It was nice but the great rebate is mostly gone Sept 2006 update
Written: Nov 23 '05 (Updated Feb 13 '07)
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Pros: no fee, 2% rebate on groceries
Cons: Max rebate of $300/yr; rebate comes by check in amounts of $50 or more.
The Bottom Line: Rebate isn't high enough to justify the minimum redemption. Go to Chase, where the rebate is applied directly to the outstanding balance.
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| Saxguy's Full Review: Citi Dividend Platinum Select |
They sent a letter a few weeks ago that announced a change effective October 23, 2006 which makes the program no longer worth recommending.
The rebate on groceries is going from 5% to 2 %. They did announce that more purchases would be subject to the 2% rebate.
They also are accepting no new applications to the card. I believe it will be offered again come October, but I can no longer recommend it.
I had originally got the Citibank Dividend Platinum Select Mastercard in 2003, after seeing an article in the Wall Street Journal about the top rebate offers on credit cards. For me, it’s pretty simple. I pay the balance off on my credit cards every month, and so I can shop for the best deals.
So, I look for no-fee credit cards that have the best cash rebates. Certainly there are plenty of affinity cards out there than give you the ability to accumulate “points” that can be used with particular vendors. I noticed on the GMAC website that they have a Mastercard on which the rebates are applied to mortgage principal. I just counted 20 reward cards, including this one, on the Citibank web site. Most are throwing off points instead of cash. But cash is king for me. I’m really not interested in any sort of rewards program but cash.
This card has the following advantages:
1. 5% cash rebate on purchases from supermarkets, drug stores and gas stations However, as of October 23, groceries will be rebated at 2%.
2. 1% rebate on all other charge transactions.
3. No fee
4. A fairly modest apr of 12.49%
The card also offers one year 0% apr on balance transfers.
However, this is moderated by their various fees:
- 3% fees on balance transfers not subject to the 0% transfer offer, with a minimum of $5
and a maximum of $75
- 3% on cash advances, $5 minimum, with the apr being 14.99% over prime, with a
minimum of 19.99%
- Late fees are hefty; $15 on balances up to $100; $29 on balances of $100 up to $1000;
and $39 on balances of $1000 and over.
- The over the credit-line fee is: $35.
- 3% fee for transactions made in a foreign country.
The grace period is 20 days. A late payment could increase your rate; the minimum finance charge if the balance is not paid in full is $.50
They offer $0 liability on unauthorized transactions, which is standard among card issuers.
As for the rebates, it does report your accumulated balance on the statement. The amount is paid by check and can be requested when the rebate (reward) balance is at least $50. The maximum rebate is $300 per calendar year on purchases in general.
However, they offer something called the Citibank Dividend Merchants Network which has additional rebates for purchases initiated on the Citibank site with particular vendors. Barnes and Noble, Office Max, Overstock.com and others are included. Those rebates are not subject to the $300 cap. I am signed up for the network, but I haven’t used it much, because I’ve been able to get better deals elsewhere. Still, it is an option.
Citibank’s administration has worked well. I have no problem accessing their web site, nor with downloading into my quicken program on my PC. Customer service has been accessible and helpful by phone. Most recently, when a check I sent was lost in the mail a couple of months ago, I asked them to rescind the late fee and apr increase based on my payment history and they did so.
I use this card exclusively for groceries and drugstore purchases each year until the rebate is exhausted. This is so I get the maximum rebate. To max out, it requires $6,000 in annual groceries and pharmacy purchases. With the incredible eating (formerly) teenage boy, that’s not too much of a problem. I figure, since I’m going to max out, I’m better off moving the gas purchases to Chase Perfectcard (review link below), where I get a 3% rebate for gas and 1% on everything else posted directly against the outstanding balance.
However, with the rebate reduction, I am going to stop using the card once I get to my maximum annual rebate of $300.
Now, I do not recommend credit cards as a means to obtain a convenient loan. Rates are much too high and they are not deductible, unlike home equity debt. What I recommend is that you develop a balanced cash budget, put 3-6 months’ take home pay away in a money market account that is accessible, but not too accessible, and then use credit cards as a means for convenience.
The 2% rebate, while ostensibly attractive, is not because you will not get a rebate check until you have charged $2,500 worth of groceries. Chase is at 1% on groceries (3% on gas) but the rebate is applied directly to the outstanding balance and so reduces the payment.
You can COMPOUND your rebate with many vendors by purchasing therough vendors listed on the Ebates web site.
For more information, please check out my review of the Ebates site.
Ebates web portal
Relevant web sites:
Citibank Credit Cards:
https://www.citibank.com/us/cards/index.jsp
Citibank Dividend Merchants Network:
https://www.citidividendmerchants.citicards.com
Thanks for reading. God bless!
You might enjoy the following reviews in personal finance and business services:
Chase Perfectcard Rebate Credit Card
JP Morgan Chase Bank
ING Direct Bank
First Midwest Bank
GMAC Mortgage
Like a Monster Movie (on Safeco Home Insurance)
Recommended:
No
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