Link: Apply now for the Chase Sapphire Reserve® Card
The Chase Sapphire Reserve® Card (review) is one of the most popular premium credit cards. Since the card was introduced over six years ago, it has been a no-brainer for many. However, a lot has changed over the years, so I wanted to take an updated look at the overall value proposition of the card.
With that in mind, I’m going to tackle the question of whether the Chase Sapphire Reserve is still worth it, both in absolute terms, and relative to other cards, including the Chase Sapphire Preferred.
Chase Sapphire Reserve benefits
The Chase Sapphire Reserve has a $550 annual fee, and offers the following major long-term benefits:
- Excellent bonus categories, including 3x points on all dining and travel purchases, plus 5x points on flights and 10x points on hotels and rental cars booked through the Chase Ultimate Rewards portal
- A $300 annual travel credit, which can be applied toward virtually any travel purchase (I’d say that’s good as cash)
- The ability to redeem all of your Ultimate Rewards points for 1.5 cents each toward travel purchases (in addition to the ability to transfer them to airline and hotel partners)
- A Priority Pass membership with unlimited visits and the ability to take two guests, including to Priority Pass restaurants
- Excellent travel coverage and rental car coverage
In the past couple of years we’ve also seen several changes made to the Chase Sapphire Reserve, both for better and worse. Some of these have been permanent changes, while some have been temporary. These include the following:
- The annual fee was increased by $100, from $450 to $550
- The card offers 5-10x Ultimate Rewards points on select purchases through the Chase Ultimate Rewards portal
- The card offers 10x Ultimate Rewards points on Lyft rides through March 2025
- The card offers a Lyft Pink All Access membership that’s valid for two years, which ordinarily retails for $199 per year (enroll by December 31, 2024)
- The card offers perks with DoorDash, including a DoorDash DashPass membership through December 31, 2024, plus a $5 monthly DoorDash credit through December 31, 2024
- The card offers perks with Instacart, including a 12-month Instacart+ membership (enroll by July 31, 2024), plus a $15 monthly Instacart credit through July 31, 2024
How much is the Sapphire Reserve “costing” me?
On the most basic level, the Chase Sapphire Reserve has a $550 annual fee, and I receive a $300 “good as cash” travel credit every cardmember year. For mental accounting purposes, I’d consider this card to really “cost” me $250 per year, since I spend $300 on travel every year anyway.
In terms of other obvious value I’m getting with the card perks, the card is offering:
- A $5 monthly DoorDash credit through December 31, 2024; you can “bank” credits and use up to three for an order, so since I order from DoorDash at least once per quarter, that’s like $60 worth of value per year
- A $15 monthly Instacart credit through July 31, 2024; I do use Instacart at least once per month, so that’s like $180 worth of value per year
- Between the 10x Chase points on Lyft rides, plus the Lyft Pink All Access membership, having the card is making a significant difference in how I’m being rewarded for ridesharing
The DoorDash and Instacart benefits offer $240 of additional value. And while I don’t think there’s an easy way to do the math on the value of the Lyft perks, I think it’s safe to say that I’m getting more than $10 worth of value there, which would otherwise be the breakeven amount on the annual fee, based on my math.
Why I’m not spending much on the Sapphire Reserve
When the Chase Sapphire Reserve was first introduced, I loved the ability to earn 3x points on dining and travel, and used it for virtually all purchases in those categories. However, that’s no longer the competitive advantage that it once was:
- I put all of my dining spending on the Citi Prestige Card, since it offers 5x ThankYou points on dining (which I value at an ~8.5% return)
- I put all of my airfare spending on The Platinum Card® from American Express (review), since I consider it to be the best card for buying airline tickets — it offers 5x Membership Rewards points on airfare (which I value at an ~8.5% return), along with great travel coverage
Since I’m no longer using the Sapphire Reserve for my dining and airfare purchases, at this point the only “bonused” spending going on the card is non-airfare travel purchases. For hotel spending it’s also breakeven, since I earn 3x points on the Sapphire Reserve and Citi Prestige.
In fairness, this is still a significant category, as it means I’m putting things like ridesharing, rental cars, trains, hotels, and more, on the card. The 10x points on Lyft is a big category for me, and that continues to be valid through March 2025.
Is the Sapphire Reserve still right for me?
