What the Chase Sapphire bonus actually gives you
Chase offers a sign-up bonus on the Sapphire Preferred and Sapphire Reserve cards — typically 60,000 to 75,000 points for the Preferred, and 50,000 to 75,000 points for the Reserve, depending on the current offer. You earn these points by spending a set amount within a set timeframe after opening the card, usually $4,000 to $5,000 in the first three months. The bonus is not automatic; you have to meet the spending requirement to receive it.
The points themselves are not cash. They live in your Chase account and can be redeemed for travel (flights, hotels, rental cars), transferred to airline and hotel partners, or converted to cash back at a lower rate. A single point is worth roughly 1 cent when redeemed for cash back, but 1.5 to 2 cents when used for travel through Chase's travel portal, depending on how you book.
The bonus is a one-time offer per person. Once you receive it, you cannot earn the same bonus again on that card for a set period — typically seven years from when you last received a bonus on that card, though Chase's rules vary and change.
Key Takeaways
- The sign-up bonus requires you to spend $4,000 to $5,000 within three months; if you don't hit that spending, you don't get the bonus.
- Points are worth roughly 1 cent each as cash back, but 1.5 to 2 cents each when redeemed for travel bookings through Chase's portal.
- You can transfer points to airline and hotel partners, which sometimes yields higher value than redeeming through Chase directly.
- The bonus is one-time per person, and you must wait several years before earning the same bonus again on the same card.
- Annual fees ($95 for Preferred, $550 for Reserve) explore every year, so the bonus value needs to outweigh the first year's fee.
Sapphire Preferred vs. Sapphire Reserve: which bonus makes sense
The Sapphire Preferred has a lower annual fee ($95) and a lower sign-up bonus (typically 60,000 points). The Sapphire Reserve has a higher annual fee ($550) and a higher sign-up bonus (typically 75,000 points). The Reserve also includes travel credits and other perks that can offset the fee, but only if you actually use them.
For the Preferred: 60,000 points at 1.5 cents per point (travel redemption) equals roughly $900 in value. Subtract the $95 annual fee, and you net about $805 in year one. If you don't travel or don't plan to use the card beyond the bonus, the Preferred makes less sense.
For the Reserve: 75,000 points at 1.5 cents per point equals roughly $1,125. The card includes a $300 annual travel credit and a $120 dining credit, which many cardholders can use. If you use both credits, your net cost is $130 in year one. The bonus alone covers that several times over. However, if you won't use the travel or dining credits, the $550 fee is harder to justify.
Neither card is "better" — it depends on whether you'll actually use the perks and how much you plan to spend on the card after the bonus period ends.
How to meet the spending requirement without overspending
The most common mistake is spending money you wouldn't normally spend just to hit the bonus threshold. A $4,000 requirement over three months is roughly $1,333 per month. If that's not your normal spending, don't force it.
Instead, time the card opening around large planned expenses: a flight you were already booking, a car rental, home improvement purchases, or insurance premiums. Some people add the card to their business account and pay quarterly taxes or vendor invoices with it. Others use it to pay bills they'd pay anyway — utilities, phone, insurance — if the card accepts those payments without a fee.
Check whether the card charges a fee for paying bills by credit card. Many utilities and government agencies add a 2% to 3% fee, which erases the value of the bonus. Stick to spending that carries no extra cost.
What happens to your points after the bonus
After you earn the sign-up bonus, you continue earning points on every purchase at the card's regular rate. The Sapphire Preferred earns 2 points per dollar on travel and dining, and 1 point per dollar on everything else. The Sapphire Reserve earns 3 points per dollar on travel and dining, and 1 point per dollar on everything else.
Points accumulate in your Chase account indefinitely — they don't expire as long as your account remains open. You can redeem them whenever you want, or let them sit and build up over time. If you close the card, you keep the points, but you lose the ability to earn new ones on that card.
Many people keep the Sapphire card open after the bonus year specifically to continue earning points on everyday spending and to maintain access to the travel portal and transfer partners. The annual fee is a cost you'll pay every year, so factor that into whether keeping the card makes sense for your spending habits.
