Citi Select (post March 2013) - ? worth $700 annual fee

[legroom]

IIRC, Select gives you 1.33 KF / $ whereas Signature gives you 1.00 KF / $ (domestic spend).

Your example ($200,000) would equate to 66,000 KF for $700.00 above Signature's earn.

That's equivalent to approx 1/2 SYD LHR return.

So, it is consistent with my earlier observation that with > $10K per month, you'd be better off staying with Select.

But for lower monthly spend, the FREE Signature is a good deal.

Jack (my hon accountant), would you agree ?

Left with say $700,000 expenditure on Citi Select the fee of $700 would still be the bargain of the year.
At $200,000 or less then you could go free for life choice on Signature.

 

[Jack_OC]

IIRC, Select gives you 1.33 KF / $ whereas Signature gives you 1.00 KF / $ (domestic spend).

Your example ($200,000) would equate to 66,000 KF for $700.00 above Signature's earn.

That's equivalent to approx 1/2 SYD LHR return.

So, it is consistent with my earlier observation that with > $10K per month, you'd be better off staying with Select.

But for lower monthly spend, the FREE Signature is a good deal.

Jack (my hon accountant), would you agree ?

Totally agree! Thanks for alerting us to the Singature offer by the way, what a deal that is! I've just applied and will definitely cancel Select now. As I previously posted, the incremental benefit of Select vs Altitude Black was very marginal for me, so needless to say the incremental benefit of Select vs a fee free Signature is just non existent.

 

[cove]

Well if you look at it from my point of view 91,375 Kris points gets you from Singapore to London in fine style one way so $700,000 spend gets you 10 of these.
The loss of 66,000 Kris miles would hurt as the retail value could be more than $4,000 lost by not paying $700. That is your call.

 

[legroom]

Cove, my friend

Everyone is different with respect to their Select spend.

Some spends less on Select and more on Altitude, for example.

You're 120% correct with your example (which, however, may not be what others are doing).

Well if you look at it from my point of view 91,375 Kris points gets you from Singapore to London in fine style one way so $700,000 spend gets you 10 of these.
The loss of 66,000 Kris miles would hurt as the retail value could be more than $4,000 lost by not paying $700. That is your call.

 

[cove]

It's just a game so if $700 hurts then going the free route for life would be exciting.

 

[DaveB]

I never try to put a value on points, but will always use points to pay the annual fee as a means of assessing value.
With the Select setting me back 280,000 points this year for the $700, the break even for me is $600,000 annual spend with any OS spend cream. I will though get a fee free Signature for my wife as a future Plan B.

 

[cove]

Ouch DaveB that is keeping you at home instead of away.

 

[DaveB]

Ouch DaveB that is keeping you at home instead of away.

Have always treated the points as easy come easy go holding onto the hard earned cash. Also never pay fees for points unless it is tax deductible and doesn't cost over 1 cent per FF mile.
This ultra conservative approach costs me considerable points earn annually, but still fortunate to produce more points than the four of us are able to use.
Would love to do more than our two trips a year though since buying out my business partner a few years back, am loving my coaching role getting a kick out of mentoring the young guns take the business further than I ever envisaged.
May have to rethink the strategy once my offer to our seven nieces/nephews with partners to use the points bank gains traction.

 

[diningdecadence]

looks like they've re-launched it or at least targeting it differently... p3 of the AFR today citibank.com.au/pioneers - perhaps that survey some of us completed a few months back gained some insights for the citi team - looks like the biggest attraction they are trying to flog is now the 5 points/dollar on the international card. hotel stay and that voucher if booking citi travel both gone as already foreshadowed. still $700 fee.

 

[legroom]

The loss of hotel stay has been for a few months now.

One of the bigger disappointments !

looks like they've re-launched it or at least targeting it differently... p3 of the AFR today citibank.com.au/pioneers - perhaps that survey some of us completed a few months back gained some insights for the citi team - looks like the biggest attraction they are trying to flog is now the 5 points/dollar on the international card. hotel stay and that voucher if booking citi travel both gone as already foreshadowed. still $700 fee.

 

[trippin_the_rift]

Citi has been on a hiring spree to get new card loyalty specialists recently - perhaps some fresh blood in the company will inspire benefits that matter.

On another note: if you have a spare 100k cash, throw it into a citibank saving account and become a Citi Gold client. This gets you half price annual fee.
Spend a mid 6 figure amount on the card and they will waive the remaining fee for you if you push a little harder.

 

[Jack_OC]

On another note: if you have a spare 100k cash, throw it into a citibank saving account and become a Citi Gold client. This gets you half price annual fee.

If you have a spare $100k, by putting it in Ubank instead of Citibank you could earn an extra ~$600 (after tax) in interest each year.

 

[Beta4Me]

If you have a spare $100k, by putting it in Ubank instead of Citibank you could earn an extra ~$600 (after tax) in interest each year.

Or you could just stick it into Citibank for Citi Gold and then pull it back out again...

 

[digpomi]

I had no trouble getting annual fee reduced to $350 to on my first anniversary for this card. So that makes the value proposition better especially as we have lot of overseas spend courtesy of high australian retail prices for everything. Also, ended up with nearly 50,000 krisflyer points courtesy of last holiday in USA. I also have a citi signature fee free till next year due to having held Citiibusiness gold previously. However, it never gets used unless extra bonus points for a month offer come through.

 

[legroom]

But only for one year!

That's what I was advised.

I had no trouble getting annual fee reduced to $350 to on my first anniversary for this card.

 

[Kimster]

Exactly, I stuck a spare 100K at the time in Citi and attained Citi Gold. Its since been long that I withdrew the 100K but still only pay the half annual fee on my Select (since the past 2 years).

 

[Jack_OC]

Exactly, I stuck a spare 100K at the time in Citi and attained Citi Gold. Its since been long that I withdrew the 100K but still only pay the half annual fee on my Select (since the past 2 years).

Interesting. So do you not have any other products with Citi that would entitle you to CitiGold? If so that certainly sounds like an opprotunity!

I had assumed once you stop being eligible for the package you would lose the benefits - I have previously had HSBC Premier and Westpac Premier Advantage, and in both cases once I stopped being eligible (in both cases by switching home loans) I lost all benefits with immediate effect.

 

[rweir]

Citi will not let you have Citigold indefinitely after you have taken your money away from them, but there appears to be a lag and/or discretion.

 

[Kimster]

Yes. it certainly seems to be the case. Not that I am complaining.

On another note, I have a mate of mine experience a similar thing - so my hunch is that they have failed to notice it!!!

 

[legroom]

Applied, received and then cancelled a SELECT card when I became aware of the fee-for-life Signature promotion.

Thought about it for a week but in the end I decided the $700 annual fee is not worth the difference, taking into account my spending pattern.

Shuffle nearly all onto my Altitude Black nowadays!