Category: Points

Warning: There’s a lot of math in today’s post, but don’t worry, it’s the easy kind that doesn’t cause my P2 to break out in hives.

  1. PenFed has a $750 new savings account bonus for depositing $50,000 by the end of the year and holding it through April 30, 2024. The account earns 3% APR, and the bonus is effectively another 6% 4.5 APR. Last I checked, 3%+6% 4.5 = a good savings rate for cash. (Thanks to DoC, and Anthony)
  2. The American Express Business Platinum card has heightened bonuses via referral, now up to 25,000 Membership Rewards for the referrer and 150,000 Membership Rewards for the referred.

    Obviously 150,000+25,000 is less than the current sporadic offer of 190,000 Membership Rewards, but the referral offer is much less likely to give a pop-up. (Thanks to Gasongasoff)
  3. Capital One Shopping has a targeted $50 or $75 referral bonus for both the referrer and referee available, for a total of $100 or $150 in bonuses. A couple of reminders:

    – You don’t have to have a Capital One account to use Capital One Shopping
    – After approximately $1,000 cash back you should switch to a new account

    So, I guess connect the dots on this one.
  4. Based on news headlines in the space, affiliate credit card bloggers evidently have new access to a new Alaska Airlines Visa 60,000 mile sign-up bonus. As a friendly reminder, VPN into Southern California and use a link that has an embedded Google referral for a 70,000 mile offer if you’re going for the card, and probably go for some business cards at the same time too.
  5. Citi has a new targeted offer by email for a $30 statement credit with $350 or more in hotel spend through December 20. Check your inbox for the subject: “[NAME], Activate your offer today and start earning now!”
  6. Qatar Avios has a 25% bonus for incoming bank point transfers through November 30. For most of us, bank points with Qatar as a transfer partner means Citi or American Express.

    Typically these bonuses post in a week, but the T&C gives them 45 days of wiggle room.

Happy Tuesday!

Ok, this one might actually be hive inducing, sorry.

News

Before we dive back into the time value of points, there are a few relevant and leading news items to discuss:

Not only does maximizing the value of your points require burning early and often, but it also necessitates hitting smaller products with outsized value harder than products with average value.

Revisiting the Time Value of Points

With those notes in mind, we can derive an equation for the time value of points. If it doesn’t render correctly in your email client, see the website here. (And yes, I’m sorry to put you all through this, but sometimes I can’t won’t help myself):

FV = PV \times (1 + r - (q \times d) + i)^n \times (1 - p)

Where:

FV = future value
PV = present value
r = any promotional increase of value in a given period
q = the probability of a devaluation in a given period
d = the rate of devaluation in a program in a period
i = interest on points earned in a period (there is a program that does this)
n = the period (time)
p = the probability a program shutting down and wiping out all value

(Thanks to Jon for noting that the original version of this post lacked a definition for i)

The Point?

Is this formula useful? Sort of. It’d be more useful if someone would write a quick calculator web site. Do I actually expect anyone to use this formula? No, not really for anything other than mental gymnastics.

Points and miles still devalue, and sometimes they devalue a lot. Don’t forget that the second part of this site is titled “And Burn”.

Pictured, left to right: MEAB with glasses; The entire churning community after this post.

Financial goons will be quick to tell you about the time value of money, which is a basic concept in economic theory that says money is worth more now than it is in the future, in part because:

  • You can earn interest immediately on money you have now
  • Thanks to modern monetary policy, inflation will always eat away at money’s value
  • Opportunity cost (which is sometimes added directly into either or both of the above)

The same concept applies to points and miles, but the factors aren’t quite the same. In the case of points and miles, they’re worth more now than the future because:

  • Devaluations happen
  • The redemption value of points is often tied to the cost of tickets (inflation bites here too)
  • Currencies get washed away
  • Miles and points don’t earn interest

What’s the takeaway? Burn those points as soon as practicable. Can you come up with a formula to describe this, asked no one? Yes we can, but no, I’m not going to do that today.

Have a nice weekend friends!

Yes, it’s time for the quarterly MEAB math nerd joke. Sorry, not sorry.

Apparently today I chose chaos by barking out orders at you like a 70s business man in a plaid suit with his feet on the desk and a cigar hanging out of his mouth. Sorry I guess?

  1. Do this now: Register for your targeted Q4 United MilePlay promotion. I got “book and take a premium seat one time by December 15 to get 5,000 bonus miles”, and the fine print says minimum $450 in base fare.
  2. Do this now: Manufacture Spend on all of your Bank of America cards today, up to $2,500 per card. You’ll earn your regular rewards +2% on cash back cards, and +2x on points earning cards.

