When you need quick access to cash, a cash advance on your Citibank credit card can be convenient—but it comes at a higher cost than ordinary purchases. Here’s a detailed look at the Annual Percentage Rate (APR), transaction fees, and additional charges you can expect when taking a cash advance with Citibank.
1. Cash Advance APR
- Higher Than Purchase APR: Cash advances do not enjoy a grace period—interest starts accruing immediately on the day you withdraw funds.
- Typical APR Range: Most Citibank cards carry a variable APR of approximately 21.99% to 29.49% for cash advances. For example, the Citi Simplicity® Card has a cash-advance APR of 29.49% (Citi).
Your exact APR depends on your card agreement and creditworthiness; always check your latest cardholder disclosure.
2. Cash Advance Transaction Fee
Citibank charges a fee for each cash-advance transaction, calculated as:
Either $10 or 5% of the advance amount, whichever is greater
For instance:
- Withdrawing $50 incurs a minimum fee of $10 (since 5% of $50 = $2.50, which is less than $10).
- Withdrawing $500 incurs a fee of 5% × $500 = $25 (since $25 > $10). (Citi)
3. ATM & Network Fees
- Out-of-Network ATM Fees: If you use a non-Citi ATM, you may pay the ATM operator’s surcharge in addition to Citibank’s cash-advance fee.
- Foreign ATM Fees: International ATM withdrawals may trigger currency-conversion charges or foreign transaction fees (commonly 3% of the amount) on top of the cash advance fee.
4. How Costs Accumulate: An Example
Imagine you need $300 in cash while traveling abroad:
- Cash Advance Fee: 5% × $300 = $15
- Foreign Transaction Fee: 3% × $300 = $9
- ATM Surcharge (if any): e.g., $5
- APR Interest: At 29.49% APR, $300 accrues about $2.42 in interest per day (300 × 0.2949 ÷ 365) starting immediately.
Total upfront fees: $15 + $9 + $5 = $29
Daily interest: ~$2.42 until paid off in full
5. Key Takeaways & Tips
- Use Sparingly: Due to high fees and interest, treat cash advances as a last-resort option.
- Compare Alternatives: A personal loan or balance transfer promotion may offer lower rates and fees for larger sums.
- Pay Quickly: The sooner you repay the advance, the less interest you’ll accrue—there’s no grace period.
- Know Your PIN: You’ll need a credit-card PIN to withdraw cash from an ATM; request one in advance via Online Banking or the Citi Mobile® App.
- Check Card Disclosures: APRs and fees vary by card; always refer to your Guide to Benefits or the Pricing Tables PDF for your specific card type.
Conclusion
Citibank cash advances deliver immediate liquidity—but at a premium cost: a 5% (or $10 minimum) transaction fee, a high APR (often near 29%), and potential ATM and foreign-transaction surcharges. By understanding these charges and using cash advances judiciously—only when no cheaper alternative exists—you can minimize costs and protect your finances.
For exact terms, log in to Citibank Online or consult your card’s Terms & Conditions.