The Costco Anywhere Visa® Card by Citi and the Citi Double Cash® Card both offer cash-back rewards. However, they differ significantly in how you earn and redeem those rewards. Understanding these differences is crucial before choosing a card. This article compares both cards, analyzing their rewards, fees, redemption options, and benefits to help you decide which card best suits your spending habits.
Annual Fee Comparison: Costco vs. Citi Double Cash
Neither the Citi Double Cash® Card nor the Costco Anywhere Visa® Card by Citi charges an annual fee. However, the Costco card requires a Costco membership, costing between $65 and $130 annually. While a Costco membership offers potential savings on bulk purchases, the fee offsets credit card rewards. You’d need to spend $3,250 annually on non-travel Costco purchases with the Costco Anywhere Visa to recoup a $65 membership fee, considering its 2% cash back rate on such purchases.
Welcome Bonus Comparison
The Citi Double Cash® Card provides a $200 cash back welcome bonus after spending $1,500 within the first six months. This bonus comes as 20,000 Citi ThankYou® Points, offering flexible redemption options beyond cash back. The Costco Anywhere Visa® Card by Citi, however, does not offer a welcome bonus.
Rewards Structure Comparison: Earning Cash Back
Both cards offer distinct rewards structures. The Citi Double Cash® Card provides a flat 2% cash back on all purchases—1% when you buy and another 1% when you pay. The Costco Anywhere Visa® Card by Citi offers tiered rewards:
- Gas and EV Charging: 4% on eligible gas (excluding Costco) and EV charging up to $7,000 per year, then 1%; 5% at Costco gas stations
- Restaurants and Eligible Travel: 3%
- Costco and Costco.com Purchases: 2% (excluding travel)
- All Other Purchases: 1%
The Citi Double Cash excels in simplicity and consistent rewards for everyday spending. The Costco card offers higher rewards on specific categories like gas and travel. If you maximize the $7,000 annual gas/EV charging spend, you’d earn $280 back, $140 more than with the Citi Double Cash.
Reward Redemption Comparison: Flexibility vs. Restrictions
The Citi Double Cash® Card provides ThankYou® Points redeemable for cash back, statement credits, gift cards, travel through the Citi Travel℠ portal, charitable donations, and transfers to select airline and hotel loyalty programs. This offers significant redemption flexibility.
The Costco Anywhere Visa® Card by Citi issues an annual reward certificate after your February statement closes, redeemable for cash or merchandise at U.S. Costco warehouses. This certificate expires on December 31st of the issuing year. This less flexible system limits redemption options and timing.
Benefits Comparison: Added Perks
Both cards offer benefits beyond rewards. The Costco Anywhere Visa® Card by Citi includes no foreign transaction fees, purchase protection, travel accident insurance, rental car insurance, travel and emergency assistance, and roadside dispatch.
The Citi Double Cash® Card features a 0% intro APR on balance transfers for 18 months, extended warranty protection, and ID theft protection.
Which Card is Right for You?
The Citi Double Cash® Card suits those seeking simplicity and flexible rewards redemption. Its flat-rate cash back and diverse redemption options cater to various spending habits.
The Costco Anywhere Visa® Card by Citi benefits frequent Costco shoppers who maximize its bonus categories, particularly gas and travel. However, its restrictive reward redemption might be a drawback for some.
