Citi cards - major changes

[coolkid101]

re: BOQ specialist i've emailed our banker to find out what, if any, changes to the earn rates are going to be. i couldn't find it on the website.
will update once i hear back unless someone else already knows.

FWIW BOQ specialist.....

Qantas


Virgin

 

[amaroo]

re: BOQ specialist i've emailed our banker to find out what, if any, changes to the earn rates are going to be. i couldn't find it on the website.
will update once i hear back unless someone else already knows.

IIRC the card was enhanced mid last year (Int earn, capped etc) .... hopefully they don't continue trimming.

 

[Ian Bates]

has anyone looked at the coles card as a replacement

I think my wallet will now be

Amex Platinum edge for supermarkets and petrol with $195 fee that I get as a travel credit
Amex Explorer for all else amex for places that don't charge fee with $400 fee that I get as a travel credit
Coles mastercard getting .87 per dollar on all other purchases with $89 fee
Citi signature for priority pass only for free (take that citi)

so i get
3 velocity per dollar at supermarket
2 velocity per dollar at petrol
1 velocity per dollar at everyone else who doesnt charge for amex
.87 velocity per dollar at coles for everything else

all for a grand out of pocket fee of $89

any opinions

 

[gregff]

After the currently announced very negative changes, Citi might provide some value to Prestige (and maybe Signature) Cardholders by removing the whopping 3.4% fee for overseas transactions (including those denominated in AUD processed overseas).

 

[potm]

If coles and velocity keep offering their 15% bonuses, you'll most likely get 1 point per dollar for the coles mastercard. Question is if that rate will be maintained. Looks like a good setup except I wouldn't be using Amex points on Velocity.
I think I will just use whatever card I'm currently cycling for application bonus points for Visa/MC spend.

 

[scwappy]

has anyone looked at the coles card as a replacement

I think my wallet will now be

Amex Platinum edge for supermarkets and petrol with $195 fee that I get as a travel credit
Amex Explorer for all else amex for places that don't charge fee with $400 fee that I get as a travel credit
Coles mastercard getting .87 per dollar on all other purchases with $89 fee
Citi signature for priority pass only for free (take that citi)

so i get
3 velocity per dollar at supermarket
2 velocity per dollar at petrol
1 velocity per dollar at everyone else who doesnt charge for amex
.87 velocity per dollar at coles for everything else

all for a grand out of pocket fee of $89

any opinions

Pretty similar, though won't bother with the explorer. The Citi is also great for free wine when dining out!!

 

[burmans]

Citi signature for priority pass only for free (take that citi)

any opinions

Yes, that's the only reason I have kept my fee free Citi Signature card!

 

[psi999]

has anyone looked at the coles card as a replacement

I think my wallet will now be

Amex Platinum edge for supermarkets and petrol with $195 fee that I get as a travel credit
Amex Explorer for all else amex for places that don't charge fee with $400 fee that I get as a travel credit
Coles mastercard getting .87 per dollar on all other purchases with $89 fee
Citi signature for priority pass only for free (take that citi)

so i get
3 velocity per dollar at supermarket
2 velocity per dollar at petrol
1 velocity per dollar at everyone else who doesnt charge for amex
.87 velocity per dollar at coles for everything else

all for a grand out of pocket fee of $89

any opinions

Very similar to my strategy however im still holding ANZ black (1 velocity PPD) with an annual fee of $69 (ANZ mortgage) so haven't had to revert to free for life citi.

On the Coles card, provided earn stays at .87 (watch this space) and valuing a velocity point at 1.5c you'd have to spend ~$1300 a month to break even (via point earn) on your free for life signature to cover the Coles annual fee.

Adding the potential to hit some bonus citibank categories that figure will become higher however as some areas citi will no longer earn points (car registration, council rates, public transport etc) - bonus categories are nulled out IMO.

So kind of worth it if you're spending ~15k annually via visa/mastercard.

 

[Ian Bates]

yeah i would cut out explorer but i stay in the city a couple times a year so I use the credits for a nice hotel

 

[Ian Bates]

Very similar to my strategy however im still holding ANZ black (1 velocity PPD) with an annual fee of $69 (ANZ mortgage) so haven't had to revert to free for life citi.

On the Coles card, provided earn stays at .87 (watch this space) and valuing a velocity point at 1.5c you'd have to spend ~$1300 a month to break even (via point earn) on your free for life signature to cover the Coles annual fee.

Adding the potential to hit some bonus citibank categories that figure will become higher however as some areas citi will no longer earn points (car registration, council rates, public transport etc) - bonus categories are nulled out IMO.

So kind of worth it if you're spending ~15k annually via visa/mastercard.

Sweet, I was unaware of the 1.5 cents valuation so that makes it better, we used to spend min 35k a year on citi so that puts me a couple hundred ahead

 

[psi999]

Sweet, I was unaware of the 1.5 cents valuation so that makes it better, we used to spend min 35k a year on citi so that puts me a couple hundred ahead

Keep in mind that flybuys will only allow up to 60,030 velocity points transferred annually. Wouldn't be hard to max that out with a few flybuys promotions if you shop at coles and run 35k through the card.

I'm already over 20k velocity from flybuys into April from January this year.

 

[potm]

Sweet, I was unaware of the 1.5 cents valuation so that makes it better, we used to spend min 35k a year on citi so that puts me a couple hundred ahead

That's just a general valuation figure. How much they are worth will be specific to you so something you have to figure out.

 

[gregff]

has anyone looked at the coles card as a replacement
...
any opinions

I just read an article about Citi finalising an agreement to be the distributor of Coles-branded cards, which, in the present circumstances, I do not consider is good news!

https://www.finder.com.au/citi-finalises-acquisition-of-coles-credit-cards

 

[farstar]

The funniest thing is that the RBA thinks that retailers will reduce prices if they have reduced CC fees and not take the profit.

 

[opusman]

The funniest thing is that the RBA thinks that retailers will reduce prices if they have reduced CC fees and not take the profit.

Not really funny though. Sad.

 

[gregff]

The funniest thing is that the RBA thinks that retailers will reduce prices if they have reduced CC fees and not take the profit.

It reminds me how the RBA said we will all be better off if ATM operators were allowed to charge fees.

 

[oz_mark]

The funniest thing is that the RBA thinks that retailers will reduce prices if they have reduced CC fees and not take the profit.

Retailers are affected by Merchant fees, while reward points are funded by interchange fees. While Interchange fees are a component of Merchant fees, there are other things in there as well.

It is the surcharging that is supposed to help keep a lid on merchant fees.

 

[oz_mark]

It reminds me how the RBA said we will all be better off if ATM operators were allowed to charge fees.

I'm certainly no worse off under the change. Most people are just more aware of the fee now, in most cases the banks still hit you for the fee, they just didn;t tell you at the time.

 

[Kangol]

Transfer rates, they are a changing
View attachment 94927

FWIW currently on the Citibank website it is showing at the new SQ KF rate (2.5 Citibank points = 1 KF mile) even though it is not 15 June 2017 yet.

 

[Moindardt]

So thats a "No"?

As someone with an economics background, I struggle with the idea of "pulling figures out of the air" as you have done and "I bet it would be..." as a premise. Numbers don't lie.

Just catching up on this thread. Nutcase, I would probably not be using economics as an sort of a credibility crutch. You just blew your whole argument.


"The only function of economic forecasting is to make astrology look respectable." (and meteorologists) John Kenneth Galbraith