I receive compensation for many links on this blog. You don’t have to use these links, but I am grateful to you if you do. American Express, Citibank, Chase, and other banks are advertising partners of this site. I do not write about all credit cards that are available — instead focusing on miles, points, and cash back (and currencies that can be converted into the same).
There’s a new no-fee cash back card from Citibank that will offer most people the highest rate of return in the market.
You earn 1% when you make purchases and then 1% more when you pay off the purchases (which you should do right away, natch).
This is better than the Fidelity Investment Rewards American Express (which I’ve written about for a very long time) if you make purchases at places that don’t take American Express. (It’s a MasterCard.)
This is better than the Barclaycard Arrival Plus World Elite MasterCard if you don’t want to spend your rewards on travel. The Arrival Plus effectively earns 2.2% rebated towards travel. It also comes with an $89 annual fee ($0 fee the first year).
The only cash back card that could potentially be better, it seems to me, is Bank of America’s new offering that will let those who put $100,000 or more in assets on deposit with BofA earn 2.625%.
There’s no signup bonus for the card. It’s just the most solid broadly applicable cash back card on the market, the new benchmark. The Fidelity card was on record six months ago saying they wouldn’t reduce earnings for at least 18 months. That made me think it was plausible they’d do so after 18 months. Having this card in the arsenal may make that less likely, but at least provides an alternative if they do. And it isn’t an Amex.
I favor points over cash back. But I also recognized that if I’m doing any un-bonused spend, I’m effectively buying points at 2 cents apiece, since I could otherwise be earning two cents per dollar spent. I don’t want to do that with most points currencies. So as I’ve long said, a cash rebate like this may be the best option for spending that isn’t going to earn a bonus on a points and miles credit card.
So thrilled to have Citi® Double Cash Card enter the market.
Editorial note: any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Comments made in response to this post are not provided or commissioned nor have they been reviewed, approved, or otherwise endorsed by any bank. It is not the responsibility of any advertiser to ensure that questions are answered, either.
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