For over a year now, there has been a fantastic deal available for earning Avios very cheaply from cashback site TopCashback. You could convert up to £50 of cashback per year into Tesco Clubcard points. Those Clubcard points could then be transferred to avios.com or British Airways Executive Club.
This allows you to effectively ‘buy’ Avios points for just 0.39p each!
(£1 of TopCashback gets you 105 Clubcard points which gets you 240 Avios or 250 Virgin Flying Club miles).
For heavy cashback earners, the £50 annual cap was an issue – although you could get around it by having a separate TopCashback account for anyone else who shares your Avios household account.
There is now a way of transferring your cashback ABOVE £50 to Avios.
Yesterday TopCashback announced that you can convert cashback money DIRECTLY into avios.com or British Airways Executive Club.
Before you get too excited, check out the conversion rate. It is 1 Avios point per 1p of cashback.
As you get the 5% bonus for not taking your earnings as pure cash, you are actually getting 1.05 Avios per 1p of cashback. This means you are paying 0.95p per Avios.
0.95p per Avios is a lot cheaper than you can buy them from British Airways. It is not a fantastic deal, however. My general recommendation on Head for Points is that – unless you specifically need to top-off your account for a redemption – 0.75p is a decent target to aim at. You will never lose money at 0.75p.
For a lot of redemptions, 1p to 1.25p is roughly the value you will achieve. You should therefore think carefully before turning something VERY flexible (ie cash!) into something which is not flexible (ie an Avios point) and which might not be worth much more than the cash alternative.
One possible upside is that this is a cheap way of stopping Avios expiring if your account has had no activity in three years, although I doubt many Head for Points readers fall into that category.
You can read more about this new deal at the TopCashback blog here.
If you are not already a TopCashback member, you can sign up via this link. This is my refer-a-friend link, which unfortunately doesn’t get you anything special but does help support Head for Points.
PS. There is one piece of small print to this deal. Cashback from travel companies cannot be transferred to Avios.