7 Ways the Best General Travel Card Saves

The Chase Sapphire Preferred saves you money in seven distinct ways, from earning double points on everyday purchases to unlocking low-cost open-jaw itineraries for international trips.

Hook

Imagine earning 2X points on every purchase, then redeeming those points for a fully paid cabin class seat from New York to Tokyo and a hotel in Kyoto - all without paying up-front fees. That’s the power of the Chase Sapphire Preferred when it comes to open-jaw itineraries.

In my experience, the card’s bonus categories line up with the spending patterns of most families. Groceries, dining, and travel bookings all generate the same accelerated earnings. I have seen members of my budgeting community turn a single year’s worth of ordinary spending into a round-trip business class ticket.

Key Takeaways

• Annual fee is $95, lower than many premium cards.
• Earn 2X points on travel and dining.
• Welcome bonus can cover a round-trip international flight.
• Flexible redemption through Chase Travel Portal.
• Transfer partners include airlines and hotels for higher value.

Below I break down each saving mechanism, share the data that backs it, and explain how you can replicate the results.

1. Lower Annual Fee Means More Net Value

The Chase Sapphire Preferred carries an annual fee of $95, according to a recent comparison of Chase’s travel cards. That fee is less than half the $550 fee on the Chase Sapphire Reserve and far below the $595 fee on many airline co-branded cards. When you subtract the fee from the points you earn, the net value rises sharply.

When I first recommended the Preferred to a client in Denver, she was hesitant because she thought premium travel cards always cost a fortune. After calculating her expected 2X earnings on $15,000 of annual travel and dining spend, the net points value outweighed the $95 fee by more than $200 in travel credit.

For comparison, here is a simple before-and-after snapshot:

The Preferred’s lower fee frees up cash that can be applied to other travel costs, such as airport transfers or local tours. That cash-flow advantage is the first way the card saves you money.

2. Double Points on Travel and Dining

The Preferred awards 2X points on travel and dining purchases. That category coverage matches the spending habits of most households, according to data from the National Retail Federation. In my own budgeting workshops, I see families spend roughly $12,000 a year on dining and $10,000 on travel.

At 2X, a $22,000 combined spend translates to 44,000 points. If you redeem those points through the Chase Travel Portal, each point is worth about 1.25 cents, giving you $550 in travel credit.

One of my readers from Austin used the card to fund a family vacation to Hawaii. By channeling all restaurant bills and airline tickets through the Preferred, she earned enough points to cover 60 percent of the flight cost without touching her savings.

Even if you never travel, the dining bonus still applies to meals at fast-food chains, coffee shops, and grocery-store prepared foods, turning everyday spend into travel value.

3. Generous Welcome Bonus Can Fund a Round-Trip International Flight

When Chase launched the latest version of the Preferred in late June 2025, it raised the welcome bonus to 60,000 points after $4,000 in spend within the first three months. That bonus alone can cover a round-trip economy flight from New York to Tokyo when transferred to a partner airline, as shown by a recent Upgraded Points guide on flying to London with points.

In my own travel planning, I have transferred the 60,000 points to United MileagePlus and booked a one-way business class ticket for roughly 45,000 miles. That left a buffer of points for a hotel stay, effectively eliminating the cash price of the flight.

The key is to meet the $4,000 spend threshold quickly. I advise using the card for recurring bills - electricity, internet, and streaming services - to reach the requirement without altering your lifestyle.

4. Flexible Redemption Through Chase Travel Portal

Points earned on the Preferred can be redeemed directly through the Chase Travel Portal at a fixed rate of 1.25 cents per point for travel booked with the card. That rate is higher than the standard 1 cent per point you receive when booking through other channels.

For example, a $1,200 hotel stay costs 960 points in the portal (1.25 cents per point). If you were to use a partner airline transfer and book the same hotel with a separate loyalty program, the cash equivalent could be higher due to taxes and fees.

When I booked a week-long stay in Kyoto for a client, the portal redemption saved her $300 compared to using a third-party booking site. The simplicity of the portal also reduces the time spent hunting for award space.

5. Transfer Partners Multiply Point Value

The Preferred’s biggest strength lies in its list of airline and hotel transfer partners, including United, Singapore Airlines, Hyatt, and Marriott. By moving points to a partner, you can often achieve a value of 2 cents per point or more.

According to Thrifty Traveler, redeeming Capital One miles for premium cabin awards can reach 2.5 cents per mile. While the Preferred’s points start at 1.25 cents in the portal, transferring to a partner like Singapore Airlines can push the value beyond 2 cents, especially for long-haul business class flights.

In my own travel experiments, I transferred 30,000 Preferred points to Hyatt and booked a boutique hotel in Kyoto for a stay that would normally cost $500. The effective redemption value was about 1.67 cents per point, a clear saving over the portal rate.

6. No Foreign Transaction Fees Enable True Global Spending

The Preferred waives foreign transaction fees, a benefit that many premium cards share but is often overlooked. When you spend abroad, you avoid the typical 3 percent surcharge that can erode reward earnings.

During a recent trip to New Zealand, a member of my budgeting group used the Preferred for all purchases - car rental, meals, and tours. The total foreign spend of $3,200 would have incurred $96 in fees on a standard card. Those $96 stayed in her travel budget, effectively adding to the card’s savings.

Even for domestic travelers, online purchases from foreign merchants (such as Amazon.com.mx) are fee-free, expanding the range of places where you can earn points without penalty.

7. Annual Travel Credit Offsets Fees on Companion Fares

While the Preferred does not include a dedicated travel credit, its points can be used to offset the cost of companion fares offered by airlines like Alaska. NerdWallet outlines how Alaska’s Companion Fare works: you pay a reduced rate for a second ticket after purchasing a full-price fare.

By redeeming points for the primary ticket and then applying a companion fare discount, you effectively get two tickets for the price of one and a half. I helped a family of four use 80,000 points to cover the primary tickets and then booked the companion fare for the remaining seats, saving roughly $1,200 in cash.

This strategy turns the Preferred’s flexible points into a direct cash offset for airline promotions, adding a layer of savings that many cardholders miss.

FAQ

Q: How many points do I need for a round-trip flight to Japan?

A: The exact number varies by airline and class, but transferring the 60,000-point welcome bonus to United or Singapore Airlines can often secure a round-trip economy ticket. Business class usually starts around 100,000 transferred points.

Q: Can I earn points on grocery purchases?

A: The Preferred does not give a bonus on groceries, but you still earn 1X point per dollar. Pairing the card with a grocery-specific rewards card can boost overall earnings.

Q: Is the Chase Travel Portal the best redemption option?

A: For most travelers, the portal’s 1.25-cent rate offers a simple, reliable value. However, if you can transfer to a partner airline and secure a premium cabin award, you may achieve 2 cents or more per point.

Q: How do I avoid the $95 annual fee?

A: The fee is charged annually and cannot be waived, but the points you earn typically exceed the cost within the first year if you meet the welcome bonus spend and use the 2X categories.

Q: Can I refer friends for extra points?

A: Yes, Chase offers a referral bonus of 10,000 points per successful referral, adding roughly $125 in travel value after the bonus is credited.