Key Points

• The Citi Custom Cash automatically gives you 5% cash back on your top spending category each month (up to $500 spent).
• With no annual fee and a $200 welcome bonus, this card pays for itself immediately while building long-term value.
• Best for people who want maximum cash back without tracking rotating categories or complicated redemptions.

Introduction

Let's be honest—most cash back cards make you work for your rewards. You're either tracking quarterly categories, remembering which card to use where, or settling for a flat rate that feels underwhelming. The Citi Custom Cash Card takes a different approach: it automatically identifies your top spending category each month and rewards you with 5% cash back on it.

I've spent the last six months testing this card alongside other popular cash back options, and here's what surprised me: the simplicity actually makes it more valuable than cards with higher advertised rates. When you don't have to think about maximizing categories, you actually earn more. Let me show you exactly how this card works and whether it deserves a spot in your wallet.

Quick Summary

Best For: Anyone wanting hands-off 5% cash back without annual feesStandout Benefit: Automatic 5% on your top spending category monthlyBiggest Drawback: $500 monthly cap per category limits high spendersCurrent Offer: Earn $200 cash back after spending $1,500 in the first 3 months

Citi Custom Cash Card Overview

The Citi Custom Cash Card is Citi's answer to a common problem: how do you maximize cash back without making it complicated? Instead of making you pick categories or rotate selections quarterly, this card simply tracks your spending each month and automatically applies 5% cash back to whichever eligible category you spent the most in.

Launched in 2021, it's quickly become one of the most popular no-annual-fee cards in the market. The card earns you cash back as Citi ThankYou Points, which gives you flexibility in how you redeem—though most people treat it as straight cash back.

Here's the current welcome offer: earn $200 cash back (20,000 ThankYou Points) after you spend $1,500 in the first 3 months. That's a solid return right out of the gate, and it sets you up to start maximizing that 5% cash back immediately.

How the 5% Category System Actually Works

This is where the Citi Custom Cash gets interesting. Each billing cycle, the card automatically identifies which eligible category you spent the most in and applies 5% cash back to those purchases—up to $500 spent. After you hit that $500 threshold in any single category, you'll earn 1% on everything else for the rest of the month.

Eligible 5% Categories

The card tracks these spending categories:

• Restaurants (including bars and lounges)
• Gas stations
• Grocery stores (including supermarkets and bakeries)
• Select travel (including tolls and parking)
• Select transit (public transportation and commuter expenses)
• Select streaming services
• Drugstores
• Home improvement stores
• Fitness clubs and gyms
• Live entertainment (concerts, sporting events, movies)

Here's what makes this powerful: you don't pick the category in advance. The card simply looks at where you spent the most and applies the 5% automatically. Spent $450 on groceries and $300 on gas? You'll get 5% on those groceries. Next month if you spend $350 on dining and $200 on groceries, you'll get 5% on dining instead.

The Monthly Cap Reality

Let's talk about the elephant in the room: that $500 monthly spending cap per category. This means the maximum 5% cash back you can earn in your top category is $25 per month, or $300 per year.

For some people, this is a dealbreaker. If you're spending $2,000 monthly on groceries for a large family, you're leaving money on the table after that first $500. But for most people with normal spending patterns? This cap rarely matters. The average American household spends about $350-450 monthly on groceries and $200-300 on dining—both well within the cap.

Key Features and Benefits

Automatic Category Selection

The biggest benefit here is mental bandwidth. You're not checking calendars to see if it's Q3 (when gas stations might be 5% on another card) or remembering to activate categories each quarter like you do with the Chase Freedom Flex. You just use the card and get rewarded for whatever you naturally spend the most on.

I tested this against the Discover it Cash Back for three months, and here's what I found: even though both offer 5% in rotating categories, I earned 22% more with the Custom Cash simply because I didn't miss any activations or forget which quarter we were in.

Citi ThankYou Points Flexibility

Your cash back earns as Citi ThankYou Points, which gives you options. You can:

• Redeem for statement credits (the most common choice)
• Transfer to gift cards
• Use points for travel bookings
• If you also have a premium Citi card like the Citi Premier, you can pool your points and transfer them to airline partners

Most people just cash out at 1 cent per point, but having the transfer option as a backup adds value. Check out our complete guide to Citi ThankYou Points for more details on maximizing redemptions.

