Citi recently launched a Citigold account opening bonus of 50,000 TYP/AA miles. If you are not sure how to apply, please refer to our other article. If handled well, this bonus can be worth far more than just 50,000 TYP/AA miles. In this article, we will discuss how to maximize the value of this offer. First, I recommend applying for the 50,000 AA miles version of the bonus. This is not only because AA miles are more valuable than TYP, but also because it lets you easily avoid the hassle of receiving a 1099-MISC tax form or dealing with TYP expiration.
Second, Citi allows customers opening a checking account to make the initial funding with a Visa or Mastercard credit card, up to as much as $100,000. Since banks including Citi, BofA, and Barclays treat this funding as a purchase rather than a cash advance, you can use it to meet a new card minimum spending requirement or do some manufactured spending while opening the Citigold account. Among personal credit cards issued by these three banks, I think the best card to use for funding is the Citi AAdvantage Executive. That is because the AA Exec has an astonishing minimum spend requirement of $7,500 in three months. For most international students, meeting that spending requirement without heavy manufactured spending is quite difficult. However, the AA Exec signup bonus is also extremely lucrative, and funding a Citigold account is the perfect opportunity to complete the AA Exec minimum spend requirement.
In addition, Citigold customers can apply for the $450 annual fee version of the Citi Prestige while paying only a $350 annual fee. Citi Prestige is an excellent card, but without Citigold, the $350 annual fee version comes with a $15,000 minimum spending requirement, while the version with a $3,000 minimum spending requirement costs a $450 annual fee. With this account, you can enjoy the lower $350 annual fee without having to deal with the $15,000 spending requirement. Besides increasing the value of TYP to 1.6 cents/point, the card also reimburses $250 in airfare each year and offers extensive airport lounge access. That makes the effective annual fee only $100, so readers who travel frequently should seriously consider keeping it long term!
To sum up, here is what I believe is the best way to approach Citigold:
- Apply for the Citi AAdvantage Executive, check the latest data points on Doctor of Credit, and call Citi to set your cash advance limit to $0 so the funding charge will not post as a cash advance.
- Apply for the Citigold account using the 50,000 AA miles account opening bonus, and fund it with $7,500 or more (up to $100,000) on the AA Executive to complete the AA Exec minimum spend requirement, earning the AA Exec's 75,000 signup bonus plus 7,500-100,000 AA miles.
- Complete the Citigold account opening requirements and earn the 50,000 AA miles bonus.
- Apply for the 50,000-offer version of the Citi Prestige with the $350 annual fee, complete the $3,000 minimum spend requirement, and earn 53,000 TYP.
- After you confirm that you have received the 50,000 AA miles, downgrade or close the account if you do not have the $50,000 in deposits needed to waive the account maintenance fee.
- Close the AA Exec before the second annual fee posts, while the Citi Prestige may be worth keeping long term depending on your situation.
If you complete the full strategy successfully, the cost is two HPs + the $450 annual fee on the AA Exec + up to $90 in account maintenance fees. In return, you get 132,500-225,000 AA miles + 53,000 TYP + one year of benefits from the AA Exec (including Admirals Club) + a Citi Prestige with a $350 annual fee! A rough valuation easily puts this at more than $2,900-$4,500.
Have you applied for Citigold? Share your experience with us!