Points of View: Can I cash out my points, and is it worth it?
Quick summary
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We spend a lot of time encouraging TPG readers to redeem their points and miles for maximum value. On the other hand, we also talk about the best credit cards for cash back or using those to offset payments when you can't use points and miles.
This begs an obvious question from the gap in the middle: Can you cash out your points and miles? If so, is it worth it?
Let's take a look at options for cashing out your points and miles, plus what value you can expect to receive via this redemption method. We'll compare that to the value you'll get from other redemptions to help you decide whether cashing out is worth it.
Options for cashing out points and miles
Before we can figure out if it's a good deal, we need to know what options there are for cashing out points and miles. Here are the most common possibilities:
- Cash via bank deposit or check in the mail: This may be what comes to mind first when thinking of cashing out your points. Not all points programs offer this option.
- Statement credits: Each bank has a different policy on this, where points may be worth more or less depending on the types of purchases you're covering with your points.
- Pay with points: Many programs allow you to use points as cash at Amazon, with PayPal or at other merchants to cover or offset part of a purchase.
- Pay Yourself Back from Chase: Depending on which Chase credit card you have, you can cash out your points at a rate of 1 to 1.5 cents each. Applicable categories depend on which card you have but possibilities include Airbnb stays, restaurants or a range of business expenses. These current categories run through Sep. 30, 2022, and points can only be redeemed in this way against purchases you've already made.
- Elevated cash-out rate from Amex: Those who have The Platinum Card® from American Express Exclusively for Charles Schwab can redeem Membership Rewards points at a value of 1.1 cents apiece as a deposit into their checking accounts.
The information for The Platinum Card from American Express for Charles Schwab has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Is it worth it to cash out my points?
Some banks offer far fewer redemption options than others. For instance, you can redeem Bank of America Premium Rewards at a value of 1 cent each, but you don't have a wide range of choices in how to use these points. Similar limits on redemption options apply to U.S. Bank FlexPerks redemptions.
For programs with numerous redemption options that function like cash, here are the values you can expect to obtain:
| American Express Membership Rewards | Capital One Miles | Chase Ultimate Rewards | Citi ThankYou Rewards | |
|---|---|---|---|---|
| Statement credit against charges | 0.6 cents each. | 0.5 cents each. | 1 cent each. | 0.8 cents each. |
| Statement credit against travel purchases | N/A | 1 cent each. | N/A | N/A |
| Pay with points at checkout | Up to 0.7 cents each. | 0.8 cents each. | 0.8 cents each. | 0.8 cents each. |
| Shop with points | 0.5 cents each. | 0.8 cents each. | 0.5 cents each. | 0.5 cents each. |
| Redeeming for gift cards | 1 cent each. | 1.1 cents each. | Up to 1.1 cents each. | Up to 1.1 cents each. |
| Cashing out to Schwab account | 1.1 cents each. | N/A | N/A | N/A |
| Check in the mail | N/A | 0.5 cents each. | N/A | 1 cent each. |
| Pay Yourself Back | N/A | N/A | Up to 1.5 cents each. | N/A |
| General statement credit | N/A | N/A | N/A | Up to 1 cent each. |
| Direct deposit into a bank account | N/A | N/A | N/A | Up to 1 cent each. |
| TPG valuation* | 2 cents each. | 1.85 cents each. | 2 cents each. | 1.8 cents each. |
* Points value is an estimated value calculated by TPG and not the card issuer.
It's important to note that redemption values with Citi can vary, depending on which credit card(s) you have. Additionally, if you have the Citi Rewards+® Card (see rates and fees), remember that it offers a 10% rebate against points redeemed. Pairing this with the Citi Premier® Card (see rates and fees) or the Citi Prestige® Card (which is no longer available to new applicants) could lead to a value of 1.1 cents when cashing out points.
The information for the Citi Prestige has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
While options exist for cashing out your points, asking "is it worth it?" requires us to look at what values you can obtain. Compare this to TPG's average valuations of these points and you'll see that they all fall short — sometimes by a large margin — of the redemption value you can obtain when using your points for travel.
Related: How to redeem Chase Ultimate Rewards points for maximum value
Bottom line
Options exist for cashing out your points. If you need cash in an emergency, knowing that you're able to turn your credit card rewards points into cash can be helpful. However, it's generally not a good idea.
You may fetch as little as a quarter of TPG's average values for these points, depending on which methods you use to cash in your points. Finally, none of the redemption options listed in this guide reach or exceed our points valuations, meaning that if you're not in a financial crunch, there are much better uses for your points than cashing them out.
Editor's note: "Points of View" is a new series evaluating decisions on which credit card to use. If you're facing a dilemma about which card is best for an upcoming payment, email us at tips@thepointsguy.com.
Also in this series: