- The
Blue Cash Preferred® Card from American Express and theBlue Cash Everyday® Card from American Express both earn bonus cash back at US supermarkets, but there are a few key differences. - The Blue Cash Preferred card has a
$95 (waived the first year if you apply by 12/10/2020) annual fee(See Rates) and earns a higher rate of cash back at US supermarkets, while the Blue Cash Everyday card has no annual fee(See Rates) . - With the Blue Cash Preferred, you'll also earn 3% cash back at US gas stations and transit, and with the Blue Cash Everyday you'll earn 2% back at US gas stations and department stores.
- If you spend more than $3,167 at US supermarkets in a year, you'll earn enough cash back to make the
Blue Cash Preferred® Card from American Express worth its annual fee. - See Business Insider's list of the best cash-back credit cards »
American Express markets most of its credit cards with different color combinations. Beyond the Green, Gold, and Platinum cards, a handful of cards are marketed with the "Blue" label.
In this article, we'll take a look at two of American Express's Blue cards — the
Blue Cash Preferred vs. Blue Cash Everyday: the biggest differences
| Annual fee | $0 | |
| Welcome bonus | ||
| Cash back at US supermarkets | 6% back on the first $6,000 spent each calendar year, then 1% back | 3% back on the first $6,000 spent each calendar year, then 1% back |
| Cash back on everything else | 6% back on select US streaming services 3% back at US gas stations 3% back on transit 1% back on all other purchases | 2% back at US gas stations 2% back at select US department stores 1% back on all other purchases |
| Introductory APR | 0% intro APR for 15 moths from account opening, then a |
The two cards also share minor benefits such as car rental loss and damage insurance, fraud protection, access to Amex's Global Assist Hotline and exclusive access to ticket presales and Amex cardmember-only events.
Welcome bonus
The welcome bonus on the
However, when you subtract out the $95 annual fee that comes with the Blue Cash Preferred card, the welcome bonuses are nearly identical: $155 ($250 minus $95) on the Blue Cash Preferred compared to $150 with the Blue Cash Everyday.
Cash back on purchases
The
If your family spends at least $6,000 in groceries at US supermarkets each year (which works out to $500 per month), the 6% cash back will more than offset the $95 annual fee. You'll get $360 of cash back, compared to $180 if you spend the $6,000 on the Blue Cash Everyday card.
Since the 6% cash back is capped at $6,000 per year (then 1%), if you spend more than that, you'll want to switch your spending to a different card, such as the
Read more:The best credit cards for buying groceries
The two cards have different rates and categories for other spending as well. The
The Blue Cash Preferred has higher rates at gas stations, though if you have higher than average spending at select US department stores, you may prefer the Blue Cash Everyday card. Both cards offer 1% cash back in all other categories.
Which card is right for you?
When comparing the
If you're already tracking your monthly spending, this will be as easy as reviewing your spreadsheet or tracking tool. If you don't have exact numbers, make your best estimates for your monthly spending in grocery, gas, department stores, transit, and streaming services. Since the Blue Cash Preferred has a
If you spend at least $500 per month on groceries and plan to use one of these two cards for your US supermarket spending, the
The
You'll also want to consider that there are many other cash-back cards out there, so it's possible that the best card for you may be a different card entirely.
