American Express Blue Cash Preferred® Card Review 2025: The Ultimate Grocery Cashback Card

The American Express Blue Cash Preferred® Card (terms apply; see rates and fees) is often hailed as the best grocery credit card of 2025, and for good reason. With unparalleled cash-back rates on supermarket and streaming purchases, this card stands out in a crowded field of cash-back competitors. In this review, we’ll break down what makes the Blue Cash Preferred unique, how it stacks up against popular rivals like the Chase Freedom Unlimited® and Citi Custom Cash℠, and who will benefit most from its rich rewards. By the end, you’ll have the Blue Cash Preferred benefits explained and know whether this card deserves a spot in your wallet.

Learn more about The American Express Blue Cash Preferred® Card.

Introduction

The Blue Cash Preferred® Card from American Express is a cash-back powerhouse designed for families and everyday spenders. Its claim to fame is a whopping 6% cash back at U.S. supermarkets, a reward rate virtually unheard of on any other card without jumping through hoops. It also offers 6% back on popular streaming services – perfect for cord-cutters and binge-watchers. These generous earnings easily outshine those of key competitors like the Chase Freedom Unlimited (which focuses more on flat-rate rewards and dining) or the Citi Custom Cash (which has a 5% cap in one category per month).

What truly sets the Blue Cash Preferred apart is how it caters to households: think grocery runs for the family, filling up the gas tank, paying for the monthly Netflix and Disney+ subscriptions, and even commuting costs. If you’re a parent stocking the pantry or someone who prefers cooking at home, this card directly rewards your lifestyle. While cards like the Capital One SavorOne® target dining out and entertainment, the Blue Cash Preferred zeroes in on everyday at-home expenses. In short, it’s built for families, avid grocery shoppers, and anyone whose budget leans heavily toward supermarket trips and streaming services.

But does it justify its annual fee? And how does it fare against popular no-annual-fee cards like the Wells Fargo Active Cash®? Let’s dive into the details of this American Express Blue Cash Preferred review to find out.

Learn more about The American Express Blue Cash Preferred® Card.

Key Takeaways

• Market-Leading Grocery Rewards: Earn 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1%), making it arguably the best grocery credit card 2025 for families and home cooks. This high rate can potentially return $360 annually just from grocery shopping if you max out the cap.

• Streaming and Commuter Perks: Get 6% cash back on select U.S. streaming subscriptions (Netflix, Hulu, Disney+, Spotify, and more) and 3% back on transit & U.S. gas stations. From subway passes and rideshares to filling your tank, everyday transit is well-rewarded.

• Welcome Bonus & Intro APR: New cardmembers can earn a hefty $250 welcome bonus (statement credit) after spending $3,000 in the first 6 months. Plus, enjoy a 0% intro APR on purchases for 12 months (then a variable APR of approx. 18.24%–29.24% applies). This upfront boost and interest-free period outshine many competitors’ offers.

• Annual Fee (Waived First Year): The card has a $0 intro annual fee for the first year, then $95 thereafter. The high cash-back rates can easily offset this fee if you spend around $31 or more per week on groceries. It’s a pay-to-play model: spend enough in the bonus categories and you’ll come out ahead, otherwise a no-annual-fee card might be better.

• Beyond Rewards – Strong Benefits: The Blue Cash Preferred comes with valuable perks like a $7 monthly credit for the Disney Bundle (Disney+, Hulu, ESPN+) after enrollment, purchase protection, extended warranty coverage, return protection, and secondary car rental insurance. These benefits provide peace of mind for shopping and traveling, adding value beyond the cash back.

• Everyday Use Target Audience: Best suited for families, grocery and streaming enthusiasts, and everyday commuters. If your spending involves stocking up the fridge, binge-watching shows, and driving or taking public transit, this card is tailor-made for you. Conversely, if you dine out frequently or want travel rewards, alternative cards might yield better value.

Learn more about The American Express Blue Cash Preferred® Card.

American Express Blue Cash Preferred® Card Overview

Rewards Structure: The Blue Cash Preferred’s rewards program is its strongest selling point. Cardholders earn:

• 6% Cash Back at U.S. Supermarkets – on up to $6,000 per calendar year in purchases (then 1% thereafter). This rate is unmatched in the market for groceries. To put it in perspective, 6% back means you get $6 for every $100 spent at the supermarket. Even many premium cards don’t offer such a high return in this category. Keep in mind eligible supermarkets include most grocery store chains and local markets, but typically exclude superstores like Walmart or Target and warehouse clubs like Costco. So your weekly grocery run to Kroger, Safeway, Publix, Trader Joe’s, etc., will reap rich rewards with this card. At the $6,000 annual cap, you can earn a maximum of $360 in grocery cash back each year – a substantial offset against the $95 annual fee.

• 6% Cash Back on Select U.S. Streaming Subscriptions – this covers dozens of popular streaming services, such as Netflix, Hulu, Disney+, Amazon Prime Video, HBO Max, Spotify, Apple Music, and more. If you’re subscribed to multiple streaming platforms, those monthly fees can really add up. Earning 6% back on them is like getting a small discount on your entertainment budget all year long. For example, $50/month on streaming services would earn you $36 cash back over a year. There’s no dollar cap on this streaming 6% category, which is great news for cord-cutters with several subscriptions. (Note: Only U.S.-based streaming subscriptions qualify, so ensure you’re paying direct to the service and not bundled in a package that might not code as streaming.)

• 3% Cash Back on Transit – including a wide array of commuting and travel expenses such as subway and bus fares, ride-share services like Uber and Lyft, taxis, train tickets, parking fees, tolls, and even ferries. In essence, whether you’re paying for a daily train pass or catching a cab, using the Blue Cash Preferred will give you a solid 3% back. This is a fantastic category for urban commuters and travelers navigating city life. It even covers things like parking garages and highway tolls – everyday costs that often go unrewarded on other cards.

• 3% Cash Back at U.S. Gas Stations – covering purchases at the pump or inside gas station convenience stores. If you drive regularly, every fill-up earns you 3% back. While a few specialty cards offer higher rewards on gas, 3% is generous for a card that already gives 6% on groceries. This makes the Blue Cash Preferred a well-rounded choice for both grocery shoppers and drivers. Whether you’re commuting to work or embarking on a road trip, you’ll be earning above-average cash back on fuel.

• 1% Cash Back on All Other Purchases – for anything outside the above categories. This is the default rate, as with most reward cards. Everyday miscellany – from clothing to doctor’s bills – will earn 1%. If 1% seems modest, remember that this card is best used in its bonus categories; for non-category spending, it may be worth pairing with a flat-rate 2% card (more on that in the strategy section).

All cash back on the Blue Cash Preferred is earned in the form of Reward Dollars. These can be redeemed for statement credits (to reduce your credit card balance) or even used directly at checkout on Amazon.com. Redemption is straightforward: for example, if you’ve accumulated $50 in Reward Dollars, you can apply it to your account and effectively erase $50 of charges. Pro Tip: You need a minimum of $25 in rewards to redeem, and redemptions are typically done in $25 increments. It’s usually smartest to redeem as a statement credit to directly lower your bill. Using rewards for Amazon purchases is convenient, but it won’t reduce your card balance – it’s essentially like spending your cash back immediately on shopping.

Annual Fee: The Blue Cash Preferred does charge an annual fee of $95, but American Express waives it for the entire first year. This lets new users test-drive the card’s earning potential for 12 months without any upfront cost. By the time the fee kicks in, you should know if your rewards easily justify it. How do you justify a $95 fee? The simple calculation is to ensure your cash back earned exceeds $95 in a year. For many families, that’s a low bar: spending about $1,600 a year on groceries (around $133 a month) at 6% cash back yields $96, already covering the fee. Throw in streaming, gas, and transit rewards on top, and the value climbs quickly. In fact, many cardholders report earning several hundred dollars in cash back annually, far outweighing the fee. However, if your spending in the 6% and 3% categories is minimal – say you dine out all the time or rarely grocery shop – then paying for this card might not make sense. In that case, a no-annual-fee cash-back card could be a better fit. The key is to match the card to your lifestyle: the Blue Cash Preferred is a prime choice if you’re a frequent supermarket shopper or have a family to feed.

How does that annual fee compare to similar cards? Most direct competitors in the cash-back category (e.g., Chase Freedom Unlimited, Citi Custom Cash, Capital One SavorOne, Wells Fargo Active Cash) have no annual fee at all. This puts the Blue Cash Preferred in a slightly different league – it’s a premium cash-back card. The fee pays for the elevated 6% rewards and extra perks. If you’re debating between this and a no-fee alternative, consider your spending: the extra cash back can be well worth $95, but only if you leverage those bonus categories. Later, we’ll compare these cards head-to-head to see how the math works out.

Additional Perks and Benefits: One thing that often gets overlooked in reward cards is the suite of side benefits. American Express didn’t skimp here – beyond the cash back, the Blue Cash Preferred packs in some valuable protections and credits:

• Disney Bundle Credit: As a cardholder, you can enroll in a benefit that gives you $7 back each month when you spend at least $13.99 on the Disney Bundle (which includes Disney+, Hulu, and ESPN+). Over a year, that’s up to $84 in statement credits, essentially subsidizing your streaming costs. If you already subscribe to any of these services, this is easy savings. For instance, if you pay $13.99 for the Disney+/Hulu/ESPN+ bundle, Amex will give you $7 back, effectively cutting the cost in half. It’s a great perk that aligns perfectly with the card’s streaming focus. (Enrollment through Amex is required to activate this benefit, and the subscriptions must be billed to your Blue Cash Preferred.)

