RBC Rewards is Royal Bank’s credit card rewards program and is quite popular in Canada. To be honest, the program is likely popular since RBC is one of the big banks in Canada and has an insane number of clients. That’s not to say the program isn’t any good. Heck, I think it’s one of the better bank programs available since it’s easy to earn points and you have multiple redemption options.
That said, like any loyalty program, RBC Rewards has different ways to earn and redeem points. What you use your points for can make a big difference when it comes to value. Way too many people burn their points on basic travel redemptions or statement credits when they could easily get more value of their points. Here’s how to maximize your RBC Rewards points.
- RBC Rewards points value
- How to redeem RBC Rewards points for travel
- RBC Rewards Air Travel Redemption Schedule
- How to redeem RBC Rewards points for gift cards
- How to redeem RBC Rewards points for financial rewards
- Redeeming RBC Rewards points for merchandise and statement credits
- RBC Rewards points transfer partners
- Do RBC Rewards points expire?
- How RBC Rewards compares to others
- How to earn RBC Rewards points
- Final thoughts
RBC Rewards points value
Since it costs 1,000 points to redeem $10 in travel, the base value of one RBC point is 1 cent. That’s similar to other bank travel loyalty programs. That said, RBC Rewards has different redemption options available that could increase or decrease the value of your points. Here’s a quickl look at the value of the different redemption options available.
|Redemption type||Redemption value|
|Travel||1 cent per point|
|Travel Redemption Schedule||Up to 2.33 cents per point|
|Gift cards||.71 - 1 cent per point|
|Financial rewards||.83 cents per point|
|Merchandise||.60 - .75 cents per point|
|Statement credit||.58 cents per point|
As you can see, travel redemptions and travel gift cards are clearly the ones that give you the most value for your points. The Air Travel Redemption Schedule is especially worth noting since you can more than double the value of your points. Although financial rewards may have a lower initial value, you could come out ahead in the long term.
How to redeem RBC Rewards points for travel
With RBC Rewards, you must book through their travel portal or via the phone, but RBC will charge you $30 for that privilege. While this will annoy many people since you may have specific travel sites you prefer, RBC Rewards is a full service travel agency and you can book any of the following:
- Rental cars
- Holiday packages
You can use your RBC Rewards points for any seat on any flight available and there are no blackout dates. Points can be used to pay for the whole price of airfare including taxes. If you don’t have enough points to pay for the whole redemption, you can use as few points as you wish since there is no minimum redemption required. The remaining balance would be charged to your RBC Rewards credit card. Unfortunately, RBC Rewards
RBC Rewards Air Travel Redemption Schedule
If you have an RBC Avion ccard, you can use your points on the RBC Air Travel Redemption Schedule, which allows you to book flights for fewer points. The catch is, the redemption has a maximum base fare ticket price and you can’t do a partial redemption. You must have all the points required to make a redemption. Even with the limit in place, you can get a greater value than 1 cent per point via the redemption schedule, which is why it’s appealing. Here’s the redemption chart and what you’ll get:
|Points Required||Destination||Max. Ticket price|
|15,000||Within or to an adjacent Province/Territory/U.S. State||$350|
|35,000||Anywhere in Canada/U.S. except Hawaii and Alaska||$750|
|45,000||In western Canada/U.S. to Mexico, Hawaii, Alaska Eastern Canada to Bermuda, Central America, Caribbean||$900|
|55,000||In eastern Canada/U.S. to Mexico, Hawaii, Alaska Western Canada to Bermuda, Central America, Caribbean||$1,100|
|65,000||From any major gateway in Canada/U.S. to destinations in Europe||$1'300|
|100,000||From any major gateway in Canada/U.S. to destinations in Asia, Australia, New Zealand, South Pacific, Middle East, Africa, South America||$2,000|
Yes, that chart does sound complicated, but look strictly at the value. Depending on how you redeem your points, you could get a value of up to 2.33 cents per point which is more than double the regular redemption rate. Using the redemption schedule is obviously handy whenever you need to book an expensive flight. There has been more than one occasion where I’ve had to fly from Toronto to Ottawa at the last minute. Instead of paying the insane $500-600 that Air Canada and WestJet were charging, I redeemed RBC points to help offset my costs.
