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MSE News: Amex overhauls popular Platinum cashback credit card

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MSE News: Amex overhauls popular Platinum cashback credit card

edited 30 November -1 at 1:00AM in Credit Cards
17 replies 4.9K views
MSE_GuyMSE_Guy MSE Staff
1.7K posts
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 30 November -1 at 1:00AM in Credit Cards
This is the discussion thread for the following MSE News Story:

"Amex has revamped its Platinum cashback card, meaning it may no longer be the top payer for the majority of users ..."
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Replies

  • catfleacatflea Forumite
    6.6K posts
    Interesting that no-one has commented so far...

    I've done a few sums and it seems that to benefit over a flat 1% card (ignoring the potential fluctuation of the 1 month at 2.5%) its nessecary to spend £7000 in the year - doesn't seem too bad to me. Given Amex's target market I think this could wind up being a very good product for them....
    Proud of who, and what, I am. :female::male:
    :cool:
  • BossworldBossworld Forumite
    291 posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    If you keep the pre-change card, do you still have to pay the £25 annual fee next year?

    Have had mine 2 months and already hit the £100 'jackpot' as it were so everything else is getting a couple of pence at 0.5%.

    But in terms of annual spending next year, I'm not sure I'd clear the £25 charge :/
  • catfleacatflea Forumite
    6.6K posts
    My understanding is that you have the option to switch if you want....
    Proud of who, and what, I am. :female::male:
    :cool:
  • earthloverearthlover Forumite
    154 posts
    Part of the Furniture Combo Breaker
    The new v old comparison table shows n/a for the annual fee for the new card, but in the quote below the financial advisor talks about a £25 annual fee.

    Am I being more stupid than usual today? Doesn't n/a normally mean not applicable, therefore there is no fee on the new card?
  • earthloverearthlover Forumite
    154 posts
    Part of the Furniture Combo Breaker
    To answer my own question, yes I am being more stupid::rotfl:

    Should read things twice in future before I post. Sorry!
  • Does the £25 fee apply to existing card holders?
    I've not been informed of one.

    I rarely use the card as hardly anywhere accepts it so if there's a fee I'll just cancel.
  • catfleacatflea Forumite
    6.6K posts
    See my previous post :p
    Proud of who, and what, I am. :female::male:
    :cool:
  • edited 18 August 2011 at 4:58PM
    beano-nibeano-ni Forumite
    4 posts
    edited 18 August 2011 at 4:58PM
    For anyone (like me) on the old scheme with the 0.5%, 1.0% and 1.5% tiers, I've created a spreadsheet* to help work out whether it's worth switching to the new card or if you're better on the old one.

    My theory is:
    • if you spend < £3.5k you're better on the old card because of the lack of fee
    • if you spend > £3.5k but < £12k you're better on the new card.
    • if you spend > £12k (and get the 1.5% top rate!) you're better on the old card

    The reason the old card wins out for high spend is because the extra 0.25% for spend above 7.5k eventually (at £12k) evens out and then wins out over the flat 1.25%.

    Any thoughts? I am not an accountant so may have missed something...

    Also worth noting the maximum benefit from the new card is £11.25 (if you spend exactly £7.5k/yr). If you manage to spend £18k, the old card is worth £15 more.

    * I was going to post a link to the spreadsheet but as a "new user" I'm not allowed... even though I've been registered and reading these forums for years.... try docs.google.com/spreadsheet/pub?hl=en_GB&hl=en_GB&key=0AvL1fstEhlK2dHF0WHJVSXlyVFBJekJEV0Uyd0RBLWc&single=true&gid=0&output=html
  • edited 18 August 2011 at 6:47PM
    catfleacatflea Forumite
    6.6K posts
    edited 18 August 2011 at 6:47PM
    Depends which version of the card you have.

    The most recent incarnation was

    Spend between £0 - £3500 was 0.5%
    Spend between £3501 - £7000 was 1%
    Spend over £7001 was 1.25%

    and the prior one which you mention is slightly different to the levels you have given.

    Spend between £0 - £3500 was 0.5%
    Spend between £3501 - £10000 was 1%
    Spend over £10001 was 1.5%

    ALL the old platinum cards have a forfeiture clause if less than £3000 is spent in the year.

    I don't have my cashback calculator tool to hand

    So on the more recent card.....

    Bottom Tier - upto £17.50
    Middle Tier - upto £35.00
    Top Tier - upto whatever

    So, assuming you hit £7000 dead on the most recent iteration you earn £42.50

    on the new card £7000 earns £82.50 - so knock the £25 off you get £57.50

    £6000 earns £75 so knock the £25 off and you get £50 so for many people the new card is a better one in terms of cashback

    There is no spend based forfeiture on the new card so £2000 spend will see you break even

    Dont forget though (and I've not included this in the above) on your anniversary month you get 2.5%

    I do hope that makes sense.......
    Proud of who, and what, I am. :female::male:
    :cool:
  • I've got the existing Amex Platinum (capped at 1.25%) and my spending level means it makes sense for me to move to the new card. Except it's not that easy!

    It's not possible to simply change your existing account's terms - you have to take out a whole new card. So I've applied and am now waiting.

    Secondly, if you cancel your existing card, you forfeit any cashback outstanding - so make sure you keep your existing card account open (and have spent enough) until your card anniversary (Amex can tell you when that is) and only cancel once you've got your money.

    The MSE article made it seem like it would be a bit easier than this I have to say...
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