I’m struggling with the question of whether or not to say goodbye to my Sapphire Reserve card. Now that my Citi Prestige card offers 5X for dining, airfare, and travel agencies, the Sapphire Reserve has lost its coveted spot in my wallet (see: Prestige rocks my wallet for 2019). I’ve temporarily moved the card to my travel wallet, but I’m not at all sure it should stay there. The logical thing to do is to downgrade it to a no-fee card. And if I ever need it again, I believe I could product change it back to the Sapphire Reserve. But, let’s face it, I’ve somehow developed an emotional attachment to this card and so it’s hard to see it go.
In my last “on my mind” post, I struggled with the question of whether I should sign up for the Amex Business Platinum card before the annual fee increases from $450 to $595 in February (update: the $595 fee has expired and the fee has since increased again to $695 in 2022). Thanks to the process of putting my thoughts into writing, I decided not to get one for myself, but to have my son sign up. He would get lounge access and other perks, and I would get the Gogo internet passes, airline fee reimbursements, and use of his points in exchange for meeting minimum spend requirements. He signed up and we’re well on our way. In fact, he was able to use his Hilton Gold status granted by this card to get free breakfast at a Hilton in Chicago earlier this week when visiting a friend.
Since the last “on my mind” post was so successful (thanks for being there for me!), I figured that it made sense to attack the Sapphire Reserve question here. I actually covered this question in detail fairly recently in the post “Should I ditch my Sapphire Reserve?” but I didn’t reach a final conclusion. In that post I wrote “I thought that writing this post would clarify the decision for me, but it hasn’t. I honestly haven’t yet decided whether to keep or downgrade the card, but I’m leaning towards downgrading it.” In other words, I punted the decision to January when the Prestige’s new 5X rewards structure would kick in. Now, it’s decision time.
Sapphire Reserve Benefits
In my prior post on the subject, I pointed out that even though the Sapphire Reserve has excellent benefits, I get the same or better benefits from other cards that I have (I have lots of cards!). I listed two major exceptions: the Sapphire Reserve’s best in-class travel insurance, and the ability to redeem Chase Ultimate Rewards points for 1.5 cents each.
Regarding the Sapphire Reserve’s travel insurance, a reader pointed out that I would get the exact same insurance if I paid for travel, at least in part, with my Ritz Carlton card (see: Ritz matches best-in-class Sapphire Reserve travel protections). That is true. And I plan to keep my Ritz card for its annual 50K free night certificate and $300 in airline fee reimbursements.
That leaves just one good reason for me to keep the Sapphire Reserve: the ability to redeem points at 1.5 cents each towards travel. That’s a killer feature if you use it, but I rarely do. I usually transfer points to airline programs or to Hyatt. My old Ink Business Plus card gives me the power to do that.
Emotional Attachment
When Chase introduced the Sapphire Reserve, I fell in love. My wife and I travel a lot and we eat out a lot. Finally, here was one card that offered huge rewards for both. And I loved the simplicity of it. I kept this one card in the front of my wallet and used it for all dining and travel. I never had to think about which card to use for these things — it was obvious. Yes, Chase charges $450 per year (update: now $550), but they also rebate $300 per year in travel spend. The extra points earned from the Sapphire Reserve over other options available at the time made the card worth far more than its net $150 fee after $300 rebate (this was written before the annual fee increased).
Fast forward to today. Citi has now rejiggered their Prestige card to match up very well against the Sapphire Reserve. I still think that many people would be better off with the Sapphire Reserve if they had to pick one or the other (see: 6 reasons the Citi Prestige is not a Sapphire Reserve killer), but I think that the Prestige is the better card for me (given that I have other cards that fill in the holes).
