Travel redemptions are great but financial rewards quietly deliver more value
While travel redemptions are often highlighted in credit card rewards programs, financial redemptions can provide greater long-term value. Using points to reduce debt or contribute to savings accounts can yield returns significantly higher than travel rewards. It's important for consumers to consider their financial situations when deciding how to redeem points.
- ▪Financial redemptions can deliver returns five to ten times higher than travel redemptions.
- ▪Using points for statement credits can provide immediate value, especially for those carrying a balance.
- ▪Investing points into savings accounts like RRSPs can lead to substantial growth over time.
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Open this photo in gallery:Many credit cards market travel as the star of the points show, but financial redemptions are where the quiet, compounding value lives, writes Barry Choi.Ryan Remiorz/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountEveryone loves booking travel with points, but the redemptions no one brags about are actually often worth far more. Using your points to cut your statement balance, pay down your mortgage, or boost your registered retirement savings plan, or RRSP, can deliver a return that’s five to 10 times higher than a cheaper flight or discounted hotel.This isn’t hypothetical.
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