The Amex Blue Cash Preferred is my go-to card—Here’s why anyone buys groceries should consider it

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The card offers best-in-class rewards on groceries

The Blue Cash Preferred Card offers an impressive 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). As a single dad with two kids, I spend more than the card’s annual limit on groceries. But even with a cap, the card is tough to beat. 

Here’s how it compares to other top credit cards for groceries based on an average annual household supermarket bill of $4,935, according to the 2022 U.S. Bureau of Labor Statistics Consumer Expenditure Survey: 

To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page

 To view rates and fees of the Blue Cash Everyday® Card from American Express, see this page

The card’s other bonus rewards are solid

The card offers 6% cash back on select U.S. streaming subscriptions, which you’ll be hard-pressed to beat anywhere else. 

It also provides 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 

While you could get better gas station rewards from a different card, that’s still a solid rate, especially combined with the card’s supermarket rewards. As someone who works from home, I don’t drive much, so gas station rewards aren’t as important to me. 

As a new cardholder, you’ll earn $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months. While that may be a steep spending requirement for some, American Express offers three more months to earn the welcome bonus than most credit card issuers.

Other card benefits help offset the cost of the annual fee

The Blue Cash Preferred comes with a handful of perks that can add more value to your everyday spending and even help mitigate the cost of the card’s annual fee:

• Introductory 0% APR promotion: New cardholders can also enjoy 0% introductory APR on purchases and balance transfers for the first 12 months from the date of account opening (after that, the variable APR will be 19.24%–29.99%). If you have one or more upcoming purchases you can’t afford to pay off immediately or want to pay down some high-interest debt from another card, this benefit could save you hundreds of dollars in interest charges.
• Disney Bundle credit: $7 statement credit each month (up to $84 back annually) after spending $9.99 or more each month on an eligible subscription to The Disney Bundle which includes DisneyPlus.com, Hulu.com, or Plus.espn.com using your Blue Cash Preferred® Card. Enrollment required (subject to auto-renewal).
• Equinox+ credit: When you use your card to pay for an auto-renewing subscription to the fitness app Equinox+, you’ll get $10 in monthly statement credits. Enrollment required. 

Personally, I don’t think the $39.99 monthly fee for an Equinox+ membership is worth it, and I didn’t get the 0% APR promotion because I’ve had the card in the past—Amex welcome offers and introductory promotions are typically a one-time deal—but the Disney Bundle credit gives me $84 back per year, almost enough to cover the card’s annual fee. 

To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page

Some caveats to consider

Like any other credit card, the Blue Cash Preferred isn’t perfect. If you don’t spend a lot at the supermarket, you tend to shop for groceries with ineligible merchants, or you have other preferences, this card may not be for you. Here are some potential drawbacks to keep in mind.

Supermarket rewards are limited

The Blue Cash Preferred Card doesn’t offer supermarket bonus rewards when you buy at superstores like Walmart and Target or wholesale clubs like Costco and Sam’s Club. Since I do most of my grocery shopping at a locally-owned supermarkets, the Blue Cash Preferred is the perfect fit. 

If you prefer to shop for groceries with those retailers, though, the U.S. Bank Shopper Cash Rewards® Visa Signature® Card may be a better fit. The card offers 6% cash back on up to $1,500 spent quarterly with two retailers of your choice (including Target and Walmart), 3% back on up to $1,500 spent quarterly in a category of your choice (including wholesale clubs), and 1.5% back on everything else. The card charges a $0 intro annual fee, then $95 after that. 

The card’s base rewards rate is low

If you use the card for all of your spending, it’s likely that most of your purchases will net you the 1% base rewards rate. As a result, it’s recommended that you pair the card with another rewards card that offers a high, flat rewards rate on all of your purchases.

To maximize my rewards, I pair the Blue Cash Preferred with the Alliant Cashback Visa Signature® Credit Card, which gives me 2.5% cash back on up to $10,000 spent each month (though I have to meet certain criteria to earn that rate).

Redemption is inflexible

The other downside to the card’s rewards program is that there’s only one redemption option: statement credits. 

I generally prefer the flexibility of depositing cash back into my checking account, so I can use it the way I want. I can still get some flexibility by redeeming Reward Dollars for a statement credit and then earmarking the same amount in my bank account for discretionary spending, but it’s not as exciting as getting paid directly. 

The takeaway

When I canceled the Blue Cash Preferred Card several years ago to focus on travel rewards, I opted to replace it with the American Express® Gold Card, which offers outstanding rewards on groceries and dining out. 

But as my preferences switched back to the straightforward and flexible nature of cash back, the Blue Cash Preferred was one of the first cards I applied for. While it’s not the right fit for everyone, and there are some downsides to consider, the card can be an excellent fit for families and others who spend a lot on groceries, like the card’s other rewards and benefits, and don’t mind a modest annual fee. 

To view rates and fees of the American Express® Gold Card, see this page

Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying. 

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefits guide for more details. Underwritten by Amex Assurance Company.