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Unlike travel rewards credit cards, cash-back cards typically don’t offer a lot of ongoing perks. At the same time, many of the best cash-back credit cards don’t charge an annual fee, so you don’t have to worry about getting enough value in rewards and perks to justify a yearly cost.
The Blue Cash Preferred® Card from American Express is one exception, charging a $0 intro annual fee for the first year, then $95 after that. But while the card isn’t the right fit for everyone—no rewards credit card is—I’d argue it’s one of the best for everyday spending, particularly for couples and families.
After canceling the card several years ago in favor of travel rewards, here’s why I recently applied for it again.
Blue Cash Preferred® Card from American Express
Intro Bonus
Earn $250 statement credit after you spend $3,000 in n eligible purchases on your new card within the first 6 months| 0% offer | 0% introductory APR for the first 12 months |
| Balance transfer offer | 0% intro APR on balance transfers for 12 months |
| Balance transfer fee | $5 or 3% of the amount of each transfer, whichever is greater |
| Annual fee | $0 intro annual fee for the first year, then $95 |
| Regular APR | 19.24%–29.99% Variable |
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Reward Rates
- 6%Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
- 6%Earn 6% cash back on select U.S. streaming subscriptions
- 3%Earn 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more)
- 1%Earn 1% cash back on other eligible purchases
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.
- The Blue Cash Preferred card comes with added car rental loss and damage insurance and a Disney+ bundle credit.
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Pros
- Return protection, which is rare for a card at this level
- 0% introductory APR for the first 12 months from the date of account opening (after that, the variable APR will be 19.24%–29.99%)
- Strong rewards rate on groceries and gas
Cons
- 3% cash back only for the first $6,000 spent in each category per year
- Rewards can only be redeemed as a statement credit
- Charges foreign transaction fee
The card offers best-in-class rewards on groceries
The Blue Cash Preferred Card offers an impressive 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). As a single dad with two kids, I spend more than the card’s annual limit on groceries. But even with a cap, the card is tough to beat.
Here’s how it compares to other top credit cards for groceries based on an average annual household supermarket bill of $4,935, according to the 2022 U.S. Bureau of Labor Statistics Consumer Expenditure Survey:
| Card | Rewards rate | Annual supermarket rewards | Annual fee | Annual rewards after annual fee |
|---|---|---|---|---|
| Current Selection Blue Cash Preferred® Card from American Express | 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout. | $296.10 | $0 intro annual fee for the first year, then $95 | $201.10 |
| Capital One SavorOne Cash Rewards Credit Card | 3% at grocery stores | $148.05 | $0 | $148.05 |
| Blue Cash Everyday® Card from American Express | 3% cash back on up to $6,000 spent at U.S. supermarkets per year (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout. | $148.05 | $0 | $148.05 |
| Capital One Savor Cash Rewards Credit Card | 3% cash back at grocery stores | $148.05 | $95 | $53.05 |
| Grocery credit cards comparison | ||||
|---|---|---|---|---|
| Current Selection Blue Cash Preferred® Card from American Express | ||||
| Rewards rate | 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout. | |||
| Annual supermarket rewards | $296.10 | |||
| Annual fee | $0 intro annual fee for the first year, then $95 | |||
| Annual rewards after annual fee | $201.10 | |||
| Capital One SavorOne Cash Rewards Credit Card | ||||
| Rewards rate | 3% at grocery stores | |||
| Annual supermarket rewards | $148.05 | |||
| Annual fee | $0 | |||
| Annual rewards after annual fee | $148.05 | |||
| Blue Cash Everyday® Card from American Express | ||||
| Rewards rate | 3% cash back on up to $6,000 spent at U.S. supermarkets per year (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout. | |||
| Annual supermarket rewards | $148.05 | |||
| Annual fee | $0 | |||
| Annual rewards after annual fee | $148.05 | |||
| Capital One Savor Cash Rewards Credit Card | ||||
| Rewards rate | 3% cash back at grocery stores | |||
| Annual supermarket rewards | $148.05 | |||
| Annual fee | $95 | |||
| Annual rewards after annual fee | $53.05 | |||
To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page
To view rates and fees of the Blue Cash Everyday® Card from American Express, see this page
The card’s other bonus rewards are solid
The card offers 6% cash back on select U.S. streaming subscriptions, which you’ll be hard-pressed to beat anywhere else.
