Points Withdrawals Now Easier on the Amex Schwab Platinum Card

In addition to the numerous benefits offered by the standard version of the Platinum Card^® from American Express, the American Express Platinum Card^® for Schwab offers another interesting perk: the ability to cash out points. This is done at a rate of 1.1 cents per point, which may not make sense for everyone.

The good news is that this feature is now easier to use, as first pointed out by Miles to Memories. The redemption tool doesn’t have the clunkiness and preset numbers found under the old system.

Let’s take a look at how it works.

What Is ‘Invest With Rewards’ on the Amex Schwab Platinum Card?

This feature isn’t available on the regular Amex Platinum card. It’s only available with the Amex Schwab Platinum card, which features all of the normal Amex Platinum card benefits but also comes with a feature called “Invest with Rewards.”

This feature allows members to cash out their Membership Rewards points at a rate of 1.1 cents each into their Schwab investment account. This is valid for up to 1 million points redeemed this way annually, after which the rate drops to just 0.8 cents per point.

These cardholders have an “Invest with Rewards” option next to their points balance and the “Explore Rewards” button, which they can use to redeem points in other ways.

Previously, the Invest with Rewards option was awkward. Users needed to choose a preset amount of points to withdraw or even choose several batches of varying amounts to add up to the number of points they wanted to redeem.

Now, cardholders can simply type in the number of points they want to redeem using the box on the left. The box on the right will automatically adjust, showing a value for the deposit amount the cardholder will receive.

After putting in the number of points you want to withdraw, click on the “Continue to Review” button to move forward. The next page will show how many points you’re redeeming, how many points you’ll have left afterward, and the dollar amount that will be deposited into your Schwab brokerage account. If you’re satisfied, confirm the transaction.

Is It Worth It?

Consider that we value Amex Membership Rewards points at 2.2 cents apiece. Redeeming them into your Schwab investment account as cash fetches half that value — 1.1 cents per point, up to the annual limit.

Should you get 1.1 cents for something when you could get 2.2 instead? Probably not. The best value for using Amex points typically comes with the points transfer partners. However, those also come with effort.

You’ll need to find hotel rooms or award seats available on flights for which you can use your points, move your points to the associated loyalty program, and then make a booking — assuming you know how to use them. That process can feel cumbersome (though we definitely think it’s worth it).

Redeeming points for cash is easy. Plus, you can use cash to pay for things you can’t pay for with points. Rent payment, anyone?

It’s worth knowing your options and the fact that they don’t all provide the same value before redeeming your points.

Final Thoughts

Redeeming points like cash at a rate of 1.1 cents apiece won’t always make sense. In 2021, the rate for redeeming points this way with the Amex Schwab Platinum card dropped from 1.25 cents apiece to 1.1 cents. In 2024, Amex put a limit of 1 million points annually on these redemptions, after which the rate drops to 0.8 cents apiece.

There are other ways to redeem Membership Rewards points at higher values. Those take some effort to learn and utilize, while redeeming as cash is easy. If you choose to cash out your Amex points into a Schwab account, the interface is improved.