Rewards have become part and parcel of many value packages offered by banks, but how do they really benefit you?
Rewards are taking on a new paradigm, as people become educated as to how to get real value from the brands they support. On paper, it may seem as if you’ve hit the jackpot, but Khathu Ramoliko, Head of FNB Gold, advises consumers to ensure that the rewards they are offered pass the ‘value test’.
- Do I pay a joining fee for the rewards programme?
Some banks charge you a fee to join their rewards programme, which is counterintuitive if you have to pay for it.
- Do the rewards expire?
Rewards that expire put consumers under unnecessary pressure to extract value from their bank rewards on a frequent basis as a crucial part of household monthly budgeting.
- Do you get further discounts at rewards partners?
A programme that allows you to use your rewards across a number of categories such as groceries and transportation is the best way to get maximum benefit.
- Are the rewards easy to understand and can you easily change behaviour in order to earn more rewards?
It’s easier to extract value when a rewards programme is aligned to your banking behaviour.
- How much have you received and can your rewards offset your banking fees?
This is the ultimate ‘value test’ for a rewards programme. You must be able to quantify the amount of value you’re getting. If you have been with the same bank for a while, use your budgeting time to strictly scrutinise the rand value of what you’ve been getting back. After doing all the right things, a value-packed rewards programme should accumulate enough rewards or value to offset what you pay in fees.
Source: FNB. Image: Business Tech