Bottom line

Earn 6% cash back on U.S. supermarket purchases, up to $6,000 annually, alongside 6% cash back on select U.S. streaming services, and 3% cash back at U.S. gas stations and eligible transit. Certain terms apply. However, this lucrative rewards scheme comes with a notable annual fee.

Star FUNDSamentally Rating

	American Express Cash Blue
Annual Fee	– $0 for the first year then $95
Sign up bonus	– Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Ongoing rewards	– 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). – 6% Cash Back on select U.S. streaming subscriptions. – 3% Cash Back at U.S. gas stations. – 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). – 1% Cash Back on other purchases.
Foreign transaction fee	– 2.7% of each transaction after conversion to US dollars.
APR	– 0% intro APR for 12 months on purchases and balance transfers -APR: 19.24%-29.99% Variable APR – Cash Advance APR: 29.99%, Variable – Penalty APR: 29.99%, Variable
Value of points redeemed	– 1 cent per point
Balance transfer fee	– Either $5 or 3% of the amount of each transfer, whichever is greater.
Additional benefits	– Up to $84 a year in credit for a subscription to the Disney Bundle, in the form of $7 monthly statement credits. The Disney Bundle includes Hulu, Disney+, and ESPN+. Enrollment required; terms apply. – Up to $120 a year in credit for on-demand fitness provider Equinox Plus, in the form of $10 monthly statement credits. Enrollment required; terms apply.

Detailed overview

The Blue Cash Preferred® Card from American Express stands out as a top-tier cash-back credit card, particularly beneficial for families. It boasts an impressive 6% cash back at U.S. supermarkets (up to $6,000 in yearly spending), 6% back on select U.S. streaming subscriptions, and a generous 3% back on transit including U.S. gas stations, alongside 1% cash back on other purchases. Cash back is redeemable as reward dollars for statement credits or Amazon.com purchases. While the card carries an annual fee of $0 for the first year, then $95, its robust rewards program often offsets this cost, especially for family-oriented spenders. Consider your spending patterns, particularly on transit and groceries, to determine if the rewards outweigh the fee.

Type: Cash back.

Annual fee: $0 intro annual fee for the first year, then $95.

Bonus offer: Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. Terms Apply.

Rewards:

• 6% cash back at U.S. supermarkets, on up to $6,000 in spending per year.
• 6% cash back on select U.S. streaming subscriptions.
• 3% cash back at U.S. gas stations.
• 3% cash back on transit.
• 1% cash back on other purchases.
• Terms apply.

Interest rate: 0% intro APR for 12 months on purchases and balance transfers, and then the ongoing APR of 19.24%-29.99% Variable APR.

Other benefits:

• Up to $84 a year in credit for a subscription to the Disney Bundle, in the form of $7 monthly statement credits. The Disney Bundle includes Hulu, Disney+, and ESPN+. Enrollment required; terms apply.
• Up to $120 a year in credit for on-demand fitness provider Equinox Plus, in the form of $10 monthly statement credits. Enrollment required; terms apply.

Benefits and perks

he annual fee associated with the Blue Cash Preferred® Card from American Express is justified by its lucrative rewards program. Frequent spending at supermarkets, gas stations, and on commuting can quickly offset this cost. Additionally, new cardholders can enjoy a welcome offer, making the first year with the card essentially cost-free. Key features of the card include:

Supermarket rewards

The Blue Cash Preferred® Card from American Express shines with its unmatched cash-back rate at supermarkets. Earn an impressive 6% cash back on U.S. supermarket purchases, up to $6,000 annually, with 1% thereafter. Assuming a $6,000 yearly grocery spend, enjoy $360 in rewards. However, note that this rate applies solely to U.S. supermarkets, excluding wholesale clubs, superstores, specialty food stores, and more. When assessing your grocery spending, consider both the amount and the locations of your purchases.

Streaming service cash back

While the 6% cash back on U.S. supermarket spending is capped at $6,000 annually, there’s no limit on the 6% cash back for eligible U.S. streaming services. If you’re into cord-cutting and subscribe to services like Hulu, Netflix, Pandora, or Spotify, paying with the Blue Cash Preferred® Card from American Express can save you money. Although streaming expenses typically don’t match supermarket spending levels, earning 6% cash back is significant. Note that bundled subscriptions or those billed by third parties may not qualify for the 6% cash back. Terms apply.

Rewards on gas

The Blue Cash Preferred® Card from American Express offers an exceptional 3% cash back at U.S. gas stations, with no reward caps, making it ideal for commuters and owners of fuel-consuming vehicles. However, certain limitations apply. The increased gas rewards are applicable only at traditional standalone gas stations, excluding warehouse clubs, superstores, and supermarkets selling gas. American Express enhances the card’s earning potential for commuters by including transit as a 3% bonus category, covering rideshares, tolls, taxis, buses, trains, and parking. This feature can greatly benefit daily public transportation users and those who rely on alternative modes of transportation. Terms and conditions apply.

Drawbacks and consideration

High annual fee

Starting the year with an annual fee card means you’re already at a disadvantage. The goal is to earn enough rewards to offset this fee before seeing any real value. Unlike complicated reward systems like airline miles or lounge access, cash-back cards offer a straightforward approach, focusing solely on monetary returns.

When considering the rewards from U.S. supermarkets alone, it becomes clear that you’d need to spend approximately $31 per week in this category just to break even on the annual fee. This amount is feasible for many individuals, and it doesn’t even account for the additional rewards earned on select U.S. streaming services, or purchases at U.S. gas stations and transit, which further accelerate the break-even point.

In essence, numerous cardholders can quickly nullify the annual fee. Moreover, if you qualify for the welcome offer, your first-year fee is effectively covered.

Is this card right for you?

The Blue Cash Preferred® Card from American Express stands out as a top-tier cash-back option, perfect for daily use provided you meet the spending threshold to offset its annual fee and are content with its limitations regarding eligible grocery and gas station purchases.