Buzz
In its latest Ultimate Rewards update, Chase Sapphire cards have shifted their focus from travel to grocery shopping, which makes sense as travel demand has slowed down and grocery spending surged by 17% during the pandemic. While the new grocery rewards category offers a solid return, it's not the most competitive option on the market.
Earn 2-3x points at grocery stores
The Sapphire Preferred card already gives 2x points on travel and dining, while the more premium Sapphire Reserve offers 3x points in those categories. Both cards earn one point per dollar on all other purchases. The newly introduced grocery store category is available from November 1, 2020, through April 30, 2021, with the following points breakdown:
Chase Sapphire Preferred cardholders earn 2x points on grocery store purchases up to $1,000 each month.
Chase Sapphire Reserve cardholders earn 3x points on grocery store purchases up to $1,000 each month.
With a cap of $1,000 in monthly grocery spending, you can accumulate up to 2,000 points with the Preferred card and up to 3,000 points with the Reserve card.
Based on The Points Guy's current valuations, each Ultimate Rewards point is worth 2 cents, so you'd be redeeming around $40 and $90 in value per month. Not too shabby.
A bonus offer of 80,000 points
Additionally, Chase is offering a generous 80,000 bonus points for spending $4,000 within the first three months after opening a Preferred card (Reserve offers 50,000 points). According to The Points Guy, this could be worth as much as $1,600.
Chasing bonus points isn't always the smartest move. It's important to take into account the annual fees for each card—while the Preferred card is relatively affordable at $95, the Reserve card is much pricier at $550, offering premium perks tailored for frequent users. Check out this Nerdwallet breakdown to see if your spending habits match the rewards being offered.
Expanded 'Pay Yourself Back' Feature
Chase has expanded its 'Pay Yourself Back' feature, allowing cardholders to redeem points through the Ultimate Rewards portal to offset grocery expenses on their statements, with a 25% discount for Preferred cardholders and a 50% discount for Reserve cardholders.
Travel Credit
The Chase Sapphire Reserve comes with a $300 annual travel credit, which, while valuable, is less so during a pandemic. However, cardholders can now apply this credit toward gas and grocery purchases in addition to travel expenses.
In conclusion,
The Sapphire is considered one of the top travel credit cards, with the added bonus of a grocery category that offers decent value. However, if you're specifically seeking a card focused solely on grocery purchases, the American Express Gold or Blue Cash Everyday might be better options. But if you're someone who frequently shops in-store and also enjoys traveling, the Sapphire could be an ideal choice for you.
