Our partner Citi has revamped the Citi Prestige® Card, their premium ThankYou point rewards card. The sign-up bonus has been increased to 50,000 bonus ThankYou® Points after $3,000 in purchases made with your card in the first 3 months the account is open. 50,000 TY points are redeemable for an $800 flight on American Airlines or US Airways, a $665 flight on any other airline, or $500 in gift cards.
There is a hefty $450 annual fee that is not waived the first year, but the card also includes a $250 air travel credit every year that is valid towards any airfare bought from any airline (and also baggage fees). Per the fine print, the $250 annual credit resets every December through the next December. So you could conceivable qualify for a $250 credit on airfare in November and then another $250 in January.
Here’s a summary of the one-time sign-up bonuses and perks:
- Earn 50,000 bonus ThankYou® Points after $3,000 in purchases made with your card in the first 3 months the account is open.
- $100 Global Entry application fee credit. Citi will cover the $100 application fee on a one-time basis when you charge it to the card. Global Entry allows you to get through international customs faster when entering the US. The $100 application fee credit will reset once every 5 years.
Here’s a summary of ongoing highlights of the card:
- $250 Statement Credit for Air Travel each year. Unlike other cards, airfare counts as well as baggage fees, lounge access, and other incidental purchases. This renews every calendar year, so it can be used to help offset the annual fee every year. “This statement credit is an annual benefit available for purchases appearing on your billing statements from December through the following December. Pending transactions that do not post in your December billing cycle will count towards the next year’s Air Travel Credit.”
- Complimentary access to nearly 40 American Airlines Admirals Club® lounges, plus hundreds of VIP lounges through Priority Pass Select. Valid for you and your entire immediate family (spouse, domestic partner and/or children under 18 years of age) or up to two companions. Priority Pass lounges tend to be at international airports.
- Earn 3x points on Air Travel and Hotels.
- Earn 2x points on Dining at Restaurants and Entertainment.
- 1 ThankYou® Point per $1 spent on other purchases
- No Foreign Transaction Fees on Purchases.
- Includes chip technology which increases acceptance overseas.
- Transfer points to a variety of travel loyalty programs from airlines to hotels.
- Complimentary 4th Night for any hotel stay. This could be nice, but your stay must be booked through their designated travel agent, so I’m not sure if that means the rates will be the same as say Expedia or Travelocity.
- Complimentary greens fees at more than 2,400 public and private golf courses around the globe. The terms specify that you get 3 complimentary rounds of golf through the Citi Prestige® Golf Portal (provided by GolfSwitch, Inc.) each calendar year.
- $450 Annual Fee. Not waived for the first year.
The Citi Prestige is most attractive for people who fly on American Airlines and US Airways (the two are merging). Citi and American are tight these days; the competing American Express Platinum no longer offers American Airlines lounge access at all.
With this card, you can redeem 1 ThankYou point to get 1.6 cents worth of American Airlines and US Airways airfare. You can’t do this with any other ThankYou card, but if you have it then all your ThankYou points earned from any other card can be redeemed this way. That means if you redeem your points towards American Airlines or US Airways airfare, you’ll get 1.6% back standard while the 2X and 3X categories turn into 3.2% back at restaurants and 4.8% back on airfare and hotels. (If you have CitiGold checking account or Citi Private Banker, you’ll get an additional 15% or 25% bonus respectively on ThankYou points earned.) You can also get 1.33 cents per point value by redeeming towards airfare on all other airlines.
Citi ThankYou points are also now available to transfer to certain airline mileage programs on a 1:1 basis including Cathay Pacific, EVA Air, Etihad, Flying Blue by Air France and KLM, Singapore Airlines, and Thai Airways.
Bottom line. If you add up all of the perks including 50,000 TY point sign-up bonus (worth $800 in American Airlines or US Airways airfare), $250 annual airfare credit that resets every December (so you can get it twice under one annual fee), American Airlines first class lounge access, $100 Global Entry application fee credit, 3.2% back on restaurants and 4.8% back on airfare and hotels when redeemed for American Airways airfare), you can see that for the right person the $450 annual fee can be more than worth it. In my mind, that person should fly American or US Airways at least once a year if not more often.
In addition, if you have a big stash of Citi ThankYou points, getting this card could greatly increase the value of your existing point balance due to the special American Airlines conversion rate.