With the crude oil price reaching new records and petrol prices rising by the week, a lot of consumers will do anything to save money on petrol. Coles Group Source Mastercard is an option - but what if you don't shop at Coles?
Don't stress! Because the Citibank BP Credit Card offers a discount almost as large - and its not linked to any grocery shopping! The main feature of the card is a 5% discount on petrol when you use your card at one of the many BP service stations. That's 5%, not 5 cents, so your discount will actually go up as the price of petrol increases. With petrol at $1.20 per litre you save 6 cents, and pay just $1.14. If petrol goes up to $1.40 per litre then you save 7 cents. Your car needs premium petrol? Save even more!
You can claim your discount on up to $300 per month of fuel, so that's at least a tank a week. If you're a big driver, you may actually save more with this discount that the 8 cents per litre offered Coles - you can do the math. Plus, if you happen to be a dedicated Safeway or IGA shopper, or you don't buy groceries at all, then this card can save you money on your fuel bill.
Another key feature of the card is access to a form of Citibank's 'cash back' rewards program. The way it works is quite simple. On all your non-BP spending, you receive 1% 'cash back' instead of points that can be redeemed for gifts. Your cash back is credited to your statement at the end of each month, and is payable to a maximum spend of $60,000 per annum. So you spend $2,500 in a month? Look forward to $25 cash back! In our opinion that sounds quite competitive compared to most reward programs on the market.
The only catch is Citibank's annual fee of $79. However, if you use the card to the maximum extend of its rewards program, you can recoup that in barely a month. Standard benefits such as 55 days interest free and international Mastercard network access are included, so nothing to worry about there. At 18.20% p.a. the interest rate is quite high, so this is not a card for those who don't usually pay the full balance by the due date.
As an introductory offer, Citibank is offering customers balance transfers for a low 2.90% p.a. for the first 12 months. You just have to remember the catch here is that once you start using your credit card, payments will apply against the low rate balance first, and you will end up paying the nasty 18.20% on your purchases. So this strategy is possibly not such a good idea.