If you don’t yet have the Chase Sapphire Preferred Card, now might be the time to pick one up.
Starting today, Thursday, Jan. 28, new Chase Sapphire Preferred Cardholders will receive a one-time $50 statement credit on grocery store purchases. All you need to do is use your card at a grocery store and Chase will automatically apply the credit. That’s in addition to the usual 60,000-point bonus you earn after spending $4,000 within the first three months of card membership.
There’s no minimum spend threshold or strings attached to get $50 back on groceries. Spend $50 at your local groceries, and you’ll get that $50 straight back, wiping it from your credit card statement. Unfortunately, this new offer is not available to existing cardholders who already have the Chase Sapphire Preferred.
But for those who don’t, this makes it worth considering. The card’s annual fee is $95, so this grocery credit essentially cuts that annual fee by more than half. And through at least April 2021, you’ll also earn 2x points per dollar at grocery stores (on up to $1,000 in charges per month).
Click Here to learn more about the Chase Sapphire Preferred Card.
Full Benefits of the Chase Sapphire Preferred Card
The top travel cards on the market don’t come cheap. The Chase Sapphire Reserve, the Preferred’s bigger sibling, now costs $550 per year. So does the Platinum Card from American Express.
That makes the Chase Sapphire Preferred Card look like a bargain in comparison. It’s annual fee clocks in at just $95 per year. And with this new $50 credit and ability to earn 60,000 Chase Ultimate Rewards points after spending $4,000 in the first three months, you can easily come out way ahead on that annual fee.
Here’s a look at all the benefits the Chase Sapphire Preferred Card offers.
Sign up Bonus of 60,000 Points
You’ll earn 60,000 Chase Ultimate Rewards points after you spend $4,000 in the first 3 months of card membership. And since these points can be redeemed for at least 1.25 cents in value, the bonus alone is worth $750 towards travel.
Read our master guide to earning & burning Chase Ultimate Rewards points!
Get a Bonus Using Chase Points Toward Travel
When you redeem Chase Ultimate Rewards points through the Chase travel portal, they will be worth 1.25 cents each if you hold the Chase Sapphire Preferred card. That means the 60,000 bonus points will be worth a minimum of $750 – allowing you to easily come out way ahead on your annual fee.
Read: How to Book Travel Through the Chase Ultimate Rewards Travel Portal.
Transfer Points to Travel Partners
In addition to booking travel through the Ultimate Rewards travel portal, you can also transfer Chase points to 13 airline and hotel transfer partners. They’re the key to booking amazing travel to get even more out of your points. You can move Chase Ultimate Rewards points to any of the airlines or hotels below on a 1:1 basis, so 1 Chase point gets you 1 airline mile or hotel point.
Chase Ultimate Rewards Transfer Partners
| Program | Type | Transfer Ratio | Transfer Time |
|---|---|---|---|
| Aer Lingus | Airline | 1:1 | Instant |
| Air France/KLM | Airline | 1:1 | Instant |
| British Airways | Airline | 1:1 | Instant |
| Emirates | Airline | 1:1 | Instant |
| Iberia Plus | Airline | 1:1 | Instant |
| JetBlue | Airline | 1:1 | Instant |
| Singapore Air | Airline | 1:1 | 12-24 hours |
| Southwest Airlines | Airline | 1:1 | Instant |
| United Airlines | Airline | 1:1 | Instant |
| Virgin Atlantic | Airline | 1:1 | Instant |
| World of Hyatt | Hotel | 1:1 | Instant |
| IHG | Hotel | 1:1 | 1 day |
| Marriott Rewards | Hotel | 1:1 | 2 days |
Pay Yourself Back for Everyday Purchases
Through April 2021, Chase Sapphire Preferred cardholders can use their points to pay themselves back for everyday purchases at restaurants, grocery stores, and home improvement stores. And when you do, they will have the same value as they do in the Chase travel portal – 1.25 cents each.
Read more on how Chase Pay Yourself Back works.
Earn 2x Points on Travel and Restaurants Worldwide
When you put travel and dining charges on your Chase Sapphire Preferred card you will earn 2x Chase Ultimate Rewards points per dollar spent. You’ll also earn 1x point per dollar spent on every other category.
And through April 2021, you will also earn 2x points per dollar spent on groceries on up to $1,000 spent each month.
$50 Grocery Store Credit for New Cardholders
New Chase Sapphire Preferred Cardholders will receive a one time $50 grocery store credit for purchases at the grocery store (or food delivery services like Instacart). This is not available for existing cardholders.
Peloton Credit
If you’re on the Peloton bandwagon, holding a Chase card is even more valuable. Through Dec. 31, 2021 you’ll receive $60 in statement credits toward Peloton memberships. Check out how to use your Chase card to save on your Peloton subscription.
Primary Car Rental Insurance Coverage
When you charge your car rental to the Chase Sapphire Preferred Card, or use Chase Ultimate Rewards points to pay for it, you can decline insurance from the rental company and be covered for up to $75,000 for theft and/or collision damage.
Read more: All About the Chase Sapphire Rental Car Insurance Benefit.
Trip Cancellation/Trip Interruption Insurance
If your trip is cut short or interrupted by sickness and/or severe weather, the Chase Sapphire Preferred Card will provide coverage. Read more on these insurance policies.
Annual Fee
The card charges a $95 annual fee, which is not waived for the first year of card membership. But you’ll pay no foreign transaction fees.
Read More: Amex Gold vs Chase Sapphire Preferred: Which Credit Card is Right for You?
Our Analysis
This is a great addition to the value proposition for new Sapphire Preferred cardholders.
While $50 at the grocery store may not sound earth-shattering, it effectively lowers the cost of your first-year annual fee to $45. And that is a bargain when you consider that the sign-up bonus alone is worth at least $750 – if not much more.
We think the Chase Sapphire Preferred is the No. 1 Travel Card right now. And while they temporarily increased the welcome offer bonus to 80,000 Chase Ultimate Rewards points last fall, that has since disappeared – and it’s unlikely to come back.
It’s unclear how long this $50 grocery credit will stick around. So if you have been thinking about grabbing the Sapphire Preferred Card for yourself, now is a great time to do. Chase will essentially pay for half of your first year annual fee through this new $50 grocery store credit.
Bottom Line
Chase has added a new $50 credit for grocery stores for new Sapphire Preferred cardholders. This is a one-time statement credit that essentially wipes out half of the card’s $95 annual fee in year one. If you have been thinking about applying for the card, now is a fantastic opportunity to do so.
Click Here to learn more about the Chase Sapphire Preferred Card.