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Email this8:34 pm
December 23, 2011
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Just an FYI....they do have and expiry date. Also based on the other posting that shows how the $ value of points are different ...... no doubt "we" are paying for the "free" shipping. 
Delivery to the door was nice. While I may reconsider my no longer an avid AirMiles collector status.....I still look and the $200 as free money as it did not come out of my pocket. But as we have said in other forums.....the best value rewards card is??? And is also based to the individuals preferences for sure. Once I see what happens to Costco Amex and if I can use an Air Miles MasterCard at Costco, I just might go back to collecting!!
BTW.....I went to Burlington Washington a couple of days ago and used my Costco Amex Card and my Sears MasterCard (with no 2.5% exchange conversion fee). I was amazed!!!
Costco Amex..........13% added
Sears MasterCard.....9.3% added (apparently Amazon has a similar card)
So for taxable items take another 3% off (as our 12% vs their varying 8-8.5% is approx 3% less)
8:56 pm
October 21, 2013
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When you come back to Airmiles, if you do, don't forget that the Airmiles now have an expiry date as well - 5 years, I believe. So, you have to be confident that you can accumulate 950 of 'em within that period. Also, they will almost certainly be subject to at least one round of deflation, so you could end up needing 1000 AirMiles or more. And, further, BMO could pull out of this voucher offer in the interim.
Be careful too of the new arrangement they have for collecting Airmiles. There are 2 different systems and they don't overlap in terms of rewards, although you can, if you choose, collect in both systems, I think. The old system that we are more familiar with is called Dream Rewards and the new system is called Airmiles Cash.
From the Airmiles FAQ: "Why can't I find some of the Gift Cards and Certificates that I ordered in the past?
Several gift cards and certificates have been replaced by AIR MILES Cash. This new feature is quick and easy. Collectors no longer have to wait by their mailbox or keep track of paper certificates - now they can redeem instantly in-store!
Select additional Gift Cards and Certificates will be phased out over time and replaced by AIR MILES Cash." (And at that point you will be stuck with a collection of Dream Rewards Airmiles that you may not be able to do anything with.)
I still don't trust that there will be anything there for me if I collect more of them, and would not be willing to get an AirMiles credit card for that reason. I'd rather get a credit card where I knew there was going to be a cashback.
I don't follow what you are saying about your experience in Burlington. 13% was added to what? Are you talking about a cashback system?
Also, do you recall how long was the expiry on the vouchers? thanks.
9:46 am
December 23, 2011
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Loonie. I still collect them but only a few a month as I only use my BMO MasterCard when a vendor does not accept Amex.
I do find the new option in Air Miles confusing mainly because I have never dug in to reading what it is about as the way it has worked all along is fine with me. No doubt they and others are looking for ways to water down the rewards and add an expiry date to them so they don't have a huge payout to make if everyone scrambled to spend them.
Lately I have been buying a few theatre tickets (but will no longer) and iTunes cards to fuel my Netflix account. My hardly ever watched Netflix is paid through my iTunes account courtesy of Air Miles and when iTunes cards go on sale for 20% off. I know see I can only buy a "reduced price voucher" for iTunes using the other method. Since there is no real explanation of how to use that voucher...I am out in that offer!
We have collected Air Miles since day one since 1992......but it seems to me at lot longer than that. We used them all up in 2006 for a trip to the UK plus a large sum of cash. At that point I decided they were not really that good of a reward to collect.
I knew there was an expiry on the BMO vouchers from reading on the Air Miles web site. Here is what it says.
Expiry:
Vouchers are non-refundable.
BMO Bank of Montreal is not responsible for lost, stolen or expired Vouchers.
This Voucher is valid for a period of (180) days from date of issuance.
You must use this Voucher by the expiration date shown on the front of the Voucher.
I can't believe I did not make a copy of it. But my policy has as aways been......money just sitting at home ....is better in the bank. Also keep in mind there is no name on them so if you lost one....anyone can use them.
In my reference to Burlington is we do cross border shop once a month or so and my example is in regards to the US dollar exchange rate. Should make sense now?
10:40 am
October 21, 2013
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Thanks, kanaka. Yes, I understand now about your shopping trip - ouch! What ever happened to "Canadian dollars accepted at par"?
6:06 pm
October 21, 2013
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Kanata, can you explain why you decided to put a total of $1200 into this GIC?
I'm sure it wasn't to take advantage of the high rates.
Was it required that you do this?
I have ordered my $500 certificate. Turns out I don't quite have enough for that extra $100 right now, but I should have it before 180 days are elapsed. We'll have to start buying more gas from Shell! Anyway, I just wondered if I was still going to have to put in $1000, or would $500 be sufficient?
Thanks.
6:40 pm
December 23, 2011
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Loonie said
Kanata, can you explain why you decided to put a total of $1200 into this GIC?
I'm sure it wasn't to take advantage of the high rates.
Was it required that you do this?
I have ordered my $500 certificate. Turns out I don't quite have enough for that extra $100 right now, but I should have it before 180 days are elapsed. We'll have to start buying more gas from Shell! Anyway, I just wondered if I was still going to have to put in $1000, or would $500 be sufficient?
