topic Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others) in Credit Cards

Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others)

portlandmusician — Fri, 30 Sep 2022 05:56:40 GMT

I didn't realize that in July American Express' cash back cards began to have no minimum redemption amounts ($.01 minimum on the Blue Cash Everyday, Blue Cash Preferred, and Cash Magnet). Somehow I missed it at Doctor of Credit, and just found it on a Google search: https://www.doctorofcredit.com/american-express-blue-cash-cards-now-have-no-minimum-redemption-amount-01-minimum/

What propelled this was I was thinking of product changing my Cash Magnet to the Blue Cash Everyday card, since I've sock drawered my Cash Magnet. However, it seems the Blue Cash Everyday card would be sock drawered by me as well, since my Navy Federal More Rewards card covers everything the BCE would cover.

So, I thought, "My More Rewards has a $50 minimum redemption in $50 increments, and the Cash Magnet is $25 minimum and not in increments, so maybe I should switch my spend from More Rewards to BCE and product change."

I went searching, then, to look up redemption minimums, to confirm what I believed. And that's when I found out American Express' cash back cards no longer have a minimum redemption value. So, I got curious to see if Navy Federal still does. And, well, looking at the verbage on the More Rewards, I don't think it does anymore. Did I miss that, too? If so, when did this happen? Or, does it still and I'm just missing that it does?

The wording on the Terms & Conditions for Navy Federal's More Rewards is: "Are there conditions for earning or redeeming rewards? Rewards earned are updated on the date the eligible transaction posts to your account. Rewards may be used for reward redemptions once they have been credited to the account. To redeem rewards, the account must be open and in good standing (i.e., not delinquent, closed by either party, or otherwise unavailable to use for charges)."

So... did they do away with minimum redemption, too?

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

calisig — Fri, 30 Sep 2022 06:07:42 GMT

you could always log on to your Navy Federal account and click the 'redeam rewards' button, and see what it says there regarding minimums and increments ...

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

GZG — Fri, 30 Sep 2022 06:59:51 GMT

haven't heard anything about that changing, would be amazing if they did. I would switch my future card choice from Savor One to a More Rewards if they did.

I would definitely just check the terms for your card at the bottom of the rewards home page and see if there's anything like this which suggests that it's different.

Also just try redeeming, I guess

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

ptatohed — Fri, 30 Sep 2022 07:28:58 GMT

If a card has a minimum redemption (let's use $25), I always leave that minimum redemption there. So, if one of my card has a minimum redemption of $25, I won't redeem until I have $50 at which time I will redeem only $25 and leave $25 there. This way, if I every want to sock drawer that card, I won't be leaving money on the table ($0.01 - $24.99) or feel obligated to keep using the old card until I reach the $25 redemption level - at the expense of not using the new, better card. A perfect example is my AARP card. Originally Chase (which I liked better), then Barclays. It was pretty much only good for 3% on gas (for the 1 - 2 quarters I didn't get 5% gas). Minimum $25 redemption. When I got my AOD which was 3% everything, I had no more use for my AARP. I was ready to sock drawer it. Had I, say, $8.50 in rewards with AARP, I'd feel obligated to keep using it until I reached the $25 in rewards. But because I had $25 + $8.50, as an example, I took all $33.50, stuck that baby under my Haynes, and started using AOD.

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

OmarGB9 — Fri, 30 Sep 2022 16:24:22 GMT

Nope, nothing's changed with Navy. Still $50 minimum, and $50 increments. Just checked as I have 7200 points, but my only redemption option was 5000 points for $50.

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

Anonymous — Fri, 30 Sep 2022 16:30:54 GMT

@ptatohed wrote:
If a card has a minimum redemption (let's use $25), I always leave that minimum redemption there. So, if one of my card has a minimum redemption of $25, I won't redeem until I have $50 at which time I will redeem only $25 and leave $25 there. This way, if I every want to sock drawer that card, I won't be leaving money on the table ($0.01 - $24.99) or feel obligated to keep using the old card until I reach the $25 redemption level - at the expense of not using the new, better card.

But this comes at the expense of leaving the $25 there every month, so doesn't seem that useful!

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

Kforce — Fri, 30 Sep 2022 17:00:25 GMT

@Anonymous wrote:
@ptatohed wrote:
If a card has a minimum redemption (let's use $25), I always leave that minimum redemption there. So, if one of my card has a minimum redemption of $25, I won't redeem until I have $50 at which time I will redeem only $25 and leave $25 there. This way, if I every want to sock drawer that card, I won't be leaving money on the table ($0.01 - $24.99) or feel obligated to keep using the old card until I reach the $25 redemption level - at the expense of not using the new, better card.
But this comes at the expense of leaving the $25 there every month, so doesn't seem that useful!

^^^ This

Besides: Redemption minimum's are only an issue for those with to many cards

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

ptatohed — Sun, 02 Oct 2022 06:00:44 GMT

@Anonymous wrote:
@ptatohed wrote:
If a card has a minimum redemption (let's use $25), I always leave that minimum redemption there. So, if one of my card has a minimum redemption of $25, I won't redeem until I have $50 at which time I will redeem only $25 and leave $25 there. This way, if I every want to sock drawer that card, I won't be leaving money on the table ($0.01 - $24.99) or feel obligated to keep using the old card until I reach the $25 redemption level - at the expense of not using the new, better card.
But this comes at the expense of leaving the $25 there every month, so doesn't seem that useful!

Not sure that it is unuseful though. Sure, ideally we wouldn't have cards with minimum redemption levels. But some of us do. The $25 is still yours and you'll get it at the end of the "day". It's not unlike depositing a minimum amount of money into a CU checking or savings just to be a member just to apply for their card. Again, it's still your money but yes it's tied up for the sake of having a card you feel is worth it.

