A few days ago I wrote about the increased welcome bonus for the Blue Cash Preferred® Card from American Express. While it is great to jump on an increased bonus, this card is also a must have for all your grocery purchases!
- Blue Cash Preferred® Card from American Express — Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. $0 intro annual fee for the first year, then $95. *Terms Apply. See Rates & Fees
6% back at U.S. Supermarkets!
The Blue Cash Preferred® Card from American Express gives you 6% cash back at U.S. supermarkets (up to $6,000 in spending per year, then 1% cash back). This is a great return, especially because the average person is not able to get nearly close to a 6 cent per point return when using their points and miles. And, I’d much rather cash in my pocket now vs. points to use at a later time which could devalue.
While unfortunately there is a $6,000 cap on the cash back per year (then 1% cash back), that means an average $500 grocery bill per month (which is probably on the higher end for the average household family anyways). And, if you do not think you’ll meet that $6,000 cap towards the end of the year, see if your store sells other random items that do not typically fall into this category.
This particular card does come with a $0 intro annual fee for the first year, then $95 (See Rates & Fees) and is not a card I’d sign up for solely for the welcome bonus, but rather for your purchases that will earn you 6% cash back. While there is a no fee version of this card, the Blue Cash Everyday® Card from American Express, most people will probably come out ahead by using the Preferred even though it comes with an annual fee. As long as you spend $2,500 or more at participating U.S. supermarkets throughout the year you’ll get more cash back by paying an annual fee with the Preferred card.
While the annual fee is on the higher end (in my opinion) for a card that I’d personally only use for one type of purchase, it does have other worthwhile benefits. Because it is an American Express card you are able to take advantage of the Amex Offers promotions and potentially earn enough statement credits back in the year to make up for the annual fee (related post). For Amex Offers, I personally average about $300 in statement credits per Amex card I have per year – way more then the cost of any of my annual fees.
Keep in mind that this is only valid at U.S. Supermarkets that are coded “supermarket” in the system. You will not earn the 6% cash back at speciality stores (i.e., fish markets, wine markets, etc.), Superstores (Wal-Mart, Target, Amazon.com, etc.), and Warehouse Stores (i.e., Costco, Sam’s Club, etc.). You can read more about which stores are included and not included on this Amex site.
Other Benefits of Both Cards:
Blue Cash Everyday® Card from American Express
With this card you’ll earn 3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%), 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on all other purchases. This card also comes with no annual fee. *Terms Apply. See Rates & Fees
Blue Cash Preferred® Card from American Express
With this card you’ll earn 6% cash back at U.S. supermarkets (up to $6,000 per year in purchases – then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back on transit (including taxis/rideshare, parking, tolls, trains, buses and more) 3% cash back at U.S. gas stations, and 1% cash back on all other purchases. While the cash back percentage earned is higher than the Everyday card version, there is a $95 annual fee. This means the annual fee is worth it (compared to the no annual fee card), if you spend $3,170 or more at participating U.S. supermarkets throughout the calendar year. *Terms Apply. See Rates & Fees
**Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
Key Links:
- Blue Cash Everyday® Card from American Express — Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. *Terms Apply. See Rates & Fees
- Blue Cash Preferred® Card from American Express — Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. $0 intro annual fee for the first year, then $95.*Terms Apply. See Rates & Fees
For rates and fees of the Blue Cash Everyday® Card from American Express, please click here.
For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.
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Hmm, I have transactions from grocery delivery service Shipt that code as groceries on my Bofa card. Wonder if that is different than supermarket?
I like the card. I had it once and my partner just recently got it with the promotion going on. But remember: with the annual fee eating into your savings you are actually earning less than 5% on your grocery purchases if you spend the full 6K. When Chase or Discover have their grocery category promotion you can get a true 5% or 5 Chase Points to transfer (if you have the right combo of cards). The 3% at department stores is nothing to sneeze at. That rate of return certainly beats a lot of “premium” cards out there. But alas, I do not spend much at dept stores so I cannot take full advantage but for those who do, it’s another reason to get this card. With miles and hotel points de-valueing and awards harder to book, cash back cards could be king for a lot of people, or at least take up a lot more of their everyday spend when they aren’t trying to reach minimum spend requirements for sign up bonuses.