Disclaimer: The article and product(s) that is/ are mentioned are non sponsored. All insights are based on personal opinions and researches done. The information would have been updated during the time you read this article. The resources are based on the day of this article being posted.
"Multipliers"is one of the key ingredients for us as consumers to accelerate the speed in points earning.
Multipliers of 2x, 3x are the keys for earning more points for every Ringgit we would have already spent.
However, credit card issuers often provide specific multipliers on specific cards, so they could attract customers from different segment in order to position their products in the market. Or it just another trick to persuade customers applying for another card.
HongKong and Shanghai Bank Corporation (HSBC) is one of the bank offers high multipliers to their credit card users in Malaysia. Between 5x to 10 x in their lineups. The question is, if high multipliers lead to higher value?
As from airline mileage point of view, we would categorise credit cards from HSBC by types of relationship with the bank.
A. Regular
1. HSBC Platinum
-Benefits:
• 8x on contactless spending
• 8x on groceries, overseas and online spending (Lazada, Shopee, Zalora, Grab, HappyFresh & Fave)
- Annual Fee: 240 MYR
- Eligibility: Minimum annual salary of 36,000 MYR
2. HSBC Visa Signature
-Benefits:
• 8x on online and overseas spending (foreign currency)
• 8x on online and local participating malls' spending (local currency)
• 6x Plaza Premium Lounge access (Only at KLIA, Singapore Changi Airport and Hong Kong International's Airport)
- Annual Fee: 600 MYR
- Eligibility: Minimum annual salary of 72,000 MYR
B. HSBC Advance Account
Check out a little bit of "Advance" account before diffing into the cards offered:
Source: https://www.hsbc.com.my/advance/
-Benefits:
• 3x on online spending (Max 6,000 additional Rewards points)
• 1x other spending
- No Annual Fee
Cards above have the same rates for mileage redemptions:
- AirAsia BIG Points 12:1 (Min 12,000:1,000)
- Malaysia Airlines Enrich 18:1 (Min 18,000:1,000)
- Singapore Airlines KrisFlyer 25:1 (Min 25,000:1,000)
- Asia Mile 25:1 (Min 25,000:1,000)
C. HSBC Premier Account
Being as "Premier", the qualifications is a lot higher than previous account.
Source: https://www.hsbc.com.my/premier/
1. HSBC Premier Travel
-Benefits:
• 1 AirMile per 1 MYR overseas spend (Max. 20,000 AirMiles)
• 1 AirMile per 4 MYR local spend (Max. 30,000 AirMiles)
• 12x international Plaza Premium Lounge Access
• Discount on Agoda (7%) and Expedia (10%)
• Unlimited WIFI connection through Boingo
• Grab promotional code
- Annual Fee: 600 MYR (waived for 1st year and following years with Min. 45,000 MYR annual spending)
∆ Mileage Redemption Rates ∆
- AirAsia BIG Points 1:1 (Min 10,000:10,000)
- Malaysia Airlines Enrich 1:1 (Min 10,000:10,000)
- Singapore Airlines KrisFlyer 2:1 (Min 20,000:10,000)
- Asia Mile 2:1 (Min 20,000:10,000)
2. HSBC Premier World Mastercard
-Benefits:
• 10x on overseas hotel and dining spend (Max. 20,000 Reward points)
• 5x or 8x on local spend- travel, hotel, participated malls (Max. 9,000 Reward points)
• 1x on other spending
• Grab promotional code
• 6x Plaza Premium Lounge access (Only at KLIA, Singapore Changi Airport and Hong Kong International's Airport)
• Unlimited WIFI connection through Boingo
- No Annual Fee
∆ Mileage Redemption Rates ∆
- AirAsia BIG Points 12:1 (Min 12,000:1,000)
- Malaysia Airlines Enrich 13:1 (Min 13,000:1,000)
- Singapore Airlines KrisFlyer 15:1 (Min 15,000:1,000)
- Asia Mile 15:1 (Min 15,000:1,000)
Final Thoughts
After doing some researches on products offered, the strategy of HSBC advertising its multipliers is integrity-less. From the paper, the products seems offering high values, but when redemptions made towards travel, it is just a little above average if all the multipliers are well optimised. If not, the redemption chart is just a big disaster.
The annual fees of most products would be a big drawback for consumers too.
Take an example of HSBC Premier Travel, the most premium travel credit card in HSBC lineup. It requires 4 MYR local spend to redeem 1 Enrich mile. While Hong Leong Bank's Visa Infinite credit card requires just 2.8 MYR, with 0 annual fee and no "special" account required.
However, HSBC Premier Travel is still a valuable travel card out there, with superb redemption rates towards Singapore Airlines and Asia Miles. But, the user must have an Premier Account beforehand.
In conclusion, some researches are fundamental before applying cards just by checking their multipliers. There must be some traps inside, as banks are not offering perks for totally free. Remember to evaluate if the multipliers could be optimised too. If the card does not suit your spending habits, it will be impractical even with 10x multiplier.
Have a glance of estimated earning miles by using the excel file below:
By inserting the amount of expense in Yellow Column
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