American Express Blue Cash Preferred® Card
- Best for: Households that spend more than $3,170 a year at U.S. supermarkets, especially those paying for several streaming services
- What Sets It Apart: 6% back on the first $6,000 spent each year at U.S. supermarkets (then 1%) and on select U.S. streaming subscriptions
- Gas: 3% at U.S. gas stations with no yearly cap; pumps at superstores, supermarkets, and warehouse clubs don’t count
- Rideshare: 3% on rideshare, taxis, trains, tolls, parking, and other transit, with no cap; no rideshare credit, so nothing expires
- Welcome Offer: Up to $300 back after $3,000 in purchases in the first 6 months; Amex shows your exact amount after you apply, before you accept the card
- Cost: $0 intro annual fee the first year, then $95; 0% intro APR for 12 months on purchases and on balance transfers requested in the first 60 days, then 19.74% to 28.74% variable; balance transfer fee 3% (min. $5); 2.7% foreign transaction fee
- Features: Up to $10 a month back on Disney+, Hulu, or ESPN with enrollment; cash back redeemable as a statement credit or at Amazon checkout, with no minimum
- Pros: Up to $360 a year from groceries at 6%; uncapped 3% on gas and transit; first year free
- Cons: 6% grocery rate stops at $6,000 a year; superstores and warehouse clubs don’t count as supermarkets; welcome offer varies by applicant; 2.7% foreign transaction fee
Open the American Express Blue Cash Preferred® Card if your household spends more than $3,170 a year at U.S. supermarkets. Past that point, its 6% grocery rate covers the $95 fee and still out-earns the no-fee Blue Cash Everyday’s 3%. Skip it if most of your groceries come from Walmart, Target, or warehouse clubs, where purchases don’t earn the 6%.
The Blue Cash Preferred is American Express’s cash back card for households with big supermarket bills, and its highest rate goes to groceries and streaming.
Key Features
- $0 intro annual fee the first year, then $95
- 6% cash back on your first $6,000 of U.S. supermarket purchases each year (then 1%) and on select U.S. streaming subscriptions
- 3% at U.S. gas stations and on transit, including rideshare, tolls, and parking; 1% on other purchases
- Welcome offer of up to $300 back after $3,000 in purchases in the first 6 months
- No interest for 12 months on purchases and on balance transfers requested in the first 60 days (3% fee, $5 minimum), then a 19.74% to 28.74% variable rate based on your credit
Pros
- Grocery spending alone can earn up to $360 a year at the 6% rate, nearly four times the $95 fee
- 6% on streaming services such as Netflix, Spotify, and Disney+ when the service bills you directly, with no yearly cap
- No cap on the 3% for gas and transit
- Up to $10 a month back on Disney+, Hulu, or ESPN subscriptions bought on their own websites, after you enroll
- Redeem cash back as a statement credit or at Amazon checkout, with no minimum
Cons
- $95 annual fee from the second year
- Grocery rate drops to 1% after $6,000 in supermarket purchases each year
- Superstores like Walmart and Target, warehouse clubs, and convenience stores don’t count as supermarkets
- Welcome offer amount varies, and you learn yours only after applying
- 2.7% foreign transaction fee
By our math, the Preferred’s 6% grocery rate beats the no-fee Blue Cash Everyday‘s 3% by enough to cover the $95 fee, charged from year two, once your household spends about $3,170 a year at U.S. supermarkets. Above that, it comes out up to $85 a year ahead of the Everyday on groceries; below it, the Everyday earns more unless you spend heavily on streaming or transit, where the Preferred also pays more.
Learn more about the American Express Blue Cash Preferred® Card or see how it compares to the best cash back credit cards.
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