• Purchase Protection: When you use the Blue Cash Preferred to buy a new item, that purchase is automatically covered against damage or theft for up to 90 days. American Express will reimburse you up to $1,000 per occurrence (with a maximum of $50,000 per year) if something you bought is stolen, accidentally damaged, or destroyed. This protection can be a lifesaver for high-value items or electronics – for example, if you drop your new phone two months after buying it, or if a holiday gift is stolen from your car, you may be able to get your money back. It’s a peace-of-mind perk that not all cash-back cards offer, especially those with no annual fee.

• Return Protection: Ever purchase something that the store won’t take back? Amex has your back. With return protection, if you try to return an eligible item within 90 days of purchase and the merchant refuses, American Express may refund you the purchase price (up to $300 per item, with a cap of $1,000 annually). Simply put, you get a second chance on returns – perfect for those non-returnable sale items or late realizations that a product just isn’t right. This applies to purchases in the U.S. and its territories, and there are some exclusions (e.g., perishables, cars, etc.), but it’s a generous benefit for everyday shoppers.

• Extended Warranty: When you buy appliances, electronics, or other items that come with a manufacturer’s warranty of 5 years or less, Amex will extend that warranty by an extra year at no charge (on warranties of 2 years or more – shorter warranties are typically doubled). For example, if your new TV has a 1-year warranty, Amex would extend it to 2 years; if it has a 5-year warranty, you get a 6th year covered. If the item breaks during the extended period, American Express can cover the repair or reimbursement up to the item’s purchase price (max $10,000 per claim, $50,000 per account per year). This perk adds significant value, effectively protecting your big purchases longer than the manufacturer does. Many people buy pricey protection plans for electronics – with this card, you might not need to.

• Car Rental Loss and Damage Insurance: When you decline the rental agency’s collision damage waiver and pay for a rental car with your Blue Cash Preferred, you get secondary coverage for damage or theft of the vehicle (up to $50,000). “Secondary” means if you have personal auto insurance it will pay first, but this card can cover deductibles or costs above your policy, potentially saving you money if an incident occurs. While this isn’t primary car rental insurance (some travel cards offer primary), it’s still a nice backup and can help avoid making claims on your own insurance for minor accidents.

• Global Assist Hotline: If you travel more than 100 miles from home, American Express provides the Global Assist service – a 24/7 hotline to help with emergency services such as medical or legal referrals, lost passport assistance, translation services, and more. While you will have to pay any third-party costs (e.g., actual medical fees), having a concierge to guide you in a pinch can be invaluable when you’re in a foreign place or an unfamiliar situation. Think of it as a helpline for travel snafus – one call can connect you to English-speaking doctors or help coordinate getting a new passport, for instance. It’s a benefit you hopefully never need, but reassuring to have.

• Travel and Shopping Coverage Summary: In addition to the above, Amex typically includes fraud protection (zero liability for unauthorized charges), roadside assistance dispatch, and various travel accident insurance on many of their cards. While the Blue Cash Preferred is not a dedicated travel card, it still offers a well-rounded package of protections for everyday life and occasional trips. These perks add an extra layer of value on top of the raw cash-back earnings, making the card more than “just” a rewards tool – it also has your back when things go wrong.

Interest Rates and Fees: For those who might carry a balance or plan a big purchase, the Blue Cash Preferred offers some breathing room upfront. There’s a 0% introductory APR on purchases and balance transfers for 12 months from account opening. This can be handy if you need to finance a large expense and pay it off over the first year interest-free (just be sure to pay at least the minimum due each month). After 12 months, the APR reverts to a variable rate, currently around 18.24% – 29.24% depending on your creditworthiness and prevailing rates. This range is pretty standard for a rewards card; if you have excellent credit you’ll likely be toward the lower end, whereas if you barely qualify you’ll be near the top end. As always, it’s best to avoid carrying a balance if possible (interest can quickly erode any rewards earned).

Other fees to note: Balance transfers incur a fee (typically 3% of the amount transferred, with a $5 minimum). Cash advances (not recommended for a host of reasons) will have a fee (often 5% or $10 minimum) and a higher interest rate. Foreign transaction fees are 2.7% on this card, meaning it’s not the ideal card to use when traveling abroad or making purchases from non-U.S. websites. If international travel is on your agenda, you’ll want to bring a no-foreign-transaction-fee card along (many travel credit cards or even Capital One’s cards have no such fees). Finally, late or returned payments can trigger fees up to $40 and possibly a penalty APR. Overall, these fees are in line with industry norms, but the foreign transaction fee is a reminder that the Blue Cash Preferred is best used for domestic spending.

Credit Level Required: As a premium cash-back card, you’ll generally need good to excellent credit to be approved. American Express will also consider factors like your income and existing debts. The good news is Amex offers a tool to check for pre-approval with no impact to your credit score – so you can see if you have a good shot before formally applying. If your credit is still in the fair range, you might consider building it with a no-fee card first and upgrading later to a card like the Blue Cash Preferred.

In summary, the Blue Cash Preferred® Card from Amex delivers outsized rewards in everyday categories at the cost of a moderate annual fee. Its 6% cash back on groceries and streaming is a game-changer for households, easily offsetting the fee for many users. Combine that with useful perks (like the Disney+ credit and purchase protections) and a consumer-friendly intro APR, and you have a card that earns its keep as a top-tier cash-back choice. Now, let’s examine the extra earning potential from the welcome bonus and then see how the Blue Cash Preferred compares to other popular cards in the market.

Learn more about The American Express Blue Cash Preferred® Card.

Welcome Bonus & Earning Potential

One of the first things you’ll notice about the Blue Cash Preferred® is its attractive welcome offer for new cardmembers. As of early 2025, the card is offering a $250 cash back bonus (received as a statement credit) after you spend $3,000 on purchases in the first 6 months. This intro bonus is a quick way to boost your earnings and can help justify the card’s annual fee in the first year and beyond.

To break it down: $3,000 in 6 months equates to about $500 in spending per month for half a year. Many families or individuals can hit that target just with routine expenses (groceries, gas, utility bills, etc.). Compared to some competitors, the $250 bonus is quite generous:

• The Chase Freedom Unlimited®, for instance, typically offers a $200 bonus after $500 in 3 months. That’s a lower spending requirement, but also a smaller reward.

• Citi Custom Cash℠ often has a $200 (20,000 ThankYou® Points) bonus after $750 in 3 months.

• Capital One SavorOne® (now just called Capital One Savor) also usually features a $200 bonus after $500 in 3 months.

• Wells Fargo Active Cash® similarly offers about $200 after $500 in 3 months.

So while those rivals make it easier to snag the bonus quickly, the Blue Cash Preferred ultimately puts more cash in your pocket if you can meet the higher spending threshold over a longer time frame. $250 is on the higher end for cash-back card sign-up offers. Essentially, Amex is rewarding you for committing to the card and its annual fee by giving back a larger chunk upfront.

Now, consider how this welcome bonus combines with the card’s ongoing rewards to supercharge your first-year earning potential. In the first year, you have no annual fee, a sizable welcome bonus, and your everyday spending yields elevated cash back. Let’s imagine an “average” spender to see what they might earn:

Scenario: The Everyday Family

• Groceries: $500 per month on groceries (which is not uncommon for a family of four, for example). Over 12 months, that’s $6,000 – which perfectly maxes out the 6% grocery category. This alone earns $360 in cash back.

• Streaming: $40 per month on streaming services (perhaps a combination of Netflix, Hulu, and Spotify). Over a year, $480 on streaming at 6% back earns $28.80.

• Gas: $150 per month on gas for the family cars. That’s $1,800 a year on gas. At 3% back, that’s $54 earned.

• Transit: $50 per month on transit/parking (maybe occasionally taking the train to work or paying city parking fees) – $600 a year, earning $18 at 3%.

• Other purchases: $500 per month on “everything else” – dining out, shopping, utilities, etc., which aren’t in bonus categories. That’s $6,000 a year at 1%, yielding $60.

Now add it up: $360 + $28.80 + $54 + $18 + $60 = $520.80 in cash back from spending for the year. And that’s before the welcome bonus. After you include the $250 welcome bonus, the first-year earnings jump to about $770+. That’s an impressive haul for a cash-back card.

Even if your spending isn’t exactly like the scenario above, it’s clear that the Blue Cash Preferred can easily return hundreds of dollars annually. For many, the grocery category will carry the bulk of the rewards. If you spend less on groceries, the total will be lower, but then again if you spend less on groceries maybe you’re spending more on dining out (which this card doesn’t reward as highly – a sign you might want a different card for dining, or simply that your cash back will come more from gas/other spending).

Another way to look at the earning potential is the break-even point for the annual fee. In year two and onward, you’ll be paying $95 to keep the card. How much do you need to spend to earn at least $95 in rewards and break even? At 6% back, roughly $1,584 in yearly grocery spending covers the fee (since 6% of $1,584 is about $95). That’s only about $132 a month in supermarket purchases – which is a pretty low bar for most households. Or consider any combination of categories: for example, $50/month on streaming (~$36/year) plus $3,000/year on groceries ($180) would net ~$216, minus the fee = $121 in profit. Clearly, moderate spending in the bonus categories can make the fee a non-issue.

