Why the only thing better than transferable points is INSTANTLY transferable points

One of the key ideas I push on Head for Points is that transferable, or convertible, points are better than non-transferable points.

The best way to explain this is via American Express Membership Rewards points, earned from American Express Preferred Rewards Gold, The Platinum Card and the Amex Rewards Credit Card.

You can transfer 1 American Express Membership Rewards point into 1 Avios.  You might think, therefore, that 1 Amex point is worth the same as 1 Avios.  IT ISN’T.

1 American Express Membership Rewards points is worth MORE than 1 Avios.  This is because, as well as converting to 1 Avios, it will also convert into 1 Virgin Point, 1 Etihad mile, 1 Flying Blue mile, 2 Hilton points, 1.5 Marriott points, 3 Radisson points, 0.5p of shopping vouchers, 0.45p of statement credit etc etc.

As well as giving you more choice, transferable points are also defensive.  Even if you intend to convert your Amex points to Avios, it makes sense to keep them with Amex until the last minute.  If you move them to Avios and British Airways moves the goal posts in terms of points needed or availability then you’re stuffed.

Other convertible points currencies include:

• HSBC Premier credit card points (12 airline and hotel partners)
• Tesco Clubcard points (Virgin Points plus many non-travel partners)
• Heathrow Rewards (various airline partners as well as shopping discounts)

You could, arguably, include Marriott Bonvoy points in this list too.  It is the only hotel scheme where you get genuine good value if you convert your points to airline miles.  This article looks at the 38 Marriott Bonvoy airline partners.

I do NOT include Nectar on this list, because transfers between Nectar and Avios are 2-way.  It doesn’t matter where your points sit, because you can move them in either direction.

So …. convertible points are worth more than non-convertible points.

That is stage one.  There is a second stage however ….. INSTANTLY convertible points are worth more than all other convertible points.

One – sensible – argument against not converting your points until you need them is that the transfer takes time.  Even transfers which are quick, such as American Express transfers to Avios, still require you to wait overnight.  It is possible that the redemption seat you wanted may have gone when they arrive.

What you want is an instantaneous transfer. This is your dream result.  You can look for the seat you want and, when you find it, move the points and immediately book without any risk of losing the seat.

Where can you find instant transfers? Here are your options:

• you can’t do it with Heathrow Rewards or any hotel points transfers to airlines, as far as I know

• you CAN do it with Tesco Clubcard transfers to Virgin Atlantic (anyone signed up to auto-conversion can request a transfer of their current points balance, if it is 150+, at any time and the transfer is instant)

• HSBC Premier (for all partners, we think)

• American Express (some partners)

There is one other UK Avios partner which allows instant transfers – Capital On Tap, via their Business Rewards Visa card for SMEs.  You can learn more about Capital On Tap’s Avios earning credit card here.  There is a bonus worth 30,000 Avios for signing up this month.

Which American Express partners offer INSTANT transfers?

As far as I know, the list of Membership Rewards partners which transfer instantly is:

• Delta SkyMiles
• Emirates Skywards
• Virgin Atlantic Flying Club
• Marriott Bonvoy

Note that first-time Amex transfers to a new partner may not be instant due to security checks. It makes sense to link your accounts in advance by doing a dummy transfer on the Membership Rewards website.

Which HSBC Premier credit card partners offer INSTANT transfers?

We think, following the relaunch last year, that all HSBC Premier card partners are now instant. We have tested a few and all were. Please let us know if you have found any that are not. Let me repeat – we do not guarantee that all of the partners are instant but we haven’t found any yet which are not.

Airline partners:

• Asia Miles
• British Airways Executive Club
• Emirates Skywards
• Etihad Guest
• EVA Air Infinity MileageLands
• Finnair Plus
• Flying Blue (Air France KLM)
• Qantas Frequent Flyer
• Singapore Airlines KrisFlyer
• TAP Miles&Go

Hotel partners:

• IHG One Rewards
• Wyndham Rewards

Remember that HSBC points have a hard three year expiry. You can’t keep them mounting up for decades. Amex is better if you are taking a very long term view.

Conclusion

Transferable points, such as American Express Membership Rewards and HSBC Premier points, are more valuable than non-transferable points such as Avios.

The most valuable transferable points of all are those that transfer instantly.

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Want to earn more points from credit cards? – December 2023 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: Until 9th January 2024, you will receive 30,000 Membership Rewards points (convertible to 30,000 Avios) with American Express Preferred Rewards Gold. You receive 25,000 points if you spend £3,000 in three months and a further 5,000 points if you hold the card for 15 months. You can apply here.

SPECIAL OFFER: Until 9th January 2024, you will receive a huge 100,000 Membership Rewards points (convertible to 100,000 Avios) with The Platinum Card. You receive 75,000 points if you spend £10,000 in six months and a further 25,000 points if you hold the card for 15 months. You can apply here.

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 offers:

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.