Due to my emotional attachment, though, I find myself making excuses to keep the card:
- “It’s only $150” (this was written before the annual fee increased)
- “I don’t want to upset Chase”
- “I have a huge balance of Chase Ultimate Rewards points. I should start booking travel through Chase at 1.5 cents per point”
Fleshing out the pay with points argument
That last emotional excuse, above, is actually a reasonable one. I should start booking travel through Chase. Specifically, I should book airfare this way. My wife and I have millions of Chase points that we rarely use. That’s crazy.
I usually avoid booking hotels through Chase since I can get better deals in other ways. Airfare is different. Most of the time, at least with major carriers, airfare found through Chase is the same as booked elsewhere. Plus, unlike hotels, you can get airline rewards when flying on a ticket purchased with points.
Let’s arbitrarily say that I could book $2,100 worth of airfare each year through Chase if I wanted to. With the Sapphire Reserve at 1.5 cents per point, I would spend 140,000 points for those flights. If, instead, I paid with points through my Ink Business Plus card at 1.25 cents per point, I would spend 168,000 points. In other words, keeping the Sapphire Reserve would save me 28,000 points which would be worth $420 in airfare (or $280 in cash). The Sapphire Reserve’s 1.5 cents per point advantage would easily save me more than the card’s net annual fee. More importantly, I would save cash and start to spend down my points balance at a good value.
The Decision
I started writing this post with the intention of convincing myself to dump my Sapphire Reserve card. Instead, I talked myself into keeping it. I really should start spending down my Ultimate Rewards fortune, and paying for flights at 1.5 cents per point value is a good way to do so. So, that’s what I’ll do. Thanks for listening, and thanks for your help!
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Was this post written before Chase switched from connexions to priceline? Because prices are consistently priced much higher on the chase portal. As Seat31B has pointed out, it’s not really 1.5 cents per point. And not being able to book with southwest is a huge killer in my opinion. Altitude Reserve (real time rewards) or wells fargo seem to be much more like 1.5 cents per point. I’d drop the CSR
I think you mean that they switched to Expedia. I’ve written about the price discrepancies too, but for almost all airfare that I’ve looked at they’ve had exactly the same price that I would have paid anyway. The awesome thing is that my wife often flies for work and gets reimbursed so paying via the Chase portal is a good way to cash out UR at 1.5 cents per point.
I currently hold the csp card and am thinking of downgrading it to a freedom after a few years to either re-sign up for it or get the csr. Do you happen to know if product changing/downgrading that way resets the 48-month bonus eligibility clock? Thanks so much!
Chase upgrades/downgrades don’t affect eligibility. The 48-month clock runs from when you last received the new cardmember bonus. You’ll want to product change at least a week or two before re-applying to be sure that the system recognizes you as not currently having the CSP when you apply for the new CSP or CSR card.
[…] On my mind (Goodbye Sapphire Reserve?) […]
I’ve long planned to add the csr as my next premium card to fill in a couple holes. Current Aspire, AAE, Plat as far as premium goes. I fly aa and delta, so the aae and plat are ok for now. Eventually will add the DR to get delta benefits, but it’s another Amex, so it has to wait its turn. As I looked into infinite cards available in the US, I think the Altitude actually fits my needs better. I realize it’s locked as far as points go, but the categories and spend-credit redemption with equal value instead of booking through a card portal has a ton of value. Note that this opens up stacking through airline portals, gift cards, and counts toward mqd or hotel status, so it’s actually earning more than the 4.5% redemption rate. Same primary rental as csr, best I can tell (I use the Amex $20 thing now). Infinite travel portal that csr lacks, no $100 two-ticket discount that csr has (shame), and better fee-to-credit ratio with seemingly same general travel definitions as csr. The gogo passes are what ultimately send it over, as I will use them. However, I will also use the oft-overlooked Troon benefit, which I am having trouble verifying on the Altitude. I know all infinite should have it, but the Troon site says not all do, and Altitude doesn’t mention it. Can anyone confirm that the Altitude does have this benefit? If you have one and don’t know, can you try it at the Troon infinite site and confirm? It’s free. Assuming it works with Troon, the Altitude would be a hands-down winner for me to add a top level visa.
