American Express® Blue Cash Preferred Review

Overview

The Amex Blue Cash Preferred is a real sleeper if you just want straightforward cash back. It earns 6% on groceries, which is the single biggest spending category for most households, plus 6% on streaming and 3% on gas. Groceries and gas are two of the biggest line items in anyone’s budget, so a card that maxes out cash back on both is genuinely S-tier for what it does.

The one catch is a $95 annual fee, but only after the first year, since year one costs you nothing. That first year is where this card is a no-brainer, and after that there is a smart way to keep the value without paying the fee.

Our 5.0 out of 5 rating

Each score weighs the rewards rate, value after the annual fee, welcome offer, points flexibility, and perks, with every point valued at a flat 1 cent. This is our editorial assessment to help you compare cards, not a guarantee of approval or of the value you will get.

Rewards: how it earns

This is where the card earns its stripes. You get 6% back at U.S. supermarkets, which is about the highest grocery rate out there, plus 6% on select streaming and 3% on gas and transit. Everything else is 1%. Groceries and gas are two of the biggest categories in most people’s budgets, so if that is where your money goes, almost no cash-back card returns more. Just remember the 6% grocery rate is capped at $6,000 a year, so it is built for a normal household’s grocery bill, not unlimited spending. And this is straight cash back, not transferable points, which is exactly what you want if simple is the goal.

Every point and mile above is valued at a flat 1 cent, the same honest standard we use for every card. Run your own spending through the calculator to see what this card would actually return for you.

Pros and cons

The welcome bonus

The welcome bonus is a nice kicker: $300 back after $3,000 in six months, which is easy to hit at these earn rates. Between the bonus and the high cash-back rates, that fee-free first year is where this card really shines, and it is the main reason to grab it.

Is it worth the annual fee?

Here is my honest take on the $95 fee: it is free the first year, and after that I do not think anyone should keep paying it. Once you have earned the welcome bonus, there is nothing propping the fee up. People point to the Disney bundle credit, worth about $7 a month, but here is the thing, the no-fee Blue Cash Everyday gets that exact same Disney credit. So you are not even paying $95 to keep the Disney perk, you are just paying $95 for a slightly higher cash-back rate, which for most people is not worth it.

First-year value vs ongoing value

The welcome bonus makes year one the high point: roughly $968 in value once you count the bonus, this card’s rewards, and its credits, minus the $95 fee. After that, the honest figure is about $668 a year, so judge whether it earns its keep on the ongoing number, not the first-year headline.

*First-year value counts the welcome bonus, estimated rewards, and annual credits, minus the annual fee; ongoing value is a typical year after. Every point at a flat 1 cent, on average spending.

Benefits and protections

Beyond the rewards, the perks and protections worth knowing about include:

• $84 Disney Bundle credit ($7/month)
• Trip delay insurance and baggage insurance
• Return protection and purchase protection
• Extended warranty on eligible purchases

Statement credits

• $84 Disney Bundle credit ($7/month)

Who should get it, and who should skip it

Here is exactly how I would play this card: get the Blue Cash Preferred first, before the Blue Cash Everyday. In year one it costs nothing, you earn the welcome bonus, and you rack up 6% on groceries and streaming and 3% on gas, which gives you a real boost right out of the gate.

Then, after that first year, downgrade to the Blue Cash Everyday. You keep a no-annual-fee card and you keep the same Disney credit, since the Everyday has it too, so there is really no reason to hold the Preferred and its $95 fee. The only case for keeping it is if your grocery and gas spending is high enough that the extra cash back clearly beats $95 a year. Otherwise, take the first-year value and switch, simple as that.

Frequently asked questions

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