BACK

Research and Statistics

Citi adds annual fees to some credit card accounts

Summary

Citi is initiating annual fees on certain credit card accounts as a way to compensate for increasing credit card losses.

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.

The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

Citi is initiating annual fees on certain credit card accounts as a way to compensate for increasing credit card losses.

After a slew of subpar quarters in the past couple of years — six in the red, according to the Wall Street Journal — Citigroup Inc. is joining the ranks of other companies exploring new methods to regain lost profits in the volatile credit card market.

Fees will vary by account, and in some cases, may exceed $30. A Citi spokesman declined to comment on which accounts would experience the modifications, but said that only a small number of customers would be affected by the change.

“We have adjusted pricing and card terms for some customers as part of our regular account reviews,” Citi spokesman Samuel Wang wrote in an e-mail. “This is an ongoing process to ensure we offer terms, interest rates, credit lines and products based on individual needs and risk profiles. These changes also reflect the dramatically higher cost of doing business in our industry as we work to preserve the broad availability of credit.”

Affected customers have already received notification of the pending changes. Cardholders who wish to opt out of the annual fee will have approximately two months to do so. They may then pay off their balance under existing terms and conditions.

The addition of annual fees may be the latest in an ever-increasing list of techniques to stave off negative bottom lines.

Other banks have attempted to increase income by adjusting rewards programs, raising minimum payments or increasing interest rates.

“We continue to assess the changes needed in this environment to support the ongoing extension of credit,” Wang wrote.

See related:Research: Credit card mail offers with annual fees return, Citi offer: Volunteer for credit limit cut, get a bonus, Credit card interest rates keep moving higher

What’s up next?

In Research and Statistics

Credit card reform law’s first phase kicks in Aug. 20

The first phase of the new credit card reform law kicks in Aug. 20. Use these helpful links to navigate through what the new law means to you.

Published: August 20, 2009

See more stories
Credit Card Rate Report Updated: October 16th, 2019
Business
15.18%
Airline
17.11%
Cash Back
17.25%
Reward
17.13%
Student
17.29%

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.