Amex Annual Fee Hikes

WillPS

https://www.headforpoints.com/2023/10/11/american-express-to-sharply-raise-annual-fees/

• The American Express Preferred Rewards Gold card increases from £160 to £195 per year (the first year remains free)

• The Platinum Card increases from £575 to £650 per year

• The Harrods American Express Card increases from £150 to £195 per year

• The Nectar Credit Card increases from £25 to £30 per year (the first year remains free)

• The Marriott Bonvoy Credit Card increases from £75 to £95 per year

Platinum Cashback remains £25, Platinum Cashback Everyday remains free (although normally a poor choice) and so does The Rewards Credit Card (my recommendation for lower spenders).

The point at which a Nectar Amex makes sense after Y1 is now £9000 spent annually; anyone spending less is better off taking the Rewards Credit Card, converting to Avios, then converting to Nectar.

Jami74

WillPS said:

The point at which a Nectar Amex makes sense after Y1 is now £9000 spent annually; anyone spending less is better off taking the Rewards Credit Card, converting to Avios, then converting to Nectar.

I have the Nectar Amex card. Would you mind explaining your maths around the £9000 spent annually please? I get between £5 and £10 worth of nectar points on a normal month using it so even with a £30 fee I am making a profit. (Plus I pay it off with my Halifax rewards debit card for another £5 a month).

WillPS

Jami74 said:

WillPS said:

The point at which a Nectar Amex makes sense after Y1 is now £9000 spent annually; anyone spending less is better off taking the Rewards Credit Card, converting to Avios, then converting to Nectar.

I have the Nectar Amex card. Would you mind explaining your maths around the £9000 spent annually please? I get between £5 and £10 worth of nectar points on a normal month using it so even with a £30 fee I am making a profit. (Plus I pay it off with my Halifax rewards debit card for another £5 a month).

Sure.

You're paying a £30 annual fee, lets ignore transaction rounding and say if you spend £9000 you will receive exactly 18000 Nectar points, which are worth £90 when redeemed at face value. Less the £30 annual fee, you are better off by £60.

Alternatively, you could get the American Express Reward Credit Card, which has no annual fee. If you spent £9000 on that card, you'd get 9000 MR points, which you could exchange for 9000 Avios points, which you can in turn (automatically) exchange for ~12000 Nectar points; leaving you better off by the exact same £60.

If you spend *less* than £9000, the American Express Reward Credit Card is a better card since there is no fee.
If you spend *more* than £9000, the Nectar card's annual fee justifies itself and every £1 additionally spent will earn an addition two thirds of a Nectar point (or 0.33p in value).

Either of these can be paid off with a Halifax debit card, as can the the Barclaycard free Avios card - which has the same earning rate as the American Express Reward Credit Card but none of the limitations that come with Amex.