American Express has extended its 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. 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 or Green cards.
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 was originally due to run until 1st October. It will now end on 21st November.
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.
Want to earn more points from credit cards? – April 2021 update
If you are looking to apply for a new credit or charge card, here are our April 2021 recommendations based on the current sign-up bonus.
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the other top current deals:
British Airways American Express
5,000 Avios for signing up, no annual fee and a companion voucher for spending £20,000 Read our full review
British Airways American Express Premium Plus
25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and an unbeatable set of travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and the most generous non-Amex for day to day spending Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these:
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
American Express Business Platinum
40,000 points sign-up bonus and a long list of travel benefits Read our full review
British Airways Accelerating Business American Express
Earn both Avios and BA On Business points with your business spending Read our full review
Capital On Tap Business Rewards Visa
The most generous Avios Visa or Mastercard for a limited company Read our full review
Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.