The Blue Cash Preferred® Card from American Express sits among the elite in cash-back credit cards and is perhaps the ideal card for families, media streamers and travelers.

It offers an eye-popping 6% cash back at U.S. supermarkets on up to $6,000 in spending per year, 6% back on select U.S. streaming subscriptions, and a generous 3% back on transit including U.S. gas stations, plus 1% cash back on everything else. Terms apply. Cash back is received in the form of reward dollars that can be redeemed as a statement credit when your rewards total at least $25. Gift cards and merchandise are also available.

Those premier rewards come at an annual cost. There’s a $0 intro annual fee for the first year, then $95. Still, the card’s high rewards rates will more than make up for the fee for many cardholders, especially those with families. The decision becomes a break-even analysis: Will you spend enough on the card, especially on transit and supermarkets, to quickly cover its cost and start earning a profit?

Lets Dive In

Earn generous cash-back rewards on supermarket spending

One of the most attractive features of this card is the industry-leading cash-back rate of 6% on U.S. supermarket purchases, up to a maximum of $6,000 per year. Beyond this cap, you’ll continue to earn 1% cash back. 

According to the latest Consumer Expenditure Survey by the U.S. Bureau of Labor Statistics, the average American family of four spends approximately $6,200 annually on groceries, along with additional amounts on household supplies and personal care products, which can also be purchased at supermarkets. For such families, the 6% cash-back rate could translate to $360 in savings.

However, it’s important to note that the 6% cash-back rewards are limited to U.S. supermarkets. American Express specifies that wholesale clubs like Sam’s Club, superstores such as Target and Walmart, specialty food stores, and other retailers are not classified as supermarkets. Thus, it’s crucial to consider both the amount and location of your grocery spending.

Earn Big Rewards on Streaming Services

While the 6% cash back on U.S. supermarket spending is limited to $6,000 per year, there is no cap on the 6% cash back offered on eligible U.S. streaming services. This is great news for cord-cutters who subscribe to popular services such as Hulu, Netflix, Pandora, or Spotify. By paying with the Blue Cash Preferred® Card from American Express, you can save money on these services. While you may not spend as much on streaming as you do at supermarkets, 6% is a significant percentage in cash back. However, note that if your streaming subscription is bundled with another product or service or billed by a third party such as a cable or phone company, your purchase may not be eligible for the 6% back. Terms and conditions apply.

Rewards on Transit

The 3% cash back on U.S. gas stations is one of the highest rewards you can get, and there is no limit to the rewards. This is particularly beneficial for car commuters and owners of gas-guzzling vehicles. However, there are restrictions. The higher gas rewards are only available at traditional stand-alone gas stations, and gas purchased at warehouse clubs, superstores, and supermarkets does not qualify for the 3% cash back. Terms and conditions apply.

American Express makes the card even more valuable for people living in big cities like Los Angeles, New York City, Seattle, Portland, Jacksonville, San Francisco and Houston by adding transit as a 3% bonus category. This includes spending on rideshares, tolls, taxis, buses, trains, and parking. This is a significant advantage for those who rely on public transportation or other means of transportation that do not require filling up at the pump. 

Welcome Bonus for New Cardholders

The Blue Cash Preferred® Card from American Express offers a welcome bonus, something that not all cash-back credit cards provide. By spending $3,000 on purchases with the card within the first 6 months, new cardholders can earn a $250 statement credit. Terms and conditions apply. This welcome bonus is more than enough to cover the annual fee for a while.