How I got a 20X return on my Chase Sapphire Preferred last year
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 starters, the welcome bonus offer — 75,000 Ultimate Rewards points after spending $5,000 on purchases in the first three months of account opening — is a hearty value in itself. But let's focus on the value of this card beyond the welcome offer.
The Chase Sapphire Preferred card 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
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.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.