Citibank is offering 50,000 ThankYou points to select customers who open up a Citigold checking account and meet certain requirements.
Offer Details & Terms
To get the bonus, simply visit the Citi website and input the special offer code 42ERCZ42PY. You must currently hold a ThankYou Preferred, ThankYou Premier or Prestige card to be eligible. This offer expires on December 31, 2015 and requires you to perform 1 bill pay in each of two consecutive months. You can find the full offer terms here.
Note: There is also an offer for 50K AAdvantage miles.
Monthly Fee & Downgrade Options
The Citigold account does carry a $30 monthly fee that is waived the first 2 months. After the points post you may be able to downgrade to a Basic Banking account where the fee is waived by a simple direct deposit and bill pay. Note that the points may have to be transferred out before downgrading or closing the account or you will most likely lose them.
Fund With Credit Card
Citi does let you fund your checking account with a Visa or Mastercard up to $100K. To do so, you must either mail or fax in an authorization form. Doctor of Credit has collected a number of data points regarding which credit cards work without being charged a cash advance fee.
Citi uses the following language regarding a 1099:
“Important Tax Information: Offer limited to customers who are either citizens or resident aliens of the United States (U.S.) with a valid Form W-9 on file and the account must not be subject to backup withholding. The value of the rewards from redeemed ThankYou Points may be reported to the IRS as miscellaneous income on Form 1099-MISC in the year received, if the value of the award plus other taxable miscellaneous income awards received from Citibank, N.A., is in the aggregate $600 or greater for a calendar year, as required by applicable law. Customer is responsible for any applicable taxes.”
If you receive more than $600 worth of value from these points, then you most likely will receive a 1099. If you redeem them at $.01 each for gift cards, then you shouldn’t have anything to worry about.
Citi Prestige Cardholders
If you are a holder of the Citi Prestige card, opening a Citigold account should also lower your annual fee by $100 to $350.
For more detailed information and analysis, see this Takeoff With Miles post.