If you are looking for the best cash back options, you have come to the right place. Credit card rewards can be confusing, but the citi card cash back rewards program is a top choice because it combines being simple with earning lots of money back. This system is built to reward you well, whether you like a basic approach or want to use more strategy.
This system has two excellent cards with no yearly fees. The Citi Double Cash Card is the dependable choice, giving you a high rate on every purchase. The Citi Custom Cash Card is the smart choice, automatically giving you a very high rate in the one area where you spend the most each month. Each card is powerful on its own. When you use them together, they create one of the best cash back systems available today. This article will help you understand, choose, and get the most from these rewards to put more money back in your pocket.
Understanding How Citi Rewards Work
Many people who are new to Citi cards get confused about how cash back is earned and managed. To understand how powerful these cards are, you need to know one important fact: your cash back is actually given as ThankYou Points. This might sound complicated, but it is actually a simple system that gives you helpful flexibility. Think of ThankYou Points as Citi’s reward money; you earn these points, which you can easily turn into cash.
Why Cash Back is Points
When you see a card like the Citi Double Cash or Citi Custom Cash advertised with a cash back percentage, you are actually earning ThankYou Points. The key to understanding this simple system is knowing the exchange rate. For cash back, the value is fixed and easy: 1 point equals 1 cent.
This direct exchange means that the advertised cash back rate is exactly what you get. For example, if you spend $100 in your top category with the Citi Custom Cash Card to earn “5% cash back,” your account will get 500 ThankYou Points. You can then exchange those 500 points for a $5 statement credit or direct deposit. The result is cash, even though the system uses points.
The Benefit of Flexibility
While this guide focuses on cash back, Citi’s use of a points system gives you a hidden benefit: flexibility. These same ThankYou Points can be used for more than just cash. This structure gives you choices, making sure your rewards can change with your needs. While cash is often best, having other ways to use your rewards adds value that cash-only programs do not have.
The main ways to use points earned with these cards include:
- Cash Back (Statement Credit or Direct Deposit)
- Gift Cards
- Travel Bookings through the Citi Portal
It is worth knowing that if you later decide to add a premium Citi card to your wallet, like the Citi Strata Premier℠ Card, these same points can become even more valuable by being transferred to airline and hotel partners. For now, know that getting straight cash back is simple and easy.
Main Citi Cash Back Cards
Citi has simplified its cash back options to focus on two very effective cards with no yearly fees. Each card serves a different purpose but can be combined to create a complete earning strategy. Understanding what each card does best is the first step toward maximizing your citi card cash back rewards.
| Feature | Citi® Double Cash Card | Citi Custom Cash® Card |
|---|---|---|
| Rewards Rate | 2% on all purchases (1% at purchase, 1% at payment) | 5% on top eligible spend category (up to $500/cycle), then 1% |
| Annual Fee | $0 | $0 |
| Best For | Simplicity and everyday non-category spending | Maximizing one specific, high-spend category |
| Key Feature | High flat-rate rewards on everything | Automatic 5% rewards, no activation needed |
Citi® Double Cash Card
The Citi Double Cash Card is famous in the credit card world for one reason: it masters simplicity. For years, it has been the standard that other flat-rate cash back cards are compared to. It is designed for users who value consistency and want to be rewarded for every single purchase without needing to track spending categories or activate quarterly bonuses. It is the ultimate “set it and forget it” rewards card.
How the 2% Works
The card’s earning structure is unique and encourages good credit habits. You earn a total of 2% cash back on all purchases, delivered in two steps. First, you earn unlimited 1% cash back when you make a purchase. Then, you earn an additional 1% cash back as you pay for those purchases. As long as you make at least the minimum payment due on time each month, you will receive that second 1%. This two-part system rewards you for both spending and paying, making it a straightforward way to get a high return on everything you buy.
The Perfect User
This card is a perfect fit for several types of people. It is ideal for someone who wants a single card to handle all their expenses, from utility bills and insurance payments to random online shopping and in-store purchases. You never have to ask, “Is this the right card for this store?” The answer is always yes. It is also an essential part for rewards maximizers, serving as the “catch-all” card that works with a category-specific card. Any spending that does not fall into a 5% bonus category on another card should go on the Double Cash to ensure a minimum 2% return.
By the Numbers
- Annual Fee: $0
- Reward Rate: An effective 2% on all purchases (1% when you buy + 1% as you pay).
- Introductory APR: The card frequently offers an introductory 0% APR on balance transfers for a set period. This can be a valuable tool for combining and paying down debt from other high-interest cards, but always check the current offer for specific terms and transfer fees.
Citi Custom Cash® Card
Where the Double Cash offers breadth, the Citi Custom Cash Card offers depth. This card is an innovative product designed to automatically reward you where it matters most. It takes the guesswork out of bonus categories by adapting to your unique spending habits each and every month. It is a powerful tool for anyone with a consistent, significant expense in one of its eligible categories.
