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Discover IT Rewards Redemption

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grillandwinemaster
Valued Contributor

Discover IT Rewards Redemption

Quick question for Discover card holders:

When redeeming your rewards, are you able to take them when YOU want to? Or are you on some type of Discover schedule? I'm on my way to having close to $1,500 in cash back rewards when my year is up. However, I would like to continue to bank it until it hits closer to 2.5k and then redeem. What has been your experience?


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Message 1 of 9
8 REPLIES 8
OmarGB9
Community Leader
Super Contributor

Re: Discover IT Rewards Redemption

From what I can tell, yes, you can hold on to them until you're ready

to cash out.


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Message 2 of 9
Anonymous
Not applicable

Re: Discover IT Rewards Redemption

The only problem you run with not cashing out is if the card gets closed by the lender for any reason, you will forfeit the rewards.

Message 3 of 9
Anonymous
Not applicable

Re: Discover IT Rewards Redemption


@Anonymous wrote:

The only problem you run with not cashing out is if the card gets closed by the lender for any reason, you will forfeit the rewards.


I feel this is such an important point that it's worth repeating.  It's recommended you redeem your rewards when possible.  With all the gift card redemption offers (that almost always pay out more than cost) you should redeem them as soon as possible.  

Message 4 of 9
Anonymous
Not applicable

Re: Discover IT Rewards Redemption

Discover terms state if account is closed they will cash out your rewards and provide them to you (I believe as a check). They specifically state rewards are not forfeited on account closure.
Message 5 of 9
takeshi74
Senior Contributor

Re: Discover IT Rewards Redemption

You can redeem when you want.  Keep in mind the potential drawbacks to waiting to redeem.  Some are mentioned above.  However, your cash isn't accruing interest while Discover's holding on to it.

Message 6 of 9
Closingracer99
Valued Contributor

Re: Discover IT Rewards Redemption


@Anonymous wrote:
Discover terms state if account is closed they will cash out your rewards and provide them to you (I believe as a check). They specifically state rewards are not forfeited on account closure.

Yeah but if say Discover goes Bankrupt and closes everybody cards? I wouldnt run the risk either way and cash out specially with $1,500 in rewards...


My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
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Message 7 of 9
Anonymous
Not applicable

Re: Discover IT Rewards Redemption

This is the wording from the discover webiste as an FYI:

 

"We will credit your account with your Cashback Bonus balance if your account is closed or if you have not used it within 18 months."

 

 

 

Message 8 of 9
Kevin86475391
Frequent Contributor

Re: Discover IT Rewards Redemption

Just my opinion, but I think Discover has the absolute most convenient redemption process of any lender I've dealt with. They make it really easy to redeem your rewards in a variety of ways and for many of them there are no minimums. I used to always use up my montly cashback at Amazon. Lately I've been applying it to my card payments. Both methods are really easy and you can redeem any amount doing this. I'm personally less interested in gift cards because even with the redemption bonus I find gift cards simply encourage me to spend when I otherwise wouldn't have. I assume there are minimums with the gift cards.

 

I know your question was more regarding maximums/delaying redemption as opposed to minimums/fast redemption. As others have said, nope I don't believe there's a threshold beyond which you must redeem and your rewards don't expire. However, as others have said, I wouldn't necessarily advocate leaving $2,500 in cashback sitting around. As far as lenders go I do trust Discover more than most and would expect them to issue a credit if your account were closed. However, that's still kind of a big risk. Plus other weird, unfortunate stuff could happen, like your account getting hacked or defrauded. You wouldn't want a clever fraudster to make off with 2.5K in your rewards and while getting fraudulent credit card charges reversed is relatively quick and easy, I'd expect a much bigger hassle getting your cashback back, if it could be done at all.

 

Another major concern is that as Taskashi pointed out, your money is sitting there doing nothing for you except losing value to inflation. I would instead advise you to take a redemption into your bank account and simply earmark the money for whatever you have in mind for it and set it aside to save. At least you'll be getting interest on it (minimal at current rates of course) and it'll be safe from the whims of Discover and the dangers of fraud. Also, while you absolutely can deposit your cashback into an external bank account, Discover offers a really outstanding cashback checking account. It's free, no minimum balance, and no direct deposit requirements. You get $0.10 for every debit or credit you make to the account, up to a limit (possibly 300, but I'm unsure of the number) per month. Assuming you don't already have this account that would also offer you the advantage of keeping the money separate from your other funds, which sounds like something you want to do. You could also/instead open one of their savings accounts. Personally, I use Chase as my primary bank, but I love my Discover deposit accounts!

 

Best of luck with whatever you decide.

Message 9 of 9
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