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

Anonymous — Sat, 01 Oct 2022 13:35:50 GMT

@ptatohed wrote:
@Anonymous wrote:
@ptatohed wrote:
If a card has a minimum redemption (let's use $25), I always leave that minimum redemption there. So, if one of my card has a minimum redemption of $25, I won't redeem until I have $50 at which time I will redeem only $25 and leave $25 there. This way, if I every want to sock drawer that card, I won't be leaving money on the table ($0.01 - $24.99) or feel obligated to keep using the old card until I reach the $25 redemption level - at the expense of not using the new, better card.
But this comes at the expense of leaving the $25 there every month, so doesn't seem that useful!
Not sure that it is useful though. Sure, ideally we wouldn't have cards with minimum redemption levels. But some of us do. The $25 is still yours and you'll get it at the end of the "day". It's not unlike depositing a minimum amount of money into a CU checking or savings just to be a member just to apply for their card. Again, it's still your money but yes it's tied up for the sake of having a card you feel is worth it.

That really wasn't my issue. It sounds like you are insuring against the day you cease using the card, making sure that you won't leave money on the table and/or feel pressured to use the card to get to the minimum level. And that can be a realish issue! But against that you are not redeeming the $25, potentially for years, against an outcome that might never happen.

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

ptatohed — Sun, 02 Oct 2022 05:59:43 GMT

@Anonymous wrote:
@ptatohed wrote:
@Anonymous wrote:
@ptatohed wrote:
If a card has a minimum redemption (let's use $25), I always leave that minimum redemption there. So, if one of my card has a minimum redemption of $25, I won't redeem until I have $50 at which time I will redeem only $25 and leave $25 there. This way, if I every want to sock drawer that card, I won't be leaving money on the table ($0.01 - $24.99) or feel obligated to keep using the old card until I reach the $25 redemption level - at the expense of not using the new, better card.
But this comes at the expense of leaving the $25 there every month, so doesn't seem that useful!
Not sure that it is useful though. Sure, ideally we wouldn't have cards with minimum redemption levels. But some of us do. The $25 is still yours and you'll get it at the end of the "day". It's not unlike depositing a minimum amount of money into a CU checking or savings just to be a member just to apply for their card. Again, it's still your money but yes it's tied up for the sake of having a card you feel is worth it.

That really wasn't my issue. It sounds like you are insuring against the day you cease using the card, making sure that you won't leave money on the table and/or feel pressured to use the card to get to the minimum level. And that can be a realish issue! But against that you are not redeeming the $25, potentially for years, against an outcome that might never happen.

You are correct. And I, personally, don't see it as a problem.

Yeah, I guess waiting years is an issue but worth it to me for great rewards cards.

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

Anonymous — Sun, 02 Oct 2022 15:10:30 GMT

@ptatohed wrote:

You are correct. And I, personally, don't see it as a problem.
Yeah, I guess waiting years is an issue but worth it to me for great rewards cards.

To me it has nothing to do with the greatness of the card or otherwise, but OK! IMO, your approach has merit against the very worst case, where your great card nerfs to a no reward card. Then lets say you have a rewards balance of $23, you are really out of luck. And if it instead went to a 0.5%, you have the choice of kissing the $23 goodbye or spending $400 at a very low return to get your $25 back. I guess our difference is in how likely we consider such things.

So a key case would be when a 3% goes to 2% (and you have another 3% card) In the $23 case, I would be happy putting another $100 on the now 2% card, losing $1 vs using the other card, to get the $25 back. You wouldn't have to as you would just cash out your $48, so saving $1. But then you have tied up $25 for however long it is.

And against wicked schemes like USAlliance with $25 increments, there is no escape!

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

Kforce — Sun, 02 Oct 2022 18:07:13 GMT

The interest lost on $25 sitting for a year is much less than a dollar. ( I will still take it)

On the other hand if an extra 25 sitting if a card was instantly locked and closed you lose the extra 25 + current gains.

(Just as large a chance as rewards dropping with out a heads up)

Have had cards for 40+ years and have never had a card closed where I lost my cash back.

Most give some warning and you have time to plan and get to the minimum ahead of time.

On average instant loss would be 50% the minimum so ($12.50 / $25)

(With a long history, I will just go with the odds and bet my $12.50.)

I don't leave extra money in the cash back system and redeem as soon as I am allowed.

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

Anonymous — Tue, 04 Oct 2022 00:45:21 GMT

@Kforce wrote:
The interest lost on $25 sitting for a year is much less than a dollar. ( I will still take it)

True until recently! As savings rates rise above 3%, we are closing in on one whole dollar....

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

ptatohed — Tue, 04 Oct 2022 06:47:30 GMT

@Anonymous wrote:
@Kforce wrote:
The interest lost on $25 sitting for a year is much less than a dollar. ( I will still take it)

True until recently! As savings rates rise above 3%, we are closing in on one whole dollar....

I think the $25 I have to keep parked in AOD is up to $25.06 some 11 months later.

Re: Redemption of rewards // minimum redemption value... American Express and Navy Federal (+ others

wasCB14 — Tue, 04 Oct 2022 09:36:05 GMT

@ptatohed wrote:
@Anonymous wrote:
@Kforce wrote:
The interest lost on $25 sitting for a year is much less than a dollar. ( I will still take it)

True until recently! As savings rates rise above 3%, we are closing in on one whole dollar....
I think the $25 I have to keep parked in AOD is up to $25.06 some 11 months later.

...and down to $23 and change in its purchasing power.