Blue Cash Preferred CardIf you frequent the grocery store and gas station, you may want to consider adding the Blue Cash Preferred Card from American Express (a NextAdvisor advertiser) to your wallet. That’s because it not only offers the best cash back rewards of any card we review, but now cardholders can get a $200 intro bonus when they spend $1,000 on purchases in the first 3 months from account opening — that’s up from the previous $150 intro bonus opportunity. While the Blue Cash Preferred Card from American Express has a $95 annual fee, it does offer a 12-month 0% intro APR on purchases and balance transfers (with a 3% or $5 balance transfer fee, whichever is greater) and can earn you up to 6% cash back. Don’t believe the annual fee is worth it? Continue reading to see what you’ll get with the Blue Cash Preferred Card.

What else does the Blue Cash Preferred Card offer?

Blue Cash Preferred Card from American Express
  • Earn $200 cash back bonus after you spend $1,000 on purchases within the first 3 months.
  • Earn 6% cash back at U.S. supermarkets (up to $6,000/year in purchases, then it’s 1% back), 3% cash back at U.S. gas stations and select U.S. department stores as well as 1% cash back on all other purchases.
  • Get a 12-month 0% intro APR on purchases and balance transfers (with a 3% or $5 balance transfer fee, whichever is greater).
  • There is a $95 annual fee.

The Blue Cash Preferred Card is a money-making machine, especially now that it has an increased intro bonus. In terms of ongoing rewards, cardholders will earn 6% cash back at U.S. supermarkets (up to $6,000/year in purchases, then it’s 1%), 3% cash back at U.S. gas stations and select U.S. department stores and 1% on all other purchases. The best part about the Blue Cash Preferred Card is there are no rotating categories, which means you don’t have to worry about activating your rewards. Earned cash back can be redeemed for statement credit, gift cards, merchandise or travel booked through American Express Travel.

Is the annual fee worth it?

As you can see, the Blue Cash Preferred Card can earn you significant rewards, but is it worth the annual fee? It depends on your spending habits, but here’s a breakdown of how someone’s grocery store purchases can balance out the annual fee (and then some). If you spend $125/week on groceries, which will max out the $6,000/year spending cap, you’ll earn $360 back on groceries for the year. After you take out the $95 annual fee, that brings your total to $265 back on groceries — note that this doesn’t include the intro bonus or any other cash back you may earn. Considering Americans spend $151/week on food, according to a Gallup report, it’s safe to say that maximizing the spending cap is doable, and doing so will balance out the annual fee and make the card worthwhile.

Still, if you can’t get over the annual fee, you’ll probably want to look into its fee-less sister card, the Blue Cash Everyday Card from American Express. This card won’t earn you quite as much cash back, but its rewards are still impressive. Cardholders will get a $150 cash back bonus when they spend $1,000 on purchases within the first 3 months of account opening. When it comes to ongoing rewards, they’ll get 3% cash back at U.S. supermarkets (on up to $6,000/year in purchases, then it’s 1% back), 2% back at U.S. gas stations and select U.S. department stores and 1% cash back on all other purchases. It should be noted that if you max out the 3% back on groceries, you’ll get $180 back, which is $85 less than what you’d get with the Blue Cash Preferred Card (after the $95 annual fee is covered). This card also has no annual fee and a 15-month 0% intro APR on purchases and balance transfers (with a 3% or $5 balance transfer fee, whichever is greater). Visit our review of the Blue Cash Everyday Card to learn more about this card.

Should I apply for the Blue Cash Preferred Card?

Those who spend at lot of time at the grocery store or gas station will benefit from the Blue Cash Preferred Card. Even though there is a $95 annual fee, owning the card may still make sense, as we noted above. Visit our review of the Blue Cash Preferred Card from American Express to apply online, or check out our reviews of the best cash back credit cards to see how it compares to other top names on the market.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but card terms and conditions may change at any time. This site may be compensated through the credit card issuer Affiliate Program.