Citi Introduces ‘Custom Cash’ Card With Up to 5% Back
It looks as though the battle of the credit card issuers is continuing to heat up. In addition to banks recently upping some of their offers to record highs, recent weeks have seen several new card products revealed. The latest card to shake thing up with its debut is the Citi Custom Cash card, which will allow customers to earn up to 5% back on their purchases each month.
The “custom” aspect of the Custom Cash card comes into play with its aforementioned 5% cashback offering. Each billing cycle, cardholders will earn 5% cashback on the first $500 in purchases they make in their top spending category. If maxed out, this 5% back would amounts to a total of $25 in cashback per month.
Eligible categories include restaurants, gas, grocery stores, “select travel,” “select transit,” “select streaming services,” drugstores, home improvement stores, fitness clubs, and live entertainment. All other purchases — including top category spend that tops the $500 per cycle limit — will earn 1% cashback. More accurately, the Custom Cash card earns Citi ThankYou Points that can be redeemed for statement credits, direct deposits, gift cards, Amazon purchases, and more.
Another attractive element of the Custom Cash card is that it carries no annual fee. Additionally, Citi is offering a fairly strong welcome bonus to those who open the card. Currently, new cardholders can earn $200 in cashback once they spend $750 in purchases on the card in their first three months.
Speaking to the inspiration for the Custom Cash card, Citi’s Head of US Branded Cards and Unsecured Lending Pam Habner explained, “We heard from customers that there’s a strong desire to carry a card that keeps up with them and automatically adjusts to their ever-changing lifestyle.” Habner continued, “That’s why the new Citi Custom Cash card is a game changer in the industry, empowering customers to earn and redeem rewards their way.”
As mentioned, the arrival of the Citi Custom Cash card comes at a competitive time for the credit card industry. Recently, Chase made waves by introducing a 100,000-point offer for its Sapphire Preferred card. Meanwhile, earlier this week, Wells Fargo announced that its Active Cash unlimited 2% back card would arrive next month and would be followed by an entirely refreshed line of cards in the coming months.
Ultimately, the battle between credit card issuers is proving to be great news for cardholders. Not only has this increased competition brought historical high offers to tried-and-true products but has also resulted in some truly interesting and groundbreaking cards. As for the Citi Custom Cash card itself, it’s easy to see where the 5% category perk could benefit a number of consumers despite the limitations. Therefore, the card could well find a spot in several wallets soon enough.