AMEX is increasing point values on statement credits by 42%
With travel on hold for the indefinite future, many points collectors face the following dilemma: wait to redeem until travel is back on the agenda, or cash in now for gift cards or statement credits and get slightly less value out of each point.
For cardholders of American Express travel credit cards – like the American Express Cobalt – that decision has just become a whole lot easier.
Until September 30, 2020, American Express is increasing the value of American Express Membership Rewards points when redeeming for statement credits by 42%.
The temporary increase means you’ll now get more value when using AMEX Membership Rewards points to pay down your card’s balance, as follows:
Points values for statement credits
Normally:
- 1,000 Membership Rewards Points = $7 in Statement Credits
- 1 point = 0.7%
Until September 30, 2020:
- 1,000 Membership Rewards Points = $10 in Statement Credits
- 1 point = 1%
Relevant cards:
- American Express Cobaltand American Express Gold Rewards Card
That’s a solid return on points you could previously only get on travel redemptions like flights and hotel stays. It also effectively turns some of the best travel credit cards in Canada – the AMEX Cobalt Cardand AMEX Gold Rewards Card – into cash back credit cards for the next five months.
In our opinion, these changes are particularly exciting when looking at the American Express Cobalt. The Cobalt earns 5 points per dollar on groceries and restaurants (including delivery services), which now essentially works out to 5% in statement credits – an earn rate no other cash back card can beat when not factoring in welcome offers. Plus, they're now also offering 3x the points on eligible streaming subscriptions in Canada and the ability to transfer points 1:1 to several frequent flyer and other loyalty programs.
Best for Groceries & dining
based on spending $2,200/mo after $156 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
15,000 bonus points (a $150 value)
- Annual fee
$156
Perks
- Ratehub.ca’s 2023 Award Winner – Best Rewards Credit Card
- In your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in net purchases on your Card. This could add up to 15,000 points in a year. That’s up to $150 towards a weekend getaway or concert tickets
- Earn 5x the points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.
- Earn 3X the points on eligible streaming subscriptions in Canada
- Earn 2X the points on eligible ride shares, transit & gas in Canada
- Earn 1 additional point on eligible hotel and car rental bookings via American Express Travel Online
- Earn 1X point for every $1 in Card purchases everywhere else
- Enjoy access to hotel bookings, a room upgrade (when available), 12pm check-in and late check-out (when available), and up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel
- Transfer points 1:1 to several frequent flyer and other loyalty programs
- Cobalt Cardmembers receive regular Perks such as bonus reward offers and access to great events
- Access Front Of The Line® Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with American Express® Experiences
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment
Features
Ratehub’s take
The American Express Cobalt is one of Canada’s best travel credit cards. If you’re looking for a versatile credit card that rewards both everyday spending and travel, the American Express Cobalt is an ideal choice. Cardholders can enjoy strong travel insurance, a generous welcome offer, and flexible point redemption options.
Pros
- Exceptional point earning: 5x the points on eligible restaurant and food delivery, 3x the points on eligible streaming services, 2x the points on travel and daily transit. The earning potential for restaurants and takeout is significantly higher than most other cards
- Flexible point redemption: Travelers can choose from three ways to use their points: points 1:1 to several valuable loyalty programs including Aeroplan, use the Fixed Points Program to simplify redemptions regardless of travel dates, or use points for statement credits at a rate of 1 point = 1 cent. Or, redeem Membership Rewards for travel, gift cards, merchandise, or purchases
- Exclusive access: Enjoy privileges such as Front of the Line Presale and Reserved tickets to concerts, theatre performances, movie screenings, culinary events, and other special offers
- Comprehensive travel insurance: Benefit from a strong travel insurance package, including up to $5,000,000 in travel emergency medical
- No additional fee for authorized users: Add authorized users for no extra cost (an average fee of $30-50 on other comparable cards)
Cons
- Monthly fee: A monthly fee of $12.99 (totalling an annual fee of $156, which is higher than most other rewards cards)
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Travel insurance age limitations: The travel insurance package does not cover trip cancellation or medical coverage for cardholders over the age of 65
- Lack of airport lounge access: Frequent travellers may be disappointed as this card does not offer access to airport lounges
Eligibility requirements
Minimum credit score: 725
Minimum income: N/A
Interest rates
Purchase interest: 21.99%
Cash advance: 21.99%
Balance transfer: 21.99%
It’s also worth noting that if you do choose to hold on to your points until booking travel is an option again, you could still reap more value from points on travel by strategically using AMEX’s Fixed Points redemption chart or transferring points to other loyalty programs. But if you want to keep things simple, avoid thinking about redemption tables, and save now, this new change is by far the best way to go.
Statement credits for other major rewards programs
Do you not collect AMEX Membership Rewards points? Wondering how your credit card points program compares? Here’s a breakdown of point values for some of Canada’s major rewards programs:
Rewards programs adapting to COVID-19
These moves by American Express are a positive sign that rewards credit cards issuers are making adjustments during these unprecedented times. And, while American Express has made the most impactful change, they haven’t been alone. Aeroplan recently announced changes that makes it easier for members to achieve elite Air Canada Altitude status while Scotiabank held off on a modification to the Scotia Rewards Program planned for May that would slightly lower the value of points on certain non-travel redemptions like statement credits and gift cards.
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