In contrast, if someone only spends perhaps $200 a month on groceries ($2,400/year, yielding $144) and very little on streaming or gas, they’d earn $144 a year – $49 net after the $95 fee. That’s still a gain, but maybe not enough to justify the hassle if another no-fee card could earn similar rewards across categories. It all depends on personal habits.

Comparing Welcome Bonuses: While the Blue Cash Preferred’s $250 bonus is great, it’s worth noting the structure of some competitor bonuses:

• Chase Freedom Unlimited: $200 bonus (as statement credit or Ultimate Rewards points equivalent) for $500 spend in 3 months plus a potential additional grocery bonus: in the past, Chase has offered new Freedom Unlimited cardholders 5% back on groceries (up to $12k spend in the first year). That means in year one, Freedom Unlimited users could earn up to $600 on groceries (5% of $12k) which actually beats Blue Cash Preferred’s grocery earning for that first year ($360 cap). However, that’s a one-year promo; after that, Chase Freedom Unlimited goes back to no grocery bonus (or just 1.5% normally). Meanwhile, Blue Cash Preferred continues to deliver 6% every year (with the $6k annual cap). So Chase gives a short-term boost, whereas Amex is a long-term workhorse for groceries.

• Citi Custom Cash: typically 20,000 ThankYou points (worth $200 in cash) for $750 spend in 3 months. No special grocery bonus on top of that, but the card’s inherent structure might let you earn 5% on groceries in some months (more on that in comparisons).

• Capital One SavorOne: about $200 for $500 spend in 3 months, and no annual fee. Lower grocery rewards (3%), but no fee to worry about.

• Wells Fargo Active Cash: $200 for $500 spend in 3 months, 2% flat on everything, no fee.

The key takeaway is the Blue Cash Preferred’s bonus is larger in absolute terms, but requires a bit more spending and patience (over 6 months). If you know you have big expenses coming up – say a holiday vacation, appliance purchase, or just a high grocery bill each week – hitting that $3,000 target should be quite feasible. And remember, those $3,000 of expenses will also be earning their regular cash back. If all $3,000 happened to be groceries and streaming (hypothetically), that’s another ~$180 in rewards from the spending itself.

Earning Potential Outside of Bonuses: Let’s not forget the ongoing potential beyond year one. After you’ve pocketed the welcome bonus and the intro APR period ends, the card should continue to serve as a cash cow for your household spending. Blue Cash Preferred cardholders often report that this single card earns more cash back for them than any combination of no-fee cards, provided they maximize the grocery category. If you’re a power user – e.g., a family that spends the full $6k on groceries, has multiple streaming subscriptions, commutes or drives a lot, etc. – you could be looking at $400+ each year in pure cash back (net $305 after the fee), which is fantastic for a cash-back card.

Keep in mind, American Express sometimes updates offers or categories. As of 2025, the categories and bonus are as described, but it’s wise to double-check if any promotions are running (like occasional referral offers or an increased bonus). Right now, $250 is a strong incentive that makes the first year a big win for cardholders.

In summary, the Blue Cash Preferred’s combination of a sizable welcome bonus and industry-leading earning rates gives it tremendous first-year value and solid long-term return. For the right user (especially a high grocery spender), this card basically pays you back substantially for your everyday routine. Next, we’ll pit the Blue Cash Preferred against some of its main competitors to see how it truly compares in rewards and benefits.

Learn more about The American Express Blue Cash Preferred® Card.

Competitor Comparisons

The cashback credit card space is competitive, with many issuers offering enticing rewards for everyday spending. To understand the Blue Cash Preferred’s value, it helps to see how it stacks up against similar cards. We’ll compare it to four key rivals: the Chase Freedom Unlimited®, Citi Custom Cash℠ Card, Capital One SavorOne® (now Capital One Savor), and Wells Fargo Active Cash® Card. Each of these has its own strengths, from flat-rate simplicity to flexible 5% categories or dining rewards. Here’s a breakdown of AmEx Blue Cash Preferred vs the competition, and which types of users might prefer one over the other.

AmEx Blue Cash Preferred vs. Chase Freedom Unlimited

Rewards Showdown: The Chase Freedom Unlimited is a no-annual-fee card with a simpler, flatter rewards model. It earns 1.5% cash back on all purchases by default, with bonus tiers of 3% on dining (including takeout and eligible delivery) and 3% at drugstores, plus 5% on travel booked through Chase’s Ultimate Rewards portal. It also often features a first-year perk of 5% back on grocery store purchases (up to $12,000), though this excludes superstores like Walmart/Target and may be a limited-time offer. Essentially, Freedom Unlimited is great for someone who wants solid earnings everywhere (1.5% on miscellaneous spend is better than Amex’s 1%) and nice boosts on eating out and drugstore runs.

In comparison, the Blue Cash Preferred’s 6% on groceries (up to $6k) blows away Freedom Unlimited’s standard rates. Even the Freedom’s temporary 5% grocery promo in year one is slightly lower and capped at $12k spend (which is a high cap, but again only for year one). On streaming, Freedom Unlimited doesn’t have a special category, so those would earn 1.5% vs. Amex’s 6%. On transit and gas, Chase gives no specific bonus (so 1.5%), whereas Amex gives 3%. Chase does reward dining at 3%, an area Blue Cash Preferred only gives 1%. So if you eat out frequently or get lots of takeout, Freedom Unlimited clearly wins in the dining category. Also, at drugstores Chase’s 3% can be handy (think of purchases at Walgreens/CVS – those would only get 1% with Blue Cash Preferred unless it’s a pharmacy inside a supermarket).

Annual Fee: Freedom Unlimited has $0 annual fee forever. Blue Cash Preferred is $0 first year, $95 thereafter. This means Freedom Unlimited is easier to justify for any level of spending; with Blue Cash Preferred, you want to make sure you’re utilizing those 6% and 3% categories enough to merit paying a fee each year.

Welcome Bonus: Freedom Unlimited usually offers $200 after $500 in 3 months (and possibly that extra 5% grocery first-year perk). Blue Cash Preferred is $250 after $3,000 in 6 months. So, Chase gives you a quick, easy $200 and possibly a huge grocery boost year one. Amex gives you more total ($250) but requires more spend and time. If you’re about to make big purchases or have high expenses, Amex’s bonus might be within reach and more rewarding. If you’re only able to meet a low spending threshold, Chase’s bonus is very accessible.

Other Benefits: Chase Freedom Unlimited doesn’t pack a lot of peripheral perks – it’s a straightforward rewards card. It does have some purchase protection and extended warranty (Chase offers 120 days purchase protection up to $500 per claim, and an extra year warranty on eligible items) and travel insurance for trips purchased through Chase, but not at the level of Amex’s suite. Also, Freedom Unlimited’s rewards are earned as Chase Ultimate Rewards points. If you ever plan to get a premium Chase card (like Sapphire Preferred/Reserve), those points could be transferred to travel partners or used for more value on travel. This adds a layer of flexibility that pure cash back doesn’t have. However, if you’re not into the travel points game, you can simply take Freedom Unlimited’s rewards as cash statement credits or direct deposit, similar to Amex (Chase has no minimum redemption for cash back, which is convenient).

One thing to note: foreign transaction fees – the Freedom Unlimited, like Blue Cash Preferred, charges a foreign transaction fee (around 3%). So neither card is ideal abroad. (Chase’s travel-oriented cards waive that fee, but Freedom Unlimited is meant for domestic use primarily.)

Who Should Choose Which? If you are a heavy grocery shopper and streaming subscriber, the Blue Cash Preferred will significantly out-earn the Freedom Unlimited in those categories – enough to justify its fee in most cases. For example, $500/month on groceries = $360 back with Amex vs. $90 (or $75 if beyond first year promo) with Freedom Unlimited – a $270 difference annually, which easily covers the fee and then some. On the other hand, if you dine out frequently, want a single card for everything, and refuse to pay annual fees, the Freedom Unlimited is very appealing. Its 1.5% back on all other purchases means you don’t have to think about category caps or which card to use – it’s consistently good for anything, whereas Blue Cash Preferred is exceptional for some things and just “okay” (1%) for others.

Many people actually carry both: they might use Blue Cash Preferred for groceries, streaming, gas, transit, and use a Freedom Unlimited (or similar flat-rate card) for dining and all other purchases. That way, they maximize rewards across the board. But if you prefer to keep it simple with one card and your spending is varied, Freedom Unlimited provides a nice blend with no fee.

In summary, Blue Cash Preferred vs Freedom Unlimited comes down to focused high rewards vs. broad simplicity. Blue Cash Preferred wins for family-oriented spending (groceries/streaming) and offers more perks, while Freedom Unlimited wins for no-fee convenience and dining rewards. For a family that mostly cooks at home, Amex will likely yield much more. For a young professional who eats out and wants decent rewards on everything with zero fee, Chase is a strong pick.

Learn more about The American Express Blue Cash Preferred® Card.

AmEx Blue Cash Preferred vs. Citi Custom Cash

Rewards Structure: Citi Custom Cash is a unique no-annual-fee card that adapts to your spending. It gives 5% cash back on your top eligible spending category each billing cycle, up to $500 spent in that category per cycle (equating to $25 max reward per month). All other spending (and any amount over $500 in the top category) earns 1% back. The list of eligible 5% categories is quite broad: it includes groceries, gas stations, restaurants, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment. Essentially, whatever you spend the most on in a given month out of those, you’ll get 5% on that, up to the $500 limit, automatically.

