In early 2020, Chase announced it would be raising the annual fee of the Chase Sapphire Reserve® card from $450 to $550. However, that has been delayed due to the Covid-19 pandemic. Since travel was largely halted around the world, consumers weren't able to take advantage of several benefits of the card.
Some cardholders were already charged a $550 annual fee for the Sapphire Reserve, but Chase was giving many people a $100 statement credit to offset the higher fee. But as life returns to normal and travel picks up, the increase is officially happening for all Chase Sapphire Reserve cardholders as of Aug. 1.
Here's what you need to know:
Why is Chase raising the annual fee
Card issuers like Chase and American Express will raise a card's annual fee ever so often in order to offset the cost of additional benefits added. We saw this earlier in July when Amex raised the annual fee of the Platinum Card.
When Chase initially announced it was raising the Reserve's annual fee from $450 to $550, it also introduced a bunch of new benefits including:
- Lyft Pink membership: This benefit normally costs $19.99 per month. It comes with 15% off all car rides, a relaxed cancellation policy on Lyft rides, waived lost and found fees, and more. You can also earn 10X points on Lyft rides through March 31st, 2025.
- DoorDash DashPass membership: DashPass comes with unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases through December 31st, 2024
- Peloton Bonus Points: 10x total points on each Peloton Bike and Tread purchase over $1,400, with a max earn of 50,000 total points.
This is in addition to the excellent benefits already included with the Chase Sapphire Reserve, including:
- 5X points on air travel and 10X total points on hotels and car rentals purchased through Chase Travel℠ (after using $300 annual travel credit)
- 3X points on other travel and dining
- 1X point on all other purchases
- 50% more value on points redeemed for travel through Chase Travel℠
- $300 annual travel credit
- Priority Pass airport lounge membership
- $100 fee credit for either TSA PreCheck/Global Entry every four years
- Travel insurance coverage, including trip cancellation/interruption insurance, lost luggage reimbursement and trip delay reimbursement.
- Purchase and return protection
Alternatives to the Chase Sapphire Reserve
The Chase Sapphire Reserve is one of the best travel credit cards, but a $550 annual fee can be a hard pill to swallow. In many cases, the benefits of the card can outweigh the annual fee, but it's not a smart idea to overstretch your budget for credit card benefits.
Here are a few travel credit cards with lower annual fees that earn valuable rewards to help you save.
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is a favorite of many because it offers excellent travel benefits and a modest $95 annual fee.
Right now, you can also earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.
In addition, you can enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
Capital One Venture Rewards Credit Card
If you prefer a travel credit card but don't want to worry about tracking specific spending categories, the Capital One Venture Rewards Card may be a great fit for you. This card also has a $95 annual fee, but you can earn 2X miles for every dollar you spend on all purchases. (See rates and fees).
The miles earned with this card can be transferred to a variety of airlines and hotel loyalty programs. And similar to the Chase Sapphire Reserve, the card comes with an up to $100 credit for TSA PreCheck/Global Entry every four years.
It also comes with a good welcome bonus: You can earn 75,000 bonus miles once you spend $4,000 on purchases within the first three months from account opening.
Bank of America Travel Rewards Credit Card
For those who enjoy earning rewards without an annual fee, the Bank of America® Travel Rewards Credit Card is a great go-to.
You will earn 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening. These points can be redeemed for a statement credit.
As you spend, you will earn 1.5X points for every dollar spent on all purchases. This card has no annual fee, no foreign transaction fees and your points don't expire. The card also comes with an introductory 0% APR offer for the first 18 billing cycles (after, 16.99% - 26.99% variable).
Bottom line
The Chase Sapphire Reserve still is considered one of the best travel rewards credit cards on the market. However, a $550 annual fee can be a shock for some consumers. But for the right person, the Sapphire Reserve can still deliver great value.
Before applying for any travel credit card, be sure to consider your entire financial picture, along with the benefits of each card, to find the best fit for you.
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Information about the Bank of America® Travel Rewards Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
