Originally Posted by
Gig103
I'm just curious how folks value their Membership Rewards? Before my FT days I always just redeemed them for gift cards at 1% max value. But I also only used MR for about 4 years, then was using the Costco Amex card with cashback, until that was closed last year.
My current spending is almost entirely on the "Citi True Earnings by Costco" Visa, but I'm debating moving all my non-bonus category spending (so all the 1% cash back) over to my Amex. If I consider MRs = 1%, I'd stay with Citi because cash is better than the limited gift cards and such, but maybe I'm missing out on opportunities to transfer them into other point-schemes for better return on investment.
In reality, a MR points card isn't meant for cash or cash equivalent redemption's. Sure it's an option, but it's to make the points look more flexible. These cards are really meant for those who travel; thus, the much higher rewards value when transferred to certain partners. The same idea applies to the Citi ThankYou cards.
If you want to redeem for gift cards or cash one should apply for the AMEX Blue cards or for a Citi Double Cash, or like what you have, the Citi Costco.
If you travel a couple of times a year, I'd suggest just putting all of your non-Costco spend on an Everyday Preferred or Premier Rewards Gold. I can get the equivalent of 6.3% back at the grocery store, 4.2% back on gas, and 2.1% back on everything else, even though the points say 3x, 2x, 1x, with a 50% bonus if you reach 30 transactions per billing period on my Everyday Preferred, and 4.2% back on airlines with 2.8% back at restaurants with my PRG card (I value MR points at 1.4 cent a piece, but can go to a max at 1.8 cents per point).