Amex Blue Cash Preferred Review: An Acceptable Cash Back Card for Groceries and Streaming

Link: Learn more about the Blue Cash Preferred® Card from American Express

If you spend a lot at supermarkets and want to earn cash back, the Blue Cash Preferred Card from American Express is hard to beat. The card offers 6% cash back at U.S. supermarkets and on select streaming subscriptions, which can add up fast for families and anyone with a few monthly subscriptions.

I tend to lean toward points-earning cards for my own spending, but I totally get why a lot of people prefer cash back. It’s simple, flexible, and you can spend it however you want, including on travel. For that crowd, the Blue Cash Preferred is one of the best options out there.

In this post, I’ll cover the welcome offer, the bonus categories and how they work, the Disney streaming credit, and how this card compares to both the no annual fee Blue Cash Everyday® Card from American Express and the Citi Strata Premier® Card.

Blue Cash Preferred bonus

Welcome offer: Earn up to $300 cash back

The Blue Cash Preferred is offering a welcome bonus as high as $300 cash back after you spend $3,000 in purchases within the first six months. That’s a solid bonus for a card at this price point, and the six-month window gives you plenty of time to hit the spending requirement. Welcome offers vary and you may not be eligible for an offer.

Amex’s general rule is that the welcome bonus is only available to those who haven’t previously had the card.

Card eligibility

Amex cards tend to be fairly easy to get approved for if you have excellent credit. A few rules to know:

• You can be approved for at most two Amex cards in a 90-day period
• You can hold at most five American Express credit cards at any point (this doesn’t include hybrid cards like charge cards)

Blue Cash Preferred fees

$95 annual fee ($0 the first year)

The Blue Cash Preferred has a $0 intro annual fee for the first year, then $95. That puts it in line with other mid-range cards. The free first year is a nice perk, as it lets you test the card and see how much value you’re getting before you commit to the ongoing fee.

If you decide the card isn’t working for you after the first year, you can always downgrade to the no annual fee Blue Cash Everyday Card.

Foreign transaction fees

I wouldn’t recommend using this card outside the U.S. or for purchases in foreign currencies. The 2.7% foreign transaction fee will eat into your rewards. There are plenty of other cards with no foreign transaction fees that are better suited for international spending.

Earning cash back with the Blue Cash Preferred

The Blue Cash Preferred has some excellent bonus categories, especially if you spend a lot on groceries and streaming. Here’s the full breakdown.

6% cash back at U.S. supermarkets

This is the headline feature, and it’s the single best cash back rate for grocery spending that I’m aware of. You earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).

To put that in perspective, if you spend $500 a month on groceries, you’d earn $360 per year in cash back from this category alone. That more than covers the $95 annual fee.

Note that supermarkets don’t include superstores, warehouse clubs (like Costco or Sam’s Club), or discount stores. If most of your grocery shopping happens at a traditional supermarket, this card is incredibly rewarding.

6% cash back on select U.S. streaming

The card also offers 6% cash back on select U.S. streaming subscriptions. The list of qualifying services is quite long and includes most of the major platforms: Netflix, Hulu, Disney+, ESPN+, HBO Max, Spotify, Apple TV, Apple Music, Amazon Music Unlimited, YouTube Premium, YouTube TV, Paramount+, Peacock, Sling TV, and many more.

If you’re spending $50 to $100 a month across streaming services (which many households are these days), that 6% adds up nicely.

3% cash back on transit

The Blue Cash Preferred offers 3% cash back on transit purchases, including taxis, ridesharing, parking, tolls, trains, and buses. If you commute by public transit or use rideshare services regularly, this is a solid bonus category.

3% cash back at U.S. gas stations

You also earn 3% cash back at eligible U.S. gas stations, with no caps. Note that this doesn’t include gas purchased at superstores, supermarkets, or warehouse clubs that sell fuel.

1% cash back on everything else

For purchases that don’t fall into the bonus categories, you earn 1% cash back. This is the one weak spot of the card. At just 1% on non-bonused spending, you’ll want to pair this card with something that earns a better return on everyday purchases (more on that below).

