Good morning everyone. A few months ago, I converted my Citi Premier Credit Card into a Citi Rewards+ Credit Card. My new Citi Rewards+ Credit Card arrived a few months ago and the 60 day conversion period just finished. This morning when I was looking at my Citi online account, I noticed a $50.41 credit on my Citi Rewards+ Credit Card. After doing some digging, I found out that this is a partial annual fee refund of the $95 from my Citi Premier Credit Card.
The $95 annual fee from my Citi Premier Credit Card posted on June 5. Citi backdated the prorated annual fee refund to show that it posted on June 5, but I think it actually posted around November 4.
Strangely, the prorated annual fee refund shows that it was posted on October 3. This is not true because I check my Citi online accounts every few days and haven’t seen that annual fee refund before November 4.
After doing some math, I was able to figure out the prorated annual fee refund reasoning. $55.41 / $95.00 = 58%. 58% of 12 months = 7 months. Therefore, I got a refund for 7 months of the Citi Premier Credit Card annual fee and only paid for 5 months of the Citi Premier Credit Card annual fee. 5/12 x $95.00 = $39.58. $95.00 – $39.58 = $55.41 (the amount of the prorated annual fee refund). I remember converting my Citi Premier Credit Card to the Citi Rewards+ Credit Card on September 5. 60 days later, around November 5, the conversion finished. I paid the $95 annual fee in June, so the 5 months of the Citi Premier Credit Card annual fee covered June, July, August, September, and October. In November, the prorated annual fee was refunded.
This information could be useful for another reason. Let’s say that you have a Citi credit card with a high annual fee (like the $450 annual fee for the Citi Prestige Credit Card or the $450 annual fee for the Citi AAdvantage Executive Credit Card). If you decide you want to close the credit card, but your annual fee was billed a few months ago, I think Citi stopped issuing prorated annual fee refunds. There could be a workaround by converting your high annual fee credit card to a no annual fee credit card (Citi Double Cash, Citi Rewards+, Citi AA MileUp, Citi Dividend, etc.). You could wait for the conversion process to finish and wait for the prorated annual fee refund to post. Then you could close the converted credit card, or keep it open, since there is no annual fee.
Let me know if you have any questions. Have a great day everyone!