Numerous credit cards come with annual fees, and it’s no surprise that consumers prefer to calculate whether these fees are justifiable on a continual basis. In this regard, each card issuer has its own approach to refunding annual fees, and in this article, I want to examine Citi’s approach.
Citi provides a refund on annual fees for 37 days
For credit cards featuring annual fees, every card issuer maintains a distinct policy about allowing you to cancel your card and receive the annual fee back. Some issuers give you 30 days from the date the annual fee appears to request a refund, while others offer 60 days after the annual fee posts.
Citi’s policy is not 30 or 60 days — if you choose to cancel or change a product, Citi will return your annual fee for a maximum of 37 days following the posting of the fee on your statement. Therefore, for up to 37 days, you can receive a full refund, but after that period, it appears there’s no option for a pro-rated refund, except in places like Massachusetts, where it is legally mandated.
Keep in mind that this is not an official policy, but rather what seems to be the unwritten guidance. Thus, I’ll include the standard “your mileage may vary” disclaimer, meaning you should always verify with the card issuer about the policy, as it may change in the future.
What is the significance of annual fee refund policies?
Why is it crucial to be informed about a card issuer’s annual fee refund policy?
– Many of us may not stay organized and do not note on our calendars when annual fees are due; instead, we determine it by reviewing our credit card statements.
– When an annual fee is due, I always find it valuable to evaluate the benefits you’ve gained from the card and consider either terminating the card or downgrading it if it no longer seems beneficial.
– Citi has the 48-month rule, which stipulates that eligibility for welcome bonuses on several Citi cards depends on not having obtained a bonus on that particular card in the previous 48 months, so timing applications accordingly can be advantageous.
Citi’s credit card ecosystem has become significantly more intriguing lately, particularly regarding the Citi ThankYou and American AAdvantage cards.
Thus, for products like the Citi Strata Elite℠ Card and Citi® / AAdvantage® Globe™ Mastercard®, I know that many individuals may be eager to optimize rewards since numerous benefits are tied to the calendar year rather than the anniversary year (which can enhance the value in the first year). Recognizing the 37-day policy is essential in terms of maximizing benefits if you plan to cancel the card eventually.
Final thoughts
Citi will reimburse the annual fee on a credit card as long as you cancel your card within 37 days of the annual fee being charged to your account. If you act within this time frame, you could feasibly cancel or downgrade your card while having the annual fee refunded.
Have you encountered Citi’s 37-day rule regarding annual fee refunds?