All information about the American Express Schwab Platinum card has been collected independently by Miles to Memories.
Amex Schwab Platinum Devaluation
We recently heard about an upcoming devaluation of the Amex Schwab Platinum’s Invest with Rewards benefit. Long story short, effective 1 October, a Schwab Platinum primary cardholder can redeem up to one million Membership Rewards points at 1.1 cents per point (cpp), and the rate decreases to 0.8 cpp thereafter. This resets again on 1 January 2025 and continues annually. This change has significant implications for many cash back fans in our hobby, a group where I proudly belong. I’m currently thinking about the nuances, AKA the shades of gray or maybe platinum (hey, it’s Amex), with this development.
Things Change
It seems like yesterday that Invest with Rewards redemptions decreased from 1.25 to 1.1 cpp. In reality, that change took effect on 1 September 2021, a little under three years ago. The newest terms will be implemented exactly 37 months to the day of the previous devaluation.
In October, cashouts over one million points will be worth approximately 27.3% less than earlier in the year. Those same cashouts will be worth 36% less when compared to the pre-September 2021 1.25 cpp rate. Undoubtedly, cashing out above one million MR’s annually per primary cardholder has taken a substantial hit when compared to previous rates.
We Have Time
Perhaps the easiest way of describing this Amex Schwab Platinum devaluation is, “it could’ve been worse.” It’s also remarkably lazy of me to say such a thing, as it theoretically applies to any devaluation. Nonetheless, here’s how it matters now.
Fans of Amex’s rewards currency, regardless of their redemption preferences up to this point, have plenty of time to revalidate their optimal strategies. Those who have never considered cashing out can pick up a new Schwab Platinum; so can casual cashout fans who’ve dropped the Schwab in the past. Individuals can reevaluate their demand schedule for Membership Rewards redemptions related to travel, making adjustments to take advantage of the 1.1 cent per point prior to October. Similarly, a great many of us can pursue new card welcome offers to fill up buckets of MR’s and promptly cash out.
I’ll Appreciate the Dilemma
Once we get to 1 October, the MR balances for my wife and I will be as close to zero as possible (they pretty much always are – more on that below). But from October 2024 onward, we’ll each appreciate the dilemma of how to redeem MR’s beyond our collective two million point threshhold.
My wife and I try to remain grateful for whatever we can accomplish in our captivating points and travel hobby. That’s been especially key with more years and higher volumes. The dilemma of cashing out at 0.8 cents per point is something we’ll happily accept, because that means we’ve earned over two million Membership Rewards points in one calendar year. That may be fairly small to some, but it’s still within our “ain’t bad” range.
Put another way, it’s about scale. Amex continues to offer hobbyists many ways to earn large amounts of Membership Rewards points. It’s relatively tougher to earn similar amounts of Chase Ultimate Rewards or Citi ThankYou points in a similar timeframe.
I Don’t Suddenly Need Transfer Partners More on 1 Oct
Again, we’re fans of cashing out points, and we unflinchingly continue doing so at 1.1 cents per point with Membership Rewards. We do so whenever our accounts hit 1k points (the smallest cashout denomination), and we’ve never redeemed Membership Rewards for anything else.
We’ve never needed any of Amex’s travel loyalty program transfer partners. Will my wife or I magically require any of them on 1 October? Absolutely not. The value of cashing out compared to what those same points can get an individual will change for many people, but not us. We have healthy balances in travel loyalty programs for our modest (at most) travel goals, so moving MR’s has made zero sense. And our travel habits aren’t suddenly changing because of this devaluation. I don’t think my wife and I are alone here.
Come 1 October, maybe some will make tweaks that maximize their mixed redemption methods. But essentially, in our situation, that would mean saying, “We need to travel more because the cashout rate went down.” How comical!
A Case For Yes, And
How we digest these changes will also continue to be about our capacity to spend. Presuming we meet the annual two million Membership Rewards threshold, will taking on more Amex spend mean we’re losing attractive opportunities with other banks? With the right spend capacity, we can do both! Yes, and.
The true impact of this devaluation is if we end up in an either/or situation. It would primarily hit us if we turned down Amex spend (because it only earned 0.8 cents per point) in order to pursue superior alternatives. This is a function of rewards opportunities from other banks and also spend capacity, both which can vary from year to year. And, again, if or when we’re in these dilemmas, it’ll probably mean things are going more positively than negatively. As Marlo said, “sounds like one of them good problems.”
Cashing Out Will Continue
Obviously, we’ll continue cashing out MR’s before we hit the two million collective threshold for two-player mode. And as long as current options continue, I’m fairly confident we’ll do so at 0.8 cents per point. It’s no different from the previous devaluation, in my view, despite the more significant cpp decrease of this latest one.
Amex Schwab Platinum Devaluation – Conclusion
Perhaps the more intriguing subplot is whether 1 cpp cashout rates via Business Platinum/Checking and Morgan Stanley Platinum will remain. I’m a skeptic. In my view, Amex just hasn’t gotten around to changing those terms after the Schwab changes. I’d love to be wrong, though!
With this Amex Schwab Platinum devaluation, I thought of the adage, “the more things change, the more they stay the same.” In this instance, it probably applies more than anything else does for my situation. What’s your take on this change? How does it change your strategy, if at all?
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It’s all the referral links that get clicked that allows for 2m MRs.
It is sad you cash out MR points for 1.1 cent. What a waste! I redeem for Emirates and Singapore Airlines business class tickets and routinely get 5-8 cent a point in value. Never can imagine needing money enough to cash out points for it. Guess that is a difference in your idea of financial independence and mine (as a retired senior executive of 4 different national companies).
Benjy said he has healthy point balances across various airline programs and doesn’t need to transfer points. Perhaps Benjy has so many points in airline programs that he will never spend all of them. (I’m similarly situated.) So, what’s the purpose of transferring even more points that would ultimately go unused? Those newly transferred points would ultimately realize zero value. It seems that you can’t see what another person’s circumstances are. So, maybe the question is how the (stink) a retired senior executive is not similarly positioned. Sounds like Benjy’s the smart one and you missed the boat.
Separately, a person with a healthy self-image doesn’t need to tout oneself. I wish you the best with that.
I… what? How on earth are you getting > 2M MRs annually? I know people were doing the “99 authorized users” thing but I believe Amex shut that down several months ago. Is it just a bunch of SUBs via the BBT? I’ve paid for your Patreon ever since it launched, btw, so if there’s an episode of that you can point me to for info, I’d be curious/grateful. Thanks.
And “Amex continues to offer hobbyists many ways to earn large amounts of Membership Rewards points.” should be explained in detail.
Some methods are best not discussed in public forums. Card issuers read the blogs.