Any reason not to let rewards build up?

[Anonymous]

Anyone paranoid if their cash back rewards get too high they'll close the account even if it's in good standing? Lol

[MrDFinance]

Never heard of that being done....

Only risk is hoarding alot points and then changes come along devaluing those points...

[SBR249]

Never really heard of that. If you have a cashback strategy though, leaving a lot of money there and not at least earning some interest seems like a shame. 

[Anonymous]

Any reason to let rewards build up? I move every cent every month (where applicable) to a high yield savings account or apply to statement credit since my payment checking account pays 4% APY.

[redpat]

No. I'm sitting on over 500k MR, 900k+ AA miles, 200k+ UR points and newly acquired 200k+ Hilton points. I dumped all my SPG points and made out very well by hoarding them and cashing them in with the Marriott acquisition.

Don't get me wrong I do use my points but at this times I'm getting more than I use on a annual basis.

[Anonymous]

You know, AA allows you to gift miles. 

[Anonymous]

Any time someone doesn't redeem their CB rewards ASAP, they're giving their lender an interest free loan on that money.  That's not something I ever intend to do, so I always redeem them as soon as I can.

[Anonymous]

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@Anonymous wrote:

Anyone paranoid if their cash back rewards get too high they'll close the account even if it's in good standing? Lol

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As others have said, it usually makes sense to redeem into an interest-bearing account, a separate one if you are one of those who wants to have dedicated pot of money for "special" things (the usual reason why I hear people leaving large amounts build up with the issuer).

But your wording suggests that AA may be taken BECAUSE of the large amount.   I'm not sure people are really concerned about that, it's more that there always a non-zero chance that your account could be closed, whether by mistake or otherwise

[Anonymous]

If its cash, I always take it as regularly as possible so that I can at least earn some interest on it.  Points devalue due to inflation over time, so it's best to use them when you can.

[Broke_Triathlete]

I'm interested in learning more about transferring the points/CB to an interest bearing account. You can do this with any CC?