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Using a top credit card that rewards ongroceries, gas and streaming entertainment can help you save hundreds every year, whether you're stocking up for a staycation or preparing for an old-fashioned family road trip.
The Blue Cash Everyday® Card from American Express and theBlue Cash Preferred® Card from American Express are two cards that offer strong rewards programs in these key categories. Both cards also come with the same noteworthy privileges that all Amex cardmembers enjoy, such as car rental loss and damage insurance and free two-day shipping with ShopRunner.
Both credit cards top a few of Select's best-of lists: The Blue Cash Everyday ranks at No. 1 on our list of thebest no-annual-fee cash-back credit cards(see rates and fees) and its counterpart, the Blue Cash Preferred ranks as thebest grocery rewards credit cardand thebest credit card for streaming services.
But how much can you really stand to save?Select crunched the numbers, and below we break down just how much you can earn in competitive rewards with both cards over a five year period based on an average budget.
When comparing both Amex Blue Cash cards, our sample annual budget, based on the average American's annual spending (see our methodology for more information on how we choose the best cards). Our breakdownincludes six main spending categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953).
Below, we share how much cash back you can earn and compare the perks and benefits of each.
Amex Blue Cash Everyday Card vs. Amex Blue Cash Preferred Card
- Rewards and welcome bonus offers
- Additional benefits
- Fees
- Bottom line
Rewards and welcome bonus
Blue Cash Everyday
The Blue Cash Everyday card offers a competitive 3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%). You also can earn 3% cash back on U.S. online retail purchases (up to $6,000 per year, then 1%) as well as 3% cash back at U.S. gas stations (up to $6,000 in purchases per year, then 1%) and 1% cash back on all other purchases.
New cardholders can earn a $200 statement credit after you spend $2,000 in purchases on your new card within the first 6 months.
Here's a breakdown of how much cash back you could earn in each category annually if you optimize your use of this card:
- Groceries: $155
- Gas: $44
- Dining out: $37
- Travel: $22
- Utilities: $49
- General purchases: $40
- Total: $347
Based on the annual spending budget from Esri, the average American can earn an estimated $547 in the first year of card membership (if you earn the welcome bonus) and $1,935 over five years, when earning the welcome bonus.
Blue Cash Preferred
The Blue Cash Preferred card offers the highest cash-back rate at U.S. supermarkets at 6% (on up to $6,000 per year in purchases, then 1%). You also earn 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and transit and 1% cash back on other purchases.
The Blue Cash Preferred welcome bonus is a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months.
Here's a breakdown of how much cash back you can earn in each category, annually:
- Groceries: $310
- Gas: $67
- Dining out: $37
- Travel: $22
- Utilities: $49
- General purchases: $40
- Total: $524
How you redeem rewards
Cash back comes in the form of Blue Cash Reward Dollars. These can be redeemed for a statement credit once your reward dollar balance is $25 or more.From time to time, Amex may offer other ways to redeem reward dollars, such as for gift cards or merchandise.
Card issuers define spending categories according to their own specifications, so you should know what's considered eligible before you sign up.
Here's how Amex defineseligible spending in each category:
- U.S. supermarkets:Establishments offering a wide variety of food and household products such as meat, fresh produce, dairy, canned and packaged goods, household cleaners, pharmacy products and pet supplies
- U.S. gas stations: Merchants in the primary business of selling gasoline to consumers (excludes gas stations that are part of supermarkets or warehouse clubs)
- Streaming services: Must be on Amex's list of select U.S. streaming subscriptions, which includes popular services like Apple Music, Apple TV+, Audible, Disney+, ESPN+, HBO Max, Netflix, Peaco*ck, Prime Video and more (subject to auto renewal; excludes subscriptions bundled with another product or service or billed by a third party such as a digital platform, a cable provider or a car manufacturer)
- U.S. department stores: Thoseincluded on Amex's list of select stores(includes popular retail locations like Bloomingdales, Kohl's, Lord & Taylor, Macy's, Nordstrom, Saks Fifth Avenue and more)
Additional benefits
The Blue Cash Everyday and the Blue Cash Preferred cards come with a variety of perks and benefits, including:
- Amex Offers: Get discounts at participating merchants, such as restaurants, clothing stores and hotels, when you meet spending requirements and other terms. Offers vary by location and change frequently.
- ShopRunner: Free two-day shipping on eligible items at over 100 online stores.
- Entertainment access: Trying to score tickets to your favorite band or a Broadway show? Amex provides exclusive pre-sale access and preferred seating for concerts, plays, sporting events and more.
- Travel insurance and protections: When cardholders pay for travel expenses with their card, they can benefit from car rental loss and damage insurance and a global assist hotline.