This means the Custom Cash can act as a 5% grocery card — but only if groceries are your #1 category that month, and only on the first $500. For example, if in April you spend $600 on groceries and $200 on dining, groceries would be your top category but you’d get 5% on the first $500 of grocery spend ($25), and the remaining $100 groceries would earn 1%. Your dining would earn 1%. If in May you spend $300 on gas and $250 on groceries, gas is the top with $300 (so 5% on that $300 = $15) and groceries 1%. The strength of Custom Cash is its flexibility – it will reward whichever category you happen to spend the most in each month, up to the cap. But the limitation is the $500 monthly cap on 5% rewards, and it only applies to one category per month.

By contrast, the Blue Cash Preferred locks in specific categories at fixed rates (6%, 3%) but allows you to earn in multiple categories simultaneously. You could earn rewards on groceries and streaming and gas all in the same month without one canceling out the other, which is something Custom Cash cannot do (it only rewards the top category). Also, Blue Cash Preferred’s 6% is higher than 5%, albeit with an annual grocery cap rather than monthly.

Let’s compare on a yearly potential:

• If you used Custom Cash exclusively for groceries each month, you could get 5% of $500 each month. That’s $25 a month, or $300 a year max, in grocery rewards. Interestingly, that $6,000 annual grocery spend (500 x 12) at 5% equals $300 – almost the same ballpark as Blue Cash Preferred’s $360 max on $6,000 at 6%. Blue Cash Preferred would net $60 more in that scenario (gross rewards), but then you’d subtract the $95 fee, making it $265 net vs Custom Cash’s $300 net (no fee). So purely on grocery math up to $500/month, Custom Cash could actually come out slightly ahead net of fees.

• However, if you have any streaming spend, Blue Cash Preferred offers 6% on that concurrently. With Custom Cash, if streaming is your top category one month (unlikely since streaming bills are usually lower than groceries or gas for most people), you’d get 5% on streaming but then not on groceries that month. Realistically, streaming won’t be your #1 spend unless you have a very low spend month otherwise.

• Where Blue Cash Preferred shines is if your grocery spending exceeds $500 in many months or you want to earn on multiple categories at once. If you spend, say, $800 on groceries in a month, Blue Cash Preferred will give 6% on the first ~$500 of that (and 1% on remainder once you hit the $6k yearly cap, if you have) – but because the cap is yearly, you could effectively put that whole $800 and still be within the yearly $6k until later months. Custom Cash would give 5% on $500 and then only 1% on the extra $300. Over a year, if you routinely spend more than $500/month on groceries, Blue Cash Preferred’s higher cap ($6k/year) and rate yield more total cash back than Custom Cash’s $500/month limit.

• Additionally, Blue Cash Preferred’s 3% on gas and transit can be earned while you’re also earning 6% on groceries in the same month. With Custom Cash, if gas was your highest category one month, you’d get no bonus on groceries that month and vice versa.

Annual Fee: Citi Custom Cash has no annual fee. So again, any rewards it earns are pure profit (no fee to subtract). Blue Cash Preferred’s $95 fee means you need to earn at least that much more with it to come out ahead of a no-fee card like Custom Cash.

Welcome Bonus: Citi Custom Cash typically offers a $200 bonus (20,000 points) after $750 spend in 3 months. Easy to attain, but smaller than Blue Cash Preferred’s $250 for $3k/6mo. If you can meet Amex’s requirement, you’ll get more bonus money; if not, Citi’s smaller spend target might be friendlier for a tight budget.

Redemption and Rewards Flexibility: Custom Cash rewards come as Citi ThankYou points, which can be redeemed for cash back (either as a statement credit or direct deposit, typically in increments like $50 for 5,000 points unless you have a setup to combine with other Citi cards). If you have other Citi cards that earn ThankYou points (like a Citi Premier), those points could be pooled and even transferred to airline partners. But assuming a straightforward cash-back user, you’d just take them as $200 for 20k points, etc. Blue Cash Preferred’s Reward Dollars are a bit more straightforward for pure cash back (apply to statement), though they do impose that $25 minimum for redemption.

Other Benefits: Custom Cash is a more bare-bones card in terms of perks. It doesn’t come with extensive purchase protections or credits. As a Mastercard World Elite (depending on version) it might have some cell phone protection or travel offers, but generally Citi doesn’t heavily advertise protections on this card. Blue Cash Preferred clearly outshines in benefits (warranty, purchase protection, etc., which Citi Custom Cash lacks). Also, Citi Custom Cash does charge foreign transaction fees (3%), so like Blue Cash Preferred, it’s not great for international use.

Who Wins for Whom? If you are strictly opposed to paying annual fees and have more modest grocery spending, the Citi Custom Cash can be a nifty way to earn 5% on groceries (or whatever category you choose to focus on) without a fee. It works best for someone who can discipline their spending to max out the $500 in one category each month. For example, you could use Custom Cash only for groceries until you hit $500 each month, then switch to another card, essentially ensuring you always get 5% on some portion of groceries year-round. If your grocery budget is around $500/month or less, you might find you get nearly as much reward from Custom Cash as you would from Blue Cash Preferred, without paying $95/year.

However, Blue Cash Preferred takes the lead for higher spenders and multi-category users. If you have a large family or grocery bills that regularly exceed $500 per month, Blue Cash Preferred will capture more of that at an elevated rate (up to $6k a year at 6%). Additionally, if you value getting rewards on gas, transit, and streaming all at once, Blue Cash Preferred can do that; Custom Cash forces you to prioritize one category at a time.

Another factor is convenience: Custom Cash requires a bit of strategizing or at least awareness of what your top spend is each month. Some months you might not hit $500 in your usual category, leaving some potential on the table. Blue Cash Preferred is more of a “set it and forget it” for certain bills – put all groceries and streaming on it, and you know you’re getting the maximum rate on those, every time, up to the cap. No need to juggle or time your purchases.

In practice, a rewards maximizer might use both: e.g., use Blue Cash Preferred for groceries and streaming year-round, and perhaps use Citi Custom Cash for a different category like dining or gas in months when that spending is higher (since Blue Cash Preferred doesn’t cover dining and only gives 3% on gas vs potentially 5% with Custom Cash in a given month). But if we’re comparing head-to-head as a single-card solution:

• Choose Blue Cash Preferred if your goal is to maximize grocery and streaming rewards consistently and you don’t mind an annual fee to do it. It’s especially good if you have multiple big spend categories each month (you can rack up rewards in all of them concurrently).

• Choose Citi Custom Cash if you prefer no annual fee and have more targeted spending — especially if your biggest expense varies or you spend about the same on one category each month. It’s a great “one card, one category” solution that can adapt if your spending patterns change (one month travel, next month home improvement, etc.). Just remember its rewards potential in any single category is capped at $25 per month.

In summary, Custom Cash is like a nimble sprinter (short bursts of 5% on one thing), while Blue Cash Preferred is a strong marathoner (steady high rewards on core categories all year). For many families, the marathoner (Blue Cash Preferred) will yield greater total rewards, despite the fee, because life doesn’t limit itself to one spending category at a time.

Learn more about The American Express Blue Cash Preferred® Card.

AmEx Blue Cash Preferred vs. Capital One Savor

Rewards Focus: The Capital One Savor is a card geared toward food and fun. It earns 3% cash back on groceries, dining, and entertainment, plus 3% on popular streaming services, and 1% on everything else. Additionally, it offers 5% back on hotels and rental cars booked through Capital One Travel, and a whopping 8% back on tickets at Capital One Entertainment and Vivid Seats (for those who attend concerts, sports, etc., this is a unique perk). Importantly, Capital One cards, including Savor/SavorOne, have no foreign transaction fees, making them friendly for international use.

On the surface, there’s some overlap with Blue Cash Preferred: both reward groceries and streaming, but the Amex gives 6% vs Capital One’s 3% in those categories. However, Savor adds dining and general entertainment (like movies, concerts, theme parks) at 3%, which Blue Cash Preferred doesn’t specifically bonus (dining/entertainment would only get 1% with Amex). SavorOne’s grocery rewards are unlimited 3% (no caps), whereas Amex is 6% up to $6k/year. So if someone spends beyond $6k a year on groceries (very large families or generous spenders), after that point Amex drops to 1% while SavorOne continues at 3%. In reality, $6k/year ($500/month) in grocery is plenty for most, and if you’re spending above that, you might even consider using both cards (Amex for first $6k, then switch to Savor or another card for the overflow).

Annual Fee: Capital One Savor has no annual fee, which is a big selling point. (There was originally a Capital One Savor with a $95 fee and higher 4% rewards on dining/entertainment, but the no-fee SavorOne proved so popular that Capital One simplified branding and now the SavorOne basically is “Savor” with 3% categories and no fee). So, straightaway, any rewards you earn on SavorOne are at no cost. Blue Cash Preferred’s $95 fee means you need to out-earn what SavorOne would give by at least that amount to justify using it.

Welcome Bonus: SavorOne often comes with a $200 cash bonus after $500 spend in 3 months (similar to other no-fee cards). Blue Cash Preferred is $250 for $3k in 6 months. So SavorOne’s bonus is smaller but much easier to obtain quickly. If you’re deciding based on immediate gratification, $200 for $500 spend is excellent. If you can manage $3k spend, Amex yields more dollars.

