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The 100,000 point sign-up bonus from the Chase Sapphire Reserve is the highest public bonus I’ve ever seen on a card that earns Chase Ultimate Rewards points. But the card has a $450 annual fee. And it’s NOT waived the first year.
Folks might be wondering if the Chase Sapphire Reserve Annual Fee is worth it?
I think so! Because you can easily offset the annual fee with the credits and perks you’ll get.
I’ll explain why I think it’s worth paying the $450 annual fee for the Chase Sapphire Reserve card. At least for the first year!
About the Chase Sapphire Reserve Card
Link: Chase Sapphire Reserve
With the Chase Sapphire Reserve card, you’ll earn 100,000 Chase Ultimate Rewards points after you spend $4,000 on purchases in the first 3 months from account opening.
You’ll also get:
- 3X Chase Ultimate Rewards points on travel & dining
- 1X Chase Ultimate Rewards points on all other purchases
- $300 annual credit for travel purchases such as airfare and hotels
- $100 statement credit for Global Entry or TSA PreCheck
- Priority Pass Select for access to airport lounges
- No foreign transaction fees
- Visa Infinite benefits like $25 food and beverage credit at the Luxury Hotel Collection and complimentary car rental elite status with Silvercar
You’ll have to pay the $450 annual fee, that’s NOT waived the first year.
But the perks of the Chase Sapphire Reserve card far outweigh the $450 Chase Sapphire Reserve Annual Fee. At least for the first year you’re a cardholder!
Chase Sapphire Reserve Annual Fee
Let’s look at how the Chase Sapphire Reserve benefits can add up, especially the 1st year!
Annual Travel Credit
You will earn 100,000 Chase Ultimate Rewards points worth ~$1,500 in travel booked through the Chase Travel Portal after completing the minimum spending requirements. You can also transfer them to travel partners for Big Travel.
And, you’ll get a $300 annual credit for travel purchases per calendar year.
Meaning you can earn the $300 in 2016 AND get the $300 credit again in early 2017.
So you’ll actually get $600 in travel credit with just 1 annual fee! Effectively making the cost of the card $0, with a $150 travel credit to spare ($600 travel credit – $450 annual fee).
Global Entry or TSA PreCheck Credit
Remember, it’s usually better for folks to apply for Global Entry, because it comes with TSA PreCheck eligibility.
The Chase Sapphire Reserve gives you Priority Pass Select for access to airport lounges. That can save you hundreds of dollars per year if you fly a lot and use lounges frequently. Because a 1-day lounge pass can easily cost $40+.
The Chase Sapphire Reserve Annual Fee is $450 that’s NOT waived the first year.
But you can easily offset the annual fee with perks you’ll get from the card. Like the $300 travel credit each calendar year, $100 statement credit for Global Entry, and airport lounge access with Priority Pass Select.
That’s why I think it’s worth paying the annual fee, at least for the first year. Because you can actually come out ahead! For year 2, run the numbers to decide whether keeping the card long-term makes sense for you!