16 August 2013

Maybank TreatsPoints - Double Inflation?

This is a very short sharing about Maybank TreatsPoints system. Maybank TreatsPoints is the points that Maybank card owners earn upon each dollar spent. These points can be used to exchange gifts or rewards from Maybank website of www.maybankard.net.my.

I have exchanged quite a number awards (mainly shopping vouchers and for service tax payment) using my "hard-earned" points. Even though other banks do provide more attractive reward system, I  use Maybank credit card simply because the nearest bank in my living place is Maybank.
Recently, I found out that Maybank has implimented two obvious modification about its credit cards TreatsPoints.

First, the credit cards TreatsPoints will be expired after three years.

Second, the value of TreatsPoints is "diluted".

Previously, I can use TreatPoints of 10,000 to pay the annual service tax of RM50.00 with Product Code of GSTP001. Now, I need to use TreatPoints of 12,500 to pay the annual service tax of RM50.00. Of course, the product code of GST001 has been replaced by GST003.

Besides that, all of previous redeemed items have been come "more expensive" in terms of TreatsPoints.

For example, I was able to redeem RM105 Carrefour (AEON BIG) Gift Card with TreatsPoints of 21,000. Now, I need to use 26,250 TreatsPoints for that RM105 Gift Card. Again, the product code of CR1005 has been replaced by that of CR1006.

Suddenly, I realise that monthly cash rebate provided by other bankers is much attractive.

Look, the value of our money is decreased annually due to inflation. That is to say the purchasing power of our dollar is decreased annually. By considering the dilution of TreatsPoints value, the intrinsic value of the reward is reduced significantly.

What I have experienced now can be re-stated as follows:

Year: 2012
TreatsPoints : 21,000
Value : RM105 Carrefour Gift Card

After one year (2013), the purchasing power of RM105, of course, is reduced due to inflation. The worse thing is that I need to use more TreatsPoints (26,250) to have that value diluted RM105 Gift Card. The extra 5250 points is equavalent to around 25% dilution!

This experience suggests that storing your hard-earned money, rewards or wealth in credit form, such as paper assets or points, is a very risky option. The providers have right to dilute our hard-earned 'asset' by printing more money or adjusting the value of the points silently.

It is necessary for those concern about their wealth and hard-earned money to take necessary action to maintain the value of their wealth in the long term. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage for latest sharing.

Written by: Xaivier Chia

P/S: The above sharing is solely based on personal insight and information that believed to be reliable. Your valuable feedback are very welcome.


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