Why The Cash Everyday Is Great For Big Spenders On Gas And Groceries

Last updated Jul. 25, 2024 by Okechukwu Nkemdirim

Why The Cash Everyday Is Great For Big Spenders On Gas And Groceries

Managing everyday expenses like gas and groceries can take a sizable chunk out of the monthly budget, especially for big spenders. Using a credit card that offers cash back on these purchases can be a savvy way to earn rewards while meeting daily needs. One such card that stands out in terms of benefits is the American Express Blue Cash Everyday Card. This card can yield significant returns for individuals and families who spend a lot on gas and groceries. Let’s delve into why the Cash Everyday card is a great choice for big spenders on these essential commodities.

High Cash Back Rates on Essential Purchases

The primary reason why the Blue Cash Everyday card shines for big spenders on gas and groceries is its cash back rate on these categories. The card offers:

• 3% Cash Back at U.S. Supermarkets: This is capped at $6,000 per year, which translates to earning $180 in cash back annually. After reaching the cap, you’ll still earn 1% on further purchases in this category.

• 2% Cash Back at U.S. Gas Stations: The cost of fuel can add