Citi ThankYou Points: How To Maximize Your Rewards Value

citi thank you logoCreditCardForum.com doesn’t advertise Citi products any longer but this review will give you an idea of how to optimize your earned ThankYou points if you already have one of their cards. When the Citi Thank You network was first launched it was hailed as being the future of banking: relationship-based rewards for having multiple accounts. Yet now, nearly a decade later (it was launched in ’04) we have seen very few major banks come out with similar programs. Why not? And what are the pros and cons? Just because I advertise their cards doesn’t mean I’m going to hold back on telling you both the good and bad that comes with this rewards program.

The Cons

  • The Citi cards are not as competitive as they could be when it comes to rewards earning and redemption value. Their Forward card had 5x points on categories but they discontinued it back in 2013. On their remaining cards, your bonus categories are only 2 points per dollar while everything else is only 1 point. You can earn up to 6% cash back with other cards.
  • Depending on how you redeem, your points are not always worth 1 cent each (the bar for what’s generally considered good value). For example, some of the gift cards yield a value of only $.008 (8/10ths of a cent) or even less per point. Fortunately though, they do have a selection of $25 and $50 gift cards that are at the full penny per point conversion (so this is by far the best redemption option since they can’t hide behind a devalued points conversion process with gift cards as easily). You can also get 1 cent per point when you redeem for travel certificates toward card rentals and hotels.

The Pros

  • If you have a qualified Citibank checking account or other financial product from Citi in addition to your Citi credit card, you can enroll it in the program. Once you do so, direct deposits, bill payments and debit card transactions will earn your extra points. The points you earn from those actions and your card go into one ThankYou account. Obviously, this makes it easier to rack up rewards fast. December 2014 UPDATE: Citi has decreased the types of accounts that qualify for additional points. Student accounts and basic banking accounts no longer qualify. You now must have a Citigold account, Citi Private Bank account pr Citibank account package. See the following updated chart:
    Citi thankyou account bonuses
  • The Citi Thank You rewards program continues to grow larger and I expect the variety of redemption options to keep getting bigger.

Best ways to spend your Thank You points

When it comes time to redeem, how can you get the highest Citi Thank You point value possible? Well I touched on a couple pointers above but here’s closer look at what is and isn’t the best value:

Bad ideas…

  • Avoid gas cards. Yes, you can buy a Sunoco $100 gift card for 10,000 points (1 cent per point value) but when you do that, you’re missing out on the 3-5% in rewards you would be earning by paying with a good gas rebate credit card. Same applies to department stores and restaurants, if you have a credit card that gives higher rewards for those categories.
  • Avoid cash and equivalents. A $100 cash reward will cost you 16,000 points (0.625 cents per point). The statement credit options for higher amounts do give you a slightly better conversion, but still fall far short of getting a penny per point (35,000 points = $250 statement credit = 0.714 cents/point). For 2014 the cash conversion ratio is now worse at 10,000 points = $50 (1/2 cent per point).
  • Avoid most merchandise. Not to single out the Citi Thank You network, because this holds true for most credit card rewards programs. More often than not the merchandise doesn’t give you the best bang for your buck. Here’s an example…

Conversion value of Citi Thank You points

Good ideas…

  • Music downloads. For all increments – even as little as $1.00 worth of music – you get 1 cent value per point. If you only have a few points and are itching to spend them, this is a good deal. You can get downloads from artists on Sony and Universal labels (hint: Although these aren’t through iTunes you can still put them on your iPod/iPhone).
  • Charitable donations. On donations of 5,000 points and up, you get 1 cent/point for donations to Red Cross. The drawback though is this will not count as a tax-deductible donation (but that only matters if you itemize your deductions, anyway).
  • $25+ gift cards. In my opinion, the best way to use Citi Thank You points (how I usually spend mine) is the gift cards from partners. Depending on the merchant, you can get full value on many $25 and $50 gift cards. But as mentioned, it’s best to choose retailers that wouldn’t take away from high reward earning opportunities you get through credit card spending (i.e. the gas card example).
  • Travel gift cards: Using your points for at least $25 in travel certificates (which can be used for certain car rental companies, cruises and hotels) will get you a 1-cent-per-point value.
  • Point transfers: If you have the ThankYou Premier, Citi Prestige or Citi Chairman card, you can transfer your points into various airline and hotel loyalty programs. For the most part, you’ll get 1 point/mile per ThankYou point, but in some cases, you’ll get 2 points/miles per Thankyou point. These transfered points have a lot of potential: If you redeem them wisely after you’ve transferred, they can be worth more than a cent each. Why? Many airline frequent flier programs require you to redeem in set increments for reward seats. If you find a ticket that has a high cash price but requires relatively few points, your points could be worth a few cents each. You’ll get the most value if you redeem for first-class international flights.

