Calculating which Blue Cash card brings you the most cash back
Picking the right card comes down to analyzing your spending and doing some quick math.
Suppose you spend the maximum rewards cap for each card’s highest earning caregory: Up to $6,000 a year on groceries from US supermarket.
- The Blue Cash Preferred® Card from American Express gives you 6% cash back, for a total of $360 cash back. It has a $95 annual fee after the first year, so you effectively get $265 cash back.
- The Blue Cash Everyday® Card from American Express gives you 3% cash back, for a total of $180 cash back.
That’s a win for the Blue Cash Preferred® Card from American Express even before factoring in what you’ll spend on gas and other purchases. Just remember that the groceries earning rate reverts to 1% after you hit the spending cap.
Of course, you might not spend much on gas and groceries, in which case the Blue Cash Preferred® Card from American Express might not be worth it. Check your typical expenses and pick the card that works for you.