Since I know lots of us drained our Chase Ultimate Reward accounts making Hyatt and United reservations before their respective award chart changes (United is coming up on February 1st), I wanted to offer a small reminder about some good news that should be on the horizon for Chase Sapphire Preferred® Card and Chase Freedom cardholders.
7% Annual Points Bonus on Chase Sapphire Preferred Card:
As you may already know, the Chase Sapphire Preferred card gives a 7% bonus on all Ultimate Reward points earned in a calendar year. This is regardless of whether or not you already redeemed those points, and is on top of the 2x you earn on travel and dining charges, bonus points earned via the Ultimate Rewards online shopping portal, and 1x you earn on most all other charges. For example, this is why you sometimes see people refer to the card earning 2.14 points on dining as that number includes the 2x + the 7% annual points dividend. You should expect a 7% bonus on all points earned on the Sapphire Preferred card other than the sign-up bonus (that did count until roughly a year ago) and points transferred into the account from other Ultimate Rewards earning cards.
In simple math, if you earned 50,000 points on your Chase Sapphire Preferred in 2013, that means you should expect a 3,500 point bonus some time next month. Obviously if you earned more points in 2013, then you will be getting even more bonus points. Once these points post, you will be able to transfer them 1:1 to Ultimate Reward partners United, Hyatt, British Airways, IHG Rewards, Marriott, and more. Every little bit helps when you are building an account balance back up!
10% Annual Points Bonus on Chase Freedom With Chase Checking Account:
I think the 7% points dividend is a really good feature of the Chase Sapphire Preferred card, but do keep in mind that for some people the Chase Freedom can be even better in this regard as it gives a 10% bonus on points earned in a calendar year if you also have a Chase checking account. This means that you will be earning an extra 10% on all the points earned on that card (including the rotating quarterly 5x bonuses). I actually do all of my Ultimate Reward portal shopping through the Freedom card to earn the 10% point bonus each year instead of the 7% bonus earned on the Sapphire Preferred since I also have a Chase checking account.
Whether you are awaiting one or both of these annual bonuses, keep an eye on your February statements as that is when the Sapphire Preferred bonuses started to appear last year!
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