It also provides 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout.
While you could get better gas station rewards from a different card, that’s still a solid rate, especially combined with the card’s supermarket rewards. As someone who works from home, I don’t drive much, so gas station rewards aren’t as important to me.
As a new cardholder, you’ll earn $250 statement credit after you spend $3,000 in n eligible purchases on your new card within the first 6 months. While that may be a steep spending requirement for some, American Express offers three more months to earn the welcome bonus than most credit card issuers.
Other card benefits help offset the cost of the annual fee
The Blue Cash Preferred comes with a handful of perks that can add more value to your everyday spending and even help mitigate the cost of the card’s annual fee:
- Introductory 0% APR promotion: New cardholders can also enjoy 0% introductory APR on purchases and balance transfers for the first 12 months from the date of account opening (after that, the variable APR will be 19.24%–29.99%). If you have one or more upcoming purchases you can’t afford to pay off immediately or want to pay down some high-interest debt from another card, this benefit could save you hundreds of dollars in interest charges.
- Disney Bundle credit: With your enrolled Blue Cash Preferred Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S
I didn’t get the 0% APR promotion because I’ve had the card in the past—Amex welcome offers and introductory promotions are typically a one-time deal—but the Disney Bundle credit gives me $84 back per year, almost enough to cover the card’s annual fee.
To view rates and fees of the Blue Cash Preferred® Card from American Express,see this page
Some caveats to consider
Like any other credit card, the Blue Cash Preferred isn’t perfect. If you don’t spend a lot at the supermarket, you tend to shop for groceries with ineligible merchants, or you have other preferences, this card may not be for you. Here are some potential drawbacks to keep in mind.
Supermarket rewards are limited
The Blue Cash Preferred Card doesn’t offer supermarket bonus rewards when you buy at superstores like Walmart and Target or wholesale clubs like Costco and Sam’s Club. Since I do most of my grocery shopping at a locally-owned supermarkets, the Blue Cash Preferred is the perfect fit.
If you prefer to shop for groceries with those retailers, though, the U.S. Bank Shopper Cash Rewards® Visa Signature® Card may be a better fit. The card offers 6% cash back on up to $1,500 spent quarterly with two retailers of your choice (including Target and Walmart), 3% back on up to $1,500 spent quarterly in a category of your choice (including wholesale clubs), and 1.5% back on everything else. The card charges a $0 intro annual fee, then $95 after that.
The card’s base rewards rate is low
If you use the card for all of your spending, it’s likely that most of your purchases will net you the 1% base rewards rate. As a result, it’s recommended that you pair the card with another rewards card that offers a high, flat rewards rate on all of your purchases.
To maximize my rewards, I pair the Blue Cash Preferred with the Alliant Cashback Visa Signature® Credit Card, which gives me 2.5% cash back on up to $10,000 spent each month (though I have to meet certain criteria to earn that rate).
Redemption is inflexible
The other downside to the card’s rewards program is that there’s only one redemption option: statement credits.
I generally prefer the flexibility of depositing cash back into my checking account, so I can use it the way I want. I can still get some flexibility by redeeming Reward Dollars for a statement credit and then earmarking the same amount in my bank account for discretionary spending, but it’s not as exciting as getting paid directly.
The takeaway
When I canceled the Blue Cash Preferred Card several years ago to focus on travel rewards, I opted to replace it with the American Express® Gold Card, which offers outstanding rewards on groceries and dining out.
But as my preferences switched back to the straightforward and flexible nature of cash back, the Blue Cash Preferred was one of the first cards I applied for. While it’s not the right fit for everyone, and there are some downsides to consider, the card can be an excellent fit for families and others who spend a lot on groceries, like the card’s other rewards and benefits, and don’t mind a modest annual fee.
To view rates and fees of the American Express® Gold Card, see this page
Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.
Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefits guide for more details. Underwritten by Amex Assurance Company.