Just tried it. Yes the Altitude seems to work with Troon
Thanks, Greg! I really appreciate you trying that for me!
What is Troon? All I see is it’s a golf club.
Some kind of golf membership. I don’t know.
I agree with the decision. For me, this card is a funnel for all UR points that can be earned with so many cards in different ways. For the last couple of years, I have not only used it to book travel but also to book ‘activities’ which cover the other cost of vacation like airport transfer, tickets to attractions, adventure (skydiving, plane rides, scuba etc.) and so much more. It allows me and family to do so much more than we would otherwise just wish for!
I have been in the same boat and i am now inclined to keep the card owing to the following calculations that i made for my reference :
Out of Pocket expense for keeping the card as below :
1) Net Annual fees of 150$
Out of Pocket expense for not keeping the card :
1) Lounge access for family during long layovers when we fly once a year to India – 27$ *3 = 91$ per leg. Total = 182$ for round trip
2) Primary LDW on Rental Cars during vacations (atleast 2 multi day vacations in a year where i use LDW) . Around 60-80$ per rental. Total around 150$
3) Apart from the fact that i am able to accrue more than 10K points at the minimum every year. Loss of capital valuation for 10K points with any other card = 50$ (owing to 1.5 cents per point valuation )
I would rather pay 150$ towards Annual Fees than spending 400$ more on the same things that i anyways do.
However if anyone is not able to get the 300$ back in travel reimbursement (highly unlikely ), they should not continue with the card
The argument of “between 3x points and 5x points, 5x points clearly wins,” is first-grade level thinking. The kind of marketing that makes people fall for garbage and think they are getting a deal.
All of the other stuff matters too. Like what the points are worth. What options you have for redeeming the points. What categories actually qualify for reward multiplier bonuses. What other perks add value.
Individual needs will vary from person to person. When I first heard of these changes, I thought the same thing. Prestige is going to be way better. Then, actually looking between the two cards, the CSR is still a better card, for me at least.
How is TYP “garbage”? Last year TYP offered increase transfer bonus percentage to Virgin Atlantic– good on Delta and sweet spot redemption to Tokyo, British Airway/Iberia– good on American (or any other One World partner) and Avianca good on United (or any other Star Alliance partner). I’d argue that TYP is waaaaaaaaaaay better for transfer to airline partners than UR. One redemtption area where UR really shines, and it’s a big one is Hyatt– Please Chase, don’t lose or devalue that one, but as for the rest, meh (I don’t find the 1.5% redemption for a $450 card that exicting, I’ll just keep my $150 and pay cash when warranted or use someone else’s points — MR, TYP, Star/Marriott, Barclay, BofA etc. rather than get excited about a 1.5% for UR). Sorry just don’t get it or think the CSR is worth having anymore when there are other more compelling options and you can get CSP cheaper and still play the Chase Freedom /Ink Plus rack up the points game. Also, regarding your comment below Abishek, it’s cool that you find value in the card, but all 4 of your points below could also be had with the Prestige and if you did just one 4 night stay, you could do this in a way where you’d $0 out of pocket. There is no way to do it $0 out of pocket with CSR, unless again you argue for the 1.5% redemption that Chase offers that I never use nor want to (you can redeem on SWA for 1.5% ALL DAY LONG if that’s the redemption level you seek…)
Thanks for this well-thought-out post. My fee comes up in August, so I have some time. This was my #1 card until last Friday — nearly all my spend is on dining, so the Prestige is now tops, and I’m finally under 5/24 and can get the Ink Business Preferred, so I won’t need the triple travel points from the CSR. I frequent Asia, so losing transfers to Korean was terrible. With Citi and Amex transfer bonuses I now find myself spending through those points quickly, and while Chase to United is still useful, the value from Ultimate Rewards isn’t as outsized as it was. For two years I’d thought of CSR dining and travel spend as having a 5%-to-7% rebate, and I now have to come to terms with the fact that I should revalue the rebate in hindsight at 4.5% and start spending down the points on flights.
