Depending on how you plan to use those funds, this may or may not be a good idea. If you plan to book a flight prior to your funds' expiration, converting might not make sense. In many cases, you could lose money on the funds-to-points conversion, which gives you less flight for your money.

Converting Southwest travel funds to Rapid Rewards points is generally worth it for most travelers due to the increased flexibility. When you hold "Travel Funds," they are tied to a specific confirmation number and often have an expiration date (though Southwest made most funds non-expiring in 2022, "converted" points are truly permanent). Points never expire and can be used to book a flight for anyone, whereas travel funds are often non-transferable and can only be used by the original passenger. However, the "catch" is the conversion rate. Typically, Southwest converts funds at a rate that is slightly lower than the cash value when you go to book a new flight; you might lose about 10–15% of the "purchasing power" in the conversion. In 2026, if you are a frequent flyer who wants to pool resources for a large "Points" booking or want the ability to book for a family member, the conversion is a "win." If you are a solo traveler planning to re-book the exact same route soon, keeping the cash-value "funds" might save you a few dollars in the long run.