A travel rewards card, when used strategically, can earn you enough points to cover things like hotel stays, cruises, or plane tickets. While travel is generally the most valuable way to redeem points, it can take a while to accumulate enough for that dream getaway. Plus, life sometimes gets in the way—whether you have young kids, a family member who needs care, or just can’t find time to travel. Additionally, with changes like the looming split between Aeroplan and Air Canada, you might want to use your points sooner rather than later.
Luckily, there are plenty of non-travel ways to redeem your points. Here are four great options:
1. Donate Your Miles
Many rewards programs offer the option to donate your miles to charity. These donated miles can help organizations cover travel costs or even be used as prizes for fundraising.
Aeroplan has been running its member donation program for over a decade, according to Francine Stemthal, Director of Product Management at Aeroplan. “To date, 640 million miles have been donated,” she says. Charities like Doctors Without Borders and the Make-A-Wish Foundation benefit from these donations. You can even donate miles to offset your carbon footprint; for instance, donating 7,500 miles offsets 3.2 tonnes of greenhouse gases.
Other rewards programs, like RBC Rewards, also allow donations to select charities like Ronald McDonald House Charities and Hope Air. With CIBC’s Aventura Rewards, you can donate through CanadaHelps.org, which supports a wide variety of charities.
2. Transfer or Convert Your Rewards
Some programs, like Aeroplan and Air Miles, let you transfer miles to a family member or friend, usually for a fee. Aeroplan charges around 2 cents per mile, while Air Miles charges 15 cents per mile, although occasional promotions may offer discounts on transfer fees.
If transferring miles isn’t an option, you may be able to convert your points to another loyalty program. For example, American Express Membership Rewards allows you to exchange points for Aeroplan miles or British Airways Avios at a 1:1 ratio. The value varies between programs and is subject to change, so check before you transfer.
You can also use Points.com to convert miles between different programs. It’s a handy tool to consolidate points from cards you no longer use into one program where they can be more beneficial. Just make sure the conversion rates work in your favor, so you’re getting the best value for your points.
Aeroplan collectors also have the option of using their miles for education expenses through HigherEdPoints. This program allows members to redeem points to pay for post-secondary tuition or even student loan payments. For instance, 35,000 Aeroplan miles can be redeemed for a $250 certificate to be used at institutions like McGill, Dalhousie, or UBC. Similarly, TD Travel Rewards members can use 62,500 points to receive a $250 education certificate.
Travel Credit Cards
3. Redeem Points for Merchandise and Gift Cards
If travel isn’t in the cards, consider redeeming your points for merchandise or gift cards. Many major rewards programs offer access to catalogs featuring popular brands like Apple, Best Buy, and Saks. According to Jacquelina Calisto, RBC’s Vice President of Loyalty and Rewards, RBC Rewards clients have a wide array of options. You can use points for travel, pay down your credit card balance, invest in financial products, or shop for exciting merchandise without worrying about points expiring.
Most banks offer a range of merchandise and gift card redemption options, so it’s worth exploring your rewards program’s website. You’ll likely find everything from electronics to home decor and gift cards for your favorite stores.
4. Convert Points Into Financial Rewards
If you’re more interested in growing your financial portfolio than collecting gadgets, many rewards programs allow you to convert points into cash equivalents, like a statement credit.
For instance, BMO Rewards lets you redeem 10,000 points for a $50 investment in your BMO investment account. RBC Rewards goes even further, offering the option to use points to pay down a credit card balance or mortgage, contribute to an RRSP, or even offset investment commissions through RBC Direct Investing.
In conclusion, travel rewards points aren’t just for vacations. If you’re unable to use them for travel or need to spend them quickly, check your loyalty program’s website for a wide range of redemption options. Whether it’s donating to charity, converting points for education, or redeeming them for gift cards or financial rewards, there’s a solution that can fit your current needs.