Chase definition of TRAVEL is way better than “airlines and travel agencies”.
CSR is still a really good card, but I just downgraded mine after getting the annual travel credit. I’m changing my focus and lookin to ditch about $1000 of annual fee cost on reward cards this year. Might go back in the future when I’m eligible for a new CSR signup bonus (if I can time getting under 5/24 briefly before going a bit nuts again). CSR is great for the one card quiver, which should appeal to people who don’t want to be bothered, but there are ways to do better (or almost as good with a no fee card.)
I’m sure everyone is now aware there are a few good cards that offer restaurant cashback/points worth 4+% now that were not available previously. No fees or waived annual first year w/ signup bonus. I’ll probably sign up for the propel and downgrade the Amex Plat to Gold.
For hotels, a co-branded hotel card offers better returning most cases (at least to me). Some technicalities are up for discussion, but free nights offset the annual fees pretty well.
For airfare, I’m either getting that book through work, or using points/credits to do it for free.
Beyond that not much else left to use the CSR for.
When I’m not working on a signup bonus, I had used the Freedom Unlimited a lot before in conjunction with the CSR for uncategorized spend, but now use the citi double cash for straight 2% cashback. Problem with the UR portal is not getting an extra 10% off on hotels (many common 10% off coupons floating around) or not getting points/benefits when staying at a chain that looks down on third party bookings. I do get great value at Hyatt and topping off United every now and then, but my base calculation of value came from 1.5 pt/ $ spent x 1.5 cent/UR point x .9 for no discount/rewards in the UR portal. That equal 2.025 cents per $ spent… not worth it over the double cash. Same for restaurant spend 1.5 x 3 x .9 = 4.1%, which is nominally the same as 4%.
@Nick Reyes: How do you get free breakfast at Hyatt when transferring UR to Hyatt account and book a room? I have no status with Hyatt or its credit card. When I transferred UR to Hyatt account to book rooms in HK and Nepal, the hotel staff emphasized that breakfast was not included with the reservation. Did I miss something?
Hyatt Globalist got free breakfast or if someone with that status books your stay as their guest of honor, you can get free breakfast
So you are going to prepay $150, and give Chase a $300, interest free and reward free loan (no 3x on that $300), just for the opportunity to later use the Chase travel portal over the next year? To me that’s insane. First off, the travel portal is pretty much useless for major hotels, as you lose all your elite benefits. Second, premium cabin travel is much better value transferring points. Third, you probably have a lot of airline gift cards you can use for domestic travel. There’s a reason your UR have been building up if you are holding out for travel portal redemptions. Finally, I’m fairly certain all the other ancillary benefits have zero value to you as they are duplicated with many other cards you probably have. PP, GE, 3x, etc…all useless.
My plan, that might be good for you as well, is to transfer as many points you know you will use this year to partners, such as Hyatt. Downgrade, then upgrade a year later when you need to do it again, so you can double dip the travel credit and make it a net $150 money maker, as opposed to a net $150 loss.
I have booked at least 20 hotel stays thru the portal. I call the hotel (if I have status with them), & they add my number to the res. The hotel still gives me upgrades/breakfast. I guess they aren’t required to but yet they also sure do!
Mostly I like trying boutique, non-chain properties on the portal at a nice discount from their own website. Four Seasons can also be a nice buy.
5 nites South Beach Four Seasons (40th street) Top Floor (10th) Free with points unreal view of Miami not Ocean . I can’t spend that amount so it was twice in a lifetime for Me..
CHEERs
That sounds like a good plan for you, but a few of the assumptions don’t fit my situation:
I travel enough to earn the $300 without trying and always within the month in which it first becomes available.
