helloworld
TF Legend
American Express® Gold Card
Annual Fee: 5310Would like to share some insights into American Express Gold Charge Card retention offers and how they affect your net rewards after considering the card’s annual fee. Many of us face a tough decision when the annual fee comes around, but understanding the available retention offers can help you make a more informed choice.
Normal reward rate:
| 18k/24k Collection | ||
|---|---|---|
| Welcome Gift (Spend 5k in 90days) | 4000 MR | - |
| Referral Benefit (Spend 5k in 90days) | 2000 MR | - |
| Regular Reward (Incl. Fuel and Utility) | 1 MR/50 | 0.33 - 0.58 (Amzn - Taj) |
| Milestone benefits (6 transactions of 1000 each in a calendar month) | 1000 MR | - |
| Spend 72000 in a year (6000x12) | ||
| Reward Rate | Regular 1x purchases (1440 MR + 12000 MR = 13440 MR) | 6.16% - 10.83% |
| Reward Multiplier 5x purchases (7200 MR + 12000 MR = 19200 MR) | 8.8% - 15.47% | |
| Net Reward Rate for 1st Year 1180 (JF) + 72000 (Spends) | 4000 MR + 2000 MR + (13440 MR to 19200 MR) | 8.76% - 19.97% |
Problem: Above returns drastically changes based on retention offer because there is no annual fee waiver based on spend amount in Gold charge.
- If the fee waived full, then above are your return rate on this card.
Note: If accumulation takes multiple years then multiple retention offers needs to be considered.
Here are a few sample retention offers I’ve come across (these may vary based on individual spending, card usage, and your association with AMEX):
- Pay Full Fee (5310) and get 10000 MR (Net Return*: 9.4% - 20.96%)
- You’ll pay the full annual fee, but the 10,000 MR points offer gives you a significant return, especially if you can redeem them for high-value rewards in the Gold collection.
- You’ll pay the full annual fee, but the 10,000 MR points offer gives you a significant return, especially if you can redeem them for high-value rewards in the Gold collection.
- Pay Half Fee (2655) (Net Return*: 7.34% - 17.42%)
- If you're offered the option to pay a reduced fee, your net return will depend on how much value you extract from the MR points. Even with half the fee, your rewards rate can still be strong.
- If you're offered the option to pay a reduced fee, your net return will depend on how much value you extract from the MR points. Even with half the fee, your rewards rate can still be strong.
- Full Fee Reversal on 1.5L spend in next 3M (Net Return*: 4.22% - 12.05%)
- This offer is great if you're planning on spending ₹1.5L or more in the next 3 months. Essentially, you’ll get the fee waived if you meet the spend requirement, which can result in significant savings and rewards.
How Are Net Rewards Calculated?:
The actual net reward rate you get from these retention offers depends on:- Your total spending (first year + second year spends)
- Retention offer value (MR points, partial fee waiver, or full fee waiver)
- MR redemption value (whether you redeem for low-value rewards or premium rewards)
Has anyone else received a similar or different retention offer for their AMEX Gold Charge card?
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