There are no blackout dates and every seat is available on every carrier with the Redemption Schedule, so it can be easy to value. Quite often I’ll compare the cost of a flight on Aeroplan to RBC before deciding which points I should use.
The RBC Air Travel Redemption Schedule and the ability to convert your RBC Rewards points to other loyalty programs is why I rank RBC Rewards ranks #2 on my list of Canada’s best bank travel rewards programs.
How to redeem RBC Rewards points for gift cards
RBC Rewards has a wide variety of merchants where you can use your RBC points for gift cards. Unfortunately, there are different values depending on the gift card you redeem. Here are some of the redemptions and merchants available.
- 1,400 RBC Rewards points = $10 Amazon gift card
- 3,500 RBC Rewards points = $25 Bath & Body Works gift card
- 3,500 RBC Rewards points = $25 Beer Store gift card
- 7,000 RBC Rewards points = $50 Best Buy gift card
- 10,000 RBC Rewards points = $100 Air Canada gift card
- 10,000 RBC Rewards points = $100 Fairmont Hotels & Resorts card
- 14,000 RBC Rewards points = $100 Food Basics gift card
- 35,000 RBC Rewards points = $250 Golf Town gift card
Since the value of each gift card is different, you need to calculate the value of one point so you know what you’re getting. To do that, you take the dollar value of the redemption and multiply it by 100. You then take that number and divide it by the points required. For example, with Food Basics, it would be $100 X 100 / 14,000 = .71 cents per point.
What you’ll quickly notice is that travel gift cards are usually worth 1 cent per point, whereas any other merchant is .71 cents each. RBC often has gift cards redemption bonuses (10% to 30% bonus) including travel related gift cards that make them an attractive option. There was a good promo on Petro Canada gift cards one summer, so I cashed in a bunch of points and gave the gift cards to my dad.
How to redeem RBC Rewards points for financial rewards
When logged into RBC Rewards, if you look under the Shop & Redeem menu, you’ll see there’s an option to use your points for financial rewards. Assuming you have financial products with RBC, you can use your points for the following:
- Add to your existing investments
- Mortgage payments
- Repayment to your line of credit.
It takes 12,000 RBC points to get $100 in financial products which gives you a value of .83 cents per point. At first glance that may seem like a lot, but think about the long term. With mortgage and line of credit payments, you’re basically paying off your loan earlier which you immediately save on the interest. If you’re adding to your investments, you can take advantage of compound interest which could make your redemption very valuable in the long run.
If you use your points for a financial reward that’s put towards your RRSP, you could also get a tax break. Putting in your TFSA would allow you to invest with tax free gains. It’s a win-win situation, but you won’t see the reward for many many years.
Redeeming RBC Rewards points for merchandise and statement credits
The final two redemption options you have for your RBC Rewards are merchandise and statement credits. Although the RBC Rewards merchandise catalogue is quite large and there are some quality products available, the number of points required for the value is not worth it at all. I would advise avoiding using your points for merchandise.
Using your points for a statement credit is an even lower value. It takes 17,200 points to get $100 off your statement. That means your points would be worth .58 cents per point. Unless you’re facing financial difficulties, you’re better off redeeming your points for anything else.
RBC Rewards points transfer partners
I love programs that let you convert points to other loyalty programs since it adds flexibility and value. RBC Rewards has one of the most extensive and valuable list of conversion partners when it comes to Canada’s bank travel reward programs. American Express Membership Rewards is better in my opinion, but RBC Rewards isn’t far behind.
Here is the list of programs you can convert RBC Rewards points to:
- WestJet: 1,000 RBC points = $10 WestJet dollars
- HBC Rewards: 1,000 RBC points = 2,000 HBC Rewards points (worth $10 at Hudson’s Bay)
If you are an Avion cardholder you can also benefit from these conversion options:
- American Airlines: 10,000 RBC points = 7,000 AAdvantage miles
- Asia Miles: 10,000 RBC Points = 10,000 Asia Miles
- British Airways: 10,000 RBC points = 10,000 Avios miles
It’s hard to put an exact value on airline miles since there are so many variables, but generally speaking, their value is around a minimum of 1.5¢ per mile for economy tickets. Often you can get double the value if you’re booking in business class.
It’s a good idea to log into RBC Rewards often since they have many redemption promotions throughout the year and these promotions boost your points’ value. It’s been a while, but RBC Rewards had a few conversion bonuses (10% to 30% bonus) for Westjet, Asia Miles, British Airways Avios miles and American Airlines AAdvantage Miles. That meant you got extra value when you transferred your points to a partner.
