Amex Preferred Rewards Gold Card

Mojo29

Hi all,

I've noted on the Credit Cards page that the American Express Preferred Rewards Gold is recommended http://www.moneysavingexpert.com/credit-cards/credit-card-special-offers and that it has no fees in the first year.

However on the website for Amex when you go to view the Ts & Cs for the Membership Rewards Points https://www.americanexpress.com/uk/content/membership-benefits/terms-and-conditions.html it says that ''There is a £20 + VAT annual fee for participation in the Membership Rewards Programme.''

Is this correct or is there really no fee at all for the first year? So I can basically collect the card and transfer all my Avios out in month 11, cancel the card and pay no fee at all?

reclusive46

Mojo29 wrote: »

Hi all,

I've noted on the Credit Cards page that the American Express Preferred Rewards Gold is recommended http://www.moneysavingexpert.com/credit-cards/credit-card-special-offers and that it has no fees in the first year.

However on the website for Amex when you go to view the Ts & Cs for the Membership Rewards Points https://www.americanexpress.com/uk/content/membership-benefits/terms-and-conditions.html it says that ''There is a £20 + VAT annual fee for participation in the Membership Rewards Programme.''

Is this correct or is there really no fee at all for the first year? So I can basically collect the card and transfer all my Avios out in month 11, cancel the card and pay no fee at all?

The membership rewards fee only applies on the basic card. There is no membership rewards fee on the Platinum, Gold or Green (Not on the new Green anyway).

[Deleted User]

I believe that the £20 fee is for individuals who have a Business/Corporate card. This fee allows them to collect MR points for personal use if permitted by their employer. I have the PR Gold and can confirm that there is no fee in the first year.

[Deleted User]

Mojo29 wrote: »

Is this correct or is there really no fee at all for the first year? So I can basically collect the card and transfer all my Avios out in month 11, cancel the card and pay no fee at all?

This is correct, however, rather than wait till month 11, it's worth transferring them when Amex has a conversion bonus to Avios, whenever that may be. There is generally at least once a year when you can get and extra 30-40% avios for you MR points.

If a 40% or even 50% conversion bonus comes along then it may even be worth purchasing extra MR points. This isn't commonly known but Amex allow you to purchase additional MR points at a rate of 1p/point. I value Avios at 1p each so obviously this isn't worth it unless a good conversion bonus comes along. Off the top of my head the most you can purchase in one year is 15k MR points but in the case of a 50% bonus, this could net you 22500 avios for £150. That's probably worth it, especially for short-haul economy flights within Europe using the Reward Flight Saver scheme.

Eduardo001

Lazyloki wrote: »

This is correct, however, rather than wait till month 11, it's worth transferring them when Amex has a conversion bonus to Avios, whenever that may be. There is generally at least once a year when you can get and extra 30-40% avios for you MR points.

If a 40% or even 50% conversion bonus comes along then it may even be worth purchasing extra MR points. This isn't commonly known but Amex allow you to purchase additional MR points at a rate of 1p/point. I value Avios at 1p each so obviously this isn't worth it unless a good conversion bonus comes along. Off the top of my head the most you can purchase in one year is 15k MR points but in the case of a 50% bonus, this could net you 22500 avios for £150. That's probably worth it, especially for short-haul economy flights within Europe using the Reward Flight Saver scheme.

That's a good tip thanks! Do they email if they are doing the conversion bonus promotion?

[Deleted User]

You may be targeted for the bonus, in which case you should receive an email. On the other hand you may not be targeted but still able to benefit from the bonus - call them and ask. Not everyone is always eligible for all promotions, it has to do with spend pattern I believe. If you spend a lot on travel (hotels/airfare etc) then you may be more likely to be targeted.