Breaking Down AMEX Retention Offers: Are They Worth It?

[helloworld]

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.

Would 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.

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%

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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.

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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):

1. Pay Full Fee (5310) and get 10000 MR (Net Return*: 9.4% - 20.96%)
   1. 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.
2. Pay Half Fee (2655) (Net Return*: 7.34% - 17.42%)
   1. 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.
3. Full Fee Reversal on 1.5L spend in next 3M (Net Return*: 4.22% - 12.05%)
   1. 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.

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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)

Retention offers can significantly reduce the impact of the AMEX Gold Charge annual fee and, in some cases, give you a net positive return in terms of rewards. However, it’s important to consider your spending habits and the type of rewards you typically redeem.

Has anyone else received a similar or different retention offer for their AMEX card?

 

[sousnake]

If they just could bring the 20k spend milestone to Gold as well, I would close MRCC in a heartbeat to happily live with the fantastic combination of Plat Travel credit and Gold charge cards.

Yeah agreed. 4.5k fees for spending 6000 month that too 6 transaction seems too much. I settled for MRCC + Plat travel.
If I think this 6k benefit is same on both MRCC & Gold but MRCC has an additional milestone. Both have gold collection.
Yes gold has 5x RP but difference in fee is huge. Also no waiver criteria. Personally fells like MRCC is better.

 

[R@ndomiz€r]

This applies all AMEX cards, so leaving this option.





I don't know whether its correct or not, I'm thinking that 'Gold charge' doesn't have fixed credit limit to that user and vary month on month basis. So, asking us to spend 5L in a year, or put some limits to achieve milestone may not work for all users. 20K may work for most of them but not sure about 4L.

I can wish, kept fee around 2.5k and waive as per customer spends.

Ideally AMEX needs to find the right reward to fee ratio. Spending X amount should give Y tangible + intangible benefits. Currently, if you have 2-3 cards and one of them is Gold charge then as soon FYF is over it is going to be the first card you will cut loose from your collection. With current milestones and benefits, even a 1.5k fees sounds a lot considering you don't get anything except accelerated MR points.

Standard Chartered's Ultimate card comes with 6k fees and has host lot of a more benefits especially when someone wants them to redeem for vouchers and not hotel points. It's also a top tier card unlike Gold which is an entry level card

 

[helloworld]

Observed these offers in one of friends' card.

Spends: apprx. 90k (6x1000 every month + some extra)

1. Pay Full Fee (5310) and get 10000 MR (Net Return*: 9.4% - 20.96%)
2. Pay Half Fee (2655) (Net Return*: 7.34% - 17.42%)
3. Full Fee Reversal on 1L spend in next 3M (Net Return*: 4% ~ 10%)

 

[djaz]

Observed these offers in one of friends' card.

1. Pay Full Fee (5310) and get 10000 MR (Net Return*: 9.4% - 20.96%)
2. Pay Half Fee (2655) (Net Return*: 7.34% - 17.42%)
3. Full Fee Reversal on 1L spend in next 3M (Net Return*: 4% ~ 10%)

This is true, they are following the same last 2 years, before that i used to get full reversal of charges

 

[helloworld]

Those who completed 1 year with gold charge and successfully renewd with/without retention offer, could you confirm whether you got additional 5000 MR that are mentioned in website as part of "first year renewal" benefits or

If availed retention offer these points not credited?

TIA