American Express Blue Cash Preferred Review (2025): Benefits, Rewards & Value
Industry-leading cash back rates on groceries and streaming services with strong transportation benefits.
American Express Blue Cash Preferred Guide
Industry-leading cash back rates on groceries and streaming services with strong transportation benefits.
ANNUAL FEE
$95
WELCOME BONUS
$350 statement credit after spending $3,000 in first 6 months
POINTS VALUE
1¢ per point
TRANSFER PARTNERS
0
In This Guide:
Transfer Partners
| Transfer Partner | Transfer Ratio | Transfer Time | Transfer Bonuses |
|---|
Annual Credits & Benefits
Is the American Express Blue Cash Preferred Worth the $95 Annual Fee?
Ideal For:
- Groceries
- Streaming Services
- Commuters
Not Ideal For:
- Frequent international travelers (due to foreign transaction fees on most cash back cards)
- Those seeking premium travel benefits like lounge access
- People who prefer transferable points for flexible redemptions
Value Calculation Example
Here's a conservative estimate of annual value for a typical cardholder who uses most, but not all benefits:
| Benefit | Face Value | Realistic Value | Notes |
|---|---|---|---|
| Welcome Bonus | $350 | $350 | First year only |
| 6% cash back at U.S. supermarkets (up to $6,000 per year) | $100+ | $100 | Estimated value |
| 6% back on select U.S. streaming subscriptions | $100+ | $100 | Estimated value |
| Annual Fee | -$95 | -$95 | Yearly cost |
| TOTAL VALUE | Varies | Varies | $1,000+ over annual fee |
This calculation doesn't include the welcome bonus value in the first year, which could add significant additional value. Actual value depends on your specific usage patterns.
How to Earn Points
6% at U.S. Supermarkets
Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), including grocery delivery services like Instacart.
6% on U.S. Streaming Services
Earn 6% cash back on select U.S. streaming subscriptions including Netflix, Hulu, Spotify, Apple Music, Disney+, HBO Max, and more.
3% on Transit
Earn 3% cash back on transit including taxis, rideshare services, parking, tolls, trains, buses, and more.
3% at U.S. Gas Stations
Earn 3% cash back at U.S. gas stations, including gas and convenience store purchases.
Amex Offers
Boost earnings with targeted Amex Offers that provide statement credits or additional cash back at participating merchants.
Sweet Spot Redemptions
| Route/Redemption | Points Required | Transfer Partner | Notes |
|---|---|---|---|
| Statement Credits | Direct redemption | Cash back | Redeem cash back as statement credits with a minimum redemption of $25. |
| Gift Cards | Direct redemption | American Express Rewards | Redeem for gift cards at partner merchants with a minimum redemption of $25. |
| Merchandise | Direct redemption | American Express Rewards | Shop with rewards for merchandise through the American Express rewards portal. |
| Travel Bookings | Direct redemption | American Express Travel | Use cash back to book travel through American Express Travel with a minimum redemption of $25. |
Advanced Tips & Tricks
Pro Insider Tips
Maximize Grocery Spending
Plan to spend exactly $6,000 per year ($500 per month) at supermarkets to maximize the 6% category without exceeding the cap.
Buy Gift Cards at Supermarkets
Purchase merchant gift cards at supermarkets to effectively extend the 6% rate to other shopping categories like restaurants, home improvement, or clothing.
Consolidate Streaming Services
If family members have separate streaming subscriptions, consider consolidating them under your account to maximize the 6% cash back.
Add Authorized Users
Add authorized users to help reach bonus category caps faster, particularly for the $6,000 annual grocery limit.
Frequently Asked Questions
What counts as a 'supermarket' for the 6% category?
American Express defines supermarkets as stores that offer a wide variety of food and household products. This includes traditional grocery stores like Kroger, Albertsons, Whole Foods, and Publix. Specialty food stores, superstores like Target and Walmart, warehouse clubs like Costco and Sam's Club, and convenience stores do NOT qualify for the 6% rate.
Which streaming services qualify for 6% cash back?
Eligible U.S. streaming subscriptions include Netflix, Hulu, Spotify, Pandora, Apple Music, Disney+, HBO Max, YouTube Premium, Amazon Music, Audible, Peacock, Paramount+, and many others. Services that are bundled with other products or services may not qualify. Cable subscriptions and some services like Amazon Prime (because it includes non-streaming benefits) may not qualify.
How do I redeem my cash back rewards?
Cash back is earned as Blue Cash Reward Dollars that can be redeemed for statement credits once you've accumulated at least $25 in rewards. Log in to your American Express account, go to the 'Rewards' section, and select 'Use Reward Dollars' to apply them as a statement credit. You cannot redeem for direct deposits to bank accounts or for checks.
Is the Blue Cash Preferred worth the annual fee?
For most households, yes. If you spend at least $1,600 annually at U.S. supermarkets (about $31 per week), you'll earn enough additional cash back compared to a no-annual-fee 2% card to offset the $95 fee. When you factor in the 6% on streaming services and 3% on gas and transit, most families easily come out ahead with this card despite the annual fee.
Ready to Apply?
The American Express Blue Cash Preferred offers outstanding cash back rewards that make it a valuable addition to your wallet. Industry-leading cash back rates on groceries and streaming services with strong transportation benefits.