A welcome bonus with no annual fee: A review of the American Express Rewards Credit Card

Sep 10, 2021

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American Express U.K. offers a number of simple-yet-rewarding credit card options to start earning points for your everyday spending. One of those comes in the form of The American Express Rewards Credit Card.

Who Is This Card For?

The Amex Rewards Credit Card is marketed toward those looking to earn some rewards for everyday spending while still avoiding an annual fee.

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Welcome Bonus and Annual Fee

There is a welcome bonus of 10,000 Membership Rewards points after spending £2,000 within the first three months of card membership. Based on TPG’s valuation of Membership Rewards points, this welcome bonus is worth around £150.

Even better, there’s no annual fee in your first or subsequent years. So, provided you can meet the minimum spend required for the welcome bonus, you should be coming out in front.

Representative example: 24.5% APR variable and a purchase rate of 24.5% per annum with an assumed credit limit of £1,200.

Earning

Just like with its no annual fee, this is an uncomplicated card when it comes to earning. It has a simple earn rate of 1 Membership Rewards point per (full) £1 spent.

Unfortunately, as a no annual fee card, there are no categories or purchases that earn a higher rate than this. If you are spending plenty on travel or with airlines, you may wish to consider other American Express U.K. cards that offer higher earn rates for these categories.

Also keep in mind that, like other Amex U.K. cards, this card comes with a foreign transaction fee of 2.99%. If possible, try to avoid using this card for international purchases — especially if your main goal is accumulating rewards, as any benefit gained from the points could be offset by the foreign transaction fee.

Redeeming

Membership Rewards are enormously valuable because of how flexible they are for redemptions. You can read our complete guide to using your Membership Rewards points here.

Perks

This card doesn’t come with as many perks as some of the more expensive — but more lucrative — points-earning American Express cards. That said, there are still some benefits you may find useful.

  • You can opt to have free supplementary cards for any close family and friends in order to maximise your point-earning potential, but remember that you, as the primary cardholder, will still be responsible for paying the balance each month.
  • There’s travel accident insurance up to £150,000.
  • Refund protection insurance up to £200 if a retailer refuses to refund an eligible item.
  • Purchase protection insurance up to £2,500 for items stolen or damaged within 90 days of purchase.

Keep in mind that some of these benefits, such as the insurance, are subject to enrollment.

Which Cards Compete With This Card?

This card competes with the Preferred Rewards Gold Card from American Express UK, which offers twice the welcome bonus (20,000 Membership Rewards points). It also has no annual fee, but only for the first year, and then a £140 annual fee in subsequent years.

Bottom Line

This card can be a good option for anyone wanting to get into the points game.

Because there’s no annual fee, you’ll be able to build your points balance over a longer period of time, and a welcome bonus of 10,000 Membership Rewards points is decent for an annual fee-free card.

You can apply for this card here.

Featured image by Shutterstock

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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