Amex Gold Charge Card Return% Calculations Worst Case (w/o Bonus MR inc Renewal Fees)

[Copycat]

I used to think the same as you, but today, in a rare moment of clarity after reading the OPs calculation, I realised that was wrong. Here's why
https://www.technofino.in/community...o-bonus-mr-inc-renewal-fees.26401/post-637416

Ok. I made a fool of myself!
I would have 5310 cash in hand and 1440 Amazon GC. Which is better than 6336 Amazon GC
I'm an idiot!

 

[SSV]

I understand this makes sense for a business but didn’t think of applying the concept on a personal basis. Nonetheless,

Whenever money is involoved, especially on a regular basis, we should think like buisness only..

Think from the angle that your are doing a "CC spending business" ... 😉

 

[Karma]

Whenever money is involoved, especially on a regular basis, we should tink like buisness only..

Think from the angle that your are doing "CC spending business" ... 😉

Very well noted 😀

 

[SSV]

Thanks @SSV

So that means the reward rate mentioned in the link below is not correct?

AMEX Gold Charge Card Review

Editor’s note: This is a recurring post, regularly updated with new information and offers. Last Updated 10th July 2023. American Express has finally started issuing cards since they were put under an embargo by the RBI. Their most sought entry-level card other than the AMEX Membership Rewards...

www.technofino.in

Before we go further did you understand the difference between capital expenditure and regular expenditure in my example?
Do you agree with my statements?

View attachment 52964

Very well noted 😀

I have been considering GP return rate

Post this explanation net profit return rate does sound more logical

Okay, Coming back to your original question, which prompted all this discussion...
I hope you got your answers.....

 

[Copycat]

Question: We've already seen that the APay is superior to the GC. So why would anyone want to have a GC if the renewal fees are not waived/reduced?
At what spend levels are the fees for the GC reduced/waived?

 

[SSV]

Ok. I made a fool of myself!
I would have 5310 cash in hand and 1440 Amazon GC. Which is better than 6336 Amazon GC
I'm an idiot!

I really liked this post.. you know why...
Correcting and accepting the mistakes and living in the reality...
All of us do mistakes and a very very few accepts them . Instead they go on and on and on in loops in defending their mistakes / lies etc...
It is just waste of life ..
Instead , it is much better to accpet it and move on ....

Good ON you mate ... well done...

 

[SSV]

Question: We've already seen that the APay is superior to the GC. So why would anyone want to have a GC if the renewal fees are not waived/reduced?
At what spend levels are the fees for the GC reduced/waived?

I will answer in a very simple way... If you reddem it for better redemption options then it is useful.. if your redemption option is only GOld Collection , with no renewal benefit it is not a great card at all... I dont want to go into detailed calcs as I already spent more time on this topic.

 

[Karma]

Okay, Coming back to your original question, which prompted all this discussion...
I hope you got your answers.....

I did. Thanks! 🙂

 

[PavanPavan is verified member.]

@SSV @Copycat please just tell me now what is net return after paying the fees 😛

 

[SSV]

@SSV @Copycat please just tell me now what is net return after paying the fees 😛

1.51 % . . on spending 72K per year ..

 

[PavanPavan is verified member.]

1.51 % . . on spending 72K per year ..

It came down to ACE 🙁

 

[SSV]

1.51 % . . on spending 72K per year ..

It came down to ACE 🙁

This is assuming no renewal benefit...
If you get any sort of renewal benefit your rate of retrun jumps up considerably ..

But I don't know how much fee waiver you will get on 72K annual spends...
I guess very less, if any...

 

[msk1437]

Now returns with joining benefits + joining fee waiver via referral for first year (BEST CASE SCENARIO exluding referrals made)

(May 9)
Current Fee: 1180/-
Current benefit: 4000 MR + 2000 MR = 6000 MR

Spends: 6000/- × 12 = 72000/-
Rewards: 1600 MR × 12 = 19200 MR

Value of rewards via gold collection apay: 25200 MR × 1/3 = 8400/-

Effective return: (8400-1180)/72000 = 7220/72000 = 10.0278%

 

[SSV]

Now returns with joining benefits + joining fee waiver via referral for first year (BEST CASE SCENARIO exluding referrals made)

(May 9)
Current Fee: 1180/-
Current benefit: 4000 MR + 2000 MR = 6000 MR

Spends: 6000/- × 12 = 72000/-
Rewards: 1600 MR × 12 = 19200 MR

Value of rewards via gold collection apay: 25200 MR × 1/3 = 8400/-

Effective return: (8400-1180)/72000 = 7220/72000 = 10.0278%

Front 2nd year onwards?
How much you would expecting renewal feecwaiver on 72 k annual spends ??

 

[msk1437]

Front 2nd year onwards?

I'm most likely closing the card (unless good renewal benefit is provided)

 

[SSV]

I'm most likely closing the card

Very good. I like your clarity.. 😉

 

[jk51]

Question: We've already seen that the APay is superior to the GC. So why would anyone want to have a GC if the renewal fees are not waived/reduced?
At what spend levels are the fees for the GC reduced/waived?

There are only two spend levels which I feel yields the best returns on this card

Either 72,000/- (and then negotiating MR points against fee payment) 6% net in this case

Or

=>2 lacs (2,40,000 to be exact and then negotiating MR points against fee payment) 4.16% net in this case. This has become a bit difficult post Apay voucher capping of 10k per account.

 

[PavanPavan is verified member.]

Very good. I like your clarity.. 😉

Renewal benefit might not exist any more 😛

Last year it was fee waiver this year it's 10k MR

 

[SSV]

Either 72,000/- (and then negotiating MR points against fee payment) 6% net in this case

Realistically how many MR points you get for fee payment against 72k previous spends?
Any idea with your previous experience?

 

[jk51]

Realistically how many MR points you get for fee payment against 72k previous spends?
Any idea with your previous experience?

I received 12.5k last year on 72,000 spends. And year before that had spend more than 2 lac hence was given two options 1. To spend 1.2 lac in next 3 months for complete waiver and 2. To pay 1500+tax

Chose the second option. Many within peers have been given at least 10k MR points at on 72,000/- annual spends (in one case it was 60,000/-) so safe to assume the range of 10-12.5k of range. Shall see what is offered this year. I believe it’s a decent card till any decent renewal/retention benefit is offered.