How the 5% Works
The magic of the Custom Cash card is its automation. Each billing cycle, the card’s system analyzes your purchases and automatically identifies the eligible category where you spent the most. It then awards you 5% cash back on the first $500 spent in that single category. There is no need to enroll, activate, or select your category beforehand. For all other spending outside of that top category, and for any spending in the top category beyond the $500 cap, you earn a standard 1% cash back. This structure makes it effortless to earn an elite rate on a key part of your budget.
The Perfect User
The perfect user for the Custom Cash card is someone with a predictable, high monthly spend in one of the covered categories. Think of a family that spends hundreds on groceries, a commuter who spends a lot on gas, or a city dweller who dines out frequently. By using this card for that one specific expense, you can effortlessly generate up to $25 in cash back every single month ($500 x 5%) from that category alone. It is for the consumer who wants to maximize rewards on a specific budget line item without any extra hassle.
By the Numbers & Categories
- Annual Fee: $0
- Reward Rate: 5% cash back on up to $500 in your top eligible spend category per billing cycle, then 1% on all other purchases.
- Eligible 5% Categories:
- Restaurants
- Gas Stations
- Grocery Stores
- Select Travel
- Select Transit
- Select Streaming Services
- Drugstores
- Home Improvement Stores
- Fitness Clubs
- Live Entertainment
The Power Combo Strategy
Looking at cards individually is helpful, but the true potential of the citi card cash back rewards program is unlocked when you combine its main products. By strategically pairing the Citi Custom Cash Card with the Citi Double Cash Card, you can create a “power combo” that ensures you are earning an elite rate on nearly every dollar you spend. This two-card system is remarkably simple to manage yet powerful enough to compete with far more complex strategies.
The Two-Card System
The strategy is beautifully straightforward:
- Use the Citi Custom Cash Card exclusively for your single highest eligible spending category each month.
- Use the Citi Double Cash Card for every other purchase.
By following this simple rule, you guarantee a baseline return of 2% on the vast majority of your spending, with a significant 5% boost in the area where you spend the most. This approach eliminates the low 1% earning rate that often brings down the overall value of using a single category card. It is a system that maximizes your earnings with minimal mental effort.
Strategy in Action
We find this two-card system incredibly easy to manage in the real world. Since the Custom Cash adjusts automatically, there is no need to enroll in or track rotating categories. You simply develop the habit of using one card for your primary expense (like groceries or dining) and the other card for everything else. This small behavioral change can lead to a substantial increase in your annual cash back. Let’s look at how this plays out in two common scenarios.
Case Study 1: Suburban Family
This household has a budget with significant and consistent spending on groceries to feed the family, along with other regular expenses like gas, utilities, and miscellaneous shopping.
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The Strategy:
- Use the Citi Custom Cash Card for all grocery store purchases.
- Use the Citi Double Cash Card for gas, utility bills, subscription services, home goods, and all other shopping.
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Sample Monthly Earnings:
| Category | Monthly Spend | Card Used | Reward Rate | Monthly Earnings |
| :— | :— | :— | :— | :— |
| Groceries | $500 | Custom Cash | 5% | $25.00 |
| Gas | $200 | Double Cash | 2% | $4.00 |
| Utilities/Bills | $400 | Double Cash | 2% | $8.00 |
| Other Shopping | $300 | Double Cash | 2% | $6.00 |
| Total | $1,400 | | Effective Rate: 3.07% | $43.00 |
Annually, this strategy yields $516 in cash back, a significant return from a no-annual-fee, two-card setup. The effective rate of over 3% is well above what a single card could provide.
Case Study 2: Urban Renter
This individual lives in a city and spends a large portion of their discretionary income on restaurants and transit. They also have rent and other online shopping expenses.
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The Strategy:
- Use the Citi Custom Cash Card for all restaurant and bar purchases.
- Use the Citi Double Cash Card for transit, rent (if payable by card with a fee under 2%), online shopping, and all other expenses.
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Sample Monthly Earnings:
| Category | Monthly Spend | Card Used | Reward Rate | Monthly Earnings |
| :— | :— | :— | :— | :— |
| Restaurants | $500 | Custom Cash | 5% | $25.00 |
| Transit | $150 | Double Cash | 2% | $3.00 |
| Rent | $1,000 | Double Cash | 2% | $20.00 |
| Other Shopping | $350 | Double Cash | 2% | $7.00 |
| Total | $2,000 | | Effective Rate: 2.75% | $55.00 |
In this scenario, the user earns $660 annually. Even if rent cannot be paid by card, the strategy still yields $420 per year on the remaining spend—a powerful demonstration of how this duo adapts to different lifestyles while consistently delivering high value.
How to Use Your Rewards
Earning rewards is only half the equation; the process of using them needs to be just as simple and rewarding. Citi has built a user-friendly process for turning your accumulated ThankYou Points into cash. Whether you prefer a credit on your statement or cash in your bank account, getting your money is just a few clicks away.
Step-by-Step Guide to Using Rewards
You can use your points at any time, with no minimum requirement for cash back. The process is identical whether you are using a computer or the mobile app.
- Log In: Access your credit card account at Citi.com or through the Citi Mobile App.
