Does the benefit offset the $ 550 annual fee?

The Chase Sapphire Reserve® card was so popular when it was launched in 2016 that Chase experienced a lack of metal needed to make the card.

Since then, the Safir Reserve has built a loyal number of card members who have learned to take advantage of the card’s premium travel benefits – including a coveted $ 300 annual travel credit and free access to the airport lounge.

Last year, the Sapphire Reserve card underwent several upgrades, especially when Chase raised its annual fee to $ 550. However, the card has gained a lot of benefits with new partners such as Lyft, DoorDash and Peloton, which helps balance the higher annual fee.

If you expect to start traveling again this year, we recommend adding this card to your wallet. Below, CNBC Select breaks down the rewards, benefits, and fees of the Chase Sapphire Reserve so you can decide if it’s worth the card.

If you are a chef or a frequent traveler, this rewards program is geared towards you. Earn 3X points on trips and meals around the world and 1X points on all other purchases. In addition, earn 10X points on Lyft acquisitions by March 2022.

The welcome bonus is also top notch: earn 50,000 bonus points after spending $ 4,000 on purchases in the first three months after opening your account.

The Sapphire Reserve has two unique advantages that can maximize the value of points by 50%:

1. Chase Ultimate Rewards® portal: Simply use your points to book hotels, plane tickets, cruises and more directly through the travel portal.
2. Pay back: Use this tool to redeem points for a credit taken for purchases from grocery stores, meals (including restaurants, eligible delivery and delivery services), home improvement stores (such as Home Depot and Lowes), and for contributions to a dozen eligible charities. Valid until April 30, 2021.

If you use any of these redemption options, the 50,000 point welcome bonus is worth up to $ 750.

CNBC Select has calculated how many rewards the average American can get if he optimizes the way he uses his Chase Sapphire Reserve card. We worked with location information firm Esri, which provided us with a sample annual budget of $ 22,126.

The budget includes six main categories: food ($ 5,174), gas ($ 2,218), restaurants ($ 3,675), travel ($ 2,244), utilities ($ 4,862), and general procurement ($ 3,953).

Here are how many points you can earn with the Chase Sapphire Reserve card in each category:

• Food: 5,174
• Gas: 2,218
• Meals in the city: 11,024
• Travel: 6,733
• Utilities: 4,862
• General procurement: 5,929
• Total: 35,940

If you redeem these points for travel through Chase Ultimate Rewards® or Pay Yourself Back, you will receive a 50% bonus, which increases the approximate value from $ 359 to about $ 539 per year. (This does not take into account the annual fee or welcome bonus.)

When you count the $ 550 annual fee and the $ 50,000 welcome bonus, first-year earnings drop to about $ 309 for regular redemptions, assuming 1 point is worth a penny. If you decide to redeem points through Chase Ultimate Rewards or pay back and receive 50% more value, the value increases to approximately $ 739. (That’s because the bonus is now $ 750, not $ 550.)

The Chase Sapphire Reserve card offers over two dozen benefits to cardholders, which adds value to the points I highlighted above.

Many of the best benefits have a clear value of $ 60 to $ 300 each. When optimized, these benefits can help you offset more than the $ 550 annual fee.

Here are the key benefits:

• Annual travel credit of $ 300 to compensate for flights, hotel stays and more
• $ 100 credit for the Global Entry / TSA PreCheck commission every four years
• Free of charge DashPass (worth about $ 119) for a minimum of one year (register until December 31, 2021)
• Withdrawal credit of up to $ 120 to Peloton digital and full access subscriptions (register until December 31, 2021)
• $ 60 DoorDash Credit in 2021
• Free year of Pink rose member (approximately $ 239 per month), which includes a 15% discount on car rides, relaxed cancellations and priority airport pick-ups
• Priority Access Selected Pass Lounge (Rated $ 429), giving you access to over 1,000 VIP lounges in over 500 cities around the world

In addition to these benefits, you can take advantage of useful travel and shopping coverage, such as:

• Protection for eligible purchases that are lost or damaged
• Protection against the return of qualified items that the store will not pick up
• Extended warranty coverage for eligible purchases
• Roadside assistance while traveling in the US and Canada
• Waiver of collision damage from auto rental
• Ensuring luggage delays
• Refund of lost luggage
• Travel cancellation / interruption insurance
• Late refund of the trip
• Travel accident insurance
• Travel and emergency assistance services
• Special benefits at The Luxury Hotel & Resort Collection, such as free room upgrades, early check-in and late check-out
• Emergency evacuation and transport
• Medical and dental emergency

Learn more about the specific terms for each benefit.

This card comes with a rather steep annual fee of $ 550. Therefore, it is not for everyone. You will have to pay the annual fee on the first statement, then on each subsequent anniversary of the account. You can eliminate the annual fee during the year by earning rewards and taking advantage of the benefits mentioned above.

There is no introductory 0% APR for this card, so it should not be used to fund new purchases or complete balance transfers. APR is typically 16.99% to 23.99% variable on balance purchases and transfers.

This card has no foreign exchange fees, so you can travel and spend outside the US without incurring the average 3% fee.

If you are a frequent traveler, the Chase Sapphire Reserve card can be a useful addition to your wallet. USD to the benefits of Lyft, DoorDash and Peloton. That being said, this card has a robust suite of benefits ranging from travel insurance and statement credits for eligible expenses to up to 50% extra value for certain reward redemptions.

But if you don’t want to win over $ 550, consider the more affordable Chase Sapphire Preferred® card. This card has an annual fee of $ 95 and still offers a 25% increase in eligible point redemptions. In addition, you can benefit from many of the same travel and purchase protections, as well as similar credit offers.