Citibank Dividend MasterCard

I was going to write an entry about how much I like the 5% cash back feature for purchases at supermarkets, drug stores, and gas stations that I get with my Citi Dividend MasterCard. However, Citibank changed the rules. They recently sent me a letter stating that as of October 13, 2006, I will only be getting 2% cash back on my "everyday" purchases. I also noted that they added convenience stores and utilities to the purchases eligible for 2% cash back.

The way that this credit card works, one accumulates Dividend Dollars for the above mentioned "everyday" purchases. For all other purchases, a 1% cash reward is earned. Whenever $50 or more is accumulated, I can request a check from Citibank. They will pay out the entire balance, not just the minimum amount of $50. Believe me, this is a lot less hassle than a lot of the other rewards cards. In many other cases, I've found myself browsing through reward catalogs to find something that I had enough points for, and that I really wanted to get. Also, the Citi Dividend credit card is not a tiered award where you have to spend a certain amount (usually a few thousand dollars) before you qualify to get the maximum rate.

With the reward changing from 5% to 2%, this of course dampens my enthusiasm for using the card. On the other hand, I don't really have any better alternative card to use at the time. The 2% rebate is a lot better than most of my other credit cards which pay nothing. I would be interested, though, to see if another better offer will come along.

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