URGENT UPDATE: The American Express Blue Cash Everyday® and Blue Cash Preferred® cards are back in the spotlight as consumers weigh their options for maximizing cash back rewards. As of October 2023, both cards cater to different spending habits, but recent analysis suggests one may be a clear frontrunner for families and frequent shoppers.
Both cards, highly favored in the US for their cash-back benefits on groceries, streaming, and gas, offer a straightforward rewards system without the complications of rotating categories. However, understanding which card best suits your financial habits is crucial.
NEW INSIGHTS: The Blue Cash Preferred® Card offers a more lucrative welcome bonus but comes with a $95 annual fee after the first year. For consumers who spend heavily on groceries, the Preferred card can double cash back rewards compared to the Everyday card. For instance, spending $6,000 annually at supermarkets nets a whopping $360 in cash back with Preferred versus $180 with Everyday.
Both cards provide 3% cash back at US gas stations and an additional $30 for streaming service subscriptions with the Preferred card. In total, users could earn $210 more annually with the Preferred card, effectively offsetting the annual fee.
KEY TAKEAWAY: If your household prioritizes grocery shopping and streaming services, the Blue Cash Preferred® Card is increasingly becoming the smarter choice. However, those with lower spending or a preference for simplicity may find the Blue Cash Everyday® Card sufficient without the annual fee.
ALTERNATIVES TO CONSIDER: For consumers seeking flexible rewards, the American Express® Gold Card offers 4x Membership Rewards® points at US supermarkets, while the Citi Custom Cash® Card provides 5% cash back on your top eligible spending category each billing cycle, all without an annual fee.
As the landscape of cash-back credit cards evolves, families and heavy spenders are urged to reassess their options. The need for strategic financial decisions is more urgent than ever, especially as prices for everyday expenses continue to rise.
Stay tuned for more updates as consumers navigate these cash-back opportunities in a fast-changing financial environment.
