Is the Chase Sapphire Reserve annual fee worth it?
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That said, it does come with a hefty $550 annual fee, which’s not waived the first year. You might ask yourself if the card benefits are enough to make paying the Chase Sapphire Reserve annual fee worth it. The short answer is yes, if you can make the most of the card’s numerous benefits and perks. For example, it has Lyft and DoorDash credits, and it comes with an annual $300 travel credit.
The Chase Sapphire Reserve absolutely can be worth the annual fee, but it may not be right for everyone. Especially given the fact that the other Sapphire card, the Chase Sapphire Preferred® Card, comes with a $95 annual fee and a higher welcome bonus — 100,000 bonus points after you spend $4,000 on purchases in the first three months of account opening.
Let’s take a deeper dive into whether the Chase Sapphire Reserve is worth the annual fee so you can make an informed decision for yourself.
Is the Chase Sapphire Reserve annual fee worth it?
With the Chase Sapphire Reserve card, you’ll earn 60,000 Chase Ultimate Rewards points (worth $900 in travel when redeemed through Chase Ultimate Rewards) after you spend $4,000 on purchases in the first three months from account opening. You can also earn an unusually large amount of points when spending in the Chase Sapphire Reserve travel category — 3 Chase Ultimate Rewards points per dollar on a wide variety of travel purchases (excluding $300 travel credit) and dining worldwide and 1 Chase point per dollar on all other purchases.
Chase Sapphire Reserve annual fee
Let’s look at how the Chase Sapphire Reserve benefits add up.
Annual travel credit
One of my favorite Chase Sapphire Reserve perks is the card’s annual credit of up to $300 for travel purchases. When you use your card for any travel purchase (like Airbnb, airfare, hotels, Uber, tolls, rental cars, parking, etc.), you will automatically be reimbursed until you’ve spent a total of $300 on travel.
In addition, through Through December 31, 2021, cardholders can use their annual travel credit for gas station and grocery store purchases, too. Making it incredibly easy to use!
The travel credit is so easy to use that for most people the Chase Sapphire Reserve’s annual fee will only amount to $250 out of pocket because of the $300 you’re getting back for travel purchases you were going to make anyway.
Just note that while you normally would earn 3 Chase Ultimate Rewards points per dollar on travel purchases, the $300 in travel that is reimbursed as part of the credit won’t earn any points. I usually end up using my annual travel credit within the first few weeks of the year and most people spend much more than $300 combined in qualifying travel categories.
Value: $300 annually
Global Entry or TSA PreCheck credit
The up to in $100 statement credits for Global Entry or TSA PreCheck also helps offset the card’s annual fee – and it will save you time at the airport. Once you’re approved for either program, you can use the TSA PreCheck expedited security line (if your airport has one) when you’re flying with any eligible airline and you won’t have to worry about removing your shoes, belt or laptop.
Normally TSA PreCheck costs $85 and Global Entry costs $100. Both are valid for five years, but if you pay either of those fees with your Sapphire Reserve, you’ll get the fee reimbursed for one program, up to $100. Remember, it’s usually better to apply for Global Entry because it comes with TSA PreCheck eligibility. You can use this perk once every four years, so when the time comes to renew, it will be reimbursed as long as you have your Sapphire Reserve card.
Value: $100 every four years
Priority Pass airport lounge access
The Sapphire Reserve is one of the best credit cards with lounge access. It comes with a Priority Pass Select membership, better than lounge membership available for purchase. It can save you hundreds of dollars per year if you fly a lot and use lounges frequently, because a one-day lounge pass can easily cost $50+. With this Priority Pass Select membership, you get unlimited lounge access for yourself and two guests.
Another perk of Priority Pass membership is that there are a growing number of Priority Pass restaurants. The rules vary slightly depending on the location, but in general, you’ll just need a same-day boarding pass and proof of your Priority Pass membership to get $28 to $32 dollars off your bill per person for up to two people. That’s more than enough to cover a beverage and a meal.
Value: $429+ annually
DoorDash benefits have been added to a handful of the best Chase credit cards, but the Sapphire Reserve has the best perks. You can earn $60 in credits in 2021. And you’re eligible for at least one year of complimentary DashPass membership. DashPass normally costs $9.99 a month and gets you waived delivery fees on orders of $12 or more at participating restaurants. You must activate the DashPass membership by Dec. 31, 2021.
