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Update: Chase confirmed that the $550 annual fee will be applied to renewals as of September 1, 2021.
In January 2020, Chase announced that the Chase Sapphire Reserve® (Rates & Fees) annual fee would increase from $450 to $550 for renewals starting April 1, 2020. But, due to the coronavirus pandemic, Chase still hasn't implemented this annual fee hike. And, Chase just delayed this annual fee increase yet again.
Chase confirmed to AwardWallet that the annual fee for Sapphire Reserve renewals from January 1 to March 30, 2021 will “automatically renew at $450.”
Timeline of the $550 Annual Fee Delay
Originally, Chase planned to start charging a $550 annual fee for renewals on and after April 1, 2020. Sure enough, cardholders with renewals starting on April 1 were charged a $550 annual fee. This was rather unfortunate timing as the world had just locked down due to the pandemic. So, Chase provided a $100 statement credit cardholders with a renewal date between April and July 2020.
Then, in late May 2020, Chase announced that all renewals from August to December 2020 would be charged a $450 annual fee. Now, Chase is extending this $450 annual fee on Sapphire Reserve renewals through March 2021. As it currently stands, renewals starting in April 2021 will be the first to renew at $550. If this annual fee hike isn't further delayed, it will end up going into effect a full year after the increase was originally planned.
Should You Renew the Chase Sapphire Reserve® with a $450 Annual Fee?
The Sapphire Reserve is designed to be a travel card. The card offers lounge access to over 1,300 airport lounges through Priority Pass, excellent travel protections, travel discounts, and more. So, it may seem hard for some to justify even paying $450 to renew at a time of little to no travel.
With that said, Chase added several benefits to the Sapphire Reserve over the past year that makes paying the $450 annual fee easier:
- Pay Yourself Back: Redeem Ultimate Rewards points at 1.5 cents per point for eligible purchases. Now through April 30, 2021, eligible purchases include grocery stores, restaurants, and home improvement stores.
- Flexible $300 travel credit: Use the $300 travel credit for gas and grocery purchases through December 31, 2021
- 3X points at grocery stores: Sapphire Reserve cardholders earn 3X points at grocery stores through April 30, 2021
- DoorDash credit and benefits: Get up to $60 in statement credits for DoorDash purchases in 2021. Plus, you'll get complimentary DashPass membership for (at least) 12 months.
- Lyft benefits and boosted earnings: Cardholders earn 10X points on all Lyft rides plus a complimentary Lyft Pink membership for one year.
- Peloton benefit: Cardholders get up to $120 back toward a Peloton membership through December 31, 2027
All of this is in addition to the slew of benefits that the Sapphire Reserve offers cardholders.
Final Thoughts
If you're like me, you got the Sapphire Reserve for its travel perks. And, if you're like me, you aren't traveling very much right now. So, it can be hard to justify paying even a reduced $450 annual fee. However, make sure to factor in all of the temporary and non-travel benefits of the Sapphire Reserve before canceling your card.
Are you keeping the Sapphire Reserve with a $450 annual fee?
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Sapphire Reserve® (Rates & Fees)
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