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  • FIRST POST
    • MSE Guy
    • By MSE Guy 16th Aug 11, 10:13 AM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Amex overhauls popular Platinum cashback credit card
    • #1
    • 16th Aug 11, 10:13 AM
    MSE News: Amex overhauls popular Platinum cashback credit card 16th Aug 11 at 10:13 AM
    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 ..."

Page 1
    • catflea
    • By catflea 16th Aug 11, 3:59 PM
    • 6,448 Posts
    • 16,101 Thanks
    catflea
    • #2
    • 16th Aug 11, 3:59 PM
    • #2
    • 16th Aug 11, 3:59 PM
    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.
    • Bossworld
    • By Bossworld 16th Aug 11, 11:18 PM
    • 234 Posts
    • 148 Thanks
    Bossworld
    • #3
    • 16th Aug 11, 11:18 PM
    • #3
    • 16th Aug 11, 11:18 PM
    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 :/
    • catflea
    • By catflea 17th Aug 11, 9:49 AM
    • 6,448 Posts
    • 16,101 Thanks
    catflea
    • #4
    • 17th Aug 11, 9:49 AM
    • #4
    • 17th Aug 11, 9:49 AM
    My understanding is that you have the option to switch if you want....
    Proud of who, and what, I am.
    • earthlover
    • By earthlover 17th Aug 11, 11:21 AM
    • 154 Posts
    • 9 Thanks
    earthlover
    • #5
    • 17th Aug 11, 11:21 AM
    • #5
    • 17th Aug 11, 11:21 AM
    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?
    • earthlover
    • By earthlover 17th Aug 11, 11:26 AM
    • 154 Posts
    • 9 Thanks
    earthlover
    • #6
    • 17th Aug 11, 11:26 AM
    • #6
    • 17th Aug 11, 11:26 AM
    To answer my own question, yes I am being more stupid:

    Should read things twice in future before I post. Sorry!
  • Toreador
    • #7
    • 17th Aug 11, 1:11 PM
    • #7
    • 17th Aug 11, 1:11 PM
    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.
    • catflea
    • By catflea 17th Aug 11, 1:20 PM
    • 6,448 Posts
    • 16,101 Thanks
    catflea
    • #8
    • 17th Aug 11, 1:20 PM
    • #8
    • 17th Aug 11, 1:20 PM
    See my previous post
    Proud of who, and what, I am.
    • beano-ni
    • By beano-ni 18th Aug 11, 3:51 PM
    • 4 Posts
    • 3 Thanks
    beano-ni
    • #9
    • 18th Aug 11, 3:51 PM
    • #9
    • 18th Aug 11, 3:51 PM
    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=0AvL1fstEhlK2dHF0WHJVSXl yVFBJekJEV0Uyd0RBLWc&single=true&gid=0&output=html
    Last edited by beano-ni; 18-08-2011 at 3:58 PM.
    • catflea
    • By catflea 18th Aug 11, 5:44 PM
    • 6,448 Posts
    • 16,101 Thanks
    catflea
    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.......
    Last edited by catflea; 18-08-2011 at 5:47 PM.
    Proud of who, and what, I am.
    • jmclusky
    • By jmclusky 20th Aug 11, 10:09 AM
    • 14 Posts
    • 20 Thanks
    jmclusky
    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...
    • neenaww
    • By neenaww 20th Aug 11, 12:16 PM
    • 468 Posts
    • 328 Thanks
    neenaww
    help
    Sorry I am being a bit dim today. I have had nothing from Amex re the changes to the cards/accounts etc .. as yet.
    Should I expect to be getting this sometime soon, when do the changes start? Can anyone tell me in simple terms what my options (if I am to be affected by this) are.. I have had my card for around 3 years and do MOST of my spending on it, stores willing!
    Thank you in advance and sorry if its obvious to others but I just dont "get it!"

    getting married to my best friend very soon!

    I am a married woman
    • catflea
    • By catflea 20th Aug 11, 12:21 PM
    • 6,448 Posts
    • 16,101 Thanks
    catflea
    Its new cards only....
    Proud of who, and what, I am.
    • neenaww
    • By neenaww 20th Aug 11, 12:27 PM
    • 468 Posts
    • 328 Thanks
    neenaww
    Ah thank you catflea... one thing less to worry about then!! I have no idea why I didnt get that when I read the post by Martin and this thread!

    getting married to my best friend very soon!

    I am a married woman
  • SG_Guy
    The main problem with the new AmEx offer is that the 25 annual fee could go up in future whatever the current T&Cs say now. Much better to stick with the older platinum cards that do not carry an annual fee. I suspect the new offer is designed also to entice customers on older platinum cards to switch but thereafter...

    In any case, most people spend more on groceries and petrol, so best to just get the MBNA AmEx card that gives 1.5% on these two categories of spend.
    • jmclusky
    • By jmclusky 22nd Aug 11, 10:03 AM
    • 14 Posts
    • 20 Thanks
    jmclusky
    The main problem with the new AmEx offer is that the 25 annual fee could go up in future whatever the current T&Cs say now. Much better to stick with the older platinum cards that do not carry an annual fee. I suspect the new offer is designed also to entice customers on older platinum cards to switch but thereafter...
    Originally posted by SG_Guy
    If that was the case then I'd have thought they'd make it easier to switch to the new card! MSE's news item made it sound like it was a simple matter of calling them up, but no - you have to apply for a new one, and cancel your old one (once you have your cashback payment, otherwise you lose what you built up).

    I suspect that Amex wouldn't put the fee up too high - if they did they'd simply lose custom so I have no problem with jumping through hoops to get a better deal for myself for now.
    • markja
    • By markja 22nd Aug 11, 6:37 PM
    • 22 Posts
    • 0 Thanks
    markja
    New Card needs new application
    Yes. I just got off the phone and was also told it was a new application for EVERYONE. Even existing customers. It is just that they will have your existing credit history which will help smooth the way.

    I was also suspicious of agreeing to a fee which could subsequently be increased. By that is the risk you take.

    You won't lose your cashback unless you cancel your old one. You "may" even be able to get it if you cancel but you would have to wait until the anniversary (but don't quote me on the second bit)

    My spreadsheet shows the break even point is ~29,500 where my old card is better than the new. Anything less than this then the new one is better. My existing card is the <3.5K@0.5% ; 10k@1.0% ; >10k@1.5%

    I don't seem to be able to post attachments otherwise I would upload my workbook.


    Mark J
    Last edited by markja; 22-08-2011 at 7:58 PM. Reason: added detail on cashback & revised breakeven
  • Yer Wee Man
    i have just got off the phone to Amex and got a few interesting facts... As an existing customer i won't get the initial three months at 2.5% (unless the wife applies for the new card). Also I am on the 0.5% upto 3.5K, 1.0% 3.5k to 7.5K and 1.25% over 7.5K. I always thought I only got 1.25% on anything I spent over 7.5K, but Amex say I get 1.25% on my total spent if it's over 7.5K. So I don't understand MSE's figure of 89 in year 2 on the old card for a 10,002 spent. Surely at 1.25% on 10,000 this is 125 (more than the 110 you get on the new card !). I spend over 10K a year on my card.

    For this reason I will be sticking with my old Amex Platinum Card. If anyone disputes my figures please let me know.
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