Core Insights - Cash-back credit cards are effective tools for saving money on everyday expenses, offering rewards ranging from 2% to 6% on various categories such as groceries, gas, and dining [1][51] - The best cash-back cards can yield annual rewards of approximately $400 to $500, providing a buffer against rising costs [1] Group 1: Best Cash-Back Credit Cards - Chase Freedom Unlimited is highlighted as the best overall cash-back card, featuring a $0 annual fee, a welcome bonus of $200 after spending $500 in the first 3 months, and a rewards structure that includes 5% cash back on travel purchased through Chase Travel [4][5][6] - Blue Cash Preferred Card from American Express is noted for its 6% cash back on U.S. supermarkets (up to $6,000 annually), with a potential annual cash back of $590.65 after the annual fee [10][14] - Capital One Savor Cash Rewards Credit Card excels in dining out, offering 3% cash back on dining and entertainment, with a potential annual cash back of $513.90 [23][29] Group 2: Cash-Back Structures - Cash-back cards typically offer between 2% and 6% cash back across various bonus categories, with 1% on all other purchases [51][90] - Flat cash-back cards provide a fixed earning rate, making them suitable for users with diverse spending habits [53][54] - Tiered cash-back cards allow users to earn different amounts across various spending categories, often with spending caps [55][56] Group 3: Key Features and Benefits - Many cash-back cards come with no annual fee, making them accessible for consumers looking to maximize savings on everyday purchases [60][61] - Welcome offers often include cash bonuses for meeting spending thresholds within a specified timeframe, enhancing the card's initial value [62][63] - Some cards provide additional benefits such as 0% introductory APR on purchases and balance transfers, which can help manage existing debt [63][64]

Citigroup Inc.’s (C) plan to expand in China has met a snag with the U.S. regulators after the Federal Reserve imposed a penalty on the bank related to its data management and risk controls, per a Bloomberg report.The bank is currently awaiting a clearance letter from the U.S. Federal Reserve, which is required by Chinese authorities to verify Citigroup's regulatory standing. Without this letter, the bank cannot proceed with its plans to set up a standalone securities firm in China.The difficulties arose wh ...

Citi's plan to expand in China has reportedly hit a regulatory bump in America. The trouble stems from a penalty levied by the Federal Reserve against the banking giant over its data management and risk controls, Bloomberg News reported Monday (Sept. 23), citing sources familiar with the matter. According to the report, Citi faces delays in establishing a standalone securities office because it hasn't yet gotten a clearance letter from the Fed verifying its regulatory standing, something required by the gov ...

American Airlines is reportedly considering consolidating its business with a single credit card partner, potentially by making Citigroup its exclusive partner and dropping Barclays.The airline’s talks with banks and card networks are ongoing and the timing of an agreement is unknown, CNBC reported Friday (Sept. 20), citing unnamed sources.A deal could also face scrutiny from U.S. regulators, which in turn could delay or cancel any changes to the current arrangements, according to the report.Responding to t ...

The Federal Reserve’s aggressive start to monetary policy easing raised optimism among investors who expect this move to boost the profitability of Wall Street giants and smaller regional lenders. On Wednesday, the Fed Chairman, Jerome Powell, remarked the U.S. economy is "in good shape." He pointed out that risks of further cooling in the labor market have risen. With this, the central bank cut the interest rates by 50 basis points, bringing the Fed fund rates to the 4.75-5% range. This marks the end of an ...

An American Airlines' Embraer E175LR (front), an American Airlines' Boeing 737 (C) and an American Airlines' Boeing 737 are seen parked at LaGuardia Airport in Queens, New York on May 24, 2024.American Airlines is in talks to make Citigroup its exclusive credit card partner, dropping rival issuer Barclays from a partnership that dates back to the airline's 2013 takeover of US Airways, said people with knowledge of the negotiations.American has been working with banks and card networks on a new long-term dea ...

