After your intro bonus and normal spending, you will soon look at your account and see a plethora of points… but what do you do with them? Points vary in terms of what their monetary value is, however for this post lets focus on American Express Membership Rewards points which the “industry” typically values at 2 cents per point. These points can then be used as statement credits, booking travel through American Express Travel, transferred to partners, paying with points on certain websites, or redeeming for gift cards. Let’s dive into each of these options and discuss which ones I would avoid.
Statement Credits
Using your points to cover charges is the simplest option, but definitely not the most valuable. Redeeming points for statement credits only gets you 0.6 cents per point, which is far below the industry standard of 2 cents per point for Amex Membership Rewards.
Occasionally, Amex runs promotions where you can redeem at a much better rate—sometimes needing just half or even a quarter of the points usually required. If you catch one of these deals, it might be worth considering, but otherwise, this is not the best use of your points!
Booking Travel Through American Express
Using American Express Travel to book flights or hotels is another way to redeem your points, but in most cases, you’ll only get 1 cent per point—which isn’t exactly the best value. However, if you keep an eye out for “Insider Fares”, you might find discounted flight options that push your redemption rate above 2 cents per point, making this a much better deal!
Whenever I’m planning a trip, I always compare the costs in cash, miles, and points to see which method makes the most sense. One big thing to keep in mind—booking hotels through Amex Travel counts as a third-party booking (similar to using Travelocity or Priceline). That means if you have elite status with a hotel chain, like Hilton Honors Diamond from the Amex Hilton Aspire card, you probably won’t get your usual perks—things like free breakfast, suite upgrades, or late checkout. If those benefits matter to you, it’s better to book directly through the hotel instead!
Transferring To Partners
If you’re aiming for maximum value from your Amex points, transferring them to airline and hotel partners is your best bet. Partners like Marriott, Hilton, Delta, Etihad, and Emirates frequently offer solid redemption opportunities, and Amex often runs transfer bonuses—sometimes 40% extra points when sending them to Hilton or Marriott.
Want the biggest wins? The highest-value redemptions typically happen when booking bucket-list trips—think first-class flights to Bora Bora, Hawaii, or the Maldives. These transfers can yield 4 cents per point or more, crushing the standard 2 cents per point valuation!
The process is simple—just link your loyalty account to Amex and initiate the transfer. While they say it can take up to 24 hours, in my experience, it usually happens in minutes. If you’re looking to maximize your points, this is the way to go!
Paying With Points
Using your Amex points to pay at checkout on websites like Amazon, Dell, Best Buy, and Staples might seem convenient, but it’s not a great deal. You’ll only get 0.7 cents per point, which is far below the standard 2 cents per point value. That means you’re redeeming points at about one-third of their potential worth—not ideal!
Also, a quick heads-up—if you link your Amex card to Amazon, it automatically defaults to “Pay with Points.” Be sure to turn this setting off so you don’t accidentally burn points at a poor redemption rate!
Purchasing Gift Cards
Redeeming your Membership Rewards points for gift cards is an option, but the value isn’t always great. Depending on the retailer, you’ll typically get between 0.5 and 1 cent per point—with Amex-branded gift cards sitting at the lower end (0.5 cents per point) and most other retailers offering slightly better rates (up to 1 cent per point).
Strangely, some brands have different redemption values for no obvious reason—for example, Best Buy gift cards might go for 0.7 cents per point, while Apple gift cards could be 0.85 cents per point. These rates fluctuate based on promos and timing, but overall, this isn’t the best way to use your points unless you find a special deal.
Invest with Charles Schwab
A final unique way to use your points—invest them! If you’re not into splurging on travel or shopping, the Charles Schwab Amex Platinum offers a clever alternative. You can redeem your Membership Rewards points at a fixed rate of 1.1 cents per point (currently) and deposit them straight into your Charles Schwab brokerage account.
What’s even better? You’ll still earn points in the same way as the regular Amex Platinum, but instead of spending them, you can turn them into investments with the potential to grow. Now that’s putting your points to work!
Now for the fun part—do you have any exciting travel plans where you’ll be putting your points to good use? Leave a comment below!
The Points Authority: Mastering The Points Game 