American Express and Citibank are two of the most popular credit cards. Both companies provide their customers with a ton of value, and there’s no doubt that both Amex and Citibank have become leaders in the credit card reward space. Both American Express and Citibank offer attractive credit cards that appeal to a wide variety of customers. As a general rule of thumb, they always come with great signup bonuses and great benefits.
American Express and Citibank are two of America’s most talked about banks. Both have a rich history and offer great value to their customers, whether small business owners, consumers or large corporations.
Amex vs Citi Bank, without a doubt, are two of the leading players in credit card rewards. Amex and Citi have joined Chase, Capital One, and other “big 4” credit card companies for rewards.
As a rule, the product lines of each credit card issuer tend to be very different and offer value to a variety of ideal customers. Amex, Citi, and other major credit card companies offer a variety of attractive credit cards. This guide will show you which cards are the best in each market.
Comparing Amex vs Citi Bank Reward Program Comparison
We’ll try to zero in and answer which credit card provider is the best at the end of the day. Let’s go into it by comparing Amex and Citibank’s rewards programs. So, both Amex and Citibank run what is known as a flexible rewards program.
Put simply, it’s a scheme where you can earn points either via signup bonuses or for simply spending on your credit card. Later, you can transfer those accumulated points to a wide range of loyalty schemes, such as frequent flyer programs, or even redeem them for non-travel related benefits, such as gift cards or statement credits.
Each credit card will have a unique structure for earning reward points. For example, the Amex Platinum Edge credit card earns you three points per dollar spent at major supermarkets and petrol stations. At the same time, the Explorer earns you two points per dollar spent on all domestic purchases.
And for Citibank with the Prestige card, you earn three Citi reward points on all domestic purchases. While with the Citi Premier, you earn two points per dollar spent on all domestic purchases. While Amex and Citibank are both flexible reward programs, they differ slightly in how you redeem your reward points.
With Amex, you can redeem your points through a partner airline, book travel through the Amex travel portal, redeem your points for gift cards, shop with David Jones, and cover your statement transactions. On the other hand, with Citibank, you can transfer them to a partner airline, cover your existing charges, or redeem them for gift cards. So yes, while there is more flexibility in how you can redeem your points with Amex, just because there are all of these additional options to redeem your Amex reward points doesn’t mean you should use them.
As we all know, redeeming your credit card reward points for travel via a partner airline is where you’ll get the most value from your reward points. When redeeming your points with a partner airline, there is also a significant difference between Amex and Citibank. With Amex, you can redeem your points with over 11 partner airlines.
And if you’re a platinum cardholder, you’ll also be able to transfer points over to Qantas, bumping that number up to 12. This means that no matter where you are planning to travel to, whether that be Asia, Europe, or North America, an airline will fly that route where you can redeem points for a reward seat. With multiple airlines often flying those same routes, you can research and maximize your points to find the best price and the award seat availability you’re looking for with a partner airline.
When it comes to Citibank, if you hold one of their entry-level or mid-tier cards, such as the rewards or the premier card, you can redeem your points through three different programs. But when you move up to the top of the range with the City Prestige, these holders will have another three programs to choose from. So when it comes to the number of partner airlines to which you can transfer your reward points, American Express wins this, hands down.
Citibank has a slight advantage if you prefer to fly with Singapore Airlines, as the transfer rates with Citibank are better than those of American Express. With Citibank, you can transfer at a rate of 2.5 to 1, while with American Express, it’s 3 points to 1. For redemption with hotel programs, only American Express can redeem points with either the Hilton or the Marriott reward programs. So overall, you do get a lot more flexibility when it comes to the American Express reward program, so this one goes to Amex.
Amex vs Citi Bank Credit card Offerings
Next, let’s talk about each credit card provider’s different card offerings. Now, if you hop onto the Citibank website and look through the credit cards you can sign up for, there are many options.
