So often when I’m recommending a rewards credit card to friends and family, I immediately get the question: “But is that one of those cards with an annual fee?”
It’s true that many rewards cards worth having come with an annual fee. But, in my opinion, it is usually a very minor investment that delivers outsize value year after year.
Take my Chase Sapphire Preferred® Card (see rates and fees) as an example. This card has a (quite modest) $95 annual fee, and I can’t see myself ever getting rid of it.
Here’s why.
Earning points on everyday spending
The Sapphire Preferred has some solid earning rates that include:
- 5 points per dollar spent on travel booked through Chase Travel℠
- 5 points per dollar spent on Lyft rides (through Sept. 30, 2027)
- 3 points per dollar spent on dining
- 3 points per dollar spent on select streaming services
- 3 points per dollar spent on online grocery store purchases (excludes Target, Walmart and wholesale clubs)
- 2 points per dollar spent on all travel not booked through Chase Travel
- 1 point per dollar spent on everything else
I use this card to cover all the online grocery, dining and streaming service expenses for my household and my father’s, which cost about $1,200 per month. That earned me roughly 3,600 Chase Ultimate Rewards points per month throughout much of 2024 that I then transferred right into my World of Hyatt account.
Related: 7 Chase Sapphire Preferred benefits you might not know about
Does the value offset the annual fee?
For the moment, I’ll put aside the fact that you can currently get a whopping 100,000 Ultimate Rewards points after spending $5,000 on purchases in the first three months of account opening — the highest-ever welcome offer on this card and arguably one of the best card offers ever.
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Let’s focus on the value of this card beyond the welcome offer.
To start, it comes with benefits like a $50 annual credit for hotels booked through Chase Travel and a variety of travel protections that save me hundreds of dollars each year by not having to pay for things like car rental insurance and trip cancellation insurance. These automatically neutralize that annual fee for someone who travels even just a couple of times a year.
But beyond those benefits, the points I earned by using this card for my everyday spending in 2024 covered more than $2,000 worth of hotel stays.
Related: Is the Chase Sapphire Preferred worth the annual fee? I say yes
Over a dozen free nights worth over $2,000
World of Hyatt may be the most valuable transfer partner in the Ultimate Rewards program, and it was the perfect place to move my points.
That’s because, last year, my wife and I welcomed our first child, and in a dual effort to preserve our sanity as first-year parents and maintain my elite status with World of Hyatt during a lighter travel year, we used these points to cover a room at our local Hyatt Regency about once per month.
We’d then alternate which of us got to take the night off from parental duties and enjoy a quiet evening downtown at the hotel. That’s what I call value you can’t even put a price on.
The Hyatt Regency Rochester in New York is a Category 1 Hyatt property (and a quite nice one, at that). A standard room costs about $175 or 5,000 points per night on average, but we were able to score most of our stays for only 3,500 points per night by checking World of Hyatt’s award chart and cherry-picking off-peak nights.
By the end of the year, we had stayed more than a dozen nights in that hotel on points, and practically all of those redemptions were earned in real time each month just from using the Sapphire Preferred for those everyday spending categories.
Ultimate Rewards points are among the most valuable you can earn, worth about 2.05 cents apiece on average, according to our April 2025 valuations. But by transferring them to World of Hyatt and using them in this way, I got about 250% more value than that from them. Had we paid cash for those stays, it would have cost us about $2,100.
That’s a huge chunk of value to earn from just using the right card on your usual spending.
Related: 23 best Hyatt hotels in the world
Bottom line
For anyone looking to capitalize on this card’s earning potential, you can fortunately still get the 100,000-point welcome offer on the Sapphire Preferred for a limited time.
Remember that those 100,000 bonus points alone are worth $2,050, per our valuations — and that doesn’t even include the other $2,000-plus in value I’ve demonstrated here simply by using the card over the course of a year.
Will I have to pay that annual fee each year to use this card? Certainly, but is it actually costing me money or saving me money? With all the value I get from this card, the math is a no-brainer.
To learn more, read our full review of the Chase Sapphire Preferred.
Apply now: Chase Sapphire Preferred