I’ve had a Citibank checking account for over 7 years now, and am kicking myself of not truly taking advantage of the “ThankYou” network sooner. Even though Citibank itself has faced a slew of trouble recently resulting from the continuing subprime meltdown, I remain very bullish on its banking products.  I have my primary checking account with Citibank along with supplemental savings and money market accounts.

Recently I decided to switch my banking at Citibank from a EZ-Checking reltionship over to an Everything Counts relationship to take advantage of additional “ThankYou” reward points.  The “ThankYou” network is a large umbrella reward program that allows points to accumulate from many different sponsor accounts.  In my case I have Citibank banking relationship that nets me 600 points a month for doing nothing but having accounts with the bank.  Previously my EZ-Checking account netted me 225 points a month for having 6 different accounts (1 Checking, 4 Savings/Money market, 1 overdraft line of credit), but for the same number of accounts The Everything Counts (or standard Citibank Account) gives me 600 points.  The switch was painless, I called Citibank and they changed the relationship.  I kept the same account numbers, checks, and everything else.  The only catch is that there is a higher minimum balance requirements on a standard Citibank account, but since I was above those limits making the change did not impact me.  In addition I can earn points my making purchases via my debit card.  That said, I don’t use my debit card as I prefer earning Starwoods points via American Express.

The above chart from the Citibank website details the earnings schedule of different Citibank relationship accounts. The EZ-Checking account has minimum balance of $1,500, the Citibank Account has a minimum balance of $6,000 and the Everything Counts a requirement of $10,000 on deposit accounts, or $20,000 across all accounts (including mortgages). Not surprisingly, Citibank gives more points with the higher balance accounts.

The interest rate on Citibank’s best savings offering, the Ultimate Money Market, is a competitive 4.5% as of 11/12/2007 (Internet and Phone sign-up with a monthly Bill Pay transaction).  Even if you could find rate that was 1% higher, it would be only slightly better than what Citibank gives in terms of ThankYou rewards.  $6000 at 1% is a little over $60 per year while one year’s worth “ThankYou” points is worth a little less than $50 since 7500 “ThankYou” points translates into a $50 statement credit.  There are other rewards that offer more bang for the buck.  I believe I could better Citibank by .75% (75 basis points) by constantly shopping around and do 25 basis points better consistently via another bank.  However, given that I chose Citibank as my primary bank because of it’s size (I got tired of having my bank gobbled up larger banks and then having to change my account), and because of it’s wide range product offering, the “ThankYou” program is just gravy.

Because I’m enrolled in “ThankYou” reward program through my bank account, I’m also able to earn additional points via:

  • Expedia
  • Smith Barney Brokerage
  • Shopping online at enormous selection online retailers such Overstock.com, Target, iTunes, the Gap, etc.

Each retailer has different reward structure for each dollar spent. Some pay one to one, others pay 2 points per dollar or more. Also, by using a Citibank credit or debit card at the retailer, it’s possible to earn “double” points (via the retailer and Citibank).