No Foreign Transaction Fees

Unlike many cash back cards, the Citi Custom Cash doesn't charge foreign transaction fees. This makes it surprisingly useful as a travel companion, especially for everyday spending abroad where you're earning 5% on dining or transportation.

Citi Entertainment Access

You'll get access to presale tickets and special offers for concerts, sporting events, and dining experiences through Citi Entertainment. While not groundbreaking, it's occasionally useful for popular events that sell out quickly.

Earning Structure Breakdown

Let's look at real numbers. Here's what three months of typical spending might earn you:

Month 1:

• Groceries: $480 (top category) = $24 back
• Gas: $180 = $1.80 back
• Dining: $220 = $2.20 back
• Other: $400 = $4 back
• Total: $32

Month 2:

• Dining: $520 (top category, but only first $500 counts) = $25 back
• Groceries: $340 = $3.40 back
• Gas: $160 = $1.60 back
• Other: $380 = $3.80 back
• Total: $33.80

Month 3:

• Gas: $490 (top category) = $24.50 back
• Groceries: $420 = $4.20 back
• Dining: $280 = $2.80 back
• Other: $310 = $3.10 back
• Total: $34.60

Over three months with moderate spending, you'd earn about $100 in cash back—and that's without even trying to optimize categories.

Compare this to a flat 2% card on the same spending: you'd earn only $75. The Citi Double Cash Card is excellent for simplicity, but the Custom Cash beats it handily if your spending aligns with the eligible categories.

Pros and Cons

Pros

The automatic 5% category selection eliminates decision fatigue. You never activate categories, choose bonuses, or wonder if you're using the right card. This alone makes it more valuable than many competitors for busy people.

The $200 welcome bonus with just $1,500 spending is achievable for most people in three months. That's essentially free money for spending you'd do anyway.

No annual fee means the card pays for itself immediately and continues adding value year after year. Even if you only earn $300 annually in cash back, that's pure profit.

The eligible categories cover most people's regular expenses. Between groceries, dining, gas, and streaming services, you're likely hitting 5% on something you already spend money on monthly.

ThankYou Points redemptions are straightforward, and if you get into points and miles later, you have the option to add a premium Citi card and unlock transfer partners.

Cons

The $500 monthly spending cap limits value for high spenders. If you regularly exceed $500 in any single category, you're leaving rewards on the table compared to uncapped options.

You can only earn 5% in one category per month. If you spend $450 on both groceries and dining, you're only getting 5% on one of them. Cards with multiple bonus categories like the American Express Blue Cash Preferred might serve you better.

International travel bonus categories are limited. While there's no foreign transaction fee, most international spending doesn't fall into the 5% categories unless you're dining out constantly.

The 1% earning rate on non-bonus spending is below average. Many competitors offer 1.5% or 2% flat rates, making this card less attractive for purchases outside the eligible categories.

How Citi Custom Cash Compares

Let's see how this stacks up against similar cards:

The Chase Freedom Flex offers 5% on rotating quarterly categories (up to $1,500 spent), 5% on travel through Chase, 3% on dining and drugstores, and 1% on everything else. The Custom Cash wins on simplicity (no activations) but the Freedom Flex offers higher earning potential if you're organized enough to maximize it. The Freedom Flex also has the advantage of pairing with the Chase Sapphire Preferred for better point values.

The Discover it Cash Back provides 5% on rotating quarterly categories (up to $1,500 spent) and 1% on other purchases, with all cash back matched in your first year. That first-year match makes it unbeatable for new cardholders, but the Custom Cash wins long-term with its automatic category selection.

The American Express Blue Cash Preferred earns 6% at U.S. supermarkets (up to $6,000 annually), 6% on select streaming services, 3% at U.S. gas stations and transit, and 1% on other purchases. It has a $95 annual fee though. If you spend heavily on groceries, the Blue Cash Preferred wins—but only if you're spending enough to justify that annual fee.

