Yes, American Express Membership Rewards points can be redeemed for cash or cash equivalents, but the rate you get varies widely: from 0.6 cents per point for a basic statement credit up to 1.1 cents per point for brokerage deposits on certain co-branded cards. Which option is open to you depends on which Amex card you carry and which financial accounts you have linked.
Statement Credits Are the Universal Option
Every cardholder enrolled in Membership Rewards can use Cover Your Charges, which applies points against purchases already on your billing statement at 0.6 cents per point.1American Express. How Much Are American Express Membership Rewards Points Worth Ten thousand points becomes a $60 credit. You choose eligible charges from your recent statement, confirm the redemption, and the credit typically posts within 48 hours.2American Express. Amex Pay With Points for Eligible Card Charges
You need at least 1,000 points to redeem, and each redemption has to cover the full amount of the charge you select. It’s simple and available to everyone, but the rate makes it the weakest cash-value channel Amex offers.
Brokerage and Bank Account Deposits Pay the Most
The best cash rates come from co-branded cards that let you move points directly into a financial account.
Schwab Platinum: 1.1 Cents Per Point
The Platinum Card from American Express for Charles Schwab has the highest cash-equivalent rate in the program. Its Invest with Rewards feature deposits points into an eligible Schwab brokerage or retirement account at 1.1 cents per point, up to 1,000,000 points per calendar year. Redemptions beyond that cap drop to 0.8 cents per point for the rest of the year.3American Express. Invest with Rewards At the top rate, 100,000 points becomes $1,100 in your account, which you can invest or withdraw.
Morgan Stanley Platinum: 1 Cent Per Point
The Platinum Card for Morgan Stanley deposits points into an eligible Morgan Stanley or E*TRADE brokerage or bank account at 1 cent per point. Fifty thousand points deposits $500.4American Express. Morgan Stanley American Express Cards
Business Checking Deposits: 0.8 Cents Per Point
If you have an American Express Business Checking account linked to a Membership Rewards card, you can redeem points for direct deposits at 0.8 cents per point. One thousand points equals an $8 deposit.5American Express. Redeem for Deposits Unlike a statement credit, this puts actual cash into a checking account.
Gift Cards and Pay with Points Fall in Between
Gift cards through the Membership Rewards portal pay up to 1 cent per point, so 5,000 points can get you a $50 gift card depending on the brand. Not every merchant hits that ceiling, so check the rate at checkout.1American Express. How Much Are American Express Membership Rewards Points Worth
Pay with Points lets you apply points during checkout at participating online retailers at 0.7 to 1 cent per point. Ten thousand points is worth about $70 at select retailers and food delivery services.1American Express. How Much Are American Express Membership Rewards Points Worth These aren’t literal cash, but they substitute for money you’d spend anyway.
A Note if You Hold a Blue Cash Card
Not every Amex card earns Membership Rewards. Cards like the Green, Gold, and Platinum earn points; cash-back cards like the Blue Cash Everyday and Blue Cash Preferred earn a separate currency called Reward Dollars.6American Express. Level Up Your Understanding of Amex Card Levels Reward Dollars can be taken as statement credits or spent at Amazon.com with no minimum, but the brokerage deposit routes and rates above do not apply to them.7American Express. Learn the Benefits of Cash Back Cards
Is Cashing Out the Best Use of Your Points
Often, no. Membership Rewards transferred to an airline or hotel partner at the standard 1:1 ratio can be worth 1.5 to 2 cents or more per point toward flights and stays, depending on the booking. That’s two to three times a statement credit and roughly double the Schwab rate.1American Express. How Much Are American Express Membership Rewards Points Worth
Cash still wins in the right situation. If you need money now and won’t realistically use travel value, 0.6 cents per point in your pocket beats 2 cents you’ll never redeem. The Schwab route at 1.1 cents per point is especially strong because the funds land in an investment account. But if you have a large balance and no immediate need, look at transfer partners before you cash out.
Taxes on Redeemed Points
Points earned through card spending are generally treated as purchase rebates, not income, so redeeming them for cash or statement credits doesn’t create a tax bill. The IRS treats these rewards like a discount on a purchase.8IRS. Publication 525 (2025), Taxable and Nontaxable Income
Rewards you received without spending are different. Sign-up bonuses tied to opening a bank account and referral bonuses can be classified as taxable income, and if you receive $600 or more of that kind of reward, the issuer may send a 1099-MISC. For most cardholders earning points through everyday spending, cashing out carries no tax consequence.
How to Redeem
Log into your Amex account online or through the app and go to the Membership Rewards section. The options shown depend on your card and any linked financial accounts. Pick a method, enter the number of points, and the system shows the dollar value before you confirm. Your balance updates immediately, and credits typically post within a couple of business days.9American Express. Can I Use Membership Rewards Points to Cover Card Charges
For Schwab or Morgan Stanley deposits, link your brokerage account to your Amex profile before you plan to redeem. Verification between the two institutions can take a few days. Statement credits and gift cards need no external setup.