Schwab PlatinumCard to Limit 1.1cpp Redemption to 1 Million Points per Year
The Schwab Amex Platinum card has a unique feature. It lets you redeem Membership Rewards points for deposits to an eligible Schwab account at a value of 1.1 cents per point.
While this is not normally the best use of points, it is a good option to have in case you have more points than you can use, or you are not interested in maximizing your points for travel.
Now Amex is notifying members of an upcoming change that is bad news for those who use this cash out method heavily. Starting in October, redeeming at 1.1 cents per point will be limited to just 1 million points per year. After that you will only get a value of 0.8 cents per points.
You can see the notice here:
“Important Note: Starting Oct 1, 2024, the rate for redeeming Membership Rewards points for deposits will change. Basic Card Members will be able to redeem Membership Rewards points for deposits to their eligible Schwab account at a rate of 10,000 points for a $110 deposit for up to 1,000,000 points, after which they may continue to redeem points at a rate of 10,000 points for an $80 deposit through the remainder of the calendar year.”
Here are some more details:
- For redemptions made before Oct 1, 2024: A Basic Card Member may redeem Membership Rewards® points for deposits to their eligible account at a rate of 10,000 points for a $110 deposit.
- For redemptions made on or between Oct 1, 2024 and December 31, 2024: A Basic Card Member may redeem Membership Rewards® points for deposits to their eligible account at a rate of 10,000 points for a $110 deposit for up to 1,000,000 points, after which they may continue to redeem points at a rate of 10,000 points for an $80 deposit through December 31, 2024.
- For redemptions made on or after January 1, 2025: A Basic Card Member may redeem Membership Rewards® points for deposits to their eligible account at a rate of 10,000 points for a $110 deposit for up to 1,000,000 points per calendar year, after which they may continue to redeem points at a rate of 1,000 points for an $80 deposit for the remainder of that calendar year.
- A Basic Card Member may redeem a maximum of 4 million Membership Rewards® points every 7 calendar days for this reward.
Guru’s Wrap-up
A limit of 1 million points per year doesn’t seem terrible, but it is still a limitation for those who might get the Schwab Platinum Card to cash out a large stash of points accumulated over the years.
You should still be able to cash out 3 million Membership Rewards points at 1.1cpp while paying only one annual fee for the Schwab Platinum Card. You would need to apply in December, similar to the method for triple dipping annual credits.
A value of 1.1 cents is decent, but not great. On the other hand, 0.8 cents per point is bad.
If you max out your redemption of 1 million points through Schwab, you can still get 1 cent per point with an Amex Business Checking account if you have an Amex Business Platinum Card.
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