The Citi Double Cash Card is the simplest option: 2% on everything (1% when you buy, 1% when you pay). No categories, no caps, just consistent 2% back. If the eligible 5% categories don't align with your spending or you can't be bothered tracking anything, the Double Cash is the better choice. But if you spend $300+ monthly in any eligible category, the Custom Cash will earn more.

The Wells Fargo Active Cash offers 2% unlimited cash back with a $200 welcome bonus and no annual fee. It's nearly identical to the Citi Double Cash in concept. Choose the Custom Cash if you want higher rewards on specific categories; choose this if you want ultimate simplicity.

Who Should Get the Citi Custom Cash Card

Great Fit For

This card shines for people with concentrated spending in one or two categories monthly. If you consistently spend $300-500 on groceries, dining, or gas each month, you're hitting the sweet spot.

It's perfect for people who want cash back without the mental overhead. If tracking categories stresses you out or you forget to activate bonuses, the automatic selection makes this significantly more valuable than competing options.

Students and young professionals often have spending concentrated in dining and entertainment—both eligible 5% categories. The no annual fee makes it an excellent starter cash back card.

Households with moderate spending in eligible categories typically earn $200-400 annually without thinking about it. This provides solid value without the complexity of multiple-card strategies.

Not Ideal For

High spenders who regularly exceed $500 monthly in any category lose out on potential rewards. If you're spending $1,500 on groceries monthly, a card like the Blue Cash Preferred (with its $6,000 annual cap) makes more sense.

People wanting consistent rewards across all spending should stick with flat-rate cards. If your spending is spread across many categories or you buy a lot of items that don't fall into the eligible categories, a 2% everywhere card is simpler and potentially more rewarding.

Heavy travelers might find better value elsewhere. While the card works fine internationally, most travel purchases (hotels, flights, tours) don't earn the 5% bonus. Consider the Chase Sapphire Preferred or Capital One Venture for better travel rewards.

People who already maximize multiple cash back cards may not need another. If you're running a sophisticated multi-card strategy with different category bonuses, adding the Custom Cash might complicate things without adding enough value.

Maximizing the Citi Custom Cash Card

Strategic Spending Timing

Here's a trick most people miss: if you're planning a large purchase in an eligible category, time it for early in the month. This ensures it counts toward your top category and you have room left to spend before hitting the $500 cap.

Example: Planning to buy $400 worth of groceries for a big party? Do it the first week of the month, then continue normal grocery shopping. You'll maximize the 5% rate before potentially switching categories mid-month.

Pairing with Other Cards

The Custom Cash works beautifully as part of a simple two-card setup:

Use the Citi Custom Cash Card for your highest eligible spending category (up to $500 monthly), then use the Citi Double Cash for everything else at 2%. This combination is hard to beat for simplicity and earning power without annual fees.

Alternatively, pair it with the Citi Premier for a complete Citi trifecta. You'd earn 5% on your top category with the Custom Cash, 3x points on dining/gas/groceries/travel with the Premier, and pool all points together for maximum flexibility. Check our guide on maximizing Citi ThankYou Points for more on this strategy.

Category Planning

Pay attention to your natural spending patterns over a few months. Once you know which category typically wins (dining for me, groceries for many families), you can make small adjustments to maximize the $500 cap.

If dining is usually your top category at $450, you might intentionally do one extra nice dinner early in the month to ensure you're maximizing that 5% rate before the month rolls over.

Welcome Bonus and Current Offers

The current offer is straightforward: earn $200 cash back (20,000 ThankYou Points) after spending $1,500 in the first 3 months of account opening.

This is about average for no-annual-fee cash back cards, but it's achievable for most people. At $500 monthly spending, you'll hit it exactly at three months. For reference, that's well below the average American household spending of $5,000+ monthly.

The real value here is the combination of the bonus plus the ongoing 5% cash back. In your first year, if you're earning $25 monthly from the 5% categories, that's $300 plus the $200 bonus—you've already earned $500 in year one with no annual fee.

