There's a new way to maximise your reward points with companion cards — AMEX, Mastercard and Visa cards linked to the same account.
Now, all four big banks have companion card — or dual card — options. They operate as one account, have one annual fee and all your points add up in one awards program.
So if you feel as though you've been spending tens of thousands of dollars at the shops waiting for your free holiday, you probably have been.
For example, the Commonwealth Bank reward program requires 16,200 points to redeem a $100 store voucher. Using Mastercard you would need to spend $16,200. But with AMEX, just $5400.
The benefits of companion cards are the choices to use each card to maximise reward points. AMEX often accumulates more points per purchase, but the drawback is it could cost more to make a transaction. But Mastercard and Visa are more widely accepted by vendors.
Depending on your lifestyle, you need to consider whether it's worth changing banks or joining their loyalty programs, because the fees could be as high as $300 per year.
Bank cards
Westpac's Altitude American Express costs $100 per year to have but you get two points per dollar.
The Commonwealth's Amex fee is a little cheaper, but with a big interest rate, you get one and a half points per dollar.
ANZ's Frequent Flyer Amex is just under a hundred dollars a year with a one-for-one point value.
NAB's Velocity Amex card is the cheapest of the lot, with the lowest interest rate but less than one point for every dollar.
Retail cards:
Woolworth's Everyday Money costs less than fifty dollars a year, and five per cent off at the checkout for three months.
Coles Group's new Source card has no annual fee. You get 8c per litre off fuel but the interest rate is nearly nineteen per cent.
BP Citi Mastercard costs $79 per year, and you get five per cent off fuel.
The new Jetstar Mastercard has by far the lowest interest rate and savings of up to $500 on flights. But you'd need to spend about $50,000 to reach that.
Extra tips:
Frequent travellers get best results from an airline program, such as NAB Qantas Platinum Amex/Platinum Visa.
If you usually pay less than the full account balance each month may be better served with a low-fee or low-rate card.
Don't miss a payment. Otherwise all those hard-earned loyalty benefits will fly out the window in interest charges.
Read more about loyalty programs:
Best loyalty programs
Divided loyalties? Get more from loyalty cards
