Using airmiles dream rewards for TFSA (Bank of Montreal)

[momof5boys]

I have a lot of dream rewards saved up in my Air Miles account and was checking out the best way to use these rewards as we don't have any travel plans and also don't want to lose these airmiles when they expire (I believe Dec 2016). I noticed that a person can redeem for a voucher towards TFSA with Bank of Montreal. Does anyone have experience with this?

[lizzie bargain]

I don't have any experience with this but it sounds like a good way to use your dream miles and then have the gov't kick in their 20% grant! Maybe just phone BMO and check re any associated fees etc.

[Shwa Girl]

OP, that sound like a good use of Air Miles. It's like free money.

[Zonny]

How long is the lifespan on Air Miles now? Is it five years? We plan to travel next year, hopefully none expire before then.

[momof5boys]

I don't have any experience with this but it sounds like a good way to use your dream miles and then have the gov't kick in their 20% grant! Maybe just phone BMO and check re any associated fees etc.

The govt wouldn't kick in a grant seeing as this is a tfsa - not resp I could only wish lol

[momof5boys]

How long is the lifespan on Air Miles now? Is it five years? We plan to travel next year, hopefully none expire before then.

From my reading up on this, I think the earliest that any air miles can expire is Dec 2016, but I'm not entirely certain of this. We looked into using some airmiles for air travel to Europe and we would have to pay over $600 ourselves just on taxes and fees - it's downright ridiculous. So I'm thinking of cashing in all those air miles for a TFSA (if that is possible) and then eventually just using the cash if needed. Somehow this makes more sense to me but I may be missing something....

[Zonny]

A pair of tickets to Europe for $600 sounds fairly reasonable? Or am I out to lunch? I can't get my family to Florida that cheap.

[AmieT]

I've redeem miles for TFSA several times. The only catch is you have to wait for a period (forgot how many days 30 or 60) before you can withdraw.

[momof5boys]

A pair of tickets to Europe for $600 sounds fairly reasonable? Or am I out to lunch? I can't get my family to Florida that cheap.

It would be one ticket and I would have to use most all my airmiles. The $600 is for taxes and fees over and above airmiles used for one ticket. I now just redeemed less airmiles for $1000 in BMO investment certificates.

[momof5boys]

I've redeem miles for TFSA several times. The only catch is you have to wait for a period (forgot how many days 30 or 60) before you can withdraw.

That wouldn't be a problem. I'm definitely going for a TFSA as well - I just spoke to a BMO staff member today and they said no problem. There won't be any fees even though I don't bank there.

[Ciel]

Just think this is a great way to get some banking action via loyalty program.

[Zonny]

It would be one ticket and I would have to use most all my airmiles. The $600 is for taxes and fees over and above airmiles used for one ticket. I now just redeemed less airmiles for $1000 in BMO investment certificates.

Oh I see. I've never flown with air miles (hope to do so in about a year), so didn't know what the rates would be. But how much would the flight be if you had to pay for it without air miles?

[momof5boys]

Oh I see. I've never flown with air miles (hope to do so in about a year), so didn't know what the rates would be. But how much would the flight be if you had to pay for it without air miles?

We have flown to Europe with our family numerous times and the cost really hasn't changed much over the years - about 1200 per ticket depending on when you fly. A person would have to pay $600 in fees and taxes if using airmiles, so I am assuming that the flight would cost $600 per person. Now I'm taking the investment certificates and putting them into a BMO TFSA and can always pull the money from there if wanting to use it for a flight. At least I don't lose my money with points expiring - that was my main fear that they would just up and expire these points that have been sitting in my account for literally years and years.

[lizzie bargain]

Sounds like you have a good plan Mom of 5 boys. I hate those airmiles fees too-way too high for a "free" ticket. Somehow I read RESP when you clearly wrote TFSA so that is why I thought you would get the 20% govt grant-so thanks for correcting that!

[Zonny]

I don't think they're air miles fees. Many travel rewards don't include the taxes on flights.