Be sure to check your junk mail; I just opened an envelope from Citi that said, “important updates to your account” on the front. Of course, the top half of the letter inside begins by speaking about the exciting benefits of my Citi AAdvantage Platinum Select card before revealing the fact that the annual fee would be increasing from $85 to $95 starting on my next anniversary date… which luckily happens to be 6 months ahead in August. The revised terms officially go into effect starting May 1, 2013.
I initially signed up for this card and the business version of the card simultaneously back in August 2011 during the 75,000 mile sign-up bonus offering using the “two-browser” trick. Last year, when it came time for renewal, I closed the business account immediately after I was not offered any type of retention bonus. On the other hand, with the personal card, I was offered an $85 statement credit to neutralize the annual fee; plus, the agent told me I’d get an additional 1,000 miles per month if I spent at least $1,000 on the card each month. That was generous enough for me to keep my account open.
Don’t get me wrong, the card is a good card, in my opinion, but I really was just in it for the miles. However, being an actual card member, I quickly learned that my favorite perk is the fact that card holders have the ability to receive 10% of their miles back on redemptions (up to 10,000 back per year). If maximized yearly, having 10,000 miles redeposited in your account is worth the annual fee in itself. Other perks include: the expected free checked bag, priority boarding, bonus miles on AAdvantage purchases, and discounts on in-flight food in beverage purchases.
Come summer of 2013, I definitely planned on canceling this card anyway, but maybe mentioning my disappointment in the increased annual fee can lead to yet another retention bonus. We’ll see.
Have you received a notice like this in the mail as well? What are your thoughts?
Let’s connect: 
Who pays annual fees on these cards? hehehe I have never paid annual fees on the CITI cards…always canceled them after a year.
I received the same notice and it prompted me to call Citi since my annual fee was coming up next month. I received the same offer for my Visa and Amex versions of the personal card. The offer was for an $85 statement credit and for an additional 750 miles when I spend $750 in a month for the next 16 business cycles. I accepted both offers. (The call was made last night.)
Instead of a credit for the annual fee, I received 20,000 bonus miles. It was an extra 4X per $, up to 20,000 miles within 6 months.
$95 is the new renewal fee since they increase their benefit couple years ago.
Thanks for the heads up! I’m sure I’ll be getting mine soon. Hopefully it’ll help when bargaining for a retention bonus =)
all the perks they added are definitely worth the extra $10, although I would still try to get it waived.
It’s interesting how many variations there are on the retention bonuses. How do you gauge when it is more advantageous to cancel a card (to allow for the opportunity to reapply for the sign-up bonus in the future) vs. accepting a lesser retention bonus?
You can receive $150 credit to your statement within the first year of membership if it is AA related purchase. Will I get $150 credit for buying AA gift card? I called two days ago but was not offered anything. I’ll try again. Is it better to call in the morning, afternoon or at night or it makes no difference?
I wonder if citi is predicting a change in their relationship with AA / US. Either raising fee to pay AA more, or recognizing they may lose the contract and trying to eek out any last bit of money from people who may be doing a lot of signups now to get miles before programs merge
Wait, how do you get the annual fee waived??