Citi Double Cash Card – 2% Cash Back on All Purchases with No Annual Fee

Citi Double Cash CardEver since Barclaycard changed the terms on its Priceline Visa, there hasn’t been a Visa/Mastercard on the market that offers a flat 2% cash back on all purchases with no annual fee. The new Citi® Double Cash Card changes that, and in so doing, catapults itself into the running for the title of the best general purpose cash back credit card.

The new card earns 1% unlimited cash back on all purchases, plus an additional 1% unlimited cash back as you pay back your purchases, whether you pay in full or over time–provided you pay at least the minimum due. With no category restrictions and no caps on the amount of cash back you can earn, that means the card effectively earns a 2% cash back rebate on all purchases with no annual fee.

The Double Cash Card also currently comes with a 0% intro APR for 15 months on both purchases and balance transfers. However, balance transfers come with a fee of 3% (minimum $5).

Redeeming your rewards
Award redemption is straightforward–you can redeem your cash back as soon as your cash rewards balance is $25 or more, either online or by calling Citi. You can redeem your rewards for either a check, statement credit or gift cards.

A word of caution
While this is an excellent offer on the surface, one of the questions you have to ask yourself is: How long will Citi honor the current terms? After all, 2% rebate cards have never lasted forever (see the Schwab Visa), though some 2% cards, such as the Priceline Visa, have grandfathered existing cardmembers. It would be disappointing to apply for the card only to have the terms changed out from under you after only a short time.

In this regard, Citi has given themselves an out, as they state that they can revise any of their program terms by giving 30 days prior written notice. It’s somewhat standard language for them, as their Thank You cards carry similar language, so there’s no reason for alarm based simply on the presence of that clause. But at any rate, only time will tell how long these terms will last.

Getting more info
The card is so new that it isn’t yet available on Citi’s main website. You can, however, still read about it and apply at this link.

Converting an existing Citi card
Starting September 7, 2014, you will be able to convert other Citi cards to a Citi Double Cash card. So, if you have an old Citi credit card that you have sock-drawered, this is a chance to make the account useful again.

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