[30 Minutes Left] Chase’s 3rd Transfer Bonus: 20% Bonus Points When You Transfer Ultimate Rewards Points To Southwest

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Update: This bonus offer ends at 11:59pm ET!

Chase Ultimate Rewards has only had 2 transfer bonuses in its history, a 30% bonus for BA Avios last year, and a 60% transfer bonus to IHG earlier this year.

That’s by design.

Chase executives told me when they launched Ultimate Rewards point transfers to airlines that they decided to focus on strong partners with easy to understand transfer ratios and not on assorted transfer ratios and transfer bonuses.

But times change and Chase is back with another transfer bonus, this time a 20% bonus to Southwest for transfers in October:

This offer is far more compelling than the previous Chase transfer bonuses.

I typically use my Chase points for Hyatt and United transfers, but Southwest points do have a cult following. With Southwest points you can always cancel your award and get back your points for free, plus they offer 2 free checked bags.

Southwest points never expire and they can be used for anyone.

Southwest points are normally worth between 1.5-1.9 cents each as award tickets aren’t subject to the 7.5% excise tax normally levied on airfare, which increases the value of their points. However that tax is suspended through 12/31/20 as part of the CARES act. Taking a look at several routes, that means that points are currently worth 1.3-1.5 cents each. With a 20% bonus that’s a value of 1.56-1.8 cents per point.

However, assuming that the excise tax is restored in 2021, the value of Southwest points should increase back to 1.5-1.9 cents each. With a 20% bonus that’s a value of 1.8-2.28 cents per point.

If you fly Southwest, those are some pretty compelling offers for your Chase points. If you have a Southwest companion pass, you’ll double the value of those points when you travel with a free companion. With a card like Chase Southwest Performance Business Card you can earn a companion pass after earning a single signup bonus.

It’s great to see competition from Chase on the transfer bonus front and I can’t wait to see what comes next!

If you, a member in your household, or an authorized user has one of the following Chase cards, you can transfer points into miles:

• Chase Sapphire Preferred has a record high 80K signup bonus, earns 2 points per dollar on dining/travel, can transfer all Chase points into miles, and points are worth at least 1.25 cents each for paid travel or pay yourself back categories ($95 annual fee). Read more here.
• Chase Sapphire Reserve has a 50K signup bonus, earns 3 points per dollar on dining/travel, can transfer all Chase points into miles, and points are worth at least 1.5 cents each for paid travel or pay yourself back categories ($550 annual fee with $300 travel credit). Read more here.
• Chase Ink Preferred has a 100K signup bonus and earns 3 points per dollar on shipping, advertising, and travel, can transfer all Chase points into miles, and points are worth at least 1.25 cents each for paid travel or pay yourself back categories ($95 annual fee). Read more here.

Chase no-annual fee cards that are fantastic for earning points, but require one of the cards above for points transfers include:

• Chase Ink Cash has a 50K signup bonus and earns 5 points per dollar on cable, TV, telecom, cellular, office supply stores, and gift cards from office supply stores, plus 2 points per dollar on dining and gas ($0 annual fee). Read more here.
• Chase Ink Unlimited has a 50K signup bonus and earns 1.5 points per dollar everywhere ($0 annual fee). Read more here.
• Chase Freedom Flex has a 20K signup bonus and earns 5 points per dollar on groceries for 1 year, plus 5 points on rotating categories, 5 points per dollar on travel purchased through the Chase Ultimate Rewards portal, and 3 points per dollar on dining and drugstores ($0 annual fee). Read more here.
• Chase Freedom Unlimited has a 20K signup bonus and earns 5 points per dollar on groceries for 1 year, at least 1.5 points per dollar everywhere, 5 points per dollar on travel purchased through the Chase Ultimate Rewards portal, and 3 points per dollar on dining and drugstores ($0 annual fee). Read more here.

Will you transfer points to Southwest with this offer?

HT: Davidthebest, via DDF