Amex gives 6k worth Amazon voucher for 18k MR points.
Hence 1MR= 0.33 INR
Now Amex gives, 1K MR on 6,000 and 1K MR on 20,000 spend.
So, for cummulative spends of 20K-- you will get approx 2K MR.
Hence, for 20,000 spend you will get 2,000 MR- which will be equal to 660 INR.
For 20,000 spend-- 660 INR worth of rewards.
Return becomes- 3.3%.
And you have to accumulate 18,000 MR for any decent redemption option AND amex may just decide to devalue their MR points.
They devalued 16% in May 2024 (AFAIR) by giving notice of TWO days.
small adjustments:
for ₹ 20,000 spends: 1000 MR (4x1500) + 1000 MR (+20K Milestone) + 400 MR (1 MR/₹50)
1 MR = 0.33p (as of today and agree it may devalue any time if they like)
Net return: 3.96% (Note: somewhat Super premium cards like DCB, Infinia, EPM, Ultimate etc. gives rewards at 3.33%)
Btw, if we calculate 1.56L annual spends: Its 4.46% (somewhat Marquee reward rate)
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honestly I don't like amex very much. sure they are better than most when dealing with shady websites or CS is a bit better, but reward wise there are so many better cards.
Waiting year for 18K rewards is too much. 7% Inflation depreciation, 5% APay oppurtunity cost as it is not statement credit.
Many normal shops don't accept amex.
OFC some who earn using referral will bend backwards to justify. But this is my view.
True, regular reward wise not upto the competition and also acceptance is major issue. But, as you said useful for txns dispute, milestone benefits by making large spends.
Opportunity cost you can include but personally won't consider inflation for reward points. Its not the source of income but an alternative reward for our purchases. If we consider this one, IMO it will applicable for all reward cards (where accumulation takes time) along with cashback cards (where unnecessary spends might go next month because there is credit lying in that account).
with 10% opportunity cost, MRCC on 1.56L annual spends: 4.02%.
Still agree with acceptance and offers which are not that useful unless we go for taj or utilize their affiliated site.
Note for others: DYOR before applying amex, may not useful based on your location and spend pattern. A simple SBI CB card beats anyday for any regular spends. Apply only if needed and utilize effectively.