Ultimately, the Citi ThankYou rewards program is what you make of it. If you redeem your points in a strategic manner, you can get a decent rebate on your spending. On the other hand, if you redeem for whatever your heart desires, your ThankYou points value may be up to 50 percent less than what the “good ideas” above will give you.

What do you like best (and least) about Citi’s rewards program?

As for me personally, I stopped using my Citi TY cards – not only because the points are inferior, but also because the customer service hasn’t been exactly an A+ experience for me. I’m now using Chase Ultimate Rewards exclusively.
This post was written or last updated May 19, 2015

 
Comments
The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

I’ve had both Citi Mastercard and Visa for decades, long before they put any bonus programs on. One has the Thank You points and I’ve gotten nice, high quality German Knives for free with my points. I logged on the the “Easy Deals” site today to check out what I can get with my other card and it is the lousiest scam!!! NOTHING IS FREE WITH POINTS!!! You can only use a small amount of points and get a $100 watch for $77. What a crappy program, I am disappointed as I had hoped to get a coffee maker or something shipped out free instead of having to spend pretty much the same as I would in the store for something I don’t really want anyway. I plan on using the other card now. Why would Citibank have such radically different reward programs?

citi easy deals are 100% a rip off and scam

yes, the points on the CITI–EASY Deals web site are impossible to use.
Agree that they are a complete waste of time and worthless.

CITI–EASY Deals are a **HUGE* waste of time, Completely Worthless.

I have had AT&T Universal Citi cards for 15 years and have *NEVER* been able to use the points. the program is impossible to use and a COMPLETE waste of time. They are infamous on the internet as an absolute joke. Its nearly impossible to use, you get logged out right away, winning takes an act of god, and you have to sit in front of the computer for hours. Who has time for this??? there are so many cards with excellent rewards why should anyone waste time on this horrible, impossible website??? My Cards are getting cancelled and believe me —-> their horrible website will be the one and only reason. they are only here to give the guise of a rewards program, but in fact it is really all fake. It is the worse website and the biggest waste of time I have every come across and I will make it my life’s work to post in every reddit channel, on twitter and on facebook about WHAT A WASTE CITI – EASY Deals are. EASY??? That’s a joke.

You can get a full cent per point with a mortgage credit. I do this every time. In fact, I just got off the phone with them and have another $100 on the way. Call the ThankYou Rewards number (866) 908-8778 and ask them to send you a mortgage check. Since most banks also offer mortgages, you can just tell them the name of your bank and deposit the check in your checking account. You don’t even need to have a mortgage to do this.

There is absolutely no need to get *anything* less than a penny per point.

Thanks Khad. I just did this. Best value for the points.

Does the check come with the banks name? or would it be my name? also how long did it take?

possible to transfer points between sharing?

I have racked up over 4,000 point (didn’t even know I had then until recently) is there a way to use a bunch of Citi Easy Deal points at once? I don’t want to spend $90 to get a $100 gift card…

Thanks for the article – it was enlightening

the gas cards for Sunoco ARE a great deal. I still use my Penfed 5% rebate card for gas and use the Sunoco cards for gifts. So instead of buying 25.00 or 50.00 or 100.00 gifts, I can use these at no cost and look like a sport. Gas is something everyone needs in my neck of the woods!

could you please walk me through how do you redeem thank you points when buying airline tickets. how much does it costs in points say the flight is $500 and how do you pay it?

if my husband has points on his card and I have points on my card do you know if we are able to combine them for a bigger amount toward something we don’t have the cash to buy? or are the gift cards still the best way to go.

Best idea I can currently think of to ‘cash out’ points is to buy Walmart Gift cards (1 point = 1c) then sell the gift cards to sites like cardpool or others that offer 92c per dollar. They send you a check so you have essentially cashed out points at 1 point = .92c which is pretty good in my book. Better than the Amazon shopping option of .85c per point. If you shop at Walmart a lot then just keep the giftcards but I rarely go there, but giftcard sites give good exchange rates on walmart gift cards so this is the best option I think.

How come my Amazon ratio is .80c/point instead of .85c. Does it depends on the type of credit card you have? I have Citi Forward for College Students.

Looks like it does depend on the type of credit card. I have the Citi Forward as well and it comes out to 0.79 cents/point.

Couple thoughts about Citipoint

(1) Citipoints are much less versatile the Chase points. Chase has many similar qualities (all CC, bank accounts, loans, etc. go into one account) though they do not give you points just for having an account open. With Chase, if you have 4153, you can convert that instantly to $41.53 that will be deposited directly to your account whenever you want. If you choose not to deposit it right away, you earn interest on the balance at a rate of 7% / yr! Thats a good return!

