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Breaking Down AMEX Retention Offers: Are They Worth It?

helloworld

TF Legend
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/500.33 - 0.58 (Amzn - Taj)
Milestone benefits (6 transactions of 1000 each in a calendar month)1000 MR-
Spend 72000 in a year (6000x12)
Reward RateRegular 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):

  1. 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.
  2. 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.
  3. 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, and reach faster milestone benefits for that card like platinum travel.

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?
 
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They had charged annual fee of 1500+GST on MRCC card; call today they offered oprion1: spend 30k and get full waiver & option 2: get flat 75% waiver and pay remaining fee. Took option2.
One doubt. Many have said that we need to contact them after the fee is charged. What happens if no retention benefit is offered? We still need to pay the fee right? Or we can refuse to pay the fee and close the card?
 
One doubt. Many have said that we need to contact them after the fee is charged. What happens if no retention benefit is offered? We still need to pay the fee right? Or we can refuse to pay the fee and close the card?
Yeah thats your take ,mostly people speaks with retention team if there is a chance of annual fees reduction and planned spends.
Suppose i spoke with them for my gold card they offered 1lakh spend with in 90 days for full refund ,I had some spends planned so i took it and spent, got refund full with gst too and previously for my amex reserve i asked to cancel directly instead of retention chances.
 
One doubt. Many have said that we need to contact them after the fee is charged. What happens if no retention benefit is offered? We still need to pay the fee right? Or we can refuse to pay the fee and close the card?

amex, sc, axis are few banks (maybe more) where if you do not perform additional spends in 13th or (+12 M) month, they you can safely close the card and get the fee paid back.
 
I called the support yesterday and got two options - 50% off of the fees or spend 1 lakh in 90 days to get full waiver on my gold charge. Has anyone tried the wallet to bank transfer on mobikwik, recently? I am seeing only 1121 covenience charges for 1 lakh wallet to bank transfer. So did they waiver off the fees for anyone with a wallet transaction?
 
I called the support yesterday and got two options - 50% off of the fees or spend 1 lakh in 90 days to get full waiver on my gold charge. Has anyone tried the wallet to bank transfer on mobikwik, recently? I am seeing only 1121 covenience charges for 1 lakh wallet to bank transfer. So did they waiver off the fees for anyone with a wallet transaction?

another note, if it makes you spend extra (which you do not have plan in the first), then thats not good option, IMO.

better take one of remaining two options.

but yes, that waive annual fee. but think again to save 5500, spending 3500 on mibikwik.
 
another note, if it makes you spend extra (which you do not have plan in the first), then thats not good option, IMO.

better take one of remaining two options.

but yes, that waive annual fee. but think again to save 5500, spending 3500 on mibikwik.
No no, I am seeing only Rs.1121 as convenience charges, somehow, for 1 lakh transaction on my account. That's why I am considering it. Otherwise, 50% waiver would have been a better option. Just wondering if there are any sort of limitations under this offer like wallet transactions, or if anybody on this forum has tried it recently.
 
No no, I am seeing only Rs.1121 as convenience charges, somehow, for 1 lakh transaction on my account. That's why I am considering it. Otherwise, 50% waiver would have been a better option. Just wondering if there are any sort of limitations under this offer like wallet transactions, or if anybody on this forum has tried it recently.
Isn't 1121 for debit cards, for credit cards I see 2920.5
 
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