    Note: There’s some debate about whether multiple cards for the same company are each eligible for $2,500 in spend. My opinion is that you’re eligible for $2,500 per main card account, regardless of the associated business.
  3. Do this never: Bilt points can now be transferred to Marriott at a 1:1 ratio, or for masochists that hate value, a 20,000:25,000 ratio in exactly 20,000 point increments. Frankly this is almost worse than redeeming Bilt points directly for a statement credit. If you’d like 100 bonus Bilt Points as a consolation prize for having to read this news, you can link your Marriott Bonvoy account to Bilt and you’ll get ’em.

Happy Thursday!

MEAB’s Thursday demeanor.

  1. Staples has fee-free $200 Mastercards through Saturday, limit eight per transaction. As usual:

    – Don’t forget about the American Express Business Gold monthly $20 office supply credit
    – Try for multiple transactions back-to-back

    These are Pathward gift cards, and liquidation plays at major retailers often have a throttle of $480 every six minutes.
  2. There’s a new, targeted no-lifetime language American Express Blue Business Plus offer for 75,000 Membership Rewards after $15,000 spend in 12 months. It’s likely that you’ll also be targeted for 99 employee card bonuses after a couple of months too, so you can double dip spend bonuses.

    This is a credit card, and the limit of credit cards per social security number at American Express is either five or six, depending on, I dunno, I guess the color of the shirt you were wearing in your 5th grade glass photo.
  3. Meijer MPerks has $10 off of $150 or more in Visa gift card purchases through Saturday. This version requires that you clip the coupon in your MPerks account, and it can’t be clipped more than once in the same account. I wonder if it’s possible to create multiple MPerks accounts through some sort of internet sorcery? I guess we’ll never know.

    Meijer sells both Pathward and Sunrise gift cards. (Thanks to GCG)
  4. American Express offers has a targeted $100 off of $400 or more at Hyatt properties in Mexico, Costa Rica, and South America through January 31, 2024. Perhaps it’s time to re-read Breaking the Correlation because reasons.
  5. Citi ThankYou Points has a transfer bonus to Accor Hotels through November 30, which makes each ThankYou Point worth approximately 1.6 cents each depending on the USDEUR exchange rate.

    Accor Hotels are typically passed over in the points community, but I’ve had nothing but great experiences with Accor all over Europe.

Happy Monday!

All I can say is say for sure is that purple means six credit card slots and flannel means future Accor elite. I don’t make the rules.

You know how most of you get an extra hour this weekend? Well, there’s plenty to fill it:

  1. Capital One has an interesting bank bonus for a high-yield savings account:

    – $20,000: $300 bonus
    – $50,000: $750 bonus
    – $100,000: $1,500 bonus

    You must fund the account within 15 days, and hold it for 105 days after. The APR is currently 4.30% so the opportunity cost of holding funds is much lower than most recent bank bonuses.
  2. AirFrance and KLM’s FlyingBlue has released discounted promo award cities for travel through April 30, 2024 booked by this month. New York, Los Angeles, Miami, Seattle, Dallas, San Jose, and Raleigh/Durham are this month’s US cities included in the promotion.
  3. The Gift Card Shop has 100% off of purchase fees for custom designed Visa gift cards through November 8 with code CUSTOMHOLIDAY23.

    These are InComm gift cards. (Thanks to SideShowBob233)
  4. MasterCardGiftCard.com has 50% off of purchase fees for orders over $150 through November 16 with code SHOPEARLY2023.

    These are InComm gift cards; is there an echo in here? (Thanks to SideShowBob233)
  5. Citi ThankYou Points has a couple of has transfer bonuses:

    – 25% to Avianca LifeMiles through tomorrow night
    – 30% to Qatar Avios through November 10, posted by Qatar within 45 days

    Both of these programs have sweet spots, google is your friend for some of them.
  6. The major airline shopping portals have new holiday spend bonuses:

    – AA: 4,000 miles with $1,600 in spend through November 17
    – Alaska: 1,500 miles with $650 in spend through November 17
    – Delta 2,000 miles with $1,000 in spend through November 17
    – Southwest: 4,000 points with $1,000 in spend through November 22
    – United: 5,000 miles with $1,200 in spend through November 20

    It’s possible to hit all of these bonuses with giftcards.com assuming that you have a good liquidation channel.
  7. Kroger.com has 5% off of physical Visa and Mastercard gift cards ordered online through November 15 using promo code FALLFRENZY23.

    These are US Bank gifts, the purchase won’t code as grocery, and will earn fuel points. (Thanks to GCG)
  8. Citi has been sending personal and business AA card holders offers for additional bonus miles for making at least one purchase in the next three billing periods:

    – 500 miles for the first statement
    – 1,000 miles for the second statement
    – 1,500 miles for the third statement
    – 2,000 miles in addition to the above for all three statements

    (Thanks to Justmeha and MVC)
  9. American Express has increased its business checking account sign-up bonus to 50,000 Membership Rewards, or $550 with the Schwab Platinum cash out. To be eligible, you’ll need to open an account by December 12 and:

    – Deposit $5,000 within 30 days
    – Maintain at least a $5,000 balance for the following 60 days
    – Make five transactions within the first 60 days

    ACHs and debit card activity both count as qualifying transactions. (Thanks to DoC)

Have a nice daylight savings weekend! (Unless you’re in Arizona, then, well, good luck.)

