American Express has launched an interesting offer for holders of the Preferred Rewards Gold credit card.
If you use your points for statement credit (ie reducing what you owe next month by redeeming points) you would usually receive a pitiful £4.50 per 1,000 points.
This new offer is worth £6.75 per 1,000 Membership Rewards points. It isn’t amazing but it certainly isn’t dreadful.
In effect, Amex will buy your points off you for 0.675p each.
It isn’t as good as the recent 0.9p per point offer that was offered to holders of The Platinum Card. However, at 0.675p, you might want to think about it.
What are Membership Rewards points worth?
Here is my core article on the best uses of American Express Membership Rewards points.
Here is a summary of my valuations:
0.75p – 1.5p per point (estimate, 1:1 ratio) – airline miles
1p per point (estimate, 1:3 ratio) – Radisson Rewards hotel transfers
0.75p per point (estimate, 2:3 ratio) – Marriott Bonvoy hotel transfers
0.66p per point (estimate, 1:2 ratio) – Hilton Honors hotel transfers
0.66p per point (estimate, 15:1 ratio) – Club Eurostar points transfers
0.5p per point (guaranteed, pseudo-cash) – retailer gift cards
0.5p per point (guaranteed, pseudo-cash with potential for upside) – Nectar points
0.45p per point (guaranteed, pseudo-cash) – taking Amazon credit
Read my article on the best Membership Rewards transfers to see how I justify these numbers.
As you can see, taking 0.675p in cash via this new offer sits in the middle of this range. You could do better but, of course, your current financial position might mean that 0.675p in cash is more welcome.
Is Amex really offering 0.675p per point for statement credit?
Yes it is. It is NOT advertised yet. However, go to your American Express account and select ‘Use Points for Purchases’ on your Preferred Rewards Gold home page.
You are taken to a page like this. Select an individual transaction (click to enlarge):
As you can see, I am able to wipe out a £10.50 Gett taxi ride charge for 1,553 points. This is 0.675p per point, so 50% higher than the standard rate.
This deal is NOT available on Platinum cards. I don’t have access to a Green account to test it.
Should I redeem my Membership Rewards points for 0.675p each?
That’s not for me to say, of course.
Based on my valuations above, I would definitely take 0.675p in cash instead of turning my American Express points into Club Eurostar, Nectar or Hilton Honors points. It is marginal for Marriott Bonvoy.
This is NOT because these schemes are bad, but because the transfer rate is not generous enough. I also need to reduce my Club Eurostar rate to reflect the devaluation which was announced yesterday.
The decision is a lot less clear for Avios and other airline miles. Here are the American Express airline transfer partners, all of which are 1:1. If used sensibly, you should get A LOT more than 0.675p per airline mile – hopefully 1p+ if you spend them wisely.
If your end goal was to use your Membership Rewards points for Avios, I would stick with that plan. Don’t bail out for 0.675p of cash, unless your current financial situation means that it makes sense.
When does this offer end?
The offer runs until 1st October.
You can only redeem credit against actual purchases, so your maximum redemption is limited to the value of purchases you make before the closing date.