But when you boil it all down, you can choose from only 5 different credit card types. They have a simple and clear card range targeted at beginners looking for a low interest rate or $0 annual fee credit card. Then, they have the rewards and premier card range, which is Citibank’s mid-tier range and is targeted at people looking to get travel benefits from their credit card or some cashback from their spending but also don’t mind paying an annual fee.
And then, finally, the prestige card, which is your premium tier, for customers looking to get the highest signup bonuses and the best travel benefits out of their credit card. On the other hand, with American Express, if you hop onto their website, they have 10 different credit cards to choose from. So, once again, a lot more flexibility regarding American Express credit cards.
However, when it all boils down to it, you can pretty much classify those 10 credit cards into the same three categories we discussed. So we have multiple beginner credit cards with $0 annual fees but different options for how you want to be rewarded for spending on your credit card. The mid-tier cards offer a nice signup bonus and additional travel benefits, but you must also start paying an annual fee.
The premium tier comes with a pretty sizable annual fee of over $1,000, but it also comes with some of the best credit card-related benefits on the market today. I think we can call it pretty even because they both have credit cards that fall into one of those three buckets and have a credit card on the market that will suit a specific consumer with their preferences.
Citi Bank vs Amex Signup Bonus & Travel Perks
Next, let’s talk about signup bonuses and the additional perks that come with the credit card.
To make this comparison, let’s compare similar credit cards from both credit card providers to see how they stack up regarding the signup bonuses and the additional benefits you receive with the credit card. Firstly, let’s compare Amex’s Explorer credit card against Citibank’s Premier card, both mid-tier credit cards targeted at similar consumers. So, for the American Express Explorer card, you’ll receive a signup bonus of 50,000 Amex reward points after spending just $4,000 in the first three months.
You’ll need to pay a $400 annual fee with this credit card, offset by a $400 travel credit you’ll receive from American Express each year. So it’s essentially fee-free. You get two complimentary entries to the Centurion Lounge in either Sydney or Melbourne, and on an ongoing basis, you’ll earn two American Express reward points per dollar you spend.
And finally, you also get a wide variety of complimentary insurances that come with the card. On the other hand, with the Citibank Premier card, you’ll receive a signup bonus of 200,000 Citi reward points after spending $7,000 in the first three months. Additionally, the annual fee for the first year is reduced to $150 before being reversed to $300 in subsequent years.
You’ll receive two complimentary lounge passes globally via Priority Pass and earn two Citi reward points per dollar spent on all domestic purchases. And you can also get 10% off select hotels when you book via Luxury Escapes. Lastly, like American Express, you also receive a wide variety of complimentary insurance with the card.
So when we compare the two credit cards, we see a lot of similarities, such as the ongoing earn rate, the complimentary lounge insurance, and the complimentary insurance. However, there are some differences, namely the signup bonus, the spending criteria, and the annual fee. 50,000 American Express reward points don’t get you that much for the signup bonus with American Express.
When you transfer it to a partner airline, at most, you’re getting 25,000 points, which you can’t do that much with, especially if you’re looking to travel overseas. At most, with 25,000 points, I could transfer my points to Virgin Australia and book a one-way flight to Bali, Indonesia. Whereas with 200,000 Citi reward points, I could get around 66,000 points with Qatar or Etihad, which would be enough for me to fly one way from Melbourne to London.
On the other hand, when we look at the annual fee, the Explorer credit card is pretty much fee-free because it comes with a $400 travel credit every year, which means on an ongoing basis, the Citi Premier card has a higher annual fee of $300. Next, look at the Amex Platinum card versus the Citi Premier Velocity offer. For the American Express Velocity Platinum card, you’ll earn a signup bonus of 60,000 Velocity points after spending just $3,000 in the first three months.
The complimentary return economy domestic flights largely offset an annual fee of $375 per year. On an ongoing basis, you will earn 1.25 Velocity frequent flyer points and receive complimentary access to the Centurion lounge twice a year. With the Citi Premier card, you’ll receive 100,000 Velocity frequent flyer points as a signup bonus after spending $8,000 in the first three months.
