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

[Anonymous]

---

@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!

[Kforce]

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.

[Anonymous]

---

@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....

[ptatohed]

---

@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.  

[wasCB14]

---

@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.