How I Use The Amex Blue Cash Preferred To Maximize Grocery Rewards – Forbes Advisor – Technologist

So why this card and not one with a higher cap on grocery spending, like the American Express® Gold Card (Terms apply, see rates & fees)? If you aren’t familiar with it, the Amex Gold card earns:

• 4 Membership Rewards® points per dollar at restaurants (on up to $50,000 in purchases per calendar year, then 1 point per dollar beginning on 1/1/2025)
• 4 Membership Rewards® points per dollar at US supermarkets (on up to $25,000 in purchases per calendar year, then 1 point per dollar)
• 3 Membership Rewards® points per dollar on flights booked directly with airlines or on American Express Travel
• 2 Membership Rewards® points per dollar on prepaid hotels and other eligible purchases booked on American Express Travel
• 1 point per dollar on all other eligible purchases

It also comes in three snazzy shades of either gold, rose gold or white gold to match your Stanley Quencher or coordinate with your favorite summer wine. However, if I’m spending $25,000 a year on groceries for my kids, I’m doing something wrong, and that $325 annual fee is a buzzkill.

We considered the no annual fee Blue Cash Everyday® Card from American Express (Terms apply, see rates & fees), which earns 3% cash back at U.S. supermarkets, U.S. gas stations, and online retail purchases in the U.S. (on up to $6,000 in each category per year in purchases, then 1%), and 1% cash back on other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout. But the low rewards rate on grocery purchases didn’t make sense compared to the Amex Blue Cash Preferred benefits—even considering its $0 intro annual fee for the first year, then $95. If we maxed out the Amex Blue Cash Everyday card’s 3% rewards rate on up to $6,000 a year in spending at U.S. supermarkets, that would net $180 back, still less than the $265 we’d get on grocery purchases minus the annual fee with the Blue Cash Preferred card.

We also wouldn’t benefit much from the Blue Cash Everyday card’s 3% cash back for online retail purchases since our other card in heavy rotation is the Prime Visa which also has no annual fee and offers 5% back on purchases at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel℠ purchases with an eligible Prime membership, unlimited 2% back at gas stations, restaurants and on local transit and commuting (including rideshare), and unlimited 1% back on other purchases.