This isn't breaking news, but it's always worth repeating.
The annual fee for my wife's Citibank American Airlines just posted. It is an $85 annual fee. Obviously, I didn't want to pay that. I still want the card open so that I can get the benefits of the card, like a free bag, but I don't think it is worth the annual fee.
I called up Citibank and told them "I would like to cancel my card because I don't want to pay an annual fee." I was put on the line with someone from the retention department.
The Offer
I was immediately offered a $95 statement credit (the price of the annual fee + $10) and 1,000 bonus miles every month for the next 16 months if I spend $1,000 in that month. If I spend right around $1,000 every month for the next 16 months, I'll get 16,000 total bonus miles on top of the regular 16,000 miles for spending $16,000 miles for a total of 32,000 miles.
Analysis
This is not an overwhelming bonus by any stretch, but it's a nice deal.
That being said, I will probably spend the $1,000 every month that I would have normally put on my Fidelity American Express. Instead of $320, I'll have 32,000 miles, more than a third of the way to a free round trip ticket to Israel.
Moral of the story, always ask for a retention bonus. You might not get one, but who knows.
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