Category Breakdown – Who has the edge:

• Groceries: 6% (Amex) vs 3% (CapOne). Amex clearly wins here, doubling the return. Even after paying the fee, if groceries are your main expense, Amex likely nets more. For example, $5,000/year groceries = $300 from Amex vs $150 from SavorOne. Subtract the $95 fee and Amex still nets $205, beating SavorOne’s $150. Only if your grocery spend is quite low (or you prefer not to pay a fee) does SavorOne’s 3% become attractive by comparison.

• Dining: 1% (Amex) vs 3% (SavorOne). SavorOne is far better for dining out, takeout, bars, etc. If a big chunk of your budget is restaurants, SavorOne will deliver more value. Many Blue Cash Preferred users pair it with a dedicated dining card (like SavorOne or another) because Amex doesn’t help them there.

• Entertainment: 1% (Amex, since it’s not a category) vs 3% (SavorOne on things like concerts, movies, sporting events). If you often go out for fun activities, SavorOne’s rewards add up. Plus, if you ever use their entertainment portal or Vivid Seats, 8% back is massive.

• Streaming: 6% (Amex) vs 3% (SavorOne). Amex wins here again, especially as there’s no cap on streaming for either (CapOne’s 3% streaming is unlimited as well). Though streaming bills usually aren’t huge, it’s nice to get double the reward with Amex.

• Gas/Transit: 3% each on gas & transit (Amex) vs 1% (SavorOne doesn’t specifically cover these beyond the standard 1%). If you commute or drive, Amex offers a significant advantage – 3% on commuting costs and gas is a nice bump. SavorOne cardholders might use a separate gas card or just accept 1%. Capital One does have another card, the Wells Fargo Autograph (by a different issuer, Wells Fargo) at 3% including gas/transit/dining, but let’s stay focused on SavorOne.

• Travel: Neither Blue Cash Preferred nor SavorOne is a full-fledged travel card, but SavorOne at least gives 5% on hotels and car rentals via its own travel booking site. If you occasionally book travel and don’t have a travel card, that’s a decent perk. Blue Cash Preferred has no travel bonus (just 1% on airfare or hotels if you used it for that), though it has the travel protections as noted (Global Assist, car rental damage waiver, etc.). If you travel abroad, SavorOne has the big advantage of no foreign transaction fees – you can take it to Europe and use it freely at 3% on dining there, for example. The Blue Cash Preferred would tack on 2.7% fees, effectively nullifying its rewards outside the U.S.

Perks and Protections: Here, Blue Cash Preferred likely has more to offer (purchase protection, extended warranty, etc.). Capital One SavorOne (being a Mastercard World Elite) does have some benefits: for instance, it comes with complimentary cell phone protection if you pay your phone bill with it (actually, this is a feature on some World Elite Mastercards; we should verify SavorOne specifically – Capital One’s SavorOne benefits include extended warranty and travel accident insurance, and I believe cell phone insurance might not be on SavorOne but it is on some other no-fee cards like Wells Fargo Autograph). It does have extended warranty and travel accident insurance and secondary car rental coverage, similar basics, but Amex generally is known for stronger purchase/return protections which Capital One doesn’t advertise as much. SavorOne’s standout perk is more the no FTF and the entertainment access (Capital One has things like early access to tickets, exclusive dining events for cardholders, etc., though those are niche).

Who Should Choose Which? If you are primarily a homebody with major grocery and streaming bills, the Blue Cash Preferred is going to reward you significantly more – enough to beat the SavorOne even after paying a fee. It basically comes down to math: are the extra 3% on groceries and 3% on streaming (Amex’s edge) worth paying $95 for, compared to SavorOne’s free 3%? For many families spending, say, $400+ a month on groceries, the answer is yes. The breakeven on grocery alone would be about $3,167/year (because 3% extra on that equals $95). If you spend more than ~$3,200 a year on groceries (around $267 a month), Blue Cash Preferred will earn more net cash back than SavorOne’s 3% after accounting for the fee. And that’s not even counting the streaming, gas, transit categories where Amex also earns more.

On the flip side, if you’re a social butterfly or foodie who splits spending between groceries and lots of dining/entertainment, SavorOne might be the better all-in-one. For example, someone who spends $300 a month on groceries (Amex yields +$9/month over SavorOne there), but also $300 a month dining out (Amex loses -$9 vs SavorOne there), and $100 on entertainment (Amex loses -$3 vs SavorOne), you’d see the categories somewhat balance out. SavorOne’s no fee means all that 3% is gravy. You might not utilize Blue Cash Preferred’s full potential if half your food budget goes to restaurants (only 1% with Amex). Such a person might get more consistent value from SavorOne or might carry two cards to split tasks.

Also consider ease of use: SavorOne can be your one-card solution for anything food-related (grocery or dining) at a decent 3% back, plus common entertainment. Blue Cash Preferred is more specialized for certain things (amazing for groceries, meh for dining). If you don’t want to juggle multiple cards for different spending categories, and you want to cover a broad range (grocery + dining + streaming with one card), SavorOne covers all those decently with no fee.

In summary: Blue Cash Preferred is the grocery and streaming king, while SavorOne is a well-rounded card for both grocery and going-out that doesn’t cost anything to hold. Many users pair them: for instance, use Blue Cash Preferred at the supermarket, and SavorOne when dining out or buying concert tickets. But if choosing one:

• Go with Blue Cash Preferred if your spending skews heavily to groceries, you want the absolute highest cash back in that area, and you don’t mind an annual fee in exchange for bigger rewards. It’s ideal for families and big supermarket spenders who occasionally dine out but not enough to worry about that category.

• Go with Capital One SavorOne if you prefer no annual fee, and you want to earn solid rewards not just at the grocery store but when you’re out on the town. It’s perfect for someone who splits time cooking at home and enjoying restaurants or entertainment venues. Also, if you travel abroad or want a card with no foreign fees, SavorOne clearly beats the Amex there.

AmEx Blue Cash Preferred vs. Wells Fargo Active Cash

Rewards Structure: The Wells Fargo Active Cash® Card takes a very different approach: simple is the name of the game. It offers a flat 2% cash back on everything, with no categories to think about, no caps, and no gimmicks. Every purchase, every day, earns 2% unlimited. This makes Active Cash one of the top flat-rate cashback cards on the market, comparable to the Citi® Double Cash (2%: 1% when you buy + 1% when you pay). Active Cash essentially says, “don’t worry about where or what you’re spending on; you’ll get a decent reward no matter what.”

Comparing 2% everywhere to Blue Cash Preferred’s tiered system: On non-bonus spend, Active Cash gives 2% vs Amex’s 1% – so Active Cash clearly wins for any purchases outside of groceries, streaming, gas, transit. For example, if you frequently have miscellaneous expenses like clothing, electronics, medical bills, etc., Active Cash doubles the reward on those compared to BCP. However, in Blue Cash Preferred’s bonus categories, 6% or 3% obviously beats 2%. So it’s a trade-off: higher rewards in select categories vs. moderate rewards on absolutely everything.

Annual Fee: Active Cash has no annual fee. That is its huge advantage. You get 2% back with zero cost to hold the card. There are no tiers, no need to track spending, and no fee eating into your rewards. Blue Cash Preferred requires that fee outlay ($95) which as we’ve repeated, necessitates a certain spending level to overcome.

Welcome Bonus: Wells Fargo Active Cash usually comes with a $200 cash rewards bonus after $500 in purchases in the first 3 months. Straightforward and easy. (It often also features a nice intro APR like 0% on purchases and balance transfers for 15 months, which is slightly longer than Amex’s 12 months). Blue Cash Preferred’s $250 for $3k in 6 months is bigger, but again, more spend needed. For someone who wants to snag a quick $200 with minimal effort, Active Cash excels.

Feature and Perks: Though a no-fee card, Active Cash surprisingly offers some perks that even many premium cards don’t:

• Cell Phone Protection: If you pay your monthly cell phone bill with the Active Cash card, you get automatic cell phone insurance coverage. It can reimburse you up to $600 per claim (after a $25 deductible) if your phone is damaged or stolen, up to 2 claims per 12 months. This is a valuable benefit considering how expensive smartphones are – and it essentially gives you a reason to use the card every month (to pay your phone bill) in return for peace of mind on your device. Blue Cash Preferred does not include cell phone protection; in fact, very few Amex cards do (that’s more common on Visa Signature/Infinite or World Elite Mastercards like those issued by Wells Fargo or Capital One).

• Visa Signature Benefits: Active Cash is a Visa (usually a Visa Signature if approved with a high enough credit line). This means it carries perks like Visa Signature Concierge service, some travel and shopping protections (extended warranty, purchase security for 90 days up to $500, travel accident insurance, etc.). The protections might not be as high limits as Amex’s, but there’s some coverage. Blue Cash Preferred’s Amex protections are quite robust in purchase/return as discussed, so Amex might still have an edge in claim ease or limits. But Active Cash holds its own given it’s no fee.

• No rotating categories or activation needed: This is obvious but worth stating – unlike rotating category cards (Discover it or Chase Freedom Flex 5% categories) which some people consider, Active Cash is flat 2% all year. Blue Cash Preferred is fixed categories. Neither requires any quarterly activations or category juggling beyond using the right card for the right purchase.