When considering these cards, let me share what perks of the Sapphire Reserve I do and don’t value at this point:
- For the 3x points on dining and travel, at this point, I only value 3x points on non-airfare travel purchases, since I’d rather put other purchases on the Amex Platinum and Citi Prestige
- I value the $300 annual travel credit more or less at face value
- I value the temporary up to $60 in annual DoorDash credits and $180 in annual Instacart credits more or less at face value
- I value the Lyft Pink All Access membership plus the 10x points on Lyft rides at roughly $200 per year
- I value the travel and rental car protection, as that really comes in handy for my travels
- The Sapphire Reserve lets you redeem points for 1.5 cents each toward travel purchases (rather than 1.25 cents), though that’s not something I personally value, since I’d rather transfer Ultimate Rewards points to airline and hotel partners (and the transfer ratio is 1:1 for all three Ultimate Rewards “hub” cards)
- A Priority Pass membership is valuable, but I also get this through several other cards, so incrementally, I don’t think that’s worth much
Where does that leave me?
I want to keep a premium Ultimate Rewards card
Given that the value of the Sapphire Reserve is often based on the limited time perks being offered, I wanted to take a look at the alternatives that others may want to consider, or that I may even consider in the future. Some might be trying to decide if they should keep the Sapphire Reserve, if they should downgrade to the Sapphire Preferred, or if they should just switch to or keep the Ink Preferred.
On the most basic level, the reason I want to keep one of those three cards is that they allow me to unlock the full value of the Ultimate Rewards program.
If I have one of those three cards, then I can transfer the points earned on the no annual fee Chase Freedom FlexSM (review), Chase Freedom Unlimited® (review), Ink Business Unlimited® Credit Card (review), and Ink Business Cash® Credit Card (review), to Ultimate Rewards partners.
For me the value of the overall Ultimate Rewards ecosystem remains unchanged thanks to Chase’s great no annual fee cards. If I were at some point to consider not keeping the Sapphire Reserve, I’d have two options.
Option #1: downgrade to the Sapphire Preferred
One option is to downgrade the Sapphire Reserve to the Sapphire Preferred. This could be a compelling option, especially with the card’s refresh in 2021, which improved the value proposition significantly. Comparing the two cards:
- The Sapphire Preferred now offers 3x points on dining, so it’s on par with the Sapphire Reserve
- The Sapphire Preferred now offers 10% anniversary bonus points, so it’s actually more compelling for dining and everyday spending than the Sapphire Reserve
- The Sapphire Preferred now offers a $50 annual hotel credit, which many could get value from
- The Sapphire Preferred also offers great travel protection
- I’d essentially be giving up an incremental Priority Pass membership (not a big deal), the ability to redeem points for 1.5 cents each toward travel (which I don’t really value), 3x points on my non-airfare travel purchases (which is the biggest loss here), the temporary credits with DoorDash and Instacart, and the perks with Lyft (10x points and Lyft Pink All Access)
To me the question comes down to whether it’s worth paying the higher annual fee (minus the annual travel credit), in order to earn some bonus points on travel purchases, and to take advantage of temporary credits and perks. At this moment, especially with the recent introduction of a Lyft Pink All Access membership, the math very much checks out. However, that might not be the case in the future.
Option #2: cancel my Sapphire Reserve and stick to the Ink Preferred
The Ink Business Preferred is a $95 annual fee business card that offers 3x points on the first $150,000 of combined purchases per cardmember year on travel, shipping, internet, cable, phone services, and advertising purchases made with social media sites and search engines.
This is a phenomenal card, given that it offers the same 3x points on travel as the Sapphire Reserve (though it’s capped).
If I canceled my Sapphire Reserve I’d save quite a bit in annual fees, I’d still be able to transfer points to partners, and I’d still earn 3x points on travel. Long term the loss would be fairly limited.
The Chase Sapphire Reserve is an incredibly well-rounded travel rewards card that has maintained its value well. Not only that, but having a card earning Ultimate Rewards points is still very much worth it. That’s especially true given that it opens up value with four fantastic no annual fee cards — the Chase Freedom Flex, Chase Freedom Unlimited, Ink Business Unlimited, and Ink Business Cash.
However, with me having over time shifted my dining spending to the Citi Prestige and my airfare spending to the Amex Platinum, the Sapphire Reserve isn’t quite the slam dunk that it used to be. Now add in the major improvements we saw to the Chase Sapphire Preferred, and there’s not that much incremental value for some of us to having the Reserve over the Preferred.
The temporary perks with DoorDash, Instacart, and Lyft, are currently making the math work out for me. Time will tell what happens in the future, though.
How are you feeling about the value proposition of the Sapphire Reserve nowadays?