Posted by Chuck on November 24, 2015
Credit Cards

Published on November 24th, 2015 | by Chuck

20

Citi Dividend 2016 Categories Revealed – Drugstore Category is Back!

The 2016 Citi Dividend categories will have drugstores again in 2016!

2016 Dividend Categories

In previous years, drugstores were always the Q1 category, but in 2015 Citi scrapped that. In fact, many people have already product changed their Dividend cards for lack of usefulness.

The good people on Reddit found a picture of what the 2016 categories will look like and drugstores is showing as Q2.

  • Q1 – Home Depot and other home furnishing stores
  • Q2 – Drugstores and fitness clubs
  • Q3 – Hilton and car rentals
  • Q4 – Best Buy  and department store

Screen Shot 2015-11-24 at 9.52.27 PM

Why this is Awesome

We’ve mentioned numerous times in the past that the beauty of the Dividend card versus the Freedom or Discover cards is that you can max out the full 5% spend in a single quarter. For example, you can charge $6,000 at the drugstore during Q2-2016 and get $300 cashback.

The only limitation with Dividend is that there is a max of $300 per year. Technically, there is no category max at all; in practice, the max will be $6,000 which is when you hit the $300 limit.

The max of $300 in total cashback includes any non-bonus spend as well which earns 1%. In this regard, Freedom and Discover IT are better as their 1% spend is not included in the limits.

Calculating the Year

One final – very important – note: Citi likes to count most annual things based on the billing cycle. The billing statement that is sent out in January is considered to be completely part of 2016. For example, if you spend $1,000 at Best Buy during December and your statement closes on January 1, 2016, those 5% rewards from Best Buy will count toward the $300 limit of 2016, not 2015.

Someone who prefers to max out the 2016 category completely at drugstores should make sure not to put any spend on the Dividend card from after their December statement closes – even if it’s on December 3, for example. This way, you’ll be able to get in a full $6,000 of spend at the drugstore with the 5% rate.

Note that only the $300 max will depend on the statement close date as to which year it belongs, but the 5% category will still be based on the exact date. Q2-2016 will be from April 1 until June 30.



20
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
Ben
Ben

Does using Apple Pay/Android Pay/Samsung Pay work with the 5% category since most stores are cash only.

Jamy
Jamy

Is is possible to get this card? Even through a product change?

josh
josh

Great news.

Presumably you’ll still be able to product change to Dividend after product changes are allowed again in December.

Its also easy to get stacking 2x or 4x retention bonuses on these by calling in. I can usually only get on every 12 months though.

Eric
Eric

Where did you see that you can product change in December? Do you know if I will be able to product change my Preferred to this card?

jay
jay

This was my first card many many years ago. It becomes useful from time to time and I know I am never gonna close it unless citi does some odd sh*t

Adam

Chuck – you mentioned that lots of ppl have PC’d this product to something else due to lack of usefulness – what exactly can you change this no-AF card into? Only other no-AF cards like the Citi 2% CB card or any other product as well w/o a HP? I’m just curious and realize in such a case you’d forego any public sign up bonus. Unless Citi, like AMEX, also offers bonuses to ‘upgrade’ products.

I got this card earlier in the year and yeah it was pretty useless in 2015, thus not even a penny spent on this card. Called in for retention bonus offers etc but nothing was ever available. I was this close to canceling this card. Glad you posted a timely update. Can’t wait for Apr to knock next yrs 5% out real quick!

raul
raul

This was one of my first cards too. Last year I product changed it for a 2% cash back card. I would have been excited by this news if onevanilla cards were still loadable to Redbird. without an easy way to unload Onevanilla I’ll stick to my 2% cash back. figure I can make more than $300 with it buying GCs at my local mall

CtownBin
CtownBin

Redbird is useless for MS now. It could be a good idea for you to switch to OneVIP Serve instead of Redbird. It is very easy to switch, and once you do, you can load the OneVanillas at Family Dollar. Totally worth it.

raul
raul

I’ve already switched over to serve vip after they stopped allowing loading using giftcards. I was saying that I might have considered product change to Dividen if Redbird was still a good way to unload onevanillas. No practical way for me to unload onevanillas now so that’s y I’m not product changing.

barry
barry

you can get MOrders with the onevanilla cards for a small fee.

raul
raul

Money orders r too much of a hassel in my opinion.

projectx
projectx

YES! This is my oldest card which just collects dust. I decided not to do a PC in hopes that the drugstore category would return. This is great news.

raul
raul

I would have product changed. The whole time ur card was collecting dust it could have been collecting cash back.

projectx
projectx

You’re assuming I wasn’t putting spend on a different 2% CB card.

barrytuneup
barrytuneup

I would recommend to anyone with this card (I have 2 of them) and if you haven’t used it for a year, start using it now, just for a few small charges. Citi sent me a letter last week that they closed my Citi Preferred since I haven’t used it in two years. I only used it for bonus. Haven’t used the Dividend card in about 2 years. Don’t want to lose it now.

Audrey
Audrey

Best Buy does sell $200 vgc with a $5.95 fee, which might be useful to some. In the past these also earned 2% rewards – which could be redeemed for merchant gc – but lately I don’t notice that happening.

Eric
Eric

I used to have a Citi Dividend Amex card but closed it years ago. Does anyone still have that card?

trackback

[…] to Doctor of Credit and […]

Back to Top ↑