The September Federal Open Market Committee (FOMC) has become a hot topic among investors, with many believing the FED will finally begin lowering interest rates.There have been numerous different opinions on just how large the cuts ought to be, and one prominent expert – Veronica Clark of Citigroup (NYSE: C) – not only believes that 50 basis point (BPS) reduction is merited but also that America’s Central Bank is already behind the curve.The Citigroup economist, however, acknowledged that a 25 BPS decrease ...

Dividend investing is a powerful way to build wealth and financial security.If you're interested in adding more dividend-paying stocks to your portfolio, that's a fine idea. For one thing, dividend payers tend to be more established and reliable growers, since they have reached a point where management is confident it can commit to a regular payout to shareholders. Better still, dividend-paying stocks tend to outperform non-payers!For example, a study by Hartford Funds and Ned Davis Research found that from ...

Citigroup Inc. (C) has agreed to divest its global fiduciary and trust administration services business, Citi Trust, to JTC, one of the global professional services providers, for $80 million. This strategic move aligns with the bank’s focus on concentrating resources in areas that drive growth in its wealth business.Citi Trust, known for its comprehensive trust solutions across seven key jurisdictions like New York, Delaware, South Dakota, Jersey, Singapore, Switzerland and the Bahamas, serves over 2,000 u ...

Core Viewpoint - Citigroup Inc. has experienced a significant stock decline of 5.9% over the past month, underperforming compared to the industry and the S&P 500 index, raising questions among investors about the timing of potential investments [1][2]. Regulatory Scrutiny and Compliance Issues - Citigroup is currently facing increased regulatory scrutiny, having breached the Federal Reserve's Regulation W, which has led to discrepancies in its internal liquidity reporting [2] - The company was fined $136 million by U.S. bank regulators in July for insufficient progress in addressing data management issues [2]. Credit Losses and Financial Projections - The company is experiencing rising credit losses as U.S. consumers shift spending towards essential needs, with projections for net credit losses in 2024 estimated at 3.5-4% for branded cards and 5.75-6.25% for retail services [3] - The anticipated cost of credit for the company is projected to be $2.7 billion [3]. Organizational Overhaul and Cost Reduction - Citigroup is undergoing a comprehensive organizational overhaul aimed at improving performance, reducing costs, and simplifying its business structure, which includes a reduction in management layers from 13 to 8 [4][5]. - The company plans to reduce its workforce by 20,000 over the next two years to enhance operational efficiency [5]. Strategic Focus and Market Exits - The bank is focusing on core operations by streamlining international operations and has exited consumer banking businesses in several markets, including Australia and India, to free up capital for investments in wealth management [6]. - Citigroup is preparing for an IPO of its consumer, small business, and middle-market banking operations in Mexico, indicating a strategic shift towards more profitable segments [6]. Revenue Growth Projections - The company projects a compounded annual growth rate (CAGR) of 4-5% in revenues by the end of 2026, reflecting optimism about its long-term growth potential [7]. Capital Requirements and Regulatory Changes - Proposed changes to Basel regulations could halve the additional capital requirements for large banks, which would allow Citigroup to allocate more resources to lending and other initiatives, potentially increasing profitability [7][8]. Interest Rate Environment - The Federal Reserve is expected to begin cutting interest rates, which could alleviate funding cost pressures for Citigroup and support net interest margin (NIM) expansion [8][9]. - Citigroup's NII dropped by 1% in the first half of 2024, with management projecting a modest decline in NII for 2024 compared to 2023 levels [8]. Earnings Estimates and Market Valuation - Analysts have lowered earnings estimates for 2024 due to anticipated credit losses, but long-term estimates for 2025 remain unchanged, indicating confidence in the company's future [12]. - Citigroup's current price-to-earnings (P/E) ratio of 8.65 is below the industry average of 11.08, suggesting that the stock may be undervalued [14]. Technical Indicators - The stock is currently trading below its 50-day moving average, indicating a lack of strong momentum in the near term [16].