R.I.P. Citi Dividend Platinum Select

Are we facing the end of 5% cash back credit cards?

Rumors abound today that another of the much-loved 5% cashback cards is going away. Citi has stopped accepting new applicants for the Dividend Platinum Select card, which offers 5% cashback on groceries, drugs, and gas. The rumor is that existing cardmembers will be told in the next few weeks that their rewards are going down to 2%, although you will soon be able to get 2% back also on utilities and cable bills.

I passionate about my Citi Dividend card, and I'm not too happy about these rumors (not ready to call it news). However, I don't think I'll pitch the card even if the rewards do go down.

Currently, I use the Fidelity 529 card to get 2% cashback on everything except groceries, drugs, and gas. I think I'd still use the Citi card for these things if the reward went down to 2%. It ain't no 5%, but 2% still isn't too bad.

Also, I don't particularly want ALL my rewards going into little L's 529 account. If I continue to use Citi for select purchases, I can put the reward money straight into my long term savings account or into my Roth IRA. Little L's bottom line is doing just fine and doesn't need more help at the moment.

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