Loyalty points feel like free money until they vanish. You check an old account and find a balance of zero, or you try to redeem points at checkout and discover they expired last month. This happens constantly, because almost every loyalty programme has an expiry rule, and the rules differ wildly between programmes. Some points expire after a year of inactivity, some expire on a fixed date regardless of activity, and some never expire at all. Understanding the rules for the programmes you actually use is the only way to protect rewards you already earned.

The first model is inactivity expiry: your points expire if you do not earn or redeem for a set period, often twelve to twenty-four months. A single small transaction resets the clock, which makes this model easy to manage. The second is fixed-age expiry: points expire a set time after you earn them, no matter how active you are, which means older points disappear first. The third is programme-wide expiry, where all points reset on a calendar date or when terms change. Check which model each of your programmes uses, because the defence is different for each.

Most people belong to far more programmes than they use. Twice a year, list your loyalty accounts and their balances, and note the expiry rule for each. You will usually find a few balances close to a useful reward and several small balances that will never amount to anything. Focus your effort on the balances worth saving, and let the tiny ones go without guilt. This audit takes under an hour and can rescue real value, especially from travel and retail programmes where a single redemption can be worth a lot.

For inactivity-based programmes, the cheapest defence is a tiny qualifying transaction before the deadline. Buying the smallest item, or earning points through a partner, resets the clock. Set a calendar reminder a month before any major balance is due to expire, so you have time to act. For fixed-age programmes, redeem older points first, even for a small reward, rather than saving everything for a big redemption that may never come. Points are only valuable when redeemed.

Saving points for a dream reward feels satisfying, but it is also how points expire. If a balance is close to expiring and no big redemption is realistic, take the smaller reward: a discount, a gift card, or a donation option if offered. Also compare the value of your points across redemption options, since the same points can be worth far more for one type of reward than another. A redeemed reward is worth more than an expired balance, every time.

Before joining a new programme, read the expiry and dormancy terms, not just the earning rate. A programme offering generous points that expire in six months may be worse than a modest programme with no expiry. Also watch for terms that let the programme change expiry rules with notice, and check your email for those notices. Loyalty points are a real asset you earned through spending, and a few minutes of attention twice a year is all it takes to keep them.

Make your twice-yearly points audit a fixed calendar event, just like changing smoke alarm batteries or reviewing subscriptions. During the audit, check each balance, note the next expiry date, and redeem anything close to expiring for the best available option. If a programme no longer fits your shopping habits, close the account or simply stop using it, rather than letting a balance linger and vanish. Share the habit with family members too, since household points often sit forgotten in old accounts. A little regular attention turns loyalty points from a leaking bucket into a reliable source of discounts and treats.