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 $4 that have made waves in an increasingly competitive space over the past few years, such as the $4 and the $4.
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 $4, 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.