Southwest 25% Rapid Rewards Points Buy, Gift, Transfer Bonus - Worth It?
Update: Some offers mentioned below are no longer available. View the current offers here.
Now through May 31, 2014, Southwest is offering a 25% bonus when you buy, gift or transfer Rapid Rewards points. Points can be purchased, gifted, or transferred in blocks of 500 with a minimum initial purchase or transfer of 2,000 points and a daily maximum of 60,000 points.
Normally Southwest Rapid Rewards points cost 2.75 cents apiece to purchase for yourself or gift, but with this promo, they cost 2.0625. Transferring points usually costs 1 cent per point, but with this promo, it's 0.75 cents.
So then the question becomes, is it worth it? You get the best value from your Rapid Rewards points on Wanna Get Away fare redemptions. Southwest recently devalued these from 60 points per $1 in airfare to 70 points per $1 in airfare - so you're getting a value of 1.4 cents per point. In that case, buying points doesn't make much sense unless you just need a couple hundred or thousand to top up your account for a specific redemption.
Transferring miles might make more sense since it costs you less than half the value you'd get per point on a Wanna Get Away redemption, but again, I wouldn't go transferring huge amounts of points because if you're doing that, you might as well just use the points in your current account to book whatever fare you're thinking of rather than sending them to someone else and paying for it.
This could make sense if you are part of a pair that has a Companion Pass and you have more points in your account than the Companion Pass holder. In that case, you could transfer your points for 0.75 cents each to the Companion Pass holder and they could redeem for an award and bring you along - two tickets for the price of one, and a situation that actually brings your transfer-points cost to 0.375 cents per point.
As always, though, do the math for yourself and figure out if taking advantage of this makes sense for you. There are some other great options out there that might make better sense for you. For instance, if you have the Chase Sapphire Preferred Card, Ink Bold or Ink Plus, you can transfer your Ultimate Rewards points to your Southwest Rapid Rewards account at a 1:1 ratio instantly and for free, so that's a better option to top up your account if you can.
Not only that, but the Chase Southwest Rapid Rewards Premier Credit Card is currently offering a sign-up bonus of 40,000 bonus points when you apply and spend $1,000 in the first 3 months, plus those points are Companion Pass eligible, so if you're looking for ways to stock up on points, that's another great option.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
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- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.