Foreign Use: Active Cash, being a general cash-back card, unfortunately does charge foreign transaction fees (3%). Wells Fargo hasn’t positioned it as a travel card, so similar to Blue Cash Preferred, you wouldn’t want to use it abroad due to that fee. (In the flat-rate realm, the only major no-FTF flat card is maybe PayPal Cashback MasterCard at 2%, but that’s a different topic.)

Who Comes Out Ahead: This comparison is less about categories and more about philosophy:

• If you want simplicity and no cost, Active Cash is hard to beat. 2% on everything with no fee means you never have to wonder if you’re using the right card. Over the course of a year, a lot of people might find that a flat 2% on all spending yields more total cash back than a multi-category card that they don’t fully maximize. For instance, consider someone who spends $20,000 a year in various purchases, but only $4,000 of that is groceries and $1,000 is streaming. With Blue Cash Preferred, they’d get $240 on groceries (6% of $4k) + $60 on streaming (6% of $1k) + if $2,000 on gas/transit maybe $60 (3%), and the remaining $13k at 1% = $130. Total ~$490 rewards, minus $95 fee = ~$395 net. The Active Cash at 2% on $20k would earn $400 flat, net (no fee) = $400. In that simplified scenario, Active Cash actually slightly edges out BCP net because the user’s spending beyond groceries/streaming didn’t earn much with Amex. If the person had more like $6k groceries, then BCP would probably come out ahead net. So it depends on how much of your spending is in the bonus categories vs outside them.

• Blue Cash Preferred clearly is better for someone with a heavy focused spend in the bonus categories relative to other spending. If, say, 50% or more of your budget is groceries, streaming, transit, gas – then BCP will yield a higher overall cashback percentage on your spend than 2% flat would. But if those categories are only maybe 20-30% of your spend and the rest is general, a 2% everywhere card might actually earn similar or more without a fee.

Pairing Possibility: A common strategy is to pair the Blue Cash Preferred with a flat-rate card like Wells Fargo Active Cash (or Citi Double Cash). Use Blue Cash Preferred for groceries, streaming, gas, transit, and use the 2% flat card for all other purchases to ensure you’re getting at least double the 1% on the “everything else” category. This way, you cover both bases: top-notch category rewards and a solid rate on miscellaneous spending. Since Active Cash has no fee, it doesn’t hurt to hold it alongside the Amex. Many savvy users do exactly this.

If choosing just one card:

• Pick Blue Cash Preferred if you’re willing to put in a touch of effort (using it in the right places) and you know your spending on groceries/streaming/etc. is high enough to justify it. This card will maximize rewards in those areas and you can tolerate having a second card or not getting top rewards on other purchases.

• Pick Wells Fargo Active Cash if you prefer one-card simplicity or your spending is spread out such that no single category dominates. If you don’t want to worry about caps, categories, or annual fees, 2% back on everything is a stress-free solution. It’s also a great fallback card for any purchase that doesn’t fall into a bonus category on another card.

Additionally, consider temperament: some people love chasing rewards and optimizing; the Blue Cash Preferred appeals to them because they can squeeze out that 6%. Others just want decent rewards without complexity; Active Cash is for them.

Other Strengths to note: Wells Fargo Active Cash’s cell phone protection is a standout benefit that might sway someone who always has the newest iPhone and doesn’t want to pay extra for phone insurance. Blue Cash Preferred’s benefits are more about shopping/travel protections. If you don’t think you’d use those Amex protections often but you do have a pricey phone, Active Cash’s included insurance is a tangible $ value (replacing AppleCare or carrier insurance in some cases).

In summary, the Blue Cash Preferred vs Active Cash is a classic “specialist vs generalist” debate. The specialist (BCP) delivers high impact in key spend areas, while the generalist (Active Cash) delivers steady results across the board. For maximum cash back, specialists often win if their niche aligns with your spending. But generalists provide consistency and simplicity that can be equally rewarding if your spending is balanced.

Luckily, this isn’t an all-or-nothing choice in practice — you can carry both. But if you must choose: go Amex for maximizing everyday category rewards, or go Active Cash for no-hassle, solid rewards on everything you buy.

Learn more about The American Express Blue Cash Preferred® Card.

Best Strategies to Maximize Blue Cash Preferred Rewards

Once you have the Blue Cash Preferred® Card in your hands, you’ll want to squeeze every dollar of value from it. With its high reward rates, a bit of smart planning can really boost your earnings. Here are the top strategies to maximize your Blue Cash Preferred rewards:

1. Use it for All Eligible Groceries – Up to the $6,000 Cap: This might sound obvious, but it’s worth emphasizing. The simplest way to maximize this card is to channel as much of your supermarket spending as possible onto it, at least until you hit $6,000 in a calendar year. If you have multiple credit cards, make the Blue Cash Preferred your dedicated grocery card. $6,000 per year at 6% yields $360 – capture that full amount if you can. Practical tips: if you’re shopping at a store that’s coded as a supermarket (e.g., local grocery chain), always pay with Blue Cash Preferred instead of cash or another card. If you typically shop at superstores like Walmart or Target for groceries, know that those won’t earn 6% with this card since they don’t code as grocery stores – consider shifting more of your food shopping to a traditional grocery store to benefit (and perhaps buy non-grocery items elsewhere). If you buy in bulk at warehouse clubs (Costco, Sam’s Club), those also won’t count as supermarkets for Amex. One workaround some people use: buy supermarket gift cards at the supermarket (which do count for 6%) to use later at those other stores – but do this only if you’re experienced and careful, as it can complicate returns and such. In general, stick to straightforward grocery purchases on this card to rack up rewards quickly. Pro tip: if you approach the $6,000 annual grocery cap before year-end, you might shift excess grocery spending to another card (perhaps a no-fee Blue Cash Everyday at 3% or a 2% card) for the remainder of the year, or if you have a spouse/partner, consider having them get their own Blue Cash Preferred so you effectively have a second $6,000 cap (advanced strategy for big families).

2. Set All Your Streaming Subscriptions to Bill to Blue Cash Preferred: Go through your monthly subscriptions (Netflix, Hulu, Disney+, ESPN+, HBO Max, Spotify, Apple Music, etc.) and make sure they are charged to your Blue Cash Preferred. Earning 6% back on these is fantastic because it’s essentially passive – set it once and forget it, and you’re getting a nice rebate on your digital entertainment every month. Even if a subscription is small (say $10/month), over a year that’s $120, and 6% of that is about $7.20 – hey, that’s essentially a free month of one of your $7 streaming services. If you have multiple subscriptions, it adds up. Plus, by using the Blue Cash Preferred, you might also be eligible for promotions like the Disney Bundle credit. Don’t forget to enroll for the Disney Bundle $7 monthly credit if you subscribe to Disney+, Hulu, or ESPN+. For example, if you’re paying $13.99 for the trio bundle, put that on your Blue Cash Preferred, activate the offer in your Amex account, and you’ll automatically get $7 credited back each month – effectively paying only $6.99 for a bundle that others pay $13.99 for. That’s on top of earning 6% cash back on the charge itself! When it comes to streaming, this card really stacks benefits: you get a high cash-back rate and a special credit for a popular service. Also, ensure your subscriptions are direct-billed by the service and not through third parties (like an iTunes or Google Play subscription), to guarantee they code properly as streaming.

3. Pay for Transit and Commuting Costs with the Card: Whether it’s your monthly metro pass, a weekend train ticket, rideshares after a night out, or even the parking meter, use the Blue Cash Preferred for transit expenses to get 3% back. You might not think of these small charges as significant, but consider how they add up: $5 here, $15 there – over a year, many urban commuters spend hundreds or thousands on transit. Getting 3% back effectively gives you a discount on going to work or traveling around town. If you use apps like Uber or Lyft, add this card to the app’s payment methods and use it for your rides. For parking, many cities have parking apps/meters that take credit cards – swipe this card for the 3%. Tolls can be another sneaky expense; if you replenish a toll tag (EZ-Pass, SunPass, etc.) and can use a credit card, use this one to nab 3% on those charges too. Basically, any time you’re about to pay for a form of local transportation, consider: “Can I put this on my Amex for cash back?” You might be surprised how often the answer is yes. Over the course of a year, these transportation rebates can amount to a nice little sum (and they’re on top of what you’re already getting from groceries and streaming).

4. Use it at U.S. Gas Stations – Especially if You Don’t Have a Dedicated Gas Card: Earning 3% on fuel with Blue Cash Preferred is strong, though not record-breaking (some gas-specific cards do 4% or 5% on gas, but usually with trade-offs or caps). If you have this card, you might not need a separate gas card unless you drive a ton. Every time you fill up at a gas station, pay with Blue Cash Preferred to get 3% back. Over a year, gas purchases can be significant – e.g., $200/month on gas would yield about $72 back annually with this card. One thing to watch: only use it at stand-alone gas stations, not if you buy gas at places like Costco or BJ’s (which code as wholesale clubs, not gas stations – Amex would only give 1% there). For Costco gas, you’d need their Visa card or another solution. But at Shell, Chevron, Exxon, etc., you’re good to go with Amex for 3%. Additionally, some gas stations also sell groceries or convenience items – note that the card will treat the whole purchase as “gas station” regardless of what you buy there, so you’ll get 3% even on that bag of chips or car wash if it’s rung up at the gas station. Just be mindful: gas can be pricey, so try not to carry a balance even with the 0% intro APR, because once interest kicks in it can negate those rewards.

