Is the Chase Sapphire Preferred worth the annual fee? I say yes

Editor’s note: This is a recurring post, regularly updated with new information and offers.

Whether you’re a frequent traveler or points and miles beginner, there are many reasons the Chase Sapphire Preferred Card® (see rates and fees) is a great option for you.

But with a $95 annual fee, you may ask, is the Chase Sapphire Preferred worth it?

The Sapphire Preferred was my first transferable rewards card and my first one with an annual fee. A couple of years into holding the card, I can strongly affirm that I’ve received significantly more value from the card than I’ve paid in annual fees.

Let’s explore how you, too, can get much more value from the Chase Sapphire Preferred than it costs to carry each year.

Generous welcome offer

This is travel rewards card 101: A large portion of the value you receive from a new card (especially in the first year) comes from earning its welcome bonus. This is especially true with the Sapphire Preferred.

Currently, new applicants can earn 100,000 bonus points after spending $5,000 in the first three months of account opening. This matches the highest bonus we’ve seen on the card, last offered over three years ago.

TPG’s March 2025 valuations place this bonus at a whopping $2,050 when you leverage the Chase Ultimate Rewards program’s valuable transfer partners.

However, if you want to go a simpler route, you can still get at least $1,250 in value out of redeeming your points for travel purchases made through Chase Travel℠.

The value of this bonus alone completely offsets the first-year $95 annual fee.

Related: Reasons to choose the Chase Sapphire Preferred over the Chase Sapphire Reserve

Simple hotel credit

If you hold the Sapphire Preferred, you’ll receive a $50 statement credit each account anniversary year to book hotel stays purchased through the Chase travel portal.

All you have to do is log into Chase Travel, select your Sapphire Preferred (if you have multiple Chase cards), search for hotels and book your stay.

Just remember that if you book the Chase travel portal, you likely won’t earn any hotel points or elite night credits or receive elite status benefits.

In our experience, the statement credit usually posts within four business days.

This credit essentially wipes out more than half of the card’s $95 annual fee each year.

Related: Who should (and shouldn’t) get the Chase Sapphire Preferred?

High points-earning

A welcome bonus isn’t the only way to earn points. The Sapphire Preferred accrues points at a high rate across multiple popular bonus categories, which allows you to continue stacking up those valuable points long after earning the welcome bonus.

Here’s a breakdown of points earning on the Sapphire Preferred:

• 5 points per dollar on travel booked through the Chase travel portal
• 3 points on dining, select streaming services and online grocery store purchases*
• 2 points on all travel not booked through the Chase travel portal
• 1 point on everything else

*Excludes Target, Walmart and wholesale clubs

Plus, you’ll earn a 10% bonus on all purchases made each year. So, if you spent $25,000 on purchases last year, you’ll earn 2,500 bonus points. By TPG’s March 2025 valuations, they’re worth $52.

Valuable redemptions

I suggest you transfer your Ultimate Rewards points to one of Chase’s travel partners — 11 airline and three hotel programs. High-value ones include Air France-KLM Flying Blue, British Airways Executive Club and World of Hyatt.

There are many sweet spots to leverage with your Chase points. You can use points to book luxurious Hyatt stays at a high value or transfer points to British Airways to book flights with Oneworld partners, including American Airlines.

Maximizing your redemptions could easily net travel savings of more than $95 — the cost of the Sapphire Preferred’s annual fee.

If leveraging transfer partners isn’t your thing, you’ll still get good value when you book through Chase Travel. That’s because Sapphire Preferred cardholders get a fixed 1.25 cents in value for each point they redeem through the portal.

So if you wanted to book a $500 American Airlines flight, you could use 40,000 Chase points to purchase it through the Chase travel portal. Plus, you’ll earn AAdvantage miles on this flight.

Related: Tips on how to use your points and miles better

Useful benefits

Sure, you might not apply for a card simply to get travel insurance or purchase protection.

However, if the time comes that you need to leverage one of these perks, the Sapphire Preferred‘s suite of benefits is likely to have you covered. And, in many instances, just one successful claim would net you more in returns than you paid in the annual fee.

Let’s say the airline loses your bag for five days on a trip to Europe. If you purchased your flight with your Sapphire Preferred card, you’ll be reimbursed for essential purchases like clothing and toiletries.

Chase will cover up to $100 a day for five days, giving you up to $500 — more than five times the card’s annual fee. Just make sure to keep all your receipts.

Is the Chase Sapphire Preferred worth it?

The Chase Sapphire Preferred is worth holding year after year. More than half of its $95 annual fee is offset by an annual $50 hotel credit. And when you add in the high earning rates and valuable redemption options, this card pays for itself.

Bottom line

Once you redeem the Chase Sapphire Preferred‘s $50 annual hotel credit, your effective annual fee each year is more than halved. Between the card’s valuable perks and valuable protections, it should be easy for most cardholders to get more than $45 in value out of the rest of the card each year.

Of course, you should consider your wallet’s existing cards and personal travel preferences before applying. But for most travelers, the Chase Sapphire Preferred is worth it.

To learn more about the card, read our full review of the Chase Sapphire Preferred.

Apply here: Chase Sapphire Preferred