HSBC has recently updated the welcome bonus for its World Elite Mastercard, and we’re pleased to share the improved offer. The card maintains its first-year-free (FYF) benefit, and while the total number of points you can earn in the first 90 days remains unchanged, the rate at which you can accumulate those points has significantly increased. This enhancement boosts your chances of fully benefiting from the bonus. Overall, it presents a fantastic opportunity for a reliable travel credit card.
What’s the New Offer?
If you apply by December 16, 2019, you’ll receive the FYF, 20,000 points upon your first purchase, and up to 40,000 additional points on qualifying purchases made within the first 90 days of card membership.
During the first 90 days, the HSBC World Elite Mastercard will earn you 18 points for every CAD $1 spent on eligible travel purchases and 9 points for every CAD $1 spent on all other eligible purchases, translating to a 9% and 4.5% return, respectively. According to the fine print, these accelerated earning rates apply to both travel and non-travel purchases.* This represents a threefold increase from the previous standard earning rates of 6 points for travel purchases and 3 points for other purchases.
How Does This Compare to Previous Offers?
The previous offer featured the same total points but with lower earning rates—12 points per CAD $1 spent on eligible travel purchases and 3 points per CAD $1 spent on all other eligible purchases. HSBC has increased the earning rate for travel purchases by 50% and tripled the rate for all other purchases, meaning you’re now much more likely to receive the full welcome bonus.
If you divide your expenses evenly between travel and other purchases in the first 90 days, the minimum spending requirement to earn the full 60,000 welcome bonus has decreased to approximately $3,333.33. Redeeming these points as a statement credit for travel purchases would yield a 9% return, and when including the $100 travel enhancement credit (as discussed below), the return rises to 12%. That’s quite impressive!
Quebec Gets Its Own Offer, and It’s Better
Residents of Quebec have no minimum spending requirement and will receive a welcome bonus of 20,000 points, plus an additional 70,000 points if they keep their account open and in good standing for 90 days. Note that Quebec residents do not receive the FYF benefit, which is offset by the additional welcome points. When redeemed against travel expenses, each 10,000 points equates to $50 as a statement credit. Thus, the additional 30,000 points can yield up to $150, compensating for the absence of the FYF offer.
What Can I Use HSBC Points For?
We’ve previously highlighted how HSBC points can be a valuable source for earning British Airways Avios, if that interests you. However, HSBC points can also be directly redeemed as statement credits for eligible travel purchases made on your card. Accumulating 25,000 HSBC Rewards Points will give you a $125 statement credit, providing an effective return of 3% for travel purchases and 1.5% for all other expenses. With the current welcome bonus, these return rates triple to 9% and 4.5%, respectively.
HSBC is also notably one of the few transfer partners for Cathay Pacific’s Asia Miles and the only Canadian transfer partner for Singapore Airlines’ KrisFlyer.
What Else Does the HSBC WE Mastercard Offer?
Beyond the welcome bonus and FYF, the HSBC World Elite Mastercard provides no foreign transaction fees and an annual $100 travel enhancement credit.
HSBC’s World Elite card is one of the few in Canada that does not impose foreign exchange fees on purchases made in foreign currencies. This feature can lead to significant savings for frequent travelers as the percentage saved can accumulate quickly.
The travel enhancement credit can be applied towards seat upgrades, baggage fees, and lounge access. Practically, the credit can be used against various expenses, depending on how the merchant charge is categorized by HSBC. Our experience indicates that the credit is usable for a wider range of expenses than specified. Utilizing the travel credit is straightforward; you can apply it to qualifying purchases directly from your online account.
Lastly, the card includes a standard package of travel insurance benefits such as medical coverage, baggage delay or loss protection, trip cancellation and interruption coverage, and car rental insurance. With this insurance, you can decline the rental agency’s loss damage waiver as long as you charge at least 75% of the rental cost to your HSBC World Elite Mastercard.
*Footnote 1b of the application terms states: “For the first 90 days or until you reach the maximum additional points, earn 18 Points on every $1 of eligible travel purchases (and 9 Points for every $1 in other eligible purchases).”
About the Author: Jacob is a longtime supporter of DCTA and a new contributor. He became interested in miles and points while planning an exchange in Southeast Asia and seeking ways to maximize his limited student budget. When not traveling or helping others find creative ways to save money through miles and points, he works as an international trade lawyer in Toronto. None of the information in this article, or any of Jacob’s articles, should be considered legal advice.