Transferring points to airline and hotel partners
Chase allows you to transfer Sapphire points to dozens of airline and hotel partners at a 1:1 ratio — meaning 10,000 points become 10,000 airline miles or hotel points. This is often worth more than redeeming through Chase's travel portal, but it requires knowing the partner programs and how to value their points.
For example, transferring 60,000 Sapphire points to United Airlines gives you 60,000 United miles. Those miles might book a domestic flight worth $400 to $600 in cash, depending on the route and timing. That's 0.67 to 1 cent per point — sometimes less than the 1.5 cents you'd get through Chase's portal, sometimes more. The value depends entirely on which flight you're booking and when.
Hotel transfers work similarly. Transferring to Hyatt, Marriott, or other partners can yield high value if you know how to read their award charts and book strategically. If you don't regularly use these programs, the transfer option may not be worth the complexity. Redeeming through Chase's portal is simpler and guarantees a known value.
Annual fees and whether the card pays for itself
The Sapphire Preferred's $95 annual fee is charged every year, including the first year. The Sapphire Reserve's $550 annual fee is also charged every year. These are not waived for the first year, so you need to factor them into your bonus calculation.
For the Preferred: If the bonus is worth $900 and the fee is $95, your net benefit in year one is $805. In year two and beyond, you're paying $95 annually just to keep the card open. If you earn $200 or more in points from regular spending that year, the card pays for itself. If you spend less, you're losing money by keeping it open.
For the Reserve: The $550 fee is offset by the $300 travel credit and $120 dining credit if you use them. That brings your net cost to $130. The 75,000-point bonus is worth roughly $1,125, so you come out ahead significantly in year one. In year two, you need to earn enough points from regular spending to cover the $130 net cost, which is easier on the Reserve because it earns 3 points per dollar on dining and travel.
Many people earn the sign-up bonus and then close the card before the second annual fee hits. That's a valid strategy if you don't plan to use the card regularly. Just make sure you redeem your points before closing the account.
Timing: when to open the card and when to close it
Open the card when you have planned spending coming up — a vacation, a home project, or a large purchase you were going to make anyway. This makes it easier to hit the spending requirement without forcing unnecessary expenses.
If you plan to close the card after the bonus, close it just before the second annual fee posts. Most cards charge the fee on the anniversary of the account opening. Check your account online or call Chase to confirm the exact date. Close it a few days before that date, and you'll avoid the second fee.
If you plan to keep the card long-term, the timing is less critical. Just make sure you're earning enough in points and using the perks enough to justify the annual fee year after year.
Frequently Asked Questions
Do I have to spend exactly $4,000, or can I spend more?
You can spend more. The requirement is a minimum — you need to spend at least that amount to earn the bonus. Spending $5,000 or $10,000 doesn't change the bonus amount; you still get the same number of points. However, you do earn additional points on the extra spending at the card's regular earning rate.
What if I don't meet the spending requirement in time?
You don't receive the bonus. The spending requirement has a important date, usually three months from account opening. If you spend $3,500 and the important date passes, you get zero bonus points. You keep the card and can continue using it, but you've lost the sign-up offer.
Can I earn the bonus more than once?
Not when ready. Chase typically requires you to wait seven years from your last bonus on that card before earning the same bonus again. Some people open the Sapphire Preferred, earn the bonus, close it, and later open the Sapphire Reserve to earn a different bonus. The rules change periodically, so check Chase's current terms before explore.
Are the points taxable income?
No. Sign-up bonuses and points earned through spending are not considered taxable income by the IRS. You only owe taxes on points if you redeem them for cash back, and even then, the cash back itself is not taxable — it's treated as a discount on your purchase.
What if I close the card — do I lose my points?
No. Your points remain in your Chase account even after you close the card. You can redeem them whenever you want. However, you can no longer earn new points on that card once it's closed, and you lose access to the travel portal and transfer partners associated with that specific card.