Don’t forget, you’ll also be earning 3x Ultimate Rewards points on DoorDash purchases.
Value: $120 annually (through 2021)
Chase added this perk just late last year — a benefit that’ll make a lot of sense for the many of us who are stuck at home. Through Dec. 31, 2021, cardholders can earn up to $120 back in statement credits on eligible Peloton Digital or All-Access memberships. These memberships come with full access to the Peloton workout app, and no equipment is required. It’s a nice perk for travelers who like to work out traveling for work or on vacation.
Certain Chase cards are set to earn more for Lyft rides. The Sapphire Reserve will earn an exceptional 10x Ultimate Rewards points on Lyft rides. Not only that, but Reserve members will also be able to receive a year of complimentary Lyft Pink (normally costs $19.99 per month), which comes with the following benefits:
- 15% off all Lyft rides
- Three free cancellations a month (if you rebook within 15 minutes)
- Three free bike/scooter rides per month
- Priority airport pickups
- Waived lost and found fees
- “Surprise offers” — including seasonal discounts and exclusive savings
If you spend $667 on Lyft rides in a year the 15% savings will make up for the $100 annual fee increase by itself. The problem is that the complimentary Lyft Pink membership is only valid for one year from when you register. To take advantage of this new benefit you need to activate the Lyft Pink membership by Mar. 31, 2022.
Value: At least $240 annually
The Sapphire Reserve has some of the best travel insurance credit cards out there:
You’ll also get these coverages when you pay for your travel with your card:
- Trip delay insurance – You can be reimbursed up to $500 per ticket for delays of six hours or more, or ones that require an overnight stay. Eligible expenses include, lodging, food, incidentals and ground transportation.
- Baggage delay insurance – Coverage of up to $100 per day for up to five days if a bag has been delayed for six hours or more.
- Lost luggage coverage – You’ll receive up to $3,000 per person each trip for checked or carry-on luggage that is lost or damaged by the carrier.
- Trip cancellation/interruption insurance – This perk will provide you with a reimbursement of up to $10,000 per person per covered trip (maximum $20,000 per occurrence) for prepaid expenses if your trip is cut short or cancelled for a covered reason, like severe weather or illness.
It’s also one of the best credit cards for car rentals, because it comes with primary insurance which covers damage or theft.
Value: Potentially thousands annually (hopefully not!)
Chase Pay Yourself Back
The Chase Sapphire Reserve® comes with the “Pay Yourself Back” feature, allowing you to redeem Chase points as a statement credit to offset purchases at dining establishments, grocery stores, and home improvement stores.
Through Sept. 30, 2021, you can redeem your points at a rate of 1.5 cents each — the same rate at which you can redeem your points for travel through the Chase Travel Portal. You can read our full guide to Chase Pay Yourself Back for detailed information about the process.
This is pretty cool, considering travel is uncommon right now. But if you’re a loyal MMS reader, you know that this is still far from the best ways to use Chase points, You can save the cash back you earn towards paid travel later though, if you want! Pay Yourself Back is valuable in that you’re guaranteed to get a value of at least 1.5 cents per point in cash.
The Chase Sapphire Reserve comes with an annual fee of $550 — but the card’s $300 in annual travel credits are easy to use and effectively bring the cost down to $250.
The question you need to ask yourself is, “will I get more than $250 in value from this card’s benefits?” If you can consistently take advantage of the Priority Pass Select membership, that alone can well offset the annual fee.
If you utilize all the remaining benefits noted above, you’ll have no trouble getting at least $874 in value each year.
But, if the DoorDash and Lyft perks aren’t that useful to you, or you don’t travel often enough to get decent mileage from your Priority Pass access, it might not be worth getting (or keeping) this card over the Chase Sapphire Preferred® Card, which only has a $95 annual fee AND is offering a whopper of a bonus — 100,000 Ultimate Rewards points after meeting minimum spending requirements.
Depending on your spending and travel habits, it should be easy to decide whether keeping the card long-term makes sense for you.
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