The information for the Discover it Miles has been collected independently by Million Mile Secrets. The card details on this page have not been reviewed or provided by the card issuer.

I prefer earning miles and points for Big Travel.  But folks who prefer cash should seriously consider other cards before redeeming their Citi ThankYou points for cash or statement credits!

Bottom Line

You can redeem Citi ThankYou points for cash back or statement credits.

But it’s NOT a good idea!  You’ll only get a value of 0.5 cents per Citi ThankYou point (0.5% back).

It’s much better to use your Citi ThankYou points towards paid flights or travel booked through the Citi Travel Center.  Or transfer them to airline and hotel partners for even Bigger Travel!

And there are lots of other cards that earn more cash back.

However, there IS a trick to get around the poor cash back value of Citi ThankYou points.  It allows you to deposit money in your account at a better rate.  I’ll explain it soon in a future post!