- Purchase protection: Merchandise purchased with your card may receive return protection, which helps if you try to return an eligible item within 90 days from the date of purchase and the merchant won't take it back.
- Instant card number: Eligible applicants can request a temporary card number upon approval, which allows them use the new card before it arrives in the mail.
Terms apply for all benefits.
Fees
Below are the fees for each. We include the purchase APR for both cards, butrecommend always paying on time and in full to avoid paying interest charges on your balance.
Blue Cash Everyday fees
The Blue Cash Everyday® Card from American Express has no annual fee, but there is a *2.7% foreign transaction fee, making this not the best card for frequent travelers.
New cardholders can take advantage of *0% intro APR for 15 months on purchases and balance transfers from the date of account opening, then the APR is 19.24% - 29.99% variable; there's a balance transfer fee that's either $5or3%of the amount of each transfer, whichever is greater. Balance transfers must be requested within 60 days of account opening.
Blue Cash Preferred fees
The Blue Cash Preferred® Card from American Express has a *$0 intro annual fee for the first year, then $95, but by spending a minimum of $1,584 annually at U.S. supermarkets, you could easily recoup it. Cardholders also have to pay*2.7%foreign transaction fee if you use your card abroad.
New cardholders can take advantage of *0% intro APR for 12 months on purchases from the date of account opening, then the APR is 19.24% - 29.99% variable. Variable APRs will not exceed 29.99%.
Bottom line
To save money on groceries and gas without paying an annual fee, consider the no-annual-fee Blue Cash Everyday® Card from American Express. But to double your earnings on groceries and earn 6% cash back while streaming your favorite Netflix shows, consider the Blue Cash Preferred® Card from American Expressinstead. The annual fee can easily be recouped by taking advantage of the first-class rewards and additional perks.
Our methodology
To determine which credit cards offer the best value, Select analyzed 234 of the most popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.
Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.
Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.
Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.
While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.
For rates and fees of the Blue Cash Everyday® Card from American Express, click here.
For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Sure, let's break down the concepts and terms used in the article:
American Express Cards Mentioned:
-
Blue Cash Everyday® Card from American Express
- Offers 3% cash back at U.S. supermarkets, U.S. online retail purchases, and U.S. gas stations, with 1% cash back on other purchases.
- $200 statement credit after spending $2,000 in purchases in the first 6 months.
- No annual fee, 0% intro APR for 15 months on purchases and balance transfers.
-
Blue Cash Preferred® Card from American Express
- Offers 6% cash back at U.S. supermarkets, select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and transit, and 1% cash back on other purchases.
- $250 statement credit after spending $3,000 in purchases in the first 6 months.
- $95 annual fee after the first year, 0% intro APR for 12 months on purchases.
Reward Categories:
- Groceries: Spending at U.S. supermarkets (specifically defined by Amex).
- Gas: Purchases at U.S. gas stations (specifically defined by Amex).
- Dining out: Expenditure at restaurants.
- Travel: Includes various travel expenses.
- Utilities: Covers bills like electricity, water, etc.
- General purchases: Miscellaneous spending like clothing, housekeeping supplies, etc.
Reward Structures:
- Cash back percentages vary based on the card and spending category.
- Both cards have a threshold cap for higher cash back percentages at supermarkets and gas stations.
Additional Benefits:
- Amex Offers: Discounts at participating merchants based on spending requirements.
- ShopRunner: Free two-day shipping at eligible online stores.
- Entertainment Access: Exclusive pre-sale access and preferred seating at events.
- Travel Insurance and Protections: Includes car rental loss and damage insurance.
- Purchase Protection: Coverage for merchandise bought with the card.
- Instant Card Number: Eligible applicants can request a temporary card number upon approval.
Fees:
- Foreign Transaction Fee: Applies to purchases made outside the U.S.
- Annual Fee: Applicable after the initial period, varies between cards.
- Intro APR: Offers 0% introductory APR for a specified duration on purchases.
How Rewards are Redeemed:
- Cash back comes in the form of Blue Cash Reward Dollars, redeemable for statement credits or other options when the balance reaches $25 or more.
Eligibility Definitions:
- Specific definitions by Amex for eligible spending in different categories like supermarkets, gas stations, streaming services, and department stores.
Select's Methodology:
- Analysis of credit cards based on various features like rewards, welcome bonuses, APR, fees, etc.
- Collaborated with Esri for consumer spending data to estimate potential savings over time based on an average consumer's budget.
Disclaimer:
- Editorial note stating that opinions expressed in the article are of the Select editorial staff's alone and haven't been endorsed by any third party.
This information provides a comprehensive understanding of the benefits, rewards, fees, and methodology used in the comparison of the Blue Cash Everyday® Card and the Blue Cash Preferred® Card from American Express.
