Ask Points Finder: When should I convert my Velocity Points into KrisFlyer?
Transfer rates are changing, but be careful of the "expiry trap".
Dear Points Finder, I have a lot of Velocity Points which I'm planning to transfer into KrisFlyer. When's the best time to make that transfer? I know the redemption rate is going down soon. Any advice? Thanks, Singapore Slinger
Transferring from Virgin Australia's Velocity into Singapore Airline's KrisFlyer is a very popular choice. Virgin Australia isn't a member of any of the main airline alliances, but moving to KrisFlyer gives you access to reward seats on Star Alliance airlines, including Lufthansa and Thai (as well as Singapore itself). Our detailed guide explains how the transfers work.
As you note, the conversion rate when you move those points is about to become less generous. Currently, Velocity members receive 1 KrisFlyer point for each 1.35 Velocity Points they transfer. From 1 January 2019, that rate will change to 1 KrisFlyer point for 1.55 Velocity Points.
With large points totals, that makes a big difference. Right now, if you shift 200,000 Velocity Points, you'll get 148,148 KrisFlyer points. Do the same transaction in January and you'll end up with 129,032 points.
Given that, it would generally make sense to transfer points before the rate changes. Because there's a minimum transfer amount, I'd hold off doing that until closer to the changeover date, so that any points you earn in November and December are available.
One note of caution: watch out for the "expiry trap". KrisFlyer points expire 36 months after you've earned them. That clock will start ticking as soon as you transfer the points from Velocity. That means you'll have to make sure you redeem those points before they expire. This is different from Velocity and Qantas, where points won't expire as long as there is earning activity in your account.
So I'd suggest having a planned redemption flight in mind, and making sure you'll have enough KrisFlyer points to redeem it before the points expire. Given that the best frequent flyer seats generally need to be booked a year in advance, that means you'll need to plan around the number of points you think you'll have two years down the line. If you're not ready to make that kind of plan, then I'd keep the points in Velocity, where there's much less risk of expiry.
All rates and fees correct at time of publication. General advice only. Got a question for Points Finder? Hit us up on Facebook.