How much is a Sapphire Preferred point worth? It pays standard Chase Ultimate Rewards Points, but with a few added bonuses.
Chase Sapphire Preferred Points versus the Chase Sapphire
Sapphire Preferred has several unusual features unique to this card. First, the card boasts 1:1 point transfer to major hotel and airlines, which is not the case for the normal Sapphire card or any other Chase cards. Also, there is a 7% annual dividend on your point balance. Lastly, your points are worth 25% more when you redeem at Chase Ultimate Rewards travel booking service.
These extra features come at a cost. The card has an $95 annual fee (waived the first year), compared to no annual fee for the Chase Sapphire card.
Chase Sapphire Preferred versus other Rewards Cards
There are certainly cards that pay higher reward rates on an ongoing basis, with no annual fee. For example, 5% back on gas & groceries with the American Express Blue Cash
, 5% on gas with the PenFed Platinum Cashback Card
, or 5% on dining with the Citi Forward card
However, Chase is finally stepping to the plate and offering points that attempt to match American Express Membership Reward Points in terms of flexibility - specifically 1:1 point transfer to major airlines and hotels. It's difficult to put a value on the ability to add 5,000 miles to a specific frequent flyer program because you're just short of a ticket. Or to be able to transfer some points over to your hotel program to get a room upgrade. Add to this the 7% annual dividend and one of the lowest APRs on a tier 1 rewards card, and the card may be worth serious consideration.
1:1 point conversion partners (expand the Travel segment
) include Amtrak, British Airways, Continental Airlines Intercontinental Hotels Group, and Marriott.