Quick Points: How to earn 'interest' on your rewards balance with Bilt
Update: Some offers mentioned below are no longer available. View the current offers here.
Although we cover loyalty programs and credit cards in-depth on TPG every day, sometimes you want a snippet of helpful information that you can put into action on the fly. That’s why we launched the series Quick Points. Every week, we’ll highlight a new or easily forgotten tip that can help you travel more for less.
If you collect miles or points in an airline or hotel loyalty program, you've probably confronted a grim reality: The longer you hold on to those miles or points, the less they're generally worth.
You've probably heard the term "devaluation" thrown around. A simpler way to think of it is as inflation. Inflation causes the price of gas to go up, and a different type of inflation causes the price of award travel to go up as well. Just like your grandparents may remember when a gallon of milk cost $1, aging road warriors will remember when 25,000 miles round-trip could get you to Hawaii on a regular basis.
It's inevitable that airline and hotel loyalty programs will increase the cost of awards, but one program offers a way to protect yourself from "award inflation." Bilt Rewards, a program that launched in 2021, will pay you "interest" on your unredeemed points balance.
Editor’s note: TPG founder Brian Kelly is a Bilt advisor and investor.
For more TPG news, deals and points and miles tips delivered each morning to your inbox, subscribe to our daily newsletter.
Earning interest on your points balance
You'll need to earn Silver status with Bilt Rewards, but once you do they'll deposit points into your account each month. The amount deposited will be calculated based on your average points balance that month and the "interest" amount will be based on the Federal Deposit Insurance Corp. national savings rate.
Don't expect a mountain of points, at least until interest rates start rising again. Under the current FDIC interest rate, a Bilt Rewards member with 100,000 points in their account would earn fewer than 100 points per month. Those amounts should only increase over time, though, as the federal reserve starts to raise rates.
Since Bilt Rewards points transfer quickly to partners (instantly in most cases) you can afford to leave your points in your Bilt account until you're ready to redeem for travel. With great partners like World of Hyatt and American Airlines AAdvantage, you'll definitely benefit from letting your balance grow.
Related: Pandemic-era devaluations: What’s happened to frequent flyer miles and what may come next
How to earn Silver status with Bilt Rewards
To earn interest on your points you'll need to earn Silver status or higher in the Bilt Rewards program. Earning status is pretty straightforward and requires you to earn a total of 25,000 points in a calendar year.
With the Bilt Mastercard's 1-2-3 earning structure, you can get to Silver status a lot quicker when you use your card to pay for travel and dining. That said, you can still earn points without having the cobranded credit card if your landlord is in the Bilt Rewards Alliance of partner properties and you pay your rent through the Bilt app.
Once you earn status you'll keep it for the rest of that year and the next calendar year. You'll also earn interest on your points that entire time.
Related: Should you pay your rent with this new credit card? We crunch the numbers
If history tells us anything, it's that award tickets and hotel rooms will cost more miles and points over time. At TPG we frequently recommend earning flexible currencies such as Chase Ultimate Rewards points or Capital One miles. This gives you more control to redeem your points where you can find the most value.
Bilt Rewards takes this a step further by adding to your points balance every month you maintain Silver status or higher. Over the course of a year, those points can add up. They might not get you that 25,000-mile round-trip award flight to Hawaii, but they can sure take the sting out of the new peak pricing World of Hyatt recently launched.