Does Citibank Refund Annual Fees?

If you have a Citi credit card with an annual fee and decide that the fee is no longer worth paying, you may wonder whether Citibank will refund the annual fee if you cancel or change your card.

Citi's public information confirms that annual fees are charged according to the terms of the specific credit card account. Whether an annual fee can be refunded when you close or change an account depends on the circumstances and the terms that apply to your card.

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Does Citi Refund Annual Fees When You Cancel a Credit Card?

Citi charges an annual membership fee on some credit cards, and the amount of that fee is disclosed in the card's pricing information and Cardmember Agreement.

Citi's card agreements state that when an account has an annual membership fee, the fee is charged when the account is open, even if the card has no outstanding balance. The specific fee and applicable terms are provided with the particular card agreement.

If you are considering canceling a Citi credit card because of its annual fee, you should contact Citi before closing the account and ask whether the annual fee on your particular account is eligible for a refund.

When Does the Citi Annual Fee Appear?

The timing of the annual fee depends on the specific Citi credit card. Citi's Cardmember Agreements explain that an annual membership fee is generally charged on the first statement after the account is opened and again each year after that when the account remains open.

For example, a Citi card with an annual fee may charge that fee around the anniversary of when the account was opened. Your statement will show the annual fee as a charge on the account.

The exact amount and timing should be confirmed by checking your current Citi statement and the Cardmember Agreement for your card.

Does Citi Refund an Annual Fee If You Downgrade Your Card?

Changing your Citi credit card to a different Citi card can be an alternative to closing the account, but the treatment of an annual fee can depend on the particular cards involved and when the change is made.

If you are considering a product change because you no longer want to pay an annual fee, ask Citi how the annual fee will be handled before you complete the change.

This is particularly important if you are changing from a card with an annual fee to a Citi card with no annual fee. Citi currently offers several cards with a $0 annual fee, including the Citi Strata^℠ Card and Citi Diamond Preferred^® Credit Card.

Does Citi Give a Prorated Refund of the Annual Fee?

You may see information online claiming that Citi provides a full annual-fee refund when a card is canceled or changed within a certain number of days after the fee posts, followed by a prorated refund in some circumstances.

However, Citi does not currently publish a general 37-day annual-fee-refund policy on its public credit card website. Because the treatment of an annual fee can depend on the particular account and circumstances, it is better to confirm the refund amount directly with Citi rather than assume that a specific refund period or prorated formula applies to every card.

If Citi tells you that you are eligible for a refund, ask when the credit will appear on your account and whether the refund will be for the full annual fee or a prorated amount.

What Should I Do If I Don't Want to Pay the Citi Annual Fee?

If you no longer want to pay the annual fee on your Citi credit card, you generally have several things to consider before closing the account.

1. Review the card's benefits. Determine whether the rewards and benefits you receive still justify the annual fee.
2. Check when the annual fee was charged. Look at your latest statement to see when the fee appeared on your account.
3. Contact Citi. Ask whether your annual fee is eligible for a refund if you cancel or change the card.
4. Ask about a product change. If you want to keep the account open, ask whether you are eligible to change to another Citi card with a lower or $0 annual fee.
5. Check your rewards. Before closing an account, review the terms of the applicable rewards program to determine what happens to any unused rewards.

Citi itself recommends considering alternatives to canceling a card, including changing the card to another type of credit card that better fits your needs.

Which Citi Cards Have No Annual Fee?

If an annual fee is the reason you are considering closing a Citi card, another option may be to consider a Citi credit card that does not charge an annual fee.

Citi currently lists several no-annual-fee cards, including the Citi Strata^℠ Card, Citi Diamond Preferred^® Credit Card and Citi Double Cash^® Card.

Annual fees and other terms can change, so check the current pricing information for the specific card before applying.

Does Citi Refund an Annual Fee After You Close the Card?

Closing a Citi credit card does not automatically mean that any annual fee will be refunded. The refund question should be addressed with Citi when you request the account closure.

If you are considering closing the card shortly after an annual fee has appeared on your statement, contact Citi and ask specifically whether the fee will be refunded. This gives you an opportunity to confirm the amount of the refund and how it will be credited to your account before the account is closed.

You should also review your account for pending transactions, recurring payments and unused rewards before closing the card.

Can I Avoid Paying a Citi Annual Fee by Closing My Card?

Closing a Citi credit card will prevent future annual fees from being charged on the closed account, but it does not erase amounts that you already owe.

Citi explains that when you close a credit card, you remain responsible for paying any balance on the account, including amounts that may post after the account is closed.

If the annual fee has already been charged, ask Citi whether that fee will be refunded rather than assuming that closing the account automatically removes it.

How Does This Fit Into Applying for a Citi Credit Card?

If you're researching Citi annual fees because you're considering a new Citi credit card, it's useful to understand the card's annual fee and other account terms before applying.

You can also learn how to apply for a Citi credit card and review the application process, credit requirements and Citi card offers available through our site.

Does Citibank Refund Annual Fees? The Bottom Line

Citi does charge annual fees on some credit cards, and the specific fee is disclosed in the terms for the card. If you decide that you no longer want to pay the fee, you can contact Citi about canceling the card or changing to another Citi card.

Citi's public website does not currently publish a universal annual-fee refund period that applies to every Citi credit card. Because refund treatment can depend on the account and circumstances, the safest way to get an accurate answer for your particular card is to contact Citi and ask whether the annual fee is eligible for a full or partial refund before closing or changing the account.

Before making the change, also review your balance, recurring payments and rewards so you know what will happen to the account after you cancel or change the card.