Thanks.
Lol....I only assumed that I had to purchase a minimum amount of a GIC (yes there are other investments you can choose) to ADD the voucher to. It says on the Air Miles site..... You may be required to invest additional funds to meet minimum investment requirements for certain investment products...... Let me check my emails to BMO to see if we discussed a minimum. But who knows.......as the financial person said they treat them just like a cheques. All the better if you can use vouchers and then top up your cash to 1000. Ie 500 voucher plus 500 of your own to buy the minimum GIC purchase of 1000. I know I though of that, but some where along the line it was nixed. I will get back in an hour or so.
7:12 pm
December 23, 2011
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I think the answers are in the earlier posts. I guess if you have less than a 1000 in vouchers you have to top up with your cash. When I think about it I am bringing the 1000 in two different forms.....should make no difference to BMO as long as you buy the minimum purchase. I guess I gave them 200 too much.
8:02 pm
October 21, 2013
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I guess you were just really excited about getting "something for nothing", so you overindulged a little! Not a big deal on such a small amount anyway - you'll be glad to see it all come rolling into your bank account in a year!
I also wondered if you had to work very hard to talk them up to 1.2%. The posted rate seems to be 1% as far as I can see. Personally, I have no other accounts there, and don't intend to.
8:22 pm
December 23, 2011
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Lol. I think she likes my blue eyes! No dickering. 1.2 or 1.4 is a whole 2 bucks for the year. And yes of to Oaken, Manitoba or iTRADE next year. It was a good gift! Their site certainly buries the rates.
9:22 pm
October 21, 2013
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They bury their rates for good reason - because they are shameful!
The whole thing is kind of silly, really. It's not really an "investment", with a return of $12 on $1000 at 1.2%. It's more like they are holding back on giving you the value from the voucher for a year!
But I'll take it!
(thanks for the info.)
10:35 am
December 23, 2011
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While no doubt a BMO employee will be entrenched and loyal to BMO and not likely aware of their competition and what alternatives are out there. I purchased a 1200 GIC with the 2 Air Miles vouchers and a cheque from Accelerate. We discussed some other banking options and she said she found that my BMO account was grandfathered and suggested for me to not allow any one to tinker with it as there are no charges ie. blank cheques, monthly fee or delivery of monthly statements. She tapped my Accelerate cheque and asked are these free.......I responded, yes I just ordered more this morning. Later in the discussion.....I said you might want to google the rates at Accelerate. I guess after she does that she will know I won't be depositing funds there for an "investment". But it is nice to do your day to day banking locally.
10:43 am
October 21, 2013
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I guess she did her job by reviewing your options at BMO. I think that's the point of getting you in there to get your GIC. Otherwise you could do it by mail or online like the more competitive institutions do. Not her fault that there were no options!
You may have one of the "old" seniors accounts, as do I elsewhere. I would never let go of mine either, for the same reasons.
1:50 pm
August 5, 2014
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Loonie, talking abut old senior accounts that have no fees or very little fees depending on the bank, financial institution, they are already starting to phase out those accounts but have left existing accounts until they are closed.
As for points, airmiles, and other reward programs, we never got into them because it is more things to track and pay for each card if it is a credit card.
We may be losing $100, $200 a year but are life is simpler and we can probably make that up by just getting an extra 0.15 to 0.25% interest on GIC's and other fixed rate investments.
I guess it depends how much one's time is available and how they want to spend it.
2:13 pm
December 23, 2011
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Jack Manning said
Loonie, talking abut old senior accounts that have no fees or very little fees depending on the bank, financial institution, they are already starting to phase out those accounts but have left existing accounts until they are closed.
As for points, airmiles, and other reward programs, we never got into them because it is more things to track and pay for each card if it is a credit card.
We may be losing $100, $200 a year but are life is simpler and we can probably make that up by just getting an extra 0.15 to 0.25% interest on GIC's and other fixed rate investments.
I guess it depends how much one's time is available and how they want to spend it.
Jack, I am not defending Air Miles. But years ago it was very attractive. I have an Air Miles card for cash purchases and to double dip, a BMO Air Miles MasterCard that has no fee. Currently the BMO MasterCard is my secondary card to use. Interest on a credit card means little to me as I always pay in full. BUT if I did plan a purchase to use the benefits of the card but not able to pay off.....I would pay it with my line of credit...but that has never happened. I guess what I am saying Air Miles is not really a hassle or an inconvenience to use.
4:59 pm
October 21, 2013
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I agree, Airmiles is not a hassle, and you can redeem them online for the most part or at the cash register.
I estimate that we have gotten about $15,000 in returns from various loyalty points programmes over the last 30 years or so, so we have found it worthwhile.
The main thing though is to make sure you are not going out of your way financially to collect them. There is no point in going to Store X to buy something because they give Airmiles if you can get it for a better price at Store Y.
