You may be able to cash out your Amex points for double the normal value
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Banks continue to get creative in their ways to provide value for customers who hold travel credit cards but are stuck at home during the pandemic.
One of our favorite flexible points currencies, American Express Membership Rewards, is out with a deal where you can cash out your points for double the normal rate, reports Doctor of Credit.
While we normally suggest that you should reserve your Amex points to transfer to travel partners like Delta, Air Canada Aeroplan and ANA, this could be a worthwhile deal if you don’t plan on traveling anytime soon or are looking for straight cash.
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Normally, you can use Amex points to cover charges made directly to your card at a rate of 0.6 cents per point. That’s a pretty paltry rate, especially given that we value Amex points at 1.8 cents each. However, with this new deal, Amex is offering select cardholders the option to cash out their points at a rate of 1.2 cents each.
For example, 10,000 points would normally cover a $60 charge to your card, but under the new redemption rate, you’ll be able to erase a $120 purchase with the same amount of points.
This deal does appear to be targeted and valid through Dec. 31, so make sure to log in to your Amex account and see if you’re eligible. Log-in and navigate to the “Rewards” tab and then click “Cover Your Card Charges”. Unfortunately, neither of my Membership-Rewards-earning cards were showing the deal. It’s possible Amex is just starting to roll out this promo and a wider swath of cardholders will soon see it.
Most points programs allow you to cash out your points at a maximum rate of 1 cent per point, so you’re getting 20% more value than normal with this deal. If you do have the American Express Schwab Platinum card, you can redeem your points for a rate of 1.25 cents towards a cash deposit in a brokerage account, which is a slightly better deal.
Note that Chase has also launched its own program where you can “Pay Yourself Back” for purchases made at grocery stores, restaurants (including delivery) and home improvement stores at a rate of 1.25 to 1.5 cents, depending on what type of Ultimate-Reward-earning card you have.
Cards that earn Amex Points
There are several cards that earn Amex Membership Rewards points, including personal and small-business cards. It appears that only Membership-Rewards-earning cards are eligible for the deal.
Bottom line
Amex doubling its normally cash-out rate is great and provides real value for cardholders who aren’t traveling right now. Hopefully, we see this deal rolled out more widely. Let us know in the comments if you’ve been targeted and don’t forget to bookmark our travel deals hub and subscribe to our newsletter for more deals and tricks.
Featured image by jd8/Shutterstock.com
American Express® Gold Card
Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S., and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
$120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
$120 Dining Credit: Satisfy your cravings and earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Enrollment required.
Get a $100 experience credit with a minimum two-night stay when you book The Hotel Collection through American Express Travel. Experience credit varies by property.
Choose the color that suits your style. Gold or Rose Gold.
No Foreign Transaction Fees.
Annual Fee is $250.
Terms Apply.
Intro APR on purchases
N/A
Regular APR
See Pay Over Time APR
Annual Fee
$250
Balance Transfer Fee
N/A
Rates & Fees
Other
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