- Navigate to Rewards: From your account dashboard, find and click on your ThankYou Points balance. This will securely transfer you to the ThankYou Rewards portal.
- Select “Cash Rewards”: Once inside the portal, look for a redemption category labeled “Cash Rewards” or a similar term. This is typically featured prominently.
- Choose Your Amount & Method: Enter the number of points or the dollar amount you wish to redeem. You will then be presented with the primary redemption options: Statement Credit or Direct Deposit. Select your preference and confirm the transaction.
In our experience testing the portal, the interface is clean and easy to understand. The options for “Statement Credit” and “Direct Deposit” are clearly displayed, and the system shows you the exact cash value of the points you are redeeming. A direct deposit transfer to a linked Citi checking or savings account is often the fastest method, with funds sometimes appearing within a single business day.
Ways to Use Your Rewards Explained
When you redeem for cash, you have two main choices. Both offer the same excellent value of 1 cent per point, so the decision comes down to personal preference.
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Statement Credit: This is the most common way to use rewards. The cash value of your points is applied directly to your credit card’s outstanding balance, reducing the amount you owe. For example, if you have a $500 balance and redeem $50 worth of points, your new balance will be $450. It is a simple way to use your rewards to directly offset your spending.
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Direct Deposit: This option provides true “cash in hand.” The money is electronically transferred from your rewards account to a linked checking or savings account. You can link a Citi bank account or an external account from another bank. This is the best option if you want to use your rewards for something other than paying down your credit card balance, such as saving, investing, or making a cash purchase.
Since both methods provide the exact same monetary value, there is no wrong choice. It simply depends on whether you prefer to lower your card balance or increase your bank balance.
Citi vs. The Competition
No credit card system exists alone. To truly appreciate the citi card cash back rewards program, it is helpful to see how it compares against its primary competitors: Chase and American Express. Each issuer has a different philosophy, and understanding these differences can help solidify your decision.
Citi’s Main Strengths
Citi’s unique selling point is the powerful and simple combination of an automatic 5% category card (Custom Cash) with a high 2% flat-rate card (Double Cash). This duo requires no quarterly activations and no annual fees, making it arguably the most user-friendly, high-earning system on the market for people who value simplicity. The automation of the Custom Cash card is a key difference that sets it apart from its rivals.
Citi vs. Chase Freedom
Chase’s cash back system is built around the Chase Freedom Flex and the Chase Freedom Unlimited. The Freedom Flex offers 5% cash back in rotating quarterly categories (like gas stations or Amazon.com) that require manual activation each quarter. The Freedom Unlimited offers a base earning rate of 1.5% on general purchases.
The key difference is effort and flexibility. Citi’s 5% is automatic and tailored to your personal top spending category for the month. Chase’s 5% is in pre-determined categories that change every three months and requires you to remember to activate them. If your spending aligns perfectly with Chase’s calendar, it can be very rewarding. If not, or if you prefer a hands-off approach, Citi’s automatic system is better.
Citi vs. American Express
American Express offers a strong cash back lineup, most notably the Blue Cash Preferred Card and the Blue Cash Everyday Card. The Blue Cash Preferred is famous for its 6% cash back rate at U.S. supermarkets (on up to $6,000 per year), but it comes with an annual fee. The Blue Cash Everyday offers a lower 3% in key categories with no annual fee.
The key difference here is the annual fee versus the reward rate. Amex’s 6% on groceries is market-leading, but you must spend enough to offset the annual fee to come out ahead. Citi’s top card, the Custom Cash, offers a strong 5% in a flexible category with no annual fee, making it a more accessible and often more profitable choice for many consumers, especially those whose top expense is not groceries.
| System | Key Strength | Level of Effort | Best For |
|---|---|---|---|
| Citi | Automatic 5% top-spend + 2% flat rate | Low | Maximizers who value simplicity and no annual fees. |
| Chase | High potential with rotating 5% categories | Medium (requires quarterly activation) | Users who enjoy “playing the game” and aligning spend with rotating bonuses. |
| Amex | Very high rewards on U.S. supermarket spend | Low to Medium | Households with very high grocery budgets who are okay with an annual fee for top rewards. |
The Final Decision
Choosing the right credit card is a personal decision, but the citi card cash back rewards program offers compelling options for nearly every type of spender. By understanding what each card does best, you can make an informed choice that puts more money back into your budget.
Choose the Citi Double Cash Card if…
…you want ultimate simplicity and a high rewards rate on every single purchase without thinking about categories. It is the perfect “set it and forget it” card for earning a solid 2% back on everything from your morning coffee to your monthly bills.
Choose the Citi Custom Cash Card if…
…you have one dominant spending category each month, like dining, groceries, or gas, and want to be rewarded handsomely for it automatically. This card does the work for you, ensuring you get 5% back where it counts the most.
Combine Both Cards if…
…you are a rewards maximizer who wants the best of both worlds. This no-annual-fee combination is one of the most powerful and simple systems on the market, creating a floor of 2% on all spending while delivering an elite 5% return on a major part of your budget.