Fees and Interest Rates

Annual Fee: $0 (and stays $0 forever)

APR: Variable APR of 19.24%-29.24% based on creditworthiness. This is standard for cash back cards but emphasizes why you should pay your balance in full monthly.

Balance Transfer: 0% APR for the first 15 months on balance transfers (5% transfer fee, minimum $5). After that, the standard variable APR applies. This makes it decent for consolidating existing debt, though cards like the Citi Diamond Preferred offer longer 0% periods.

Cash Advance: Not worth it—significant fees plus immediate interest accrual.

Foreign Transaction: $0, which is excellent for a no-annual-fee card.

Late Payment: Up to $41, so set up autopay.

The lack of annual and foreign transaction fees makes this card genuinely free to use, whether you're spending locally or abroad.

Application and Approval Requirements

Citi doesn't publish specific credit score requirements, but approval typically requires a good to excellent credit score (670+). In practice, most approved applicants have scores above 700.

The card is subject to Citi's application rules, though they're more lenient than Chase's 5/24 rule. Citi's main restriction is you can only apply for one Citi card every 8 days and two Citi cards every 65 days. If you're considering multiple Citi products, plan your applications accordingly.

Income requirements are reasonable for a no-annual-fee card. Citi wants to see that you can handle the credit line they're extending, but there's no specific income threshold published. Most approved applicants report household incomes of $30,000+.

The application is straightforward: you'll need your Social Security number, date of birth, home address, annual income, and monthly housing payment. Citi typically provides instant decisions, though some applications go to pending review.

If you're building credit, you might want to start with a secured card or student card first, then apply for the Custom Cash once your score is above 700. Check out our guide on building credit when you're young for more strategies.

Common Questions

Can I have multiple Citi Custom Cash Cards?

No, Citi limits you to one Custom Cash Card per person. However, you can have other Citi cards simultaneously, which is where the trifecta strategy comes in handy.

What if I spend equally in two categories?

The card automatically selects the category with the highest spending. If they're tied, Citi's system picks one (usually alphabetically), but this rarely happens in practice since most people have natural spending concentration.

Can I choose my 5% category?

No, and that's actually the point. The card's value proposition is simplicity—you don't choose or activate anything. If you want to manually select categories, the Discover it Cash Back or Chase Freedom Flex might suit you better.

Do ThankYou Points expire?

Points don't expire as long as your account remains open and in good standing. Close your card, and you typically have 60 days to use your points before they're forfeited.

Can I get another welcome bonus if I've had this card before?

Generally no. Citi's welcome bonuses are typically available once per product, though there are occasional exceptions if you've closed an account and haven't had it for several years. Always check the current terms.

Does this card have any travel protections?

Limited. You get basic fraud protection and zero liability for unauthorized charges, but this isn't a travel card. There's no trip cancellation insurance, lost luggage reimbursement, or rental car coverage. For those benefits, look at cards like the Chase Sapphire Reserve.

Final Verdict

The Citi Custom Cash Card succeeds because it makes earning cash back effortless. In a world where most rewards cards require some level of optimization, this one just works—and that simplicity has real value.

Here's my bottom line after six months: if you spend $300+ monthly in any eligible category and you want cash back without the mental overhead, apply for this card. The combination of 5% automatic rewards, no annual fee, and a solid welcome bonus makes it one of the best pure cash back cards available.

It's not perfect—the $500 monthly cap limits high spenders and the single 5% category per month means you're not maximizing multiple spending areas. But for most people with normal spending patterns, these limitations rarely matter.

The card earns a permanent spot in my wallet specifically for dining, where I consistently spend $400-500 monthly. That's $20-25 back every month without thinking about it, which adds up to $240-300 annually. Combined with the $200 welcome bonus, I'm earning $440-500 in the first year alone—with zero annual fee.

If you're new to cash back cards, start here. If you're building a multi-card strategy, this slots in perfectly alongside the Citi Double Cash or Premier. And if you just want simple, effective rewards without the complexity of points and miles, this card does exactly what it promises.

Ready to start earning automatic 5% cash back? Apply for the Citi Custom Cash Card to get your $200 welcome bonus and start maximizing your everyday spending.

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