Blue Cash Preferred from American Express review
The highest U.S. supermarket cash-back rate we track — at the cost of an annual fee that kicks in after year one and a $6,000 grocery cap.
Pros
- 6% cash back at U.S. supermarkets on up to $6,000 a year
- 6% on select U.S. streaming subscriptions with no cap
- 3% on transit and U.S. gas stations
- 0% intro APR for 12 months on purchases and balance transfers
- $0 annual fee for the first year
Cons
- $6,000 grocery cap drops the rate to 1% above the cap
- $95 annual fee from year two onward erodes value at low spend
- 2.7% foreign-transaction fee on overseas purchases
- Cash back posts as Reward Dollars and is statement-credit only
Best for
The Blue Cash Preferred is the right card for households that spend $400 or more a month at U.S. supermarkets and another $50 to $100 on streaming. Hit those numbers and the 6% rate alone returns roughly $400 a year, which more than covers the $95 fee from year two onward. It's also a strong commuter card thanks to the 3% transit and gas categories.
Not for
If you do most of your grocery shopping at warehouse clubs (which Amex does not classify as supermarkets) or buy heavily through Whole Foods on Amazon (also not classified as a supermarket), the 6% rate won't apply and you'll do better with a flat-rate or rotating-category card. Frequent international travelers should also look elsewhere; the 2.7% foreign-transaction fee adds up quickly.
Rewards math: real-world earn rate
Run a typical scenario: $6,000 a year at U.S. supermarkets (hitting the cap), $1,200 in streaming, $1,800 in gas, $1,200 in transit and $20,000 elsewhere at 1%. That's $360 + $72 + $54 + $36 + $200 = $722 in annual cash back. Net of a $95 fee, you keep $627 — a 2.4% blended rate on $26,200 of total spend. Comfortably the strongest cash-back economics for a grocery-heavy household.
The fine print: APR, fees and gotchas
The 0% intro APR runs 12 months on both purchases and balance transfers, then 19.49–28.49%. Balance transfers carry a 3% fee (minimum $5). The $6,000 supermarket cap resets each cardmember year, not calendar year — and only applies to purchases coded as U.S. supermarkets, which excludes Walmart, Target, Costco, Sam's Club and most superstores. We are not a card issuer; final approval, APR and credit-limit decisions are made by American Express National Bank.
Sign-up bonus: how achievable
The current offer is $250 in statement credit after $3,000 in spend over the first six months. That's $500 a month, easily covered for most households. Combined with the waived first-year fee, year one returns work out to roughly $972 ($722 in everyday earn + $250 bonus) for $26,200 of spend — a real-world 3.7% blended rate in the first year. Even amortizing the eventual $95 fee, the welcome offer alone pays for the next two and a half years of carrying the card.
Blue Cash Preferred vs. closest competitor
The closest cross-shop is the no-fee Blue Cash Everyday, which earns 3% at U.S. supermarkets up to $6,000. If your annual grocery spend is under $3,200 or so, the Everyday's $0 fee makes it the better pick. The Discover it Cash Back is also worth comparing — its rotating quarterly 5% can hit grocery, gas or restaurants depending on the calendar, and Discover's first-year Cashback Match doubles whatever you earn in year one.
Estimates only. Final APR, fees and approval are determined by the issuer, not Cankicker Finance. Some products mentioned compensate us — see Advertising Disclosure.