Disclaimer: I really don’t like AMEX. I had the Platinum for six years before getting rid of it this summer. I’ve had the Gold card for almost a year and I’m thinking about whether to renew it this month. I wanted to swap to the discontinued USBAR for 4.5% on groceries. I might stick with the Gold card for one more year since it’s my best grocery option.
EDIT: I just learned the PayPal debit card gives 5% on groceries. That might be the final reason to ditch my Gold card.
The Blue Cash Preferred is the least troublesome AMEX card, but it still has its annoyances.
The 6% on groceries is a bit misleading.
It has a $95 annual fee and only offers 6% for your first $6,000 spent.
At least it’s not broken down into monthly credits like Uber does for Gold/Platinum. It’s annual, but you have to hit exactly $6,000 to maximize returns.
Breaking it down…
If you spend $3,000 on groceries in a year, you’ll earn $180. $180-$95=$85. That gives you $85/$3,000 which is 2.8% back.
Spend precisely $6,000 on groceries, your return will be $360-$95=$265. $265/6000 is 4.4% back.
If you spend $12,000 on groceries, your total return will be $360+$60=$420. $420/6000 is 3.5% back.
Maxing out is 4.4%, but realistically probably around 3%. That’s not bad but it’s not really 6%.
You mentioned you prefer simplicity. How closely will you be tracking this spending cap?
Pros:
-$7/month for the Disney+ and Hulu bundle really helps cover the annual fee. But you need to have that bundle (I have Hulu no Ads, my girlfriend already has Disney Plus, so there’s no point adding Disney, which would be a higher cost).
-6% back on streaming services is a solid rate that isn’t counted towards the cap (I’m already getting 5.25% with my BoA CCR)
-If you factor in the $250 sign-up bonus, offsetting the $95 annual fee, it’s clear that you’ll see positive returns over one or two years. But with AMEX, you can only get one sign-up bonus per card for life. They’re strict with churners.
Cons:
-It’s cash back, not Membership Rewards points. I’m more on Team Cashback than Team Travel, so that means you can’t downgrade your Gold to a BCP or transfer the Gold Membership Rewards points before canceling.
-AMEX Acceptance (but it should be fine for the grocery stores and streaming services you’re planning to use it for)
-Watching and Planning for exactly $6,000 grocery spending. Figuring out what to do once you hit the cap.
You might be better off with the Savor long-term. No caps, no foreign transaction fees, and no annual fee, so you won’t have to make up for the fee with monthly credits. You can easily change the Savor cash back into Venture miles, which pairs nicely with the VX. The 3% dining overlaps with your Bilt but adds streaming and other forms of entertainment.
So, it really comes down to:
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Do you already have the Hulu/Disney bundle? That way, the AMEX credit is not steering your spending, but rewarding you for something you spend on anyway?
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Do you generally spend significantly more or less than $6,000 a year on groceries?
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Would you take advantage of the entertainment category? Do you and your partner attend concerts? (You’ll get 8% back if you buy through the C1 website.) Do you go to the movies or bowling regularly? Planning a yearly Disney trip? Do you visit museums?
As an alternative to the Capital One Duo.
- Venture X for lounge access, travel booking at 5%/10%, and 2% everywhere when abroad.
- BILT for rent and four dining charges a month (aim to hit the 6% on the 1st)
- Smartly for 4% on everything.
Use Smartly for almost everything besides booking travel or going abroad. Doesn’t get easier than that.