Posted by Chuck on November 4, 2019
Bank Account Bonuses

Published on November 4th, 2019 | by Chuck

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Citibank to Launch High Interest Online Savings Account for American Airlines Cardholders; 50,000 Miles Bonus, 25% Spend Bonus

Citibank plans to launch a high-interest online savings account called Citi Miles Ahead for their American Airlines credit cardholders. (CNBC)

  • Exact interest rate unknown, but it’s being presented as a high interest account.
  • Earn up to 50,000 American miles for signing up (presumably this will be tiered with high deposits earning 50k and lower deposits earning lower amounts).
  • 25% boost on miles earned through the credit card (capped at the first $50,000 spent).
  • Account will only be available in areas outside of Citi’s physical footprint.
  • Account is only for Citi American Airlines credit cardholders.

We’ve known that Citi wants to launch a national digital bank, and they’ve already launched their Citi Accelerate savings account which offers competitive interest rates. The Citi Miles Ahead savings account sounds like it’ll be similar, but with special perks targeting American Airlines users.



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qmc
qmc

Footprint will likely be quite similar/identical to Citi Accelerate.

Jeff B
Jeff B

I’m sure this will be well run…🙄

Jc
Jc

The problem is it will only be available outside Citi’s footprint. This would be fine for many who live outside Citi’s footprint but Citi for the accelerate Savings defines outside their footprint as only states where they have no branches which is dumb because their footprint focuses only on major cities so Florida with only branches in The Miami area is off limits even if you live in Tampa. Same with New Jersey where they have only 3 branches or even NY state where the branches are clustered in the NYC metro area so people in Upstate NY are excluded.

CTW
CTW

Okay but hear me out, instead of interest you earn AA miles…

bob
bob

i wonder how they value those miles when it comes time to issue the 1099-INT

Jennifer
Jennifer

Note: Since this bonus is “Cashback/ rewards” from purchases, there ‘should’ be no tax implications.

Mikey
Mikey

Don’t bet on it. CITI will 1099 you on the paper clip that holds your bills together if it can.

Jennifer
Jennifer

First I need to clarify that I was referring to the 25% bonus as that’s what’s spend related. It sounds like the additional points would post on your credit card statement.

I do fully expect Citi to send a 1099 for AA miles earned as part of any checking sign up bonus. (Probably at some assumed high value as well.)

Ricardo Costa
Ricardo Costa

Is it happening anytime soon?

Matt
Matt

Jeez so now not only do i have to sign up for the citi business bonus, i have to debate whether i also go for citi personal or wait for this prospective personal aa offer…

Jesus
Jesus

Received a similar offer but earning thank you points instead. Open a checking account deposit 15k and pay two bills in two months and receive 40k thank you points and 25% thank you point booster. Should I accept this offer?

M
M

Yes

Dan
Dan

Can you imagine dealing with Shiti IT? No thanks.

Albert
Albert

How much would they value their miles at? If they are going to send you 1099 saying it worth 4 cents per point. Then you are getting negative profit.

DP
DP

If properly setup/ran, it’s a cool concept. The marketing team should get a ‘gold star’ for the clever name. Agree with CTW’s comment on this thread that it would be cool if the interest earned was paid in miles as long as it was done at a favorable valuation. All in all, that would be a very interesting new product.

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