At the end of 2010 Citi launched their line of ThankYou credit cards: the Preferred (no fee), Premier ($125 fee) and the granddaddy of them all… the Prestige card.

I don’t think it’s any coincidence that Citi set the annual fee for the Prestige card at $500, which is priced above other similar cards. It’s $50 more than the AmEx Platinum and $205 more than the Merrill Accolades. My guess is that Citi is trying to make a statement that the ThankYou Prestige card is better than the other two, but does it live up to that?

A look at the rewards…

As you can guess by the name, the card uses Citi ThankYou Points for its reward program. A number of other Citi products – credit cards, checking accounts, and debit cards – also participate in the ThankYou points network. This is a big plus if you do your banking with them, because you have the ability to combine points earned across all your accounts.

When it comes to the value of each point, generally your best bet is to cash them out for $100 gift cards from participating merchants. Why? Because they typically cost 10,000 points each so you are getting a 1 cent value per point. For lower gift card denominations, your point value diminishes.

• 1 point per dollar on regular purchases
• 1.3 points per dollar on gas stations, grocery stores, drugstores, parking, and commuter transportation
• 1 point per mile flown for airfare paid for with the card. For example, if you flew from Detroit to Seattle (about 1,938 miles) you would get that many ThankYou Points. The only catch is that points earned on other purchases must be equal or greater than your flight points. So in order to earn those 1,938 miles, make sure you spend another $1,938 that month on other purchases.

Verdict? The 30% bump on those categories is a plus but being that the max value of each points is probably 1 penny, that’s the equivalent of getting up to 1.3%… certainly nothing to sneeze at, but for $500 I think most people would expect more like 2% or 3% for those categories. The real stand out here is the 1 point per mile flown, which can definitely add up if you are a frequent traveler.

The benefits it offers…

Obviously the reason anyone would pay $500 for the Citi ThankYou Prestige card is for benefits, right? Well here’s what they give you…

• Priority Pass – Airport lounge access for the cardholder and up to 2 travel companions.
• No Foreign Transaction Fees
• Companion Ticket – This is a once per year benefit and can be used both domestically as well as internationally.
• Spirit Incentives Discount – When you use Spirit Incentives to book your flights you get a 15% discount.
• Status Levels – Gold Status for the Hilton HHonors program and I don’t see any others. The AmEx Platinum offers upgraded status at various hotels and car rental companies, so it’s disappointing to see that the Prestige credit card falls short in this area.
• Insurance + similar benefits – lost luggage, travel accident, extended warranty, price protection, trip delay/cancellation, auto rental coverage (secondary coverage)
• Miscellaneous – phone concierge, Citi Private Pass

Conclusion?

I applaud Citi for coming out with a new premium-tier card but as it stands now, I think they really need to work on bolstering its benefits. Simply put, the AmEx Platinum which is $50 less offers a lot more bang for your buck.

Ironically, the Citi ThankYou Premier which is only $125 offers many of the same benefits as the Prestige card, including the flight points, annual companion ticket (domestic), no foreign transaction fee, 15% Spirit Incentives discount, and a much better signup bonus. I actually have the Premier version myself and would definitely recommend it over the Prestige. You should read my review of the Citi ThankYou Premier.

Written April 2011