The Best Time to Redeem Your RBC Rewards

This may be hard to hear, but it’s officially back to school time! I know, I know, it’s still summer. I’m trying to savour every last sunshiny minute too, before locking myself inside for the 8 months of winter. Still, there’s no denying that the start of the new school year is right around the corner. And back to school time shouldn’t just signal when to start the countdown for when you or your kids have to go back to school. It should also remind you that right now is the best time to redeem your RBC Rewards points.

You see, to celebrate back-to-school time, RBC Rewards is offering its members exclusive deals from now until August 26, 2018. This includes members getting 20% more in value when they redeem their RBC Rewards points for contributions towards their RBC RRSP, RESP or TFSA. I’ll get more into that in a bit, but first, let me share some important info about the RBC Rewards program that you should know.

What Are RBC Rewards?

You may not know this, but RBC Rewards is Canada’s largest bank-owned loyalty program with unmatched flexibility, choice, and value. I myself have an RBC Rewards credit card and have earned and redeemed thousands of points over the years.

What Can You Redeem RBC Rewards for?

There are a ton of options here, so it really depends on what you’re looking to save money on or get for free by using your rewards. That being said, I of course have my own personal opinions on what the best ways to redeem rewards are.

RRSP, RESP, or TFSA Contributions

Most rewards programs out there really like to focus on the fact that you can redeem credit card points to buy stuff. I totally get it. It can be a great way to get something you really need like a new iPhone or blender for free or at a discounted price. But still, there’s no denying that this idea promotes consumerism, not necessarily smart shopping.

So, if you want to do something that’s way more meaningful and impactful with your points, then this is it. With RBC Rewards, you can redeem points to make financial contributions to your RRSP, RESP or TFSA. What better way to utilize your points than to invest them in your future or your child’s future education? Normally, the rewards-to-cash conversion is 12,000 points to $100. But, until August 26, you can get 20% more for your rewards. Here’s an example of what that promotional conversion rate looks like:

Paying Off Your Credit Card

Another great way to utilize your rewards is by redeeming them to pay off your credit card. First and foremost, I want to make sure you know how important it is to pay off your credit card in full every single month. Keeping a balance on your card and only paying the minimum payment due will cost you a ton of money in interest and will negatively affect your credit score.

That being said, to make paying off your credit card a bit easier, you can use RBC Rewards’ Payback with Points feature.

Extra Mortgage Payments

If you want to find any way possible to pay down your mortgage more quickly, you can do so with RBC Rewards points. Currently, the conversion is 12,000 points for $100. But,  beyond 12,000 points,  you can redeem in increments of 3,000 points to get an additional $25 in vouchers.

Payments Toward Your Personal Loan, Line of Credit, or Home Equity Line of Credit

Similar to mortgage payments, you can also redeem points to pay down your RBC Personal Loan, RBC Credit Line, or RBC Homeline Plan. It’s the same reward point conversion rate, and you also get a $25 voucher for each additional 3,000 reward point redemption after redeeming 12,000 rewards.

Final Thoughts

If you’ve got RBC Rewards points piling up and you don’t currently have a plan for them, then I’ve got a plan for you.

If you’ve got debt with RBC in the form of credit card debt, a personal loan, a line of credit or a mortgage, use your points to pay down that debt first.

If you don’t have any debt, then redeem your rewards to make contributions to your RBC RRSP, RESP or TFSA.

If you don’t have any of those accounts with RBC or you’ve already maxed out your contributions, then you can either redeem points to pay down your current credit card balance, donate your points to charity, or have a little fun and redeem your rewards to buy yourself something you need from RBC Rewards’ merchandise online catalog.