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Citibank Credit Cardholders - $100 Cash Back for Fixed Payment Option

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Citibank Credit Cardholders - $100 Cash Back for Fixed Payment Option
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schmucky on 07/12/2016 - 09:30 citibank.com.au (521 clicks)

No true Ozbargainer would be without their trusted Citibank Credit Card (fee free for life) so hopefully this is beneficial for alot of the community.

Citibank is currently offering $100 cashback for using the Fixed Payment Option, the below runs through the steps required and meets the terms and conditions. The net return will vary depending on the interest rate that is applied to your Fixed Payment Option and when you apply.

In my situation I would net a return of approx $70. I had an interest rate of 8.9%. Essentially I would receive cash back of $100 and pay interest of $30 for one months interest for keeping the facility open till 31 January 2017.

  1. Login to your account and request a cheque to self under the Fixed Payment Option for $4,000 for a term of 24 months (Should show up in your offers section.) For maximum benefit apply on 31 December 2016 as this would minimise the interest paid.

  2. Make the minimum repayments and maintain the credit facility until 31 January 2017.

  3. Repay the facility 1 February 2017.

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closed Comments

  • dynamike on 07/12/2016 - 09:31

    Pretty sure the net return wouldn't be worth the impact on your credit rating.

    • Eeples on 07/12/2016 - 09:36

      I didn't think citibank would do a credit check when taking up a Fixed Payment Option.

      I think 12.99% is more common.

      • schmucky on 07/12/2016 - 09:56
        +1

        No credit check as it uses part of your credit limit.

        • dynamike on 07/12/2016 - 10:11
          +2

          I stand corrected.

  • Turd on 07/12/2016 - 09:44

    Isnt there a fee for paying early?

    • schmucky on 07/12/2016 - 09:55

      No fees for paying early or applying. Refer FAQ.

  • Turd on 07/12/2016 - 10:01

    Do you loose your interest free period for the cc?

    • schmucky on 07/12/2016 - 10:06

      The maximum interest free day period applies when you pay your closing balance off in full for two consecutive months as well as paying your Fixed Payment Option monthly instalment amounts by the statement due date. If you carry a balance on your credit card from month to month (exclusive of the FPO amount), the interest free period does not apply and you are charged interest once you make a purchase.

    • KevinFine on 07/12/2016 - 10:09
      +1

      lose

  • tukanglistrik on 07/12/2016 - 10:08

    Interesting…wonder what does it mean with "for a term of 24 months"? Isn't that terminating the contract so I wouldn't get the cashback?

  • Crownanchor on 07/12/2016 - 10:15

    Agreed with the OP, Citibank CC is great, a lot of deals every year with the card. Took up this offer last week.

    Didnt post as thought it was targeted. Had to wait till the end of the month from the original offer for the $100.

    • ruprectaus on 07/12/2016 - 11:24

      Agreed with the OP, Citibank CC is great a lot of deals every year with the card.

      Yowsers .. What am I doing wrong ? I get none, am on a Citi Rewards Visa and get charged a few hundred a year for the privilege. I was going to cancel it when it was due for renewal next year !

  • NickosFoivos on 07/12/2016 - 16:01
    -4

    Dont go with Citi. They are very strict and will affect your credit rating heaps.

    • Crownanchor on 07/12/2016 - 16:38

      Do you have proof?

      • Turd on 07/12/2016 - 16:38

        No pudding!!

  • fleetoiler on 08/12/2016 - 12:13
    +3

    You can further save on interest and make it work out to be ~$95 profit instead of ~$70 by paying off most of the balance immediately, just leaving room for 1 or 2 months of repayments.

    TL;DR it's all above board, but do not try this unless you know what you're doing.

    —

    Once you set up the FPO, you can pay off 80-95% of the (4k) amount, the t&c only say that the FPO still needs to be active at Jan 31. As long as you leave enough room for 2 months of monthly repayments (which is around 8-10% of the starting amount) then it will be within the offer t&c, and since there is no fees for extra repayments or paying it off early, you'll end up only paying 30-60 days worth of interest on a few hundred dollars instead of 4k.

    If you want to cut it fine and save another dollar or two, leave it until late in December to apply for the FPO and you'll only need to leave room for 1 payment, and pay the minimum (~32) days of interest. but then you run the risk of them pulling the promotion early or changing the t&cs.

    Just be careful, if you use the card for anything else and the balance on your card wasn't zero, then you might need to contact them to allocate the extra repayments you made as being for paying off the FPO instead of paying off normal purchases.

    • wutang01 on 22/12/2016 - 10:38

      When does Citibank start charging the 8.9% interest?
      From the date of application/cheque issued, 25 days after issued statement (55 days interest free) or from the date the cheque was "cashed in"?
      (Please forgive my ignorance! I've tried the FAQs)

      • fleetoiler on 23/12/2016 - 17:41
        +1

        (I have no proof but…) I would assume that interest starts accruing from the day they process the FPO request/application, which is when they debit your account so I'm assuming that is when the interest starts. I got a text message about a week after application saying it's been processed and the cheque is now being sent out (which for me was a week after application so I'd do it now if you haven't already).

        …as far as paying it back however, the payments are made in your normal statement payment cycle. They will start at the next FULL credit card statement cycle and due date along with other payments, your first statement after application will likely have nothing to pay off the FPO.

        So in my case I applied and got approved near the start of the month, then I got my statement for December mid-month showing the FPO details but with nothing to pay, and I assume my next statement in mid-January I'll get a statement with the first (of 24) payments owing. I'll pay that off as soon as I get it, and once I get the $100 credit I'll call them up and ask for a final payout figure to zero it out.

        good luck!

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