Citi’s 37-Day Annual Fee Refund Policy: How It Works In Practice

Many credit cards have annual fees, and understandably, consumers like to do the math as to whether or not the fees are worth paying on an ongoing basis. Along those lines, each card issuer has a different policy when it comes to refunding annual fees, and in this post, I’d like to take a look at Citi’s policy.

Citi will refund annual fees for 37 days

For credit cards with annual fees, every card issuer has a different policy for letting you cancel your card and get the annual fee refunded. With some card issuers you have 30 days after the annual fee hits to get a refund, while with other card issuers you have 60 days after the annual fee hits to get a refund.

Citi’s policy is neither 30 nor 60 days — if you want to cancel or product change a card, Citi will refund your annual fee for up to 37 days after the fee hits your statement. So for up to 37 days you can get a full refund, while after 37 days there doesn’t seem to be an option to get a pro-rated refund, or anything (the exception would be in states like Massachusetts, which legally require it).

Note that this isn’t a published policy, but instead, it seems to be the unofficial guidance. So let me add the typical “your mileage may vary” disclaimer, which is to say that you should always check with the card issuer regarding the policy, and it could change in the future.

Why do annual fee refund policies matter?

Why is it important to be aware of a card issuer’s policy on annual fee refunds?

• Many of us aren’t that organized, and don’t mark our calendars to know in advance when annual fees will hit, but rather figure it out based on looking at our credit card statements
• When an annual fee comes due, I always think it’s worth crunching the numbers on the value you’ve received from the card, and considering either canceling the card or downgrading the card, assuming it’s no longer proving worthwhile
• Citi has the 48-month rule, whereby eligibility for the welcome bonuses on many Citi cards is based on not having received a bonus on that exact card in the past 48 months, so it can make sense to time applications in light of that

Citi’s credit card card ecosystem has become much more interesting in recent times, especially when it comes to the Citi ThankYou and American AAdvantage cards.

So when it comes to products like the Citi Strata Elite℠ Card (review) and Citi® / AAdvantage® Globe™ Mastercard® (review), I know many people may be looking to maximize perks, given that many benefits are tied to the calendar year rather than the anniversary year (which can make the first year value particularly good). Understanding the 37-day policy is also important in terms of maximizing perks, if you’re in a situation where you eventually want to cancel the card.

Bottom line

Citi will refund the annual fee on a credit card as long as you cancel your card within 37 days of when the annual fee posts to your account. As long as you take action within that timeframe, you could potentially cancel your card or downgrade your card, all while having the annual fee refunded.

Have you had experience with Citi’s 37-day rule on annual fee refunds?