Do the benefits offset the annual fee of $ 550?

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the Chase Sapphire Reserve® Card was so popular when it launched in 2016 that Chase experienced a shortage of the metal needed to make the card.

Since then, the Sapphire Reserve has built up a loyal following of Card Members who have learned how to take advantage of the card’s premium travel benefits, including a $ 300 annual travel with no credit check loan and complimentary lounge access. ‘airport.

Over the past year, the Sapphire Reserve card has undergone several updates, including when Chase increased his annual membership fee to $ 550. Nonetheless, the card has gained plenty of perks with new partners like Lyft, DoorDash, and Peloton helping to balance the higher annual fees.

If you are planning to start traveling again this year, you may want to consider adding this card to your wallet. Below, CNBC Selection breaks down the rewards, perks, and fees of the Chase Sapphire Reserve, so you can decide if the card is worth it.

Chase Sapphire Reserve®

  • Awards

    10X points on Lyft trips through March 2022, 3X points on worldwide travel (immediately after earning your annual $ 300 travel credit), 3X points on restaurant meals, including delivery services eligible, take out and restaurant meals, 1X point per $ 1 on all other purchases

  • Welcome bonus

    Earn 60,000 bonus points after spending 4000 USD on purchases in the first 3 months after opening the account

  • Annual subscription

  • Intro APR

  • Regular APR

    16.99% to 23.99% variable

  • Balance transfer fee

  • Foreign transaction fees

  • Credit needed

Review of the Chase Sapphire Reserve

Awards

If you are a foodie or a frequent traveler, this rewards program is designed for you. You earn 3X points on travel and meals worldwide and 1X points on all other purchases. Plus, earn 10X points on Lyft purchases through March 2022.

The welcome bonus is also top notch: earn 60,000 bonus points after spending $ 4,000 on purchases in the first three months after opening the account.

The Sapphire Reserve offers two unique perks that can maximize the value of your points by 50%:

  1. Chase Ultimate Rewards® Portal: Simply use your points to book hotels, airline tickets, cruises and more directly through the travel portal.
  2. Repay yourself: Use this tool to redeem points for statement credit on purchases at grocery stores, restaurants (including restaurants, take out, and eligible delivery services), home improvement stores (like Home Depot and Lowes) and for contributions to a dozen qualifying charities. Valid until April 30, 2021.

If you use any of these redemption options, the 60,000 point welcome bonus is worth up to $ 900.

CNBC Select has calculated the number of rewards an average American can earn if they optimize the way they use their Chase Sapphire Reserve card. We worked with geographic intelligence firm Esri, which provided us with a sample annual expense budget of $ 22,126.

The budget includes six main categories: groceries ($ 5,174), gasoline ($ 2,218), dining out ($ 3,675), travel ($ 2,244), utilities ($ 4,862) and general purchases (3,953 $).

Here is how many points you can earn with your Chase Sapphire Reserve card in each category:

  • Races: 5 174
  • Gas: 2,218
  • Dining out: 11,024
  • Trip: 6,733
  • Utilities: 4,862
  • General purchases: 5,929
  • Total: 35,940

If you redeem these points for travel through Chase Ultimate Rewards® or with Pay Yourself Back, you will receive a 50% bonus, increasing the approximate value from $ 359 to approximately $ 539 per year. (This does not take into account the annual fee or the welcome bonus.)

When you factor in the annual fee of $ 550 and the welcome bonus of 60,000 points, first-year earnings drop to around $ 409 for regular redemptions, assuming a point is worth a dime. If you decide to redeem points through Chase Ultimate Rewards or Pay Yourself Back and receive 50% more value, the value increases to around $ 889. (This is because the bonus is now worth $ 900, not $ 600.)

Benefits

The Chase Sapphire Reserve Card offers over two dozen cardholder benefits that add extra value to the points we’ve outlined above.

Many of the best perks have a clear value of $ 60 to $ 300 each. Once optimized, these benefits can help you more than offset the annual fee of $ 550.

Here are the main advantages:

  • Annual travel credit of $ 300 to compensate for flights, hotel stays and more
  • Global Entry / TSA PreCheck Fee Credit of $ 100 every four years
  • Free DashPass (valued at approximately $ 119) for a minimum of one year (register before December 31, 2021)
  • Up to $ 120 credit on Peloton statement digital subscriptions and unlimited access (register before December 31, 2021)
  • $ 60 DoorDash credit in 2021
  • Free year of Rose Lyft subscription (valued at approximately $ 19.99 per month), which includes 15% off car rides, casual cancellations, and priority airport transfers
  • Priority Pass Select lounge access (valued at $ 429), giving you access to more than 1000 VIP lounges in more than 500 cities around the world

In addition to these benefits, you can take advantage of useful trips and buy blankets, such as:

  • Protection for eligible purchases lost or damaged
  • Return protection on qualifying items that the store will not take back
  • Extension of warranty protection on eligible purchases
  • Roadside assistance while traveling in the United States and Canada
  • Collision Damage Waiver for Rental Vehicles
  • Baggage delay insurance
  • Reimbursement of lost baggage
  • Trip cancellation / interruption insurance
  • Reimbursement of travel delay
  • Travel accident insurance
  • Travel and emergency assistance services
  • Special advantages at The Luxury Hotel & Resort Collection, such as free room upgrades, early check-in and late check-out
  • Emergency evacuation and transport
  • Medical and dental emergency

Learn more about the specific conditions for each service.

Fresh

This card comes with a pretty steep annual fee of $ 550. Therefore, it is not for everyone. You will have to pay the annual fee on your first statement and then on each subsequent account anniversary. You can reduce annual fees throughout the year by earning rewards and enjoying the benefits mentioned above.

There’s no introductory period 0% APR for this card, therefore, it should not be used to finance new purchases or make balance transfers. The typical APR is 16.99% to 23.99% variable on purchases and balance transfers.

This card has no overseas transaction fees, so you can travel and spend outside of the US without incurring the average 3% fee.

At the end of the line

If you are a frequent traveler, the Chase Sapphire Reserve Card can be a useful addition to your portfolio. In order to offset the annual fee of $ 550 each year, you’ll need to take full advantage of most of the card’s benefits, from the $ 300 annual travel credit to Lyft, DoorDash, and Peloton benefits. That said, this card offers a robust suite of benefits ranging from travel insurance and statement credits on qualifying expenses up to 50% additional value on select rewards redemptions.

But if you don’t want to shell out over $ 550, consider the most affordable. Chase Sapphire Preferred® Card. This card has an annual fee of $ 95 and still offers a 25% increase on qualifying point redemptions. Plus, you can take advantage of many of the same travel and shopping protections, as well as similar statement credit offers.

Editorial note: The opinions, analyzes, criticisms or recommendations expressed in this article are those of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

About Mary Moser

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