Chase Ultimate Rewards is offering a 60% transfer bonus to IHG — is it a good deal?

If you have one of Chase’s cobranded credit cards, such as the Chase Sapphire Preferred Card, Chase Sapphire Reserve, Ink Business Preferred Credit Card, or Chase Freedom Flex, you have the opportunity to earn Chase Ultimate Rewards points. These points can be redeemed through the Chase travel portal or transferred to airline and hotel partner programs. Transferring points can be a great way to maximize the value of your rewards, especially when there are transfer bonuses available. However, it’s important to understand that not all transfer bonuses are created equal.

One example of a transfer bonus that may not be a good deal is the current offer to transfer Chase Ultimate Rewards points to IHG One Rewards. With this promotion, you will receive a 60% bonus when you transfer your points. While this bonus may seem enticing, it’s important to consider the value of the points being transferred.

According to valuations by The Points Guy (TPG), Chase Ultimate Rewards points are worth 2.05 cents each, while IHG One Rewards points are worth just 0.5 cents each. This means that when you transfer 1,000 Ultimate Rewards points to IHG, you will receive 1,600 IHG points. However, based on TPG’s valuations, this is like trading $20.50 worth of Ultimate Rewards points for only $8 worth of IHG points.

In general, this transfer bonus is not a good deal unless you need just a few thousand more points for a specific award stay. For example, let’s consider a stay at the Holiday Inn Express Columbus — Ohio Expo Center. This hotel can be reserved for 24,000 IHG points or by transferring 15,000 Chase points to IHG during the transfer bonus. However, TPG valuations estimate that 16,000 Chase points are worth $328, while the cash rate for this room is only $164. Even with the 60% bonus, the value you’ll get for your Chase points is below average.

In this scenario, it would be more advantageous to forgo the transfer bonus and simply book the stay with points through the Chase travel portal. Chase points are worth a fixed rate of about 1.25 cents each when redeemed this way. Even cashing out your points at a rate of 1 cent each would save you thousands of points compared to using the current transfer bonus.

It’s important to note that not all transfer bonuses are bad deals. Some can offer excellent value. To determine if a transfer bonus is worthwhile, consult TPG’s monthly valuations and do the math to compare the value you’re getting with the average value of your points. Additionally, make sure to stay updated on transfer bonus offers by bookmarking TPG’s transfer bonus page, which is regularly updated with the latest promotions.

In conclusion, while transfer bonuses can be a great way to stretch your points and miles for more trips and savings, not all transfer bonuses are created equal. It’s important to consider the value of the points being transferred and compare it to the value you can get through other redemption options. By doing your research and crunching the numbers, you can make informed decisions on how to maximize the value of your rewards.

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