You’ll get much less to your factors from 11 March.
In the event you’re sitting on some Avios or Amex Reward factors that you just plan to swap to Nectar then that is massive information. Right here’s what you must know, and what you must do.
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What’s altering
We’ve had a variety of members of our Fb group share an e-mail they’ve acquired from British Airways Govt Membership stating:
“We’re altering the Avios to Nectar conversion price We needed to let you understand that from 11 March 2024, the conversion price for Avios to Nectar factors will likely be altering.
When changing Avios to Nectar factors, the present conversion price is 300 Avios = 400 Nectar factors. From 11 March 2024 that will likely be altering to 400 Avios = 400 Nectar factors.
The Nectar to Avios conversion price will stay the identical.
This transformation will happen mechanically and your British Airways Govt Membership and Nectar accounts will proceed to be linked so that you don’t have to do something.“
We’re ready for affirmation from British Airways and Nectars on this, however the variety of studies we’ve obtained point out it’s as shared above.
What this implies
This revamp of the Nectar:Avios trade price means the “money” worth of these Avios factors drops from 0.67p per level to 0.5p per level. That’s a discount of 25%.
The speed the opposite approach, swapping Nectar to Avios stays the identical at 400 to 250.
This isn’t the primary time it’s modified. Again in October 2022, the worth moved from 400 Nectar to 250 Avios (which valued an Avios at 0.8p) to its present trade price.
Why this issues
For the reason that Avios and Nectar partnership launched in early 2021, it offered a approach to increase the worth of factors earned not simply by way of Avios playing cards, but additionally any American Categorical Membership Reward factors.
Since Amex factors convert 1:1 direct with Avios, exchanging first to Avios after which to Nectar would even be value 0.67p in Nectar factors, slightly than a direct 1:1 swap from Amex to Nectar which was value solely 0.5p.
However the change means there’s no level including in that additional step. As an alternative you’ll get the identical valuation in the event you swap them direct into Nectar (or some other associate with the identical valuation, equivalent to reward playing cards)
Listed here are some examples from common playing cards with what the efficient cashback price on spending will likely be:
| Card | Present equal cashback by way of Avios to Nectar | From 11 March 2024 equal cashback on new conversion direct to Nectar |
| American Categorical Most well-liked Rewards Gold card | 0.67% to 1.01% | 0.5% to 0.75% |
| American Categorical Platinum | 0.67% | 0.5% |
| British Airways American Categorical | 0.67% | 0.5% |
| British Airways American Categorical Premium Plus | 1% | 0.75% |
| Barclaycard Avios | 0.67% | 0.5% |
| Barclaycard Avios Plus | 1% | 0.75% |
There’s additionally an influence on welcome bonuses, which characterize giant numbers of factors. Listed here are some examples of the values you’ll be able to anticipate underneath the previous and new conversion charges:
| Variety of factors | Present equal cashback by way of Avios to Nectar | From 11 March 2024 equal cashback on new conversion direct to Nectar | Related playing cards |
| 20,000 | £134 | £100 | American Categorical Most well-liked Gold Rewards (customary provide) |
| 25,000 | £167.50 | £125 | Barclaycard Avios Plus, British Airways Amex Premium Plus, Amex Most well-liked Rewards Gold (boosted provide) |
| 30,000 | £200 | £150 | Amex Platinum |
| 75,000 | £500 | £375 | Amex Platinum (boosted provide) |
What you must do
You probably have any Avios or Amex Reward factors that you just wish to convert to Nectar then you must swap them ASAP. Bear in mind to swap the Amex factors first to Avios after which to Nectar.
Nonetheless there are limits. There’s a most of fifty,000 Avios factors that may be swapped in a month in a single handbook trade. So in the event you get in a swap earlier than the tip of February and one other in the beginning of March, you’ll be able to trade 100,000. That’ll earn you an additional £167 in Nectar factors versus doing it after the brand new guidelines start.
You may as well arrange auto-covert to trade extra factors every Monday. This provides you doubtlessly one week earlier than the 11 March deadline to swap over as much as 25,000 (that is the three-month cap for this technique). Bear in mind to cancel the automated change in the event you don’t need extra factors to go on the new price.
Right here’s my step-by-step information on easy methods to change your factors over.
You additionally would possibly wish to take into account cancelling any Amex playing cards with excessive charges which you continue to can. Professional rata refunds are supposed to finish in some unspecified time in the future in 2024 (maybe as quickly as 1 March), although there’s at all times an opportunity implementation will likely be delayed for the second time (it was due in October 2023).
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How this modifications the very best cashback & reward playing cards
American Categorical Nectar
This card collects Nectar factors slightly than Amex or Avios factors so there’s no change right here. You’ll nonetheless get 2 Nectar for each £1 spend, understanding as 1% again.
American Categorical Most well-liked Reward Gold
The Amex Most well-liked Reward Gold card offers you a bonus in the event you spend not less than £5,000 on the cardboard annually, rising the worth of the factors earned to between 0.86% and 1% – in the event you add within the Avios to Nectar step.
That clearly now modifications. The vary, when swapped in the identical approach, is now between 0.5% and 75%. That’s nonetheless higher than most different Amex playing cards, however it’s possible you’ll as properly use the Amex Nectar card which supplies a relentless 1% again in Nectar factors for every £1 spent.
The worth of the welcome bonus additionally drops. When boosted to 25,000 factors (plus 3,000 factors from spending £3,000) you’ll now make £140 as a brand new consumer – solely £15 greater than the Platinum Cashback card.
Amex Platinum
Fairly than get 0.67% per £1 spent, it’s now value 0.5%. However the massive influence is on the welcome bonus revenue. When boosted to 75,000 factors (as the newest provide was) and added to the ten,000 factors earned from spending to set off the bonus, changing to Nectar by way of Avios will likely be value £141 much less.
For the reason that card comes with an enormous £650 annual charge it makes it a lot more durable to hack the welcome provide to make a revenue.
Barclaycard Avios and British Airways Amex
You probably have the free model of those playing cards you’ll now get the equal of 0.5% again on spending. That’s nonetheless higher than the following finest non-Amex bank cards, so I nonetheless price this as the very best backup card for home spending.
Nonetheless, Chase Financial institution presents 1% cashback for 12 months on its debit card, so that could be a higher all spherical card to make use of besides while you need extra shopper safety offered by bank cards.