A decent credit card helps too, as you can get an extra 1 or 2 per cent back on your purchases, which adds up, especially when you compare with the returns on GICs etc. But, again, the rule has to be to never psend money just to get the points. You might want to take another look, Jack, if you aren't getting this return on your credit cards. Some of them even give you back your credit automatically. You don't have to do anything at all. It just comes annually on its own. See the Scotia Momentum line for example. It's not the one we use right now, but we do get about $50/month return on our credit card usage alone. If you are concerned about an extra day's interest in leap years and prepared to take the time to pursue that, then I would think this should interest you too.
Canadians are known as assiduous collectors of points, so the market is keen here. In the US, the Airmiles thing flopped and they closed up shop.
The "nuisance" part of it is probably reading the rules and making sure you don't let points expire. Also, if you have too many cards, then it is definitely a nuisance!
I agree, AirMiles used to be much better than it is now. They are constantly devaluing the points, and it has become much more difficult to redeem them for anything worth having. I think they got a bit arrogant after a survey a few years ago showed they were the most popular programme. I wonder if that would still be true. I would have agreed at the time, but no longer.
9:58 pm
August 5, 2014
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The problem that many Canadians don't see is all the extra transaction costs that is charged to businesses and passed on to consumers in the form of higher prices. I believe depending on the type of credit card used and higher rewards given to consumers, it is usually 2% to 3% but some charge as high as 10% which we all pay as consumers eventually.
Businesses, also face fees from using the credit card companies equipment which can be hundreds a dollar a month to certain size businesses.
I believe, I heard that in 2013, 5 billion dollars was paid by merchants to credit card companies. We will stick with cash and debit since we pay no fees and we don't have a bunch of credit card bills to pay at the end of the month.
This is not to mention any annual credit card fees anywhere from $20 to $100 annually plus H.S.T. that consumers pay.
As for leap year interest, this is the tip of the iceberg, they start with an inch and then go for a mile. It is like anything in life, takers from government to corporations, financial institutions always start small and dig deeper in our pockets.
Our focus and time is better spent shopping around to get an extra 0.25% interest per year on all our GIC's, RRSP's, TFSA's, RESP's, non-registered investments, higher interest savings accounts etc. which we calculated carefully to be about $500 a year in our pocket and growing.
Anyhow, to each of his or her own when it comes to their money.
10:46 pm
August 5, 2014
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Actually, probably by the time our retirement comes in say about 25 years, 0.25% more interest per year on all our existing RRSP's, TFSA's, RESP's, GIC's, non-registered investments, higher interest savings accounts etc. is about $1,250 a year because of compound interest over that time.
Added annual RRSP, TFSA, RESP contributions plus added savings, non-registered investments, GIC's every year with existing accounts above would bring this to about $3,100 a year over the next 25 years.
Loonie, everyone is trying to get the most out of something anyway they can in this current economic environment that we are in all.
7:02 am
October 21, 2013
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My strategy is to do both. I do the work to get the extra basis points on the GICs etc, but I also get the returns on the credit cards etc.
We have an autopayment arrangement with the credit card and the bank, so that the credit card is paid automatically; thus we never miss a payment and never have to take the time to pay it. Thus, there is never any risk of paying interest or damage to credit rating. And, of course, we never overspend and there is always enough money in the bank to cover it.
We have chosen a credit card that has a fee as our primary card, but this is because the cash returns we get from it more than justify it. Our annual net returns from it average $500. For those who spend less, a no-fee credit card would make more sense, and they can get a financial return from that as well, albeit about half as much.
It actually takes far less time to get the extra $500 through the credit card than it does sorting out the rates on investments. But, nonetheless, I do both. As you say, Jack, we all have to do whatever we can.
I certainly agree that the credit card industry is responsible for higher prices. Since they're not going away, my best hope is to get some of it back through the credit card cashback or by investing in the banks. Perhaps a consumer boycott of credit cards would be a better idea, but then we'd still have debit cards. Debit cards also have processing fees which are passed on to the consumer in higher prices, but you don't normally get anything back from them, alas, so I prefer credit cards. Most people don't want to carry wads of cash around any longer, as that has its own risks.
Just my experience and opinion.
4:47 pm
December 23, 2011
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Loonie, let me know if you just top up your 500 or 600 with cash to 1000. And of course what high rate!
8:20 pm
August 5, 2014
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Loonie, we stay away from preauthorized automatic payments as we have seen other relatives and friends having problems in the past like double billing.
We like to always stay on top of our finances so we know everything that is happening and we are not comfortable with someone having access to our bank accounts and other accounts even if it is small amounts.
Credit cards are not bad per say but alot of people abuse their credit and spending and if credit card companies did not get interest from their more irresponsible clients I would think that they would make everyone pay which is those with or without credit cards.
We have seen how credit card debt and other high interest debt can get people into a pile of trouble. We avoid using credit cards whenever it is possible.
Loonie, in order to get $500 a year in rewards your household is probably spending anywhere from $20,000 to $35,000 a year on credit cards.
It seems to be working well for you Loonie. Keeping track of any changes to their terms and conditions is the key to staying out of trouble.
Please write your comments in the forum.