How I decided between Blue Cash Preferred and Blue Cash Everyday for my family

Written by

Ted Rossman,

Edited by

Published on September 26, 2024 | 5 min read

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On the face of it, the Blue Cash Preferred® Card from American Express is an enhanced version of the Blue Cash Everyday® Card from American Express. However, these cards are more similar than they appear at first glance. Take a look at how I decided which one best meets my family’s needs.

Groceries

The Blue Cash Preferred is the clear winner in this round since it gives 6 percent cash back at U.S. supermarkets (up to $6,000 in annual spending, then 1 percent back after that). The Blue Cash Everyday only gives 3 percent cash back at U.S. supermarkets with the same annual spending cap (also 1 percent cash back after that).

I used to have the Blue Cash Everyday, and I upgraded to the Blue Cash Preferred as my family grew. With two adults and two kids in our household, we easily max out that $6,000 limit. Getting 6 percent of $6,000 is $360, versus $180 if we only earned 3 percent of $6,000. When I factor in the Blue Cash Preferred’s ongoing $95 annual fee ($0 intro annual fee for the first year) versus the lack of an annual fee on the Blue Cash Everyday, it’s just an $85 advantage for the Blue Cash Preferred ($265 in rewards instead of $180). Still, it is an advantage.

Online retail

Following a 2022 refresh, the Blue Cash Everyday is now the runaway victor in this category. It offers 3 percent cash back on up to $6,000 in annual U.S. online retail purchases (then 1 percent back). The Blue Cash Preferred only awards 1 percent cash back on all of these purchases.

Based upon our typical spending habits, my family would max out the $6,000 limit. With the Blue Cash Everyday, that would be $180 in cash back each year (3 percent of $6,000), versus just $60 (1 percent of $6,000) on the Blue Cash Preferred. That extra $120 puts the Blue Cash Everyday ahead by $35 per year after accounting for the grocery rewards and the annual fee.

But, in my case, I get 2 percent cash rewards on every purchase with the Wells Fargo Active Cash® Card (another no-annual-fee card), so that’s the card I tend to use for online retail (my other cards only give 1 percent back on those buys). If I were to switch to the Blue Cash Everyday, I’d go from 2 percent back to 3 percent, which would be an extra $60 per year if I max out the $6,000 threshold. Doing that would still mean I’m down $25 in rewards when compared to my current combo of using the Blue Cash Preferred for groceries and the Active Cash for online purchases.

Gas

The Blue Cash Preferred and the Blue Cash Everyday both offer 3 percent cash back at U.S. gas stations. The Blue Cash Everyday caps that rate at $6,000 in annual purchases (cardholders again earn 1 percent after that), whereas the Blue Cash Preferred does not cap its rewards rate on gas. This is a wash for us, since my family spends well under $6,000 per year on gas. Note that, until July 2022, the Blue Cash Everyday only offered 2 percent cash back on gas.

Streaming

The Blue Cash Preferred comes out ahead in this category since it offers 6 percent cash back on select streaming subscriptions, versus just 1 percent on the Blue Cash Everyday. However, my family doesn’t spend much on streaming services. We’ll probably only spend about $250 in this category over the entire year, so the difference between 6 percent and 1 percent cash back is roughly $12.50 for us. Still, that means I’m now $37.50 ahead across the grocery, online shopping and streaming categories using my Blue Cash Preferred Card and Active Cash combo.

Both Blue Cash cards offer up to $84 in annual credits for The Disney Bundle (Disney+, Hulu and ESPN+, subject to auto renewal). The discount is applied as a $7 monthly statement credit after spending $9.99 or more each month. I signed up for a $10.99 monthly ESPN+ subscription last hockey season and the discount effectively knocked that down to $3.99 per month.

Meal kits

The Blue Cash Everyday has a $180 annual Home Chef credit (up to $15 in monthly statement credits, subject to auto renewal). My family has sometimes ordered from one of Home Chef’s competitors in the past. We’re not currently receiving any meal kits, so the fact that the Blue Cash Preferred doesn’t have a meal kit credit isn’t affecting us.

Transit

The Blue Cash Preferred gives 3 percent cash back on transit, including taxis, rideshares, parking, tolls, trains, buses and more. A few years ago, I spent about $350 per month ($4,200 annually) on train tickets to get to and from the office. Three percent of that represented about $126 per year in cash back. Now that I’m working from home the majority of the time, this rewards category is largely insignificant for me, but the little bit of transit spending I do with my Blue Cash Preferred still helps me come out ahead since Blue Cash Everyday only awards 1 percent back on transit.

Is a Blue Cash Preferred overhaul on the horizon?

There’s a good chance the Blue Cash Preferred will get a facelift this year. American Express typically refreshes its cards’ value propositions every five or six years, and this card’s last major changes were implemented in 2019. During the company’s July earnings call, chairman and chief executive officer Steve Squeri mentioned that Amex is planning to refresh 40 products globally by the end of the year. While the Blue Cash Preferred hasn’t been confirmed on that list, it’s a good guess.

Card refreshes usually add new perks, but those are often accompanied by a higher annual fee. Tops on my wish list would be a higher cap on grocery spending that earns 6 percent cash back. My family of four tends to hit the annual $6,000 limit around the middle of the year. I’d happily pay a somewhat higher annual fee if that threshold were raised to, say, $10,000, but it hasn’t budged from $6,000 since the card debuted in 2012. Adjusted for inflation, $6,000 in 2012 is equivalent to $8,227 today, according to USInflationCalculator.com.

The bottom line

Everyone’s spending habits are different, of course, but for most people, the Blue Cash Preferred and the Blue Cash Everyday are surprisingly similar. If you spend a lot on groceries, streaming services and/or public transit, the Blue Cash Preferred is probably best. But if you spend a lot on online retail or if you’re a loyal Home Chef customer, the math might well favor the Blue Cash Everyday.

Accounting for the $95 annual fee on the Blue Cash Preferred, it’s likely a close call for many households. In my case, it’s roughly a dead heat, but I’m hopeful the Blue Cash Preferred will get some new perks that enhance its value in the next few months. If you’re still trying to decide between the two, check out Bankrate’s full Blue Cash Preferred vs. Blue Cash Everyday comparison.

Have a question about credit cards? E-mail me at ted.rossman@bankrate.com and I’d be happy to help.