5. Redeem Your Cash Back Smartly: With the Blue Cash Preferred, redemption is straightforward, but there are a couple of tips:

• Wait until you have at least $25 in Reward Dollars before redeeming. Amex requires a $25 minimum for statement credit redemption. It often makes sense to redeem in chunks (e.g., $25, $50, $100) rather than tiny amounts. Perhaps set a schedule to redeem every time you hit, say, $50 or $100, unless you need the credit sooner.

• Apply rewards as a statement credit to offset purchases. This is generally the best value and simplest use of your cash back. Every dollar in Reward Dollars equals one dollar off your credit card balance. This is effectively the same as getting cash in hand since it reduces what you owe. For instance, if your statement balance is $500 and you have $50 in rewards, redeeming will cut what you owe to $450. It’s instant savings.

• Avoid less optimal redemptions: While Amex allows using Reward Dollars at checkout on Amazon, do this only if you really want the convenience. Using $1 in rewards on Amazon gives you $1 off your Amazon purchase – same value, so it’s not a bad deal per se, but the downside is it doesn’t reduce your credit card bill; it just lets you spend the rewards. Some people find it tempting to use points for impulse purchases on Amazon, which might not be financially optimal. If you’re disciplined, by all means enjoy using it on Amazon, but many experts recommend taking the statement credit, then if you want, use the cash you saved to buy whatever you were going to anyway.

• No direct deposit or check: Unlike some other issuers, Amex’s Reward Dollars can’t be deposited to your bank or mailed as a check. It’s basically statement credit or certain shopping options. That’s fine – statement credit is straightforward – but just know to look for the “Apply as Credit” redemption option in your account.

• One fun way to think of it: apply your redeemed cash back toward your grocery bill. For example, every few months redeem $50 and mentally note that it’s like Amex paid for one of your week’s supermarket trips! This can reinforce the value you’re getting.

6. Leverage the 0% Intro APR (But Wisely): If you have a large purchase coming up – maybe a new appliance, furniture, or some unavoidable big expense – and you want to pay it off over time, consider putting it on the Blue Cash Preferred during that first 12 months of 0% APR. You’ll not only earn cash back on that purchase, but you’ll also avoid interest for a year. However, be cautious: it’s easy to let a balance linger when there’s no interest, but remember the interest will kick in after 12 months at the regular rate. So, plan your payments to ensure you pay it off within the promo period. A strategy: divide the big purchase amount by 12 and set up an automatic payment for that amount each month, so you’re debt-free by the time 0% runs out. This way you truly get an interest-free loan and free rewards. Also, avoid carrying a balance beyond the promo on this card because the APR is high – and interest could wipe out your earned cash back quickly.

7. Pair the Blue Cash Preferred with a Complementary Card: To truly maximize rewards across all your spending, it can help to use a two-card (or multi-card) strategy:

• For Non-Category Spending: As discussed earlier, the Blue Cash Preferred only gives 1% on purchases outside its bonus categories. You can do better. Pair it with a flat 2% cash back card (like Wells Fargo Active Cash or Citi Double Cash) for anything that isn’t grocery, streaming, gas, or transit. For example, use the Amex for the supermarket, but use the 2% Visa for a clothing store purchase or a doctor’s bill. This ensures you’re getting double the rewards on those “other” expenses than you would if you stuck solely to BCP. Over time, this can noticeably boost your overall cashback. There’s no harm in having multiple no-fee cards alongside your Amex.

• For Dining Out or Travel: The Blue Cash Preferred lacks bonuses on restaurants, and as mentioned, it has foreign transaction fees, making it suboptimal for eating out or international travel. If those are significant for you, consider adding a card that covers dining/travel. For example, you could use a no-fee Chase Freedom Unlimited (3% dining) or Capital One Savor (3% dining/entertainment, no FTF) when you go to restaurants or travel abroad, while keeping Blue Cash Preferred for groceries and at-home expenses. If you prefer Amex ecosystem, the American Express® Gold Card is a great partner – it earns 4X Membership Rewards points on restaurants worldwide and at U.S. supermarkets (up to $25k/year), plus no foreign fees. Some people carry Gold for dining/food (it’s a higher annual fee though and earns points, not cash) and Blue Cash Preferred for when they specifically want cash back on grocery or if they hit Gold’s grocery cap. This might be overkill for the average user, but the idea is to shore up Blue Cash Preferred’s weak spots (dining, travel) with another card that excels there.

• No-Annual-Fee Backup for Grocery Overflow: If you absolutely love maximizing and often spend beyond the $6k grocery cap, you could get the Blue Cash Everyday® Card (which has no annual fee) as a backup. It offers 3% back on U.S. groceries (also capped at $6k/year) and 3% on gas, 3% on online retail purchases. It’s essentially the little sibling of Blue Cash Preferred. One strategy is: use Blue Cash Preferred first; if you hit $6k in grocery spending in say October, switch to Blue Cash Everyday for grocery purchases for the rest of the year to continue earning 3% (instead of dropping to 1% on the Preferred). Keep in mind, Blue Cash Everyday also gives 3% on gas (uncapped) so it could free up your BCP for other uses if needed, but juggling two similar cards isn’t necessary unless you’re a super high spender. Also note you cannot combine rewards between a Preferred and Everyday – they’re separate accounts – but you can redeem from each as needed.

• Keep It in the Amex Family for Offers: Having the Blue Cash Preferred means you also get access to Amex Offers – these are optional deals you can add to your card via the Amex website or app, which give extra cashback or points at certain merchants (e.g., “Spend $50 at Home Depot, get $10 back”). Check your Amex Offers periodically and add ones that align with your spending. They’re essentially bonus savings and can sometimes be quite lucrative. This isn’t a pairing with another card, but rather leveraging the card’s platform. Using your Amex frequently increases the chance you’ll get targeted for valuable offers.

8. Plan Around the Annual Fee Timing: Since the first year is free, maximize that time to evaluate the card. Use it heavily in year one – you’ll have no out-of-pocket cost (and you got a welcome bonus too). See how much cash back you earn by month 11 or 12. If it’s clearly far beyond $95, then you know keeping the card is worth it. If it’s borderline, you might consider calling Amex to see if they’ll offer a retention bonus or statement credit to help justify renewing (they sometimes do for good customers, though not guaranteed). If you decide the card isn’t worth the fee for you, you could downgrade to the no-fee Blue Cash Everyday before the annual fee posts in year two, preserving your account history and still earning (albeit at lower rates). But ideally, by using the strategies above, you’ll find you’ve earned well over the fee amount and will happily continue.

9. Monitor Category Caps and Calendars: The grocery $6k cap resets every calendar year (Jan 1 – Dec 31). Make sure you’re aware of when you’re approaching it. You can see on your Amex online account how much you’ve spent in that category so far. If December rolls around and you’re near $6,000, you might decide to shift some late-December grocery shopping to January if possible, to start fresh on the new year’s cap (especially if you’re not going to hit it this year but could next, or vice versa). This is a minor optimization but could squeeze an extra bit of 6% vs 1%. Similarly, be aware the Disney Bundle credit is a monthly benefit that requires spending each month – don’t skip a month or you lose that $7 credit for that month. If you ever change subscription services or pause them, re-evaluate your enrollment.

10. Take Advantage of Amex Customer Service and Protections: Maximizing value isn’t only about earning – it’s also about using those insurance benefits when needed. If something you bought with the card breaks or is stolen within 90 days, don’t forget you have purchase protection – file a claim with Amex! If a store refuses a return on an item and you’re within 90 days, use return protection. These claims processes exist for your benefit; using them can save you money, which indirectly boosts the card’s value. The same goes for extended warranty – if a covered item dies in the 13th month or beyond, remember that Amex might cover repair or replacement. These are ways to “get money back” that aren’t through the rewards program but through benefits. Amex is known for relatively smooth handling of such claims, which is part of why one might pay $95 for an Amex card vs a no-fee card that lacks these protections.

By following these strategies, you can ensure you’re getting the most out of your Blue Cash Preferred every day. In essence: use it for what it’s best at (groceries, streaming, gas, transit), complement it with other cards for other spending, and take advantage of its perks fully. Doing so will maximize your cash back and the value you derive from the card, making you a very savvy cardholder.

Learn more about The American Express Blue Cash Preferred® Card.

Should You Get the American Express Blue Cash Preferred®?

Now that we’ve covered the features, benefits, and comparisons, the big question remains: Is the Blue Cash Preferred the right card for you? The answer depends on your spending habits and what you want from a credit card. Let’s break down who will love this card and who might be better off with an alternative.

You should consider getting the Blue Cash Preferred® if:

• You have a family or spend significantly on groceries. This card is tailor-made for supermarket spenders. If your fridge is constantly being emptied and refilled, the 6% back (even with the $6k cap) will reward you handsomely. Households of 3, 4, 5 or more, especially, will find that their everyday food budget can earn serious cash back. The card basically turns your grocery run into an investment that pays ~6% dividends in cash. It’s frequently cited as the #1 or best grocery credit card, and for good reason. In 2025, no other mainstream card consistently gives this level of return on supermarket shopping.

• You subscribe to multiple streaming services. Are you juggling Netflix, Hulu, Disney+, Spotify, HBO, and maybe more? The Blue Cash Preferred is one of the few cards that specifically incentivizes streaming subscriptions with a whopping 6% back. Over a year, that could cover one or two months’ worth of subscription costs through cash back. And if you’re using the Disney Bundle credit, you’re saving an additional $84 annually courtesy of Amex. For “cord-cutters” or entertainment buffs, this card effectively gives you a rebate on your at-home media consumption.

