Comparing Value in Rewards Points, When to Buy, Redeem, When to Just Use ING. What's Your Method?

neil on 13/08/2015 - 12:05
Last edited 13/08/2015 - 12:05

Just read this fantastic article by Pointhacks which breaks down the value of each reward point system. He goes into good examples of when to earn and when to redeem points.

I'll readily admit I'm a novice when it comes to rewards points. Trying to figure out the best bang for buck with a credit or debit card just makes my head hurt. Fortunately, I use my ING card for most purchases (well under $100) and that gets me 2% cashback. Pretty simple and no other card except for Me Bank on a 6 month basis beats that long term rate.

However, for every over $100, that's when things get tricky and there are a huge number of factors including where you want to redeem, where you generally shop or other features.

My rewards/cashback spending breakdown:

  • Less than $100 - Ing Direct (2% cashback)
  • Greater than $100 - ANZ AMEX Platinum (Rewards points-3pts per $1) (WW $100 GC = 22,225pts, $7,408 spend to reach $100 GC or 1.4% + annual fee)
  • Great than $100 - ANZ VISA Platinum (When the store doesn't take AMEX, 1pt per $1)
  • Overseas spending - Citibank Visa Debit (No reward, just no fees)

So what's yours?

Financial

Related Stores

Point Hacks
Point Hacks
Third-Party

Comments

  • tanoshiiki on 13/08/2015 - 12:27
    +1

    An Ozbargainer did a great forum post sometime in the last 12 months, comparing the redemption rates - sorry, I can't find the link. I think the main takeaway was that in most cases the ING 2% cashback was the best.

    This OzB wiki is also great https://www.ozbargain.com.au/wiki/credit_card_guide

    Mine:

    • Less than $100 - ING Direct (2% cashback), where PayPass accepted

    • Greater than $100 or if PayPass not accepted- Westpac Black AMEX, if accepted with no surcharge (3 points per $1), Westpac Black Mastercard (1 points per $1). I think 1 point is approximately 0.5%). I sort of get these cards for free as part of a home loan package.

    • Overseas spending - Citibank Visa Debit (No reward, just no fees) and 28 Degrees (Also no rewards and no fees)

  • c64 on 13/08/2015 - 12:58

    . > $100 you could also possibly use discounted gift cards

    • neil on 13/08/2015 - 13:00

      Yeah, that adds another complexity to the equation. Better to get rewarded in Woolworth gift cards or buy them at 5% off via Ent Card, Groupon etc?

    • Gotchas on 14/08/2015 - 15:33

      Or PayPass splitting

  • DealzEddy123 on 13/08/2015 - 13:10

    Mine:
    •
    Less than $100 - ING Direct (2% cashback), where PayPass accepted

    •
    Greater than $100 or if PayPass not accepted- AMEX Discovery Ultimate, if accepted with no surcharge (1 qff point per $1)

    •
    Overseas spending / AMEX surcharge - Qantas Bankwest Platinum ($160 annual fee, no foreign transaction fee, 0.75 qff per $1)

    • donbot on 13/08/2015 - 17:02

      What do you spend your QFF points on? I just had a look, the $ spend per $100 voucher for Bankwest Qantas Platinum card is terrible - $20,000 spend for $100 value (0.5%). The standard Bankwest More Platinum is $13,100 for $100 cashback (0.76%) and with a lower card fee ($130).

      If you redeem upgrades, this is irrelevant. Just thought I'd point it out as many dont bother with upgrades but rather cold hard cash (or next best thing)

      • DealzEddy123 on 13/08/2015 - 17:10

        peak period flights (but gotta book in advance) & upgrades

  • ajdlinux on 14/08/2015 - 23:23

    My ANZ Platinum Qantas cards get me 1.5 QFF pts/$ on Amex and 0.5 QFF pts/$ on Visa. I redeem exclusively on flights and upgrades, so I get a somewhat better redemption value than redeeming for Woolies cards and whatnot. I have an ING account on which I can get the 2% cashback, but when QFF points are redeemed well, that's inferior to the 1.5pts/$ Amex, and possibly even inferior to the 0.5pts/$ Visa, so I tend to just use the ANZ cards

  • sagax on 15/08/2015 - 21:40
    +1

    At the moment here's my decision tree (not all of it relates to rewards points)

    Less than $100 on ME Paypass 5% discount
    Woolworths group on gift cards purchased with 7.5% discount
    Greater than $100 on Amex Platinum Edge if there's no surcharge
    Greater than $100 on CitiBank Signature Rewards if there's an Amex Surcharge
    Any major purchase that is likely to drop in price on Coles Zero Fee Mastercard with Price Protection insurance.
    Any sort of other bill (Council, Electricity etc) that gets a surcharge for credit card gets Bpay from bank account.

Login or Join to leave a comment
Login Join