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

[portlandmusician]

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-redempt...

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?

[calisig]

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 ...

[GZG]

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 

[ptatohed]

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. 

[OmarGB9]

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.

[Anonymous]

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@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. 

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

[Kforce]

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@Anonymous wrote:

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@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. 

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

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^^^ This

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

[ptatohed]

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@Anonymous wrote:

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@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. 

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

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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.   

[Anonymous]

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@ptatohed wrote:

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@Anonymous wrote:

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@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. 

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

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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.   

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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.

[ptatohed]

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@Anonymous wrote:

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@ptatohed wrote:

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@Anonymous wrote:

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@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. 

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

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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.   

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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.

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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.