Disney streaming credit

The Blue Cash Preferred offers up to $10 back per month (up to $120 per year) as a statement credit when you use your card to purchase a Disney+, Hulu, or ESPN+ subscription (or bundle) through their U.S. websites. There’s no minimum purchase requirement.

If you’re already paying for the Disney bundle, this credit alone could be worth more than the annual fee. Even if you only subscribe to one of those services, it’s still a meaningful benefit.

Redeeming Blue Cash Preferred cash back

With the Blue Cash Preferred, you earn Reward Dollars that can be redeemed as statement credits. You’ll need a minimum balance of $25 to redeem. It’s simple and straightforward, though it’s worth knowing that you can’t use cash back to pay your minimum payment due.

Amex Offers

One benefit that doesn’t get enough attention is the Amex Offers program. This gives you access to targeted deals with a variety of retailers, just by registering your card and making an eligible purchase. Different Amex cards get different offers, so having multiple Amex cards in your wallet means more chances to save. Across my Amex cards, this program saves me hundreds of dollars per year.

Is the Amex Blue Cash Preferred worth it?

If you’re someone who is looking to earn cash back and spends a lot at supermarkets, then the Blue Cash Preferred Card is an exceptional choice, in my opinion — 6% cash back will add up quickly.

The 6% cash back on streaming, and 3% cash back on transit and gas stations, will add up quickly as well, and up to $120 Disney Streaming Credit could be worth more than the annual fee.

However, this isn’t the card I would be using for your everyday spending, as you’d only earn 1% cash back in the categories that aren’t eligible for bonuses. So I’d acquire this card specifically with the intent of using it in the categories offering bonuses.

So, let’s take a look at what other cards you should potentially be considering.

Blue Cash Preferred vs. Blue Cash Everyday

If you like the idea of an Amex cash back card but aren’t sure about paying an annual fee, the Blue Cash Everyday Card from American Express is the no annual fee alternative. Here’s how they stack up:

In my opinion, the Blue Cash Preferred is well worth the annual fee if you spend a meaningful amount at supermarkets. The jump from 3% to 6% on groceries adds up fast. If you spend $500 a month at supermarkets, that extra 3% earns you $180 more per year, which nearly doubles the annual fee.

The Blue Cash Everyday does have one unique advantage: 3% cash back on U.S. online retail purchases, which the Preferred doesn’t offer. If you do a lot of online shopping and less grocery shopping, the Everyday could actually come out ahead.

The good news is that you can always start with the Blue Cash Preferred and downgrade to the Blue Cash Everyday after the first year if the math doesn’t work out.

Simple No Annual Fee Cash Back Card

If you’re just looking for the simplest cash back credit card, it’s tough to go wrong with the Citi Double Cash® Card. The card offers 1% cash back when you make a purchase, and 1% cash back when you pay for that purchase. That’s a solid return on everyday spending.

Blue Cash Preferred vs. Citi Strata Premier

If you’re deciding between the Blue Cash Preferred and a mid-range card from another issuer, the $95 annual fee Citi Strata Premier Card is worth considering. These two cards serve pretty different purposes, but they’re at the same price point:

The Blue Cash Preferred wins on supermarkets and streaming, hands down. If those are your biggest spending categories, the Blue Cash Preferred is the better card.

The Strata Premier is the more well-rounded card overall. It earns 3x points across five major categories (dining, gas, supermarkets, airfare, hotels), has no foreign transaction fees, and its ThankYou points can be transferred to airline and hotel partners for potentially much more than face value. If you travel or eat out a lot, the Strata Premier likely comes out ahead.

Bottom Line

The Blue Cash Preferred is the best cash back card for supermarket spending, and it’s not particularly close. If groceries and streaming are a big part of your monthly budget, this card can deliver serious returns, especially with the 6% rate on both categories plus the Disney streaming credit.

The $95 annual fee ($0 the first year) pays for itself quickly if you’re spending even a moderate amount at supermarkets. Pair it with a card like the Citi Double Cash for your non-bonused spending, and you’ve got a strong cash back setup.

Just keep in mind that the 1% rate on everyday purchases means this card works best as a specialist, not your only card. Use it where it shines, and let a flat-rate card handle the rest.

If you want to learn more about the Blue Cash Preferred Card or want to apply, follow this link.