Citi Simplicity Card

This is a card with the potential to cost you nothing. It’s the one that can either be used regularly or just sit in your wallet for emergencies. The Citi Simplicity Card is, as its name suggests, a straightforward, no-nonsense credit card that still manages to pack plenty of value in terms of complimentary insurance and free wine.

No annual fee, ever

Even if you don’t expect to use a credit card regularly, it’s a good idea to keep one in your pocket in case you find yourself without cash in a crisis situation, or if you spot the bargain of a lifetime that needs to be snapped up immediately. The downside with most cards, though, is justifying a steep annual fee for a card you hardly use. Enter the Citi Simplicity Card, which will never ask you to pay an annual fee, ever, for either the primary or any supplementary cards. It’s good news for both regular credit card spenders and those whose cards gather dust.

0 percent for six months on balance transfers

Just in case you’re undecided about swapping your existing card for a new Citi card, this balance transfer offer may tip the scales in Citi’s favour. It will be a boon for anyone struggling to pay off a balance at high credit card interest rates, and may also appeal to someone who has their finances in order but would like to actually earn interest by depositing in a savings account the cash earmarked for their balance repayment.

And there’s no upfront balance transfer fee to pay, unlike many other cards which charge a fee of up to 2.5 percent of the transferred amount.

At the very least, a balance transfer removes any reason for delaying your decision to apply for a new card, since you don’t need to wait until you’ve paid off the old one. Just remember, though, that the existence of a transferred balance means that you’ll be paying interest on any new purchases at 19.99 percent p.a. from the day they are made, forfeiting the normal interest-free days.

The revert interest rate (applied to any uncleared balance transfer amount after six months) is the 19.99 percent p.a. ongoing purchases and cash advance interest rate.

No late payment fees – a boon for the absent-minded

We all forget things sometimes, but forgetting to pay off your credit card balance on the due date can be painful. With some cards, you’ll get slugged with a late payment fee, which can be as high as $30. But with this card, you will avoid paying the late payment fee, which has been waived.

Up to 55 days interest-free

Pay your account promptly and in full every month, and take advantage of up to 55 days interest free on purchases. Purchases made during the monthly billing cycle don’t start attracting interest charges until the end of the cycle, plus a grace period of 25 days before payment is due. This means that you get 55 days free of interest for purchases made on the first day of the cycle, and 25 days free of interest for purchases made on the last day of the cycle.

Since this is a fee-free card, Citibank could have justified reducing the interest-free days to 44, as some other low-cost cards do, but they obviously resisted the temptation. Those extra 11 days per month are worth around $29 per year if your average monthly purchase balance is around $2,000 and you leave your spare cash in a 4 percent mortgage offset account.

Unfortunately, if you have an unpaid balance transfer you’ll lose these interest-free days on purchases until the transferred balance is fully repaid.

Free wine if you pay with your Citi card

Even if you don’t plan to make regular use of your fee-free credit card, it’s a good idea to give it a workout whenever you are eating in a restaurant. If you can find a Citibank Dining Program partner restaurant to tempt your palate (not too difficult when there are over 400 to choose from, Australia-wide) you can select a free bottle from a list of wines valued at around $35 each. Simply indicate your intention to pay with your Citi card when you order at least one main course per person (or spend $50 on a shared menu, like tapas or pizza) and the wine is yours, with the compliments of Citibank and your chosen eatery.

You’ll also qualify for exclusive benefits at foodie events like the Good Food Month and the Good Food & Wine Show.

Complimentary insurance cover

A straightforward card like this one isn’t going to bamboozle you with rewards points, or assume that you are a regular overseas traveller who would benefit from international travel insurance or airport lounge passes, expensive perks that you would ultimately pay for in a high annual fee. But you will get four types of free insurance cover that everyone can use, not just the wealthy. They are truly free because all you have to do to activate a policy is to use your card to pay for the item or journey to be covered. The four policies are:

• Extended warranty insurance, doubling the manufacturer’s Australian warranty for items purchased with the card, up to a maximum of 12 additional months.
• Purchase insurance, covering items bought with the card against loss, theft or accidental damage, anywhere in the world, for 90 days after purchase.
• Guaranteed pricing scheme. For 60 days after you make a major purchase with the card in a store, Citibank will refund the price difference (minimum claim $75, maximum $500) if it goes on sale within 25 kilometres of the original purchase point and you can produce a catalogue showing the lower price.
• Transit accident insurance, providing cash compensation when you (and your immediate family travelling with you) lose any of hands, feet, eyesight or life as a result of an accident when travelling overseas on planes, ferries, trains and buses, if the fares were paid using the card.

While these may not be policies you would normally think of buying, they do provide an extra layer of security for your purchases and your travel. If you ever do need to make a claim they will suddenly become very valuable policies, so for cardholders, it’s worthwhile reading the small print and remembering that they have this cover.

More free privileges

Very few ‘no fee’ credit cards come with free insurance, and even fewer come with platinum privileges. Astonishingly, this is indeed a platinum card (despite the low $35,000 income requirement), so you’ll qualify for these extra lifestyle benefits that are normally only attached to high fee cards:

• Citibank World Privileges. Special offers and discounts from 26,000 merchants throughout the world, when you pay with your Citibank card. (Unfortunately, not many are in Australia, except for the free wine with the Citibank Dining Program already mentioned.)
• Visa Platinum personal concierge service. A personal assistant you can contact by phone or online, to help with recommendations, bookings and local services wherever you are in the word, at any time of day or night.
• Visa Platinum Privileges. Access to deals and discounts not available to the general public, such as pre-release event tickets.

Other ‘no annual fee’ credit cards

Before you decide, compare the Citi Simplicity Card with other cards available without paying an annual fee. They include the Virgin Money No Annual Fee Credit Card, the Coles No Annual Fee Mastercard, the 28 Degrees Platinum Mastercard, ME frank Credit Card, and more.

Compare them all on the ‘No annual fee’ page in our Features section.

Why choose the Citi Simplicity Card?

There are several ways to get the best out of this card.

• Use it to gain financial breathing space for six months while you repay a large balance that was attracting a high interest rate on your previous card; or

• Earn a little interest by transferring a large balance and putting the repayment cash in a savings or mortgage offset account instead; or

• Pull it out of your wallet whenever you are eating out at a Citi partner restaurant, to score a free bottle of wine; or

• Just keep it in your pocket for emergencies or bargains you can’t afford to miss. It doesn’t take up much space and it needn’t cost you a cent.

You can't balance transfer to the Citi Simplicity Card at the promotional balance transfer rate from:

• Bank of Queensland
• Beyond Bank
• Citi
• Family First Credit Union
• FCCS Credit Union
• IMB
• MyState Financial
• Qantas Money
• Suncorp