(2) Citi’s new amazon program is actually not bad. You can buy anything on Amazon using citipoints at the rate of 100 pts = .85 cents. Conversion ratio isnt awesome but the convenience factor is fantastic

(3) I have Fwd card and there is nothing like it. I must be grandfathered in. It is offering my 5 pts for meals. I spend a lot of money on meals–client dinners, etc. I get tons of points for meals. I believe there are also a few other categories–I want to say convenience stores/pharmacies, i think car rentals….1 or 2 others.

Anyway, citi pts are not worth as much as amex or chase points, but it is much easier to earn them in under certain circumstances (I get 1200 pts a month, just for having a checking/savings/CC/online billpay/citigold)

Gift Card selection is very limited using Thankyou points.
For instance I use my Thankyou points to buy a phone on contract (iPhone) every two years.
In the past the best way to save for a phone on contract was by getting a Best Buy gift card.
But now the Best Buy gift card option is gone on the Thankyou points website. So, the only way to save up for an on contract iPhone through Thankyou points is to get cash.
It sucks but that’s the only option.

Matt from Saverocity

Nice post – was looking at some ideas and it seems the giftcards are the way to go.

I have TYP from both the Citigold Checking that drip in every month plus from a credit card, I have heard that you can merge the two accounts, but if you do the points you move from the smaller account to the new primary will expire within 90 days – so better not hang about!

Cheers,

Matt from Saverocity

I am very surprised the author doesn’t even mention using points for buying flights. Isn’t that the best way to redeem them? Then you get a value of 1.25 or 1.33 whatever it is per point.

Hi Matt, unfortunately that feature is only available on their “Premier” version which is $125 per year.

Exactly. I recently used my Thank You points to get a ticket from San Diego to Cabo @ 1.25 cents per point. Great card to have for flight tickets provided you have enough points to get one

Wanted to check if Amazon.com qualified for 5 points per $1 spent. Also, is the conversion for Amazon.com gift cards still 1 points per dollar at the $50 and $100 levels?

I have the Citi Forward:
1. I’m not sure if Amazon purchases still qualify for 5 points per $1, they make it hard to track which purchases exactly provide bonus points.
2. The conversion at this moment is not 1 point per cent for gift cards at Amazon or many other retailers. The best you can do is 6000 points for a $50 Amazon gift card ($0.0083 per point). You can also just use points straight up for your Amazon purchase at a value of approximately $0.008 per point. I just did this as it saves the hassle of buying the gift card and having remaining value, plus it’s a minimal loss (about 3%) and extremely convenient.
Only a handful of gift cards give the full 1 cent per point value, and it’s typically only at the $100 level.

Last I checked, a few months ago, the Citi Forward card still gives you 5% at Amazon. Two things to note however, you can only get the card as a college student right now (also relevant, my gf get the card in February and somehow didn’t get the bonus point benefit, I’m in talks with Citi to correct this), also, I’m fairly certain the reason I get 5 points per dollar at Amazon is because they define themselves as a bookstore. So it would be Amazon’s fault if this changes, not Citi’s.

Also, redemption of points for spending on Amazon directly or gift cards is very poor, I think from 0.5-0.8 cents per point. Don’t use your points on Amazon, just use your card for the purchase.

Citibank is ripping off users of its ThankYou Rewards program. The promotional material implied that you would get $100 for 10,000 points. After I received my bonus award, I checked the rewards site and found that it took 16,000 points to get $100. I sent a complaint letter to Ken Stork, the VP who sent the promotion and asked him to restore the ratio to $100 for 10,000 points. I didn’t get a reply but when I checked yesterday, they had made the conversion worse by requiring 20,000 points for $100. That’s stealing money that was already awarded to me. Citi’s regular reward card gave a clear 1% reward directly in your account. So Citi devised the ThankYou scheme where your points instead were transferred to a ThankYou account where they could finagle with the conversion rates and take away money that you earned. That’s robbery and I have a complaint in to the Better Business Bureau and to the Federal Consumer Bureau.

Hi Ernie, is it possible the promotional material was referencing $100 gift cards for 10,000 points? I have seen Citi advertise that and indeed, that is true. They’re a good value when you redeem for retail gift cards.

Michael, you’re right about better value with other things besides cash. However, the main problem right now is that since the above blog was written, Citi changed the cash conversion value from 16,000 points per $100 to 20,000 points per $100. So if I had 50,000 points, they used to be convertible to $312.50, now they’re only $250. In effect, they stole $62.50 fromy account and put it into their profit and that’s wrong!! Everybody should be aware that Citi is playing a game against their own customers so everyone should stay away from Citi!!

We lost 79,000 points!!! $800! Help! Our point balance showed 79,000 in Oct. 2011 and the points expiring balance that shows on the same page as the point balance was 0 pts expiring in 90 days. All of a sudden the points expired Dec. 2011 What can we do. Thank you network tells me our points would have showed as expiring, but they DID NOT. I want my points back. Any suggestions as Thankyou network manager tells me they’ll forward my concern to operations and when operations emails back they’ll let me know.
Am I out $800?