The hallmark of the Blue Cash Preferred® Card from American Express is its whopping 6% cash rebate on all supermarket purchases (for up to $6,000 per year), which, standing alone, is a powerful incentive for people who eat. It also happens to yield an impressive 3% cash back at gas stations and department stores (with no spend limit). All other purchases earn a 1% cash rebate, so I use this card for its bonus categories and use other cards for purchases in non-bonused categories.
Signup Bonus and Fees
The Blue Cash Preferred card comes with a $150 signup bonus if you spend $1,000 on the card within three months. The card carries a $75 annual fee and, like most American Express cards, there is a 2.7% foreign transaction fee if the card is used abroad.
The Rewards
As mentioned above, the Blue Cash Preferred card earns 6% cash back at supermarkets, 3% cash back at gas stations and department stores, and 1% cash back on all other purchases. You’ll notice that American Express phrases the 6% rebate as being applicable to “stand-alone supermarkets,” but that simply means that the merchant is only a supermarket (as opposed to a supermarket section within a Walmart or Target).
One key strategic point about this card is that the 6% cash rebate at supermarkets can be leveraged for non-supermarket purchases by buying gift cards at supermarkets, and then using those gift cards at Best Buy, Home Depot, what-have-you.
The Bottom Line
The Blue Cash Preferred® Card from American Express is simply unbeatable for supermarket spend (up to $6,000 per year), and its incredible 6% cash back can be harnessed for non-grocery purchases by purchasing gift cards and the like at supermarkets. The fact that the card also offers 3% cash back at gas stations and department stores only sweetens the pot. But don’t use this card on non-bonused categories – you can always do better than 1%!