Of particular interest is how you can transfer your points to WestJet dollars. There’s nothing stopping you from holding an RBC Avion card and the RBC WestJet World Elite Mastercard. Both of these cards come with good sign up bonuses so you could easily rack up those WestJet dollars. For example, the RBC Avion card typically has a welcome bonus of 15,000 points which can be transferred to WestJet for $150 WestJet dollars. The WestJet RBC World Elite Mastercard’s standard bonus is $250 and a companion voucher. When you combine the two, you’ll have $400 in WestJet dollars without having to spend much. No purchase is required to get the bonus with the Avion card and you only need one purchase with the WestJet Card.
Do RBC Rewards points expire?
There’s a lot of conflicting information out there about when RBC Rewards points expire. I have confirmed that RBC Rewards points don’t expire as long as you have an active account. If you cancel your card, you have 90 days to redeem them before losing them. The first-in, first-out rule you may have read about online is an old outdated article. RBC really needs to delete that page. If you’re still not sure about when your points expire, you could always call customer service to confirm.
How RBC Rewards compares to others
RBC Rewards is easily one of the best travel loyalty programs of Canada’s big five banks. There are many reasons why I rank RBC Rewards so high including:
- No blackout dates
- No minimum amount of points to redeem
- A fixed points flight program
- Many transfer partners to convert points to
- Many promotions for redemptions
- Value of points
In my opinion, RBC Rewards is only second to American Express Membership Rewards. American Express holds the first place because RBC Rewards lacks an option to book travel on your own (you can only book through their portal) and because RBC Rewards credit cards don’t really have any increased earn rates which limit how fast you can earn points. You can also read my reviews of CIBC Rewards, BMO Rewards, TD Rewards and Scotia Rewards to see how RBC Rewards compares
How to earn RBC Rewards points
To earn RBC Rewards, you must have a credit card that earns you RBC Rewards. As you can imagine, the easiest ways to earn points are via credit card sign up bonuses and everyday purchases you make on your RBC Rewards credit card. Currently, there are 6 personal credit cards and 2 business credit cards that will earn you RBC Rewards points. To make things a bit complicated, RBC Rewards has 2 tiers of RBC Rewards points: regular and Avion RBC Rewards points. Points from an Avion account have more redemption options and these options are the most valuable ones. With this in mind, the RBC Visa Infinite Avion card is arguably the best card to earn Avion points and is one of the best RBC credit cards.
RBC Visa Infinite Avion Card
- $120 annual fee
- 15,000 sign up bonus
- Earn 1.25 RBC Rewards points for every $1 spent on travel purchases
- Earn 1 RBC Rewards point for every $1 spent on everywhere else
- Save $0.03/L at Petro-Canada when the credit card is linked to your PetroPoints account
- Earn 20% more RBC Rewards points and 20% more PetroPoints on Petro-Canada purchases
- Comprehensive travel insurance package included
Although the signup bonus of 15,000 points isn’t much compared to some of the best travel credit cards in Canada, it’s worth noting that the RBC Visa Infinite Avion Card often has promotions where the welcome bonus is 25,000 points and the annual fee for the first year is waived. Whenever a promo like that comes around, it’s totally worth signing up for the card.
The earn rate of 1.25 points per $1 spent on travel is decent while the 1 RBC Reward point earned per dollar spent on all other purchases is pretty common. Here’s something that many people don’t realize. You only need to make one purchase to get the standard bonus. You could buy a pack of gum or a loaf of bread and get the bonus without ever having to use the card ever again.
Another little known trick is that you switch from the RBC WestJet World Elite Mastercard to the RBC Visa Infinite Avion Card and vice versa. This is useful if you’re not able to maximize your points and want to try something new. That said, be sure to use up your points before you make any changes.
RBC Rewards is one of the best bank travel rewards programs. The RBC Visa Infinite Avion card may not give you the best signup bonus or have the highest earn rate, but there’s no denying that once you have the points that they’re easy to use. There are no blackout dates and no minimum points required to make a redemption, so you’ll never run into any issues using your points. If you’re a fan of RBC, check out my RBC InvestEase review and find out how you can reduce your investment management fees.