Citi's new no-annual-fee rewards credit card offers a unique system for earning points

Sergio Moraes/Reuters

• Citi announced a new, no-annual fee rewards credit card with a unique system for earning points.
• With the new Rewards+ card, points earned from each purchase will be rounded up to the nearest 10, so a $2 purchase will earn 10 points, and a $54 purchase will earn 60 points.
• The card offers 15,000 points for new members who spend $1,000 in the first three months of card membership.
• Points can be redeemed for gift cards, cash back, travel, or transferred to the card holder's JetBlue frequent flyer account.

Citi announced a new rewards credit card today, representing a renewed push into the increasingly crowded credit card rewards space.

With no annual fee, however, the card represents a more accessible rewards option than many of the rewards cards that have made waves in an increasingly competitive space over the past few years, such as the Chase Sapphire Reserve and the American Express Gold Card.

The card, called the Citi Rewards+, will offer a simple but multifaceted version of Citi's ThankYou rewards program. It offers 2x ThankYou points per dollar spent at supermarkets and gas stations for the first $6,000 each year (and 1x point per dollar after that), and 1x point on every other dollar spent.

However, the card also offers a unique new twist. It will round up rewards on each purchase to the nearest 10 points. For example, a $2 purchase will earn 10 points, while a $102 purchase will earn 110 points.

Additionally, card holders will receive a 10% rebates on all redeemed points each year, on up to the first 100,000 redeemed points - that maximum would translate to a rebate of up to 10,000 points per year.

Points can be redeemed a variety of ways, including for gift cards at a number of retailers and restaurants, cash back, or travel booked through Citi.

Although points can't be transferred to Citi's full slate of 15 airline frequent flyer partners, points can be transferred to JetBlue frequent flyer accounts.

While the value of each redemption option hasn't been announced yet, Citi confirmed that each point will be worth 1¢ when redeemed for gift cards - meaning that 2,500 points are worth $25 in gift cards. Factoring in the 10% redemption rebate, points are effectively worth 1.1¢ each.

The card will offer a sign-up bonus of 15,000 ThankYou points - worth $150 if redeemed for gift cards - when card members spend $1,000 in purchases within the first three months. Citi also announced that the card will offer a low intro rate on purchases and balance transfers for 12 months - although the exact details of that rate were not immediately available.

In a press release, Citi's head of proprietary marketing Chris Fred explained that the card is designed to offer a useful rewards program for average consumers who make many smaller purchases throughout each month.

"The unique and simple rewards structure is a game changer in rewarding customers for day-to-day purchases with its exclusive points round up and points back offering," he said.

According to a study commissioned by Citi, the average US consumer makes 14 routine purchases each week, and only 28% use a rewards credit card.

"We're excited to introduce a new card that truly turns everyday purchases into something bigger," said Fred.

Applications for the Rewards+ card will be available on January 10.