ChatGPT's take on CC retention offers

[bonheur]

Amex retention offers are a hot topic on this forum. One recent example is this thread and this one where members share and discuss what's the best offer to pick among the ones being offered on the Amex Platinum Travel card.

I put this problem to the latest model of ChatGPT (o1-mini) released earlier this week. The following conversation is the result:

https://chatgpt.com/share/66e570fd-1888-800d-b15c-bcbd0fc44fa2

Its recommendations vary depending on whether you're accounting for the potential Marriott 30% bonus points offer as well as the Amex offer to buy additional MR points. The response in one case also offers the following note of caution, just like any responsible forum member would say:

Always ensure that the additional spending required in Option 4 aligns with your financial plans to maximize benefits without incurring unnecessary debt.

I urge you to go through all the steps of reasoning to see how far we have come with gen AI.

 

[sodapop]

Hey, the link isn't working, can you please copy paste the solution ?

 

[bonheur]

Hey, the link isn't working, can you please copy paste the solution ?

Oh yes, in fact I went on to have much longer and more complex chats. The results continue to be mind blowing. Full chat here - https://chatgpt.com/share/66e570fd-1888-800d-b15c-bcbd0fc44fa2.

 

[bonheur]

In a nutshell, ChatGPT concluded with the following:

Option	Description	Annual Fee Paid (₹)	Cost of Points Purchase (₹)	Total Spend (₹)	Total Rewards (₹)	Net Benefit (₹)	Rate of Return (%)
1	50% Waiver on Annual Fee	2,950	0	402,950	34,000	31,050	8.44
1a	50% Waiver + Purchase 10,000 Points	2,950	4,000	406,950	39,000	32,050	9.58
2	Waive Fee by Deducting 10,000 Points	0	0	400,000	29,000	29,000	7.25
2a	Purchase 10,000 Points + Waive Fee	0	4,000	404,000	34,000	30,000	8.42
3	Pay Full Fee + Receive 10,000 Bonus Points	5,900	0	405,900	39,000	33,100	9.61
3a	Pay Full Fee + Receive 10,000 Bonus Points + Purchase 10,000 Points	5,900	4,000	409,900	44,000	34,100	10.75
4	Spend ₹150,000 to Waive Fee	0	0	400,000	34,000	34,000	8.50
4a	Spend ₹150,000 to Waive Fee + Purchase 10,000 Points	0	4,000	404,000	39,000	35,000	9.66

Optimal Strategies Based on Rate of Return and Minimal Necessary Spending:​

1. Primary Recommendation: Option 4a
   
   • Why?
     • High Rate of Return: 9.66%.
     • Highest Net Benefit: ₹35,000.
     • Minimal Additional Cost: Only purchasing 10,000 points for ₹4,000.
     • Aligns with Annual Spend: The ₹150,000 spent to waive the fee is part of your normal ₹400,000 annual spend.
2. Alternative Recommendation: Option 3a
   
   • Why?
     • Highest Rate of Return: 10.75%.
     • High Net Benefit: ₹34,100.
     • Requires Paying Full Fee: ₹5,900 plus purchasing points.
     • Additional Cost: ₹4,000 for purchasing points.
3. Secondary Recommendation: Option 3
   
   • Why?
     • High Rate of Return: 9.61%.
     • Substantial Net Benefit: ₹33,100.
     • Requires Paying Full Fee: ₹5,900.
     • No Additional Points Purchase Needed.