How can flexible points currency benefit you?

Published on November 23rd, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Reward programs may feel foreign for a newbie especially when it comes to understanding terms such as flexible points currency that could help you maximise the way you earn rewards. This guide on what flexible points currency is and how you can use them is here to help you grapple your way to becoming a pro at maximizing your points.

What is flexible point currency?

This is basically a feature that reward programs have that allows you to hold your points balance in another reward program that is partnered with your own reward program. It allows you to transfer your points from your program to the program's partners to use for various things. However, it is important that you read your rewards program to see what is considered eligible transfers to avoid disappointment.

Will I still be able to retain my points value when I transfer them?

In most cases, when you transfer your reward points from your program and to the partnered programs you should be able to retain the same currency through the transfer rate. The transfer rate is like an exchange rate for points that are usually kept at a fixed rate to help you keep the same value of your points.

However, it is important to note that there may be restrictions when it comes to transferring your points outside of your reward program and its affiliated programs. Some programs could also charge you with a penalty for doing this.

There is also the fact that some programs may not have a fixed transfer rate which can lower the value of your points. Therefore, it helps to check what is applicable to you be checking the terms of your rewards program.

What are the pros of flexible points?

  • You are protected from devaluation. Should your frequent flyer program devaluate its points you can protect yourself by transferring your points to another program.
  • Transfer bonuses. You can transfer bonuses from one currency to another.
  • Bank your points for later. It is possible to save up your points to use later, but it's also important to check the terms of expiration on points and whether transferring them will help to delay this process.
  • You can redeem your points. You can redeem your points to use for various things such as cash back points, discounted accommodation, flights, and more.

What are the cons?

  • Too many options. Having choice is good, but it can also get confusing when it comes deciding when to transfer your points and whether you will be getting the best value by doing this
  • Transfers can take time to reflect. You may be able to have control over when you want to transfer your points, but this could take anything between 24 to 72 hours to reflect.
  • There may be limitations. Some reward programs can limit you in terms of transferring outside of the program and there may not be a fixed rate which will affect the value of your points.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

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