Is the Blue Cash Preferred Card from American Express Worth its Annual Fee?

The welcome bonus could mitigate this annual fee for a few years after getting this card.

Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.

Updated · 1 min read
Written by Andy Shuman
Profile photo of Meg Lee
Edited by Meg Lee
Assigning Editor
Fact Checked

The Blue Cash Preferred® Card from American Express comes with a $0 intro annual fee for the first year, then $95. While that isn’t necessarily cheap after the first year, the cost is mitigated by two key factors: One, the card’s annual fee is waived for the first year. Two, cardholders can earn a statement-credit welcome bonus, which more than covers the annual fee for multiple years. Terms apply.

Is the Blue Cash Preferred® Card from American Express worth a slot in your wallet, even with its mid-level annual fee?

Valuable perks of the Blue Cash Preferred Card from American Express

The welcome bonus

Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. Terms Apply.

For a typical cash back card, this welcome offer is sizable. The cash earned can offset the annual fee for a few years.

Attractive earning scheme

The Blue Cash Preferred® Card from American Express earns cash back at the following rates:

  • 6% cash back at U.S. supermarkets up to $6,000 per year in purchases (then 1%). Even if you spend just $300 a month on groceries, you will earn back more than double the card’s annual fee.

  • 6% cash back on select U.S. streaming subscriptions. Qualifying services include Netflix, Spotify, Hulu and many others.

  • 3% cash back at U.S. gas stations and on transit. This includes taxis, rideshare, parking, tolls, trains, buses and more.

  • 1% cash back on other purchases.

Terms apply.

Earn up to 120,000 bonus points with our favorite American Express cards
Check out our nerdy picks for the best American Express credit cards and find the right card for you.

Purchase protection

If something you’ve purchased with your Blue Cash Preferred® Card from American Express ends up stolen or damaged, you can get a refund for up to 90 days from the date of purchase for up to $1,000 per item. This coverage maxes out at $50,000 per eligible card per calendar year.

This is a nice peace-of-mind benefit, but many other cards offer it as well. Terms apply.

ShopRunner membership

The ShopRunner membership gets you free shipping and free returns at over 100 online retailers, a valuable benefit that can cost up to $79 a year. Registering your Blue Cash Preferred® Card from American Express with ShopRunner can save you money on shipping costs whenever you shop with participating merchants. Enrollment required. Terms apply.

AmEx Offers

As an American Express cardmember, you can add money-saving deals to your card to earn statement credits or discounts on purchases through AmEx Offers. Featured deals are updated periodically, and include offers like a percentage back on a monthly bill or discounts on shipping. Enrollment required. Terms apply.

More ways to earn cash back

You can earn cash back at the same rate every time an additional card member makes an eligible purchase, which is why we think this could be the ultimate family card. You even have the option to add spending limits to accounts associated with additional card members as needed. Terms apply.

The bottom line

The Blue Cash Preferred® Card from American Express pays 6% cash back at U.S. supermarkets (capped at $6,000 annually), 6% cash back on select U.S. streaming services, and 3% cash back at U.S. gas stations and on transit, with a $0 intro annual fee for the first year, then $95. annual fee. Terms apply. These rates look good (and they are) however, the main appeal here is the attractive rewards rate on purchases at U.S. supermarkets.

So then, who is this card right for? If you usually spend a significant portion of your budget on groceries each month, this card can save you hundreds of dollars every year. If you’re single or prefer eating out, you might want to keep shopping for other cards, like the American Express® Green Card, which can earn you 3x points at restaurants, including takeout and delivery. Terms apply.

All information about the American Express® Green Card has been collected independently by NerdWallet. The American Express® Green Card is no longer available through NerdWallet.

Insurance Benefit: Purchase Protection

  • When an American Express® Card Member charges a Covered Purchase with their Eligible Card, Purchase Protection can help protect their Covered Purchases for up to 90 days from the Covered Purchase date if it is stolen or accidentally damaged. The coverage is limited up to $1,000 per occurrence, up to $50,000 per Card Member account per calendar year.

  • 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.


How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024:

Travel Cards from Our Partners
Chase Sapphire Preferred Credit Card

on Chase's website

Chase Sapphire Preferred® Card
5.0
NerdWallet Rating
Rewards rate

1x-5x

5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

Points

Intro offer

60,000 Points + $300 Travel Credit

Get up to $1,050 in Chase Travel℠ value. Earn 60,000 bonus points after $4,000 in purchases in your first 3 months from account opening. That’s worth $750 when redeemed through Chase Travel. Plus, get up to $300 in statement credits on Chase Travel purchases within your first year.

Chase Freedom Unlimited Credit Card

on Chase's website

Chase Freedom Unlimited®
5.0
NerdWallet Rating
Rewards rate

1.5%-5%

Enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Cashback

Intro offer

Up to $300

Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

Capital One Venture Rewards Credit Card

on Capital One's website

Capital One Venture Rewards Credit Card
4.7
NerdWallet Rating
Rewards rate

2x-5x

Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options

Miles

Intro offer

75,000

Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.

Miles
See more travel cards
Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.