It has an annual fee of $300, and on an ongoing basis, you will earn two Citi reward points per dollar spent, which you can then transfer to one Velocity frequent flyer point. And you’ll also receive two complimentary lounge passes. And both come with a wide range of complimentary insurance as well.
Once again, there are some similarities and differences, namely in the signup bonus, the annual fee, and the spending criteria. When comparing the two, this is a recurring theme amongst most credit cards. Citibank tends to offer higher signup bonuses; however, it comes with higher spending requirements.
American Express largely offsets the annual fee with complimentary travel credit, meaning Citibank often has higher annual fees when considering everything. So, what it comes down to is personal preference. Are you someone who prefers a higher signup bonus at the expense of having higher spending criteria to receive that signup bonus and, on an ongoing basis, also have to pay a higher annual fee? My answer is yes; I would much rather have the higher signup bonus because I know I can redeem that for travel, which will give me more value than the higher annual fee I will have to pay.
The higher spending criteria don’t worry me that much because there are multiple ways in which we can easily meet those spending criteria, such as going on sites like Shop back, Cash Rewards or Macquarie Marketplace to pre-purchase gift cards where we can get three to 4% discount on the total gift card value. So, sometimes, I’ll buy a gift card for $1,000 and then use that for my groceries and fuel for the next few months.
Amex and Citi Ban Accessibility & Fees
The last topic that I wanted to talk about is the accessibility of the card itself, the ability to use it for everyday purchases, and the card payment fees associated with it.
Now, one of the biggest complaints I often hear is that people complain about being unable to use their American Express credit cards at shops or restaurants. This might have been the case two to three years ago. However, you might be surprised at the accessibility of American Express credit cards these days. Amex has rapidly expanded its footprint over the past two to three years, with over 100,000 new businesses now accepting American Express as a payment method.
American Express is accepted at all major supermarkets and petrol stations these days. You can shop for everyday household items both in-store and online. You’d be quite surprised that you can pay many of your bills using American Express, including your council tax rates, utility bills, and some of your insurance payments. There was a survey done by Point Tax asking its readers how they found using American Express in Australia. For people who did have one, over 50% of the time, their experience was that it was accepted at some or nearly all the places they typically shopped at, with only 10% of people saying it was rarely accepted.
Another thing that is often a deterrent to American Express credit cards is its higher payment processing fees, which ultimately get passed back on to us as consumers in one way or another. For example, if you wanted to make any type of payment to the ATO and use your credit card with American Express, you would be charged a surcharge of 1.45%, whereas on the other hand, with Visa or Mastercard, you get charged nearly half of that. So yes, in some instances, the payment processing fee with American Express is nearly twice as much as that of Visa and Mastercard.
Now, I think that both Citibank and American Express offer some amazing credit cards to their customers, and then, comparing them side by side, I see that each one has its pros and cons. However, it’s ultimately up to you as the consumer to decide what you prefer based on your preferences. I have been a customer of American Express for a long time because I value the flexibility I get regarding the number of partner airlines to which I can transfer my reward points.
Citibank vs American Express: Which credit card is better?
American Express offers better cards regarding travel rewards, luxury benefits and other perks. Citi tends primarily to target those seeking low fees and high cash-back.
Citibank & American Express: Are they the same?
Citibank and American Express have different products. Although both banks are headquartered in New York, they have very different products and services. Citibank, American Express and other banks are often considered direct competitors.
Is Amex more prestigious or Amex?
Amex generally has more prestige than Citi. American Express provides credit and charge cards primarily focused on luxurious travel benefits, premium rewards, and superior customer service. Citi tends to focus on cash-back, simple service and low fees.
American Express, is it better than Citibank or Citibank?
American Express offers a more comprehensive credit card portfolio than than Citi. American Express’s charge and credit cards offer greater value than Citi and more products.