1) I’m not sure that I’ll use points for hotels. My wife travels often for work and so we have plenty of paid flight opportunities to use the points for instead. That said, Pam is making me think I should at least look at hotel options more often
2) Yes premium cabin redemptions offer much better value, but I have more than enough points to be able to use the UR points at 1.5 cents value for all my (and my wife’s) paid flights and still have plenty left over for transfers to airline miles and Hyatt for premium awards.
3) I don’t have any airline gift cards. I use other tricks to get actual cash back from airline fee reimbursements.
Ad 3) Do share…
Greg, you left out a response to: “I don’t want to upset Chase.” This merits analysis in itself. Can we hurt the feelings of large banks???
They can see ur credit report (10 years) which shows Everything , When I called Chase u applied for and got a Zillion cards all over Now u want a New One From Chase ? Didn’t go well HaHa will BE A LONG time before Chase gives me a New Card. So I want to get along with Citi just to ” Get Their Money ” so I will think about canceling their cards as in 4.
CHEERs
Greg:
I noticed your statement regading your son’s Amex points that you would “use of his points in exchange for meeting minimum spend requirements.” I thought that Amex points could not be transferered to another person, so wondering how you will do that. TIA
With Amex, you can transfer points to the loyalty account of anyone who is an authorized user on your account. So as long as my son adds me as an authorized user (actually as an employee in the case of business cards), we can use his points to transfer to my loyalty accounts.
Greg, my suggestion is to keep CSR and cancel Prestige instead. I hold both for years. Here is why:
Let’s ignore the common parts, such s those travel credits, priority pass:
Why Keep CSR:
1. UR Transfer
2. 1.5c/pt use
(the above two are essentially the “gate” of my UR points. If you cancel CSR, you are essentially closing the door of your UR to go anywhere. FYI, I don’t have Ink Biz card)
3. Primary Rental Car LDW coverage
Why Cancel Prestige:
1. I don’t have that many TYP to use 1.25ct/pt and can’t ramp up much as well (vs. Ink, Freedom 5%). Needless to say, this feature is disappearing on 9/1/19
2. TYP can’t be transferred to United, my primary destination if I transfer (nowadays with paid tickets being cheap yet availability of saver tickets is near zero, I rarely transfer UR points at all).
3. I rarely use “stay 3 and get 1 free”(S3G1) benefits. I don’t mind they reduce the use time to twice annually, but the problem is that I just don’t have chances to travel two “4-day” trips every year. Even if I do, I prefer to use my free night certificates (HH, Marriott, IHG) first. So S3G1 is more a burden for me rather than giving me a “universal 25% off hotel deal”.
4. The last straw that breaks the camel: annual fee. So far I still enjoy $395 AF, but, with the upcoming $100 annual fee increase, it would be either this year or next year that I will cancel it.
(BTW, prestige used to have a good flight delay protection, kind of comparable to primary car rental, but that feature was gone or say watered down)
Because I don’t see I am using the S3G1 feature this year. I am going to close my prestige in my next renewal. Meanwhile, I heard that it would be hard to get CSR sign up bonus quickly(48months), I opt to keep it. Of course, different people have different travel and shopping patterns. My advise might not be suitable for you. But just share my two cents.
Transfer ur TYP’s to Singapore Airlines IF they have a Flt. u can use with United .At least u can get rid of them .If u need more top off the Singapore with UR like I will use my Ink points. My flts on United are the same points cost so I will use Ink on United less hassle and more flts.
CHEERs
Multiple comment writers suggest they value the cash back of the premium cards. It is not the case for mine. They are drawer cards for me, and I don’t shop with these cards to earn bonus as I feel everyday shopping itself can not make a big difference on my point accumulation. For example, for shopping, I just use my BOA premium rewards and Amex Blue Biz Plus no-brain cards unless I have some sign up spending tasks to meet. I more value the benefits these cards can bring to me (even if I don’t spend a penny on it). These may explain why people have different feelings.