Major changes coming to Chase Sapphire Reserve

The Chase Sapphire Reserve card is raising its annual fee but also adding several benefits for cardholders.

It’s no secret that the Chase Sapphire Reserve is one of our favorites. Not only does Chase have a number of transfer partners, but it’s also super easy to acquire Chase Ultimate Rewards with the many bonus categories through the Chase Trifecta.

Chase Sapphire Reserve gets 3x on travel purchases
Chase Sapphire Reserve gets 3x on travel purchases

The annual fee of the Reserve is being raised by $100 from $450 to $550. With the additional fee, Chase is also adding several benefits:

  • Cardholders will receive Lyft Pink for free (typically costs $19.99/month. This includes 15% off all rides and free bike/scooter rentals and more.
  • 10x bonus on all Lyft purchases.
  • $60 credit to DoorDash credit for 2020 & 2021 ($120 total)
  • Free DashPass (DoorDash) membership (free delivery on many restaurants)

It’s important to note that the DoorDash and DashPash benefits are not guaranteed past 2021, so it will be interesting to see what happens after the current deal expires.

Are the new benefits good?

This question really depends on each person. If you already pay for Lyft Pink or DashPass, this is great news to you. Similarly, it’s the same if you use Lyft and DoorDash a lot already.

I would never buy DoorDash or Lyft Pink, but I will probably still get some value out of it.

I might spend $100 a year on Lyft, so I value the 15% off at roughly $15 per year. The other benefits that come with Lyft Pink might be $5 per year.

The DoorDash annual statement credit is a lump sum, so $60 and free delivery is worth roughly $60. I don’t order a ton of food outside of that (other than taking advantage of my American Express Gold Card monthly dining credit), so the DashPass membership is pretty valueless. This is similar to the Sapphire Reserve annual travel credit.

By that math, personally, I’m at about $80 in value for the increased $100 annual fee.

The Chase Sapphire Reserve still has many other benefits that I think make even the annual fee worth it. The trip protection insurance, rental car insurance and being able to redeem Ultimate Rewards for 1.5 cents per point is great.

Final thoughts

It’s never a good thing when annual fees go up. Whenever an annual fee goes up, it’s worth re-evaluating to make sure you’re getting value out of this. Look into both the perks providing direct value (i.e. travel credit and DoorDash credit) and those with indirect value (i.e. travel protection, etc.).

For example, while you might not have ever used your travel protection and car rental insurance, it’s important to understand that just one claim could provide an amazing amount of value.

While I think I will keep my Chase Sapphire Reserve card despite the increased annual fee, we are going to look into potentially downgrading my wife’s card. But, we need to crunch some numbers first!


Add a Comment

Your email address will not be published. Required fields are marked *