How daylight savings was invented, except for zonies.

You’ve probably figured out by now that I typically do two types of posts: First a deal and shenanigan recap post, and second, a philosophy and wisdom type of post. Sometimes it can be a bit slow for the first type when there’s not much is going on, but that’s definitely not the case today though. Buckle up!

  1. Do this now: Check for a targeted 5,000 – 7,000 Ultimate Rewards bonus for booking a hotel and flight of over $105 through the Ultimate Rewards travel portal. In theory this is limited to Ultimate Rewards earning or transferrable cards. (Thanks to DansDeals)
  2. Southwest has retooled its elite status program to be more generous, following in JetBlue’s footsteps, and running squarely against Delta’s footsteps (Side note, with airlines is footsteps the wrong analogy? Maybe it should be skid marks, contrails, jetways, speed-tape, or gremlins?) The changes:

    – You can book with a combination of cash and points
    – Credit card Tier Qualifying Points (TQP) bonus spend requirements are cut in half
    – A-List Preferred status members will get two free drunks drinks per flight segment starting November 6
    – Segment requirements for A-List and A-List Preferred statuses have dropped to 20, and 40, respectively)

    They still haven’t brought back the lounge seats though. (Thanks to Southwest king-pin Brian M)
  3. The Citi AA Advantage Business Select card has a 75,000 mile sign-up bonus for $6,000 spend in six months, and the annual fee is waived for the first year. This is effectively the best deal we’ve ever seen for this card, and it’s been years since we’ve heard from Toby.

    Note that there’s also a $100 targeted referral bonus from Citi. (Thanks to DDG)
  4. Citi ThankYou Points has a 25% transfer bonus to Avianca LifeMiles through November 4. A few sweet spots:

    – US to and from Africa in economy
    – United short haul US economy and business class
    – Mispriced awards to and from Europe from multiple Eastern US cities

    There are other great values in this program too, always be probing.
  5. American Express has new card linked offers:

    – $15 off of $150 at Home Depot (they sell gift cards)
    – 5x on Amazon purchases
    – $40 off of $200 or more with Frontier Airlines
    – $75 off of $300 or more with Delta Air Lines
    – $150 off of $750 or more at Four Seasons resorts
    – $150 off of $750 or more at Hiltons in Mexico

    Gamers gonna game. (Thanks to Rich)
  6. Citi has added “Leading Hotels of the World” as a transfer partner for ThankYou Points. The transfer ratio is 1:5 but redemptions require a relatively low number of points, so for back-of-the-envelope math just assume that you’re going to get 1.6 cents per ThankYou point.

    You can find a list of properties here.

Have a nice Tuesday friends!

Today’s post as a Disney attraction. Just like the Disney version, you end up in hell.

  1. Do this now: Register for IHG’s Q4 promotion for 2,000 bonus points every two nights through the end of the year.
  2. The Citi Shop Your Way Rewards Mastercard, the SLS of credit cards and an original Unsung Hero, seemingly has made the 15th of every month its online spend targeted offer day. And given that [checks notes] the 15th was yesterday, we have new offers for cumulative online spend through November 14:

    – 250,000 Shop Your Way Rewards points on $800
    – 200,000 Shop Your Way Rewards points on $800
    – $80 statement credit on $800
    – $50 statement credit on $750
    – $30 statement credit $400

    These offers stack with existing offers. Also, fun fact: This card used to be the Sears credit card and I’m eternally jealous of anyone that has one that still carries Sears branding. Instead, I just have to be happy with having the second most ridiculously branded card, Buick. (Thanks to Gasongasoff, David 99, birt, and Brandon)
  3. Meijer has a promotion for 50,000 Meijer points with $500 spend, limit one per account. Amazon gift cards are excluded, but other popular bulk brands like BestBuy, Home Depot, and Apple aren’t.

    Gift card resale rates for most of these brands is currently hovering around 93%.
  4. Chase has a 25% transfer bonus from Ultimate Rewards to AirFrace/KLM FlyingBlue miles through November 30. Sweet spots:

    – Delta domestic short haul in economy
    – US to and from Europe in business class
    – Europe short haul in any class
    – Promo awards

    You can also book international first class on China Eastern, but that puts you closer to the cockpit where there’s still a decent chance that you’ll smell cigarette smoke cause China Eastern., but it’s less prevalent than pre-COVID. (Thanks to DoC)
  5. Safeway’s Just4U rewards program lets Alaska residents redeem for Alaska Airlines miles under the right conditions, and through tomorrow those redemptions are at triple their regular redemption rate.

Happy Monday!

Just like the Citi Sears card, the Sears branded rocket is the best branded rocket. It’s science.