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

This article is part of an introductory series which we’ve been running this week whilst we wait for the January newsflow to pick-up (BAEC restructurings excluded!).

One of the key ideas we 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. Those people who suffered after the Virgin Atlantic dynamic pricing changes this year will know what I mean.

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)
• Nectar points (Avios as well as shopping discounts, plus Marriott points from 2025)
• 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 39 Marriott Bonvoy airline partners.

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 do it with Heathrow Rewards to Emirates (according to reader reports – I have not done this myself)

• you CAN do it with NatWest Rewards points to Emirates

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

• 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 (instant for all partners, we think)

• American Express (some partners, see below)

There is one other UK Avios partner which allows instant transfers – Capital On Tap, via their Business Rewards Visa and Pro Visa cards for SMEs.  You can learn more about Capital On Tap’s Avios earning credit cards here.  There is an exclusive sign-up bonus for HfP readers of 10,500 Avios.

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 Points
• Qantas (based on reader feedback)
• Avios (via Qatar Airways Privilege Club ONLY)
• 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 that all HSBC Premier card partners are 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 outliers.

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. They expire irrespective of your activity. You can’t keep them mounting up for decades and you will have to move them at some point. Amex points are 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.