• Your lifestyle is more home-based than out-and-about. If you find that a large share of your budget goes towards things like cooking at home, streaming movies, commuting to work, and driving the kids to soccer practice (gas!), then the Blue Cash Preferred aligns perfectly. It’s essentially rewarding the everyday errands and home life expenditures. People who don’t travel internationally often, who maybe vacation domestically (driving instead of flying), or who prioritize home activities over dining out will capture more value from this card.

• You don’t mind an annual fee if it means bigger rewards. Some folks simply refuse any annual fee; others understand that a well-chosen fee can be an investment that pays back more. If you’re the latter, and you can see that your likely rewards will exceed $95 by a good margin, you’ll be very satisfied with the net gains. Essentially, you’re “buying” into a higher reward tier with the fee. For many, that’s worth it. Especially with the first year free, you get to trial-run it before paying anything.

• You appreciate insurance protections and Amex customer service. Beyond the rewards, if you value things like return protection, purchase security, extended warranties, and just overall a high level of service, Amex tends to deliver. Cardmembers often praise Amex for how they handle disputes or issues. If you want a cash-back card that also has some premium card perks (without a premium card annual fee like $500+), this is a great middle-ground.

• You already have other Amex cards or want to build a relationship with Amex. Perhaps you have an Amex Gold or Platinum for travel/points, and you want a cash-back option for other spending – adding Blue Cash Preferred can round out your wallet. Or if you’re new to Amex, this is a solid entry point into their ecosystem (provided your credit is good) and can set you up for eligibility on other Amex products in the future.

In short, the ideal candidate for the Blue Cash Preferred is someone with meaningful grocery and everyday domestic spending – think parents, home chefs, suburban commuters, streaming aficionados. If that’s you, this card can be extremely rewarding and well worth its fee.

You might want to skip or think twice about the Blue Cash Preferred® if:

• You rarely cook or grocery shop. If you’re the type who eats out almost every meal or perhaps travels so much that you aren’t home to grocery shop, then the 6% grocery category won’t benefit you. You’d be better with a dining rewards card or a travel card. For example, a young professional who grabs takeout or restaurant food daily and spends only $100 a month at the grocery store won’t maximize this card’s core benefit. That person might get far more value from a card like Capital One Savor/SavorOne (for dining) or even Chase Sapphire Preferred (for dining and travel, albeit in points).

• Your grocery shopping is mostly at places like Walmart, Target, or wholesale clubs. Unfortunately, Blue Cash Preferred doesn’t give 6% at big superstores or membership clubs since they code differently (these retailers sell way more than groceries, so Amex doesn’t count them as supermarkets). If a large portion of your “grocery” budget is spent at Walmart Supercenters or Costco, this card will only give you 1% there – a waste of its potential. In that case, a flat 2% card on everything (or Costco’s own card for Costco shopping) would serve you better. So, consider where you buy groceries. If you’re loyal to a non-qualifying store, Blue Cash Preferred might not be as exciting for you.

• You can’t stomach annual fees or won’t hit the break-even point. Some people just psychologically hate paying a fee for a credit card, no matter the rewards. If that’s you, you might lean towards the no-annual-fee alternatives like Blue Cash Everyday (3% groceries) or others. Also, if you run the numbers and think you’ll earn less than $95 in rewards in a typical year with this card, then it’s not worth it – you should either choose a no-fee card or adjust your spending patterns. For example, if you’re a single person with modest grocery needs and one streaming service, you might only spend $2000 a year on groceries and $100 on streaming – that’d be $126 in rewards, which net about $31 after the fee. That’s positive, but maybe not enough to bother; a no-fee 2% card on everything would net $42 on $2100 spend with no conditions. So, evaluate your own spend.

• You spend a lot on travel and dining (and want rewards for those). As mentioned, Blue Cash Preferred isn’t geared for travel (no travel bonus categories, foreign fees) or dining out (only 1% back). Frequent flyers or foodies may feel constrained by this card’s focus. If you’re jet-setting internationally or love trying new restaurants weekly, you might be better served by a travel rewards card (like Chase Sapphire, Amex Gold/Platinum, Capital One Venture) or a dining card (like Capital One Savor, or Citi Custom Cash using the 5% for restaurants often). You could still get Blue Cash Preferred for your grocery/streaming at home and use another for dining/travel – that’s a valid combo. But if you prefer one card to do it all, this won’t cover those other areas very well.

• You want flexible points or travel rewards instead of cash back. Some consumers eventually find that while cash back is simple, they could get more value via points or miles (for example, turning credit card rewards into free flights or hotel stays). Blue Cash Preferred earns cash (Reward Dollars) that cannot be converted to Amex Membership Rewards points. If you think you’d rather accumulate points for a big trip, consider cards like the Amex Gold (4x points on groceries/dining) or Chase Sapphire Preferred (points on dining/groceries/travel when paired with Freedom Flex etc.). Of course, those cards have higher fees or learning curves. But a travel hacker might skip Blue Cash Preferred and focus on a points strategy.

• You have irregular or minimal spending. Students or someone on a very tight budget, for instance, might not charge enough to capitalize on this card. If you’re spending under, say, $500 a month total on your credit card, and much of that isn’t groceries, a simpler no-fee card might yield similar rewards without risk of not earning back the fee.

Ultimately, choosing the Blue Cash Preferred comes down to alignment with your spending habits. It is phenomenal for a specific profile of spender (families, homebodies, grocery gurus) and just “okay” or even inappropriate for others (globetrotters, dine-out devotees).

If you find yourself in the grocery aisle often, enjoy nights in with Netflix, and drive or commute regularly – this card likely feels like it was custom-built for you. If you see your credit card statements loaded with supermarket transactions, this is a strong sign the Blue Cash Preferred will be a rewarding companion.

On the other hand, if your statement is full of restaurant charges, airfare, and foreign transaction fees, you’re reading about the wrong card – consider a travel or dining card first, or supplement this card with one of those.

Remember, you can also test-drive the card for a year (since the first year’s fee is $0). That’s a low-risk way to see if it truly fits your life. If after a year you’re not impressed or not using it as expected, you can always downgrade or cancel before the fee kicks in. But many people, once they see the cash back piling up, happily stick with it.

Learn more about The American Express Blue Cash Preferred® Card.

Final Verdict

The American Express Blue Cash Preferred® Card has rightfully earned its reputation as a top-tier cash-back card for everyday spending. For those whose lives revolve around grocery runs, streaming marathons, and daily commutes, it’s hard to find a more rewarding option. The combination of 6% cash back on U.S. supermarkets and streaming services is a standout feature that in 2025 puts the Blue Cash Preferred at the forefront as possibly the best grocery credit card available. It turns mundane expenses like buying food and paying the Hulu bill into meaningful cashback returns.

With an array of useful perks (from the Disney Bundle credit that effectively slashes your streaming costs, to insurance protections that safeguard your purchases), the card goes beyond just earnings and truly adds value to owning it. The welcome bonus of $250 and a waived first-year annual fee make the proposition even sweeter, ensuring that new cardmembers can rack up rewards right out of the gate with little cost.

Of course, the $95 annual fee in year two and onward means this card isn’t for everyone – you need to commit to using it where it shines. But for those who can leverage it fully, the fee is a small price compared to the cash back you’ll receive in return. Even moderately active users can cover the fee and come out way ahead. It essentially pays you to live your everyday life, as long as that life includes plenty of supermarket carts and streaming queues.

When comparing AmEx Blue Cash Preferred vs. cards like Chase Freedom Unlimited or Citi Custom Cash, it becomes clear that Amex is playing a slightly different game – opting to reward specific behaviors very richly, rather than giving a little something on everything. That strategy has paid off for countless cardholders who maximize those rewards. No competitor offers the same blend of high-percent cash back and broad category coverage (with caps that match realistic family budgets).

So, is it worth applying for the Blue Cash Preferred?

If you see yourself in the “ideal user” profile we described, the answer is a resounding yes. This card can be a cashback powerhouse in your wallet and potentially save you hundreds on routine expenses each year. It’s particularly a no-brainer for families, big grocery spenders, and anyone looking to optimize their budget on essential needs rather than luxury wants.

Even if you have a more mixed spending pattern, the Blue Cash Preferred can anchor a two-card strategy to ensure you’re getting top-notch rewards on necessities, paired with another card for discretionary or travel spend. In that role, it’s a superstar for covering your bases on household spending.

On the other hand, if you barely buy groceries or prefer traveling points, you might pass – but then again, Amex has other cards for those niches. For the niche it serves, Blue Cash Preferred is best-in-class.

Final verdict: The American Express Blue Cash Preferred® Card is a must-have for those who want to earn serious cash back on the backbone of their budget – groceries, gas, transit, and streaming. It offers a rare combination of high rewards and useful benefits that can easily justify its cost. In a world of dozens of cashback cards, the Blue Cash Preferred still manages to carve out a unique, rewarding spot. For many households in 2025, this card will be the MVP of their financial lineup, turning everyday spending into a steady stream of cash back. If your spending habits align, don’t hesitate to apply – your wallet will thank you every time you check out at the supermarket or settle in for a movie night at home. Enjoy those rewards!

Learn more about The American Express Blue Cash Preferred® Card.