Avios vs Cashback credit card

dezza

I currently have a couple of credit cards, the TSB Avios giving 1 Avios point per £1 Amex spend, and a Co-Op Members card giving 0.5p per £1 spend.

I was wondering which is the better one to use for everyday spending. Having only recently getting the TSB one, is collecting Avios a good deal compared to the cashback?

Thanks.

Frugalsod

If you plan to spend in the UK then it does not represent a good deal. You will be charged 2% for loading it into pounds. Which is worse than most interest rates. If you were to load it into another currency then it is free. Watch out for the fees though.

http://www.multicurrencycashpassport.com/avios/how-does-it-work/fees-limits/

dezza

Is that how Amex works? I didn't see any loading fees on the paperwork for the account - or am I reading it wrong?

w211

Depends what you use the Avios for.

I recently went on a business class flight to Marseille from Heathrow which cost 36,000 Avios + £100 (for two people).

The fare would cost £1180 otherwise, which values the Avios points at 3p each otherwise.

Look at https://www.headforpoints.com to see how you can maximise the value of Avios points.

InsideInsurance

Avios typically are not good value for booking economy flights from the UK because of the taxes and fuel duty you still have to pay with the exception of the Reward Flights.

They are much better if flying from other countries or being used to upgrade your flights to business class etc.

Conservatively Avios are worth 0.75p each but as per the example above its possible to get a lot higher values from them.

If you are serious about collecting them though there are better cards out there than the TSB ones, the AmEx chargecards like the Gold Preferred one gives 1-3 MR points which convert 1:1 to Avios normally but there are often bonus transfer windows which have been known to go up to 1.5 per point. Add to that bonus signups and you can do well

dezza

Thanks for the replies, didn't realise there was such a variation in the value of points.
I'll have to check out the other Amex cards - seems that even the Lloyds Amex card offers better Avios than the TSB one.

giblet10

Don't ever spend Avios on Euro flights. Save up and use them for Business or First redemptions long haul - the tax:revenue ratio is much lower on these types of flights so makes your Avios points worth more. And let's face it, Euro Business Class on most airlines is simply !!!!! these days.

Club World on the other hand..

dezza

Thanks, from what I've heard short haul flights aren't a very good deal with Avios so I'll keep that in mind!
It is the goal to save up for a long haul flight one day, so the upgrade would be very welcome especially if it provides better value.

guesswho2000

dezza wrote: »

Thanks, from what I've heard short haul flights aren't a very good deal with Avios so I'll keep that in mind!
It is the goal to save up for a long haul flight one day, so the upgrade would be very welcome especially if it provides better value.

Short haul flights can actually be tremendous value with Avios, dependent on the cash price, as taxes (on BA/IB) flights are capped at RFS (£36 iirc) return.

They're also tremendous value by far on short but expensive flights on carriers which have a bit of a monopoly in their area, but basically no taxes (LAN in South America or Qantas in Australia - 4,500 avios one way and a few pounds in taxes, vs ~£200 for a return, no brainer!).

InsideInsurance

giblet10 wrote: »

Don't ever spend Avios on Euro flights.

The exception to that are the Reward flights that can represent good value as the fees are capped at £35 (or £70 if you want to use less miles etc) or if you are flying from a country with low/ no taxes/fuel charges

dezza wrote: »

Thanks, from what I've heard short haul flights aren't a very good deal with Avios

Thats not true, they are bad on short haul flights in countries/ airports with high taxes and fuel charges (eg the UK). Internal flights in the USA they are fantastic value, gone for under $10 return plus points many times.

dezza

Thanks for the replies
I guess it'd be a matter of checking routes/values at the time then - might be a long way off though.