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Citi has announced its fourth quarter 2023 5% cash back categories for the Citi Dividend card and it’s a particularly good one: grocery stores. Enrollment for this quarter’s cash back categories began on 9/15/23. Grocery stores is a great category because you can purchase gift cards to other merchants and expand the category as part of a strategy to get 5x everywhere.
Remember, you must activate your Citi Dividend categories before making purchases in order to qualify for 5% cash back. According to Citi, you must activate at least two business days before you make purchases in order to qualify for bonus cash back.
The Citi Dividend card is no longer available to new cardmembers. If you’re looking for a 5% rotating category card from Citi, consider the Citi Custom Cash℠ Card, which offers 5% back on the first $500 of spending each statement cycle.
Citi Custom Cash® Card: bonus_miles_full
Our take on the welcome bonus: Citi doesn’t often offer an increased welcome bonus on the Custom Cash. If you do not yet have a Custom Cash card, there’s no reason to wait for an increased bonus.
The link above is a link directly to the bank’s website. We don’t make money when you use the above link, but we always show you the best offer.
Card highlights:
Annual fee: $0
Rewards: 5% on the first $500 in monthly purchases in your top eligible category; 1% everywhere else
2023 Citi Dividend cash back category overview
Citi has now announced its Citi Dividend card bonus categories for the last quarter of 2023. Here’s the complete overview of this year’s categories:
| Q1 2023 January – March | Q2 2023 April – June | Q3 2023 July – September | Q4 2023 October – December |
|---|---|---|---|
| Amazon.com and Select Streaming Services | Drugstores and Grocery Stores | Gas Stations and Home Improvement Stores | Grocery stores |
Fourth quarter category bonus details
Some issuers only include U.S. supermarkets in their grocery categories, but Citi expands the category to more kinds of stores where you might find yourself buying groceries. Here’s some more detail on what Citi considers a grocery store.
Citi says that grocery stores include purchases at supermarkets, meat/seafood stores, dairy stores, bakeries, and miscellaneous food/convenience stores. The grocery store category excludes purchases at general merchandise/discount superstores; wholesale/warehouse clubs; candy, nut and confectionery stores. Purchases made at online supermarkets or with grocery delivery services also do not qualify if the merchant does not classify itself as a supermarket by using the supermarket merchant category code.
Grocery stores is a great category if you employ a 5x everywhere strategy that includes purchasing gift cards to other merchants. When you buy a gift card to another store at a grocery store, you can effectively expand the Citi Dividend’s 5% rewards category.
Citi Dividend cash back limits
The Citi Dividend card limits the total amount of cash back you can earn during the calendar year to $300. This limit includes all cash back you earn during the year. This means that, if you use your card only for 5% bonus categories, you can earn 5% cash back on up to $6,000 of category spending during the year. Many other rotating category cards cap the amount you can earn from bonus categories. The Citi Dividend caps the rewards you can earn from all spending.
Another quirk to consider is that Citi’s limit on the cash back you earn with your Citi Dividend card is based on when your cash back is awarded, not when it is earned. This becomes most relevant at the end of the year. If you use your card in late December, but your statement closes in January, you’ll earn cash back based on Citi’s fourth-quarter bonus categories, but next year’s cash back limit will apply to the cash back you earn.
Using the end of the year to your advantage
If you have maximized your cash back for the current year, you can still earn 5% rewards on some of your purchases in the fourth-quarter bonus categories. Here’s how.
Citi applies its cash back limits based on statement closing date. Any rewards you earn on your Citi Dividend card after your December statement closes be awarded with your January statement. And those rewards will apply toward next year’s rewards cap.
For example, if your December statement closes on December 15th:
- Spending prior to December 15th will earn 5% rewards based on based on the fourth quarter bonuses in the current year and count toward the current year’s rewards cap.
- Spending after December 15th, but before January 1st will earn 5% rewards based on the fourth quarter bonuses in the current year and count toward next year’s rewards cap.
If you’ve already maximized your cash back rewards for the current year, but want to take advantage of this year’s fourth-quarter bonus categories, you can wait until after your December statement closes and the cash back you earn will apply toward next year’s cap.
How to activate Citi Dividend cash back categories
You must activate the Citi Dividend cash back categories prior to making purchases. To activate your cash back categories, simply go to Citi’s website. Click “Sign Up Now” at the bottom of the page.
You will need to log into the website and select your card from the dropdown menu if you have multiple Citi cards. Once you have logged in and selected your card, if you have not yet enrolled, you’ll see another “Sign Up Now” button at the bottom of the page. The website will display additional terms and conditions for you to accept. Once you click “Accept” you will see a confirmation that you have successfully signed up for the bonus categories on your Citi Dividend card.
Note that signing up for your bonus categories takes two business days; you won’t receive 5% rewards on category purchases until signup has fully processed.
When do I need to activate?
Citi generally announces cash back categories in the month before the quarter begins. You can typically enroll in your quarterly cash back offer after the 15th of the month prior to the quarter. Enrollment for January-March 2023 bonus categories began on 12/15/2022.
You must activate your cash back bonus categories prior to making purchases. Purchases made prior to activation will not receive additional cash back rewards. Note that activation may take up to two business days. You will only receive 5% cash back on you bonus category purchases once your enrollment has fully processed.
Historical cash back categories
There is no guarantee that Citi will offer any particular bonus category until it is announced, but knowing what categories have historically been offered on the Citi Dividend card can give you an idea of what might be coming in the future. The Citi Dividend cash back categories have been similar in recent years. Because the card is not actively marketed to new cardmembers, there is a good chance that the categories will remain the same year-over-year.
Here are the previous 5% categories of the Citi Dividend card.
Citi Dividend cash back categories for 2022
- January-March: Amazon.com and select streaming services
- April-June: Grocery stores and drugstores
- July-September: Gas stations and home improvement stores
- October-December: Restaurants and select travel
Citi Dividend cash back categories for 2021
- January-March: Amazon.com and select streaming services
- April-June: Grocery stores and drugstores
- July-September: Gas stations and home improvement stores
- October-December: Restaurants and Best Buy
Frequently asked questions
No. The Citi Dividend card is not available to new cardmembers. Citi offers a 5% card in its current lineup, the Citi Custom Cash.
Yes. You can only earn $300 of total rewards each year on your Citi Dividend card. If you use your card exclusively for the 5% bonus categories, this represents $6,000 of spending.
Your rewards count toward your yearly cap in the year in which the rewards are credited, based on your statement date. If make a purchase in December after your December statement closes, that purchases will show up on your January statement and count toward your rewards for the following year.
Advertiser disclosure: Cards and Points has partnered with CardRatings for our coverage of credit card products. Cards and Points and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers. Compensation may affect how and where card products appear on the site. The site does not include all card companies or all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Terms apply to all credit card benefits.