Need Suggestion on Amex Plat Travel Retention Options

[Lucifer311]

My Amex Plat Travel is due for renewal next month, called customer care to close the card because I don't want to pay the renewal fee of 5000+GST.
They offered 3 options as below to retain my card account-

1. They will reduce the fee by 50 %, i need to pay 2500+GST for renew
2. They will waive the renewal fee after deducting 10000 MR points
3. I need to spend 1.5L in next 90 days & they will revert the fees i paid along with GST. I will be getting regular rewards & milestone benefit as well on that spend.

The last option I feel is better, but need suggestion from you guys.

 

[sourpai]

You are loosing 4k and gaining nothing. Its the worst option. Might as well take half fees and loose 2950.


Best option is second one only. If you consider buying 10k MR for 4k, you're loosing 1900 only.

You are saving cash outflow of 5900 of annual fees by giving away 10K MR. That is the saving I am talking about

So 5900 saved - 4000 spent = 1900 profit

 

[helloworld]

Option 3 is the best option....

Save 5900 by paying 10K MR. And later on again buy 10K MR by paying 4K. Net gain of 1.9K

You are loosing 4k and gaining nothing. Its the worst option. Might as well take half fees and loose 2950.


Best option is second one only. If you consider buying 10k MR for 4k, you're loosing 1900 only.

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 only 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 eligible for next year milestone benefits especially cards like platinum travel.

. : )

 

[drsel]

Option 3 is the best option....

Save 5900 by paying 10K MR. And later on again buy 10K MR by paying 4K. Net gain of 1.9K

There is no gain to be made.
it will only reduce the expense from 5000 to 4000

 

[sourpai]

There is no gain to be made.
it will only reduce the expense from 5000 to 4000

Yes you are right. I only suggested 4k option if someone does not want to let go 10K MR. Otherwise, I will prefer saving of cash outflow (5900) by giving away 10K MR

 

[ujjwal2024]

Basic assumption is that the points are worth 50 paisa.
I changed the word "loss" to "expense", which is more appropriate

1) 2950 expense at 50% fee
2) 900 expense, because you will spend Rs.5900 and get 10000 points worth 5000 (@50p)
3) 5000 expense, because you will spend 10000 points, which are worth Rs.5000 (@50p) and get nothing back in the form of cash or points

If you calculate as per cash equivalent
1) Rs. 2950 expense incash
2) Rs. 3400 expense in cash ( as cash value or statement credit of 10000 point is rs 2500. 5900-2500=3400)
3) Rs. 2500 expense in cash ( as you are giving away 10000 point worth rs. 2500 cash value or statement credit)
It all depends on what you value more and what is your uses (Statement credit, Amazon voucher, Taj , these three have fixed rate and lastly Marriott with varying redemption rate)
Calculations should be different for different people

 

[drsel]

It all depends on your valuation of American Express points, whether 33, 40 or 50 paisa.
I would not consider less than 33 Paisa because 24000 points gets 8000 Amazon pay, which is quasi-cash.

You can apply your valuation to my answer (50p value) and then calculate which is the best option.