The Blue Cash Preferred® Card from American Express offers the best grocery rewards on the market. When cards are so strong for a singular purpose, the offer is usually weaker in other aspects, but the Blue Cash Preferred bucks that trend. It also offers top rewards for your commute, a competitive welcome offer and introductory APR on purchases and balance transfers.

With both gas prices and food prices running rampant, this card becomes even more valuable than usual. But even if you don't own a car, the Blue Cash Preferred is one of the few credit cards that supports public transit and other transportation purchases. 

The annual fee is typical of midtier cards at $95 (see rates and fees). You'll need good to excellent credit in order to qualify for this card, but for most budgets this is a great card to optimize your rewards.

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Cash-back rewards program

You'll earn 6% cash back on groceries at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). So at the maximum spending threshold for this category -- the equivalent to approximately $115 in weekly grocery spending -- you could earn $360 in cash back over a year, easily covering the cost of the card.

The 6% cash-back rate also applies to select U.S. streaming subscriptions, including those below (this is not an exhaustive list).

Apple Music	Fubo TV	Kindle Unlimited	Pandora	SiriusXM Streaming and Satellite
Apple TV+	HBO Max	MLB.TV	Paramount+	Spotify
Audible	HBO	NBA League Pass	Peacock	YouTube Music Premium
Disney+	Hulu	Netflix	Prime Video	YouTube Premium
ESPN+	iHeartRadio	NHL.TV	Showtime	YouTube TV

You can earn 3% cash back on gas at U.S. gas stations and on transit. Superstores, supermarkets and warehouse clubs that sell gasoline do not count as gas stations in this context. Transit purchases include trains, taxicabs, ride-sharing services, ferries, tolls, parking, buses and subways. Airfare, car rental and cruise purchases are not covered by this category.

For other purchases that don't fall into one of these categories, you'll earn 1% cash back. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.

Welcome offer

You can earn $350 after spending $3,000 in purchases on your Blue Cash Preferred within the first six months of account opening. You'll receive the $350 as a statement credit, but it won't post to your account for eight to 12 weeks after you meet the spending threshold. 

Introductory APR

With this card, you'll enjoy a 0% introductory APR on purchases and balance transfers for 12 months from the date of account opening. After that, the variable APR will range from 16.24% to 27.24%. During this time, you must make minimum payments and pay your balance in full at the conclusion of 12 months to avoid interest charges.

In a similar vein, you'll also get introductory $0 Buy Now, Pay Later, Plan It® Fees for payment plans set up in the 12 months following your account approval. This program allows cardholders to split up large payments into monthly installments paid over time, usually with a fixed fee. After the 12 introductory months, you'll be subject to a fixed monthly plan fee of up to 1.33% of each purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors (see rates and fees). But don't be fooled -- this fee could add up to roughly the same amount as the APR would cost you over the course of a year.

To use this card most strategically for recurring large purchases, you might use the 0% introductory APR for the first 12 months (16.24% to 27.24% variable APR thereafter), and then open a Buy Now, Pay Later with Plan It® plan for large purchases made in month 11 of card ownership -- this would allow you to enjoy no interest on select purchases for as long as possible with this card. But as always, you should avoid making a charge you won't be able to comfortably pay in full before fees or interest accrue.

Redemption

While this card is marketed as a "cash back" card, you actually earn your rewards in the form of Blue Cash Reward Dollars. You can redeem these reward dollars for statement credits once your balance is at $25 or more. Redemption also cannot be applied to your minimum payment due.

Other perks

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

One of the extras you'll receive with the Blue Cash Preferred is an annual credit for Equinox+, a fitness app featuring on-demand classes. You'll earn up to $10 in monthly statement credits, or up to $120 each year, to compensate you for membership. However, it's important to note that you must first enroll for membership through your Blue Cash Preferred account before signing up and paying with your Blue Cash Preferred card at equinoxplus.com.

Though the Blue Cash Preferred® Card from American Express card charges 2.7% for foreign transaction fees, it can still be useful for some domestic travel -- for instance, you'll get car rental loss and damage insurance*. You'll also get return protection*, which lets you return eligible purchases to American Express within 90 days of purchase if the seller won't accept them.

Comparable cards

Citi Premier® Card

If the spread of rewards across everyday spending is what appeals to you in the Blue Cash Preferred, the Citi Premier is a good alternative. Though it doesn't hit rates as high as 6%, you do earn 3x points on restaurants, gas stations, supermarkets, hotels and air travel. This is equivalent to 3% cash back in all of these categories, as each point is worth $0.01 when redeemed for a gift card or travel through thankyou.com, or statement credit. The welcome offer is a little more fruitful than that of the Blue Cash Preferred, too.

Read more in our full review of the Citi Premier Card.

Citi Custom Cash℠ Card

If the high return on groceries or the introductory APR is what draws you to the Blue Cash Preferred, the Citi Custom Cash Card is worth exploring. You earn 5% cash back on up to $500 spent in your highest eligible spending category for each billing cycle (1% cash back thereafter). Eligible categories include grocery stores, restaurants, gas stations, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment. So you can earn up to $25 in cash back at grocery stores per billing cycle -- or up to $300 per year, compared to up to $360 with the Blue Cash Preferred. But there is no annual fee to worry about.

You also get a better introductory 0% APR deal -- 15 months on purchases and balance transfers after opening your account (16.24% to 26.24% variable APR thereafter). The welcome offer isn't as competitive -- $200 in cash back after you spend $750 in purchases in the first three months (fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back) -- but the lower spending threshold makes it more accessible.

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For rates and fees of the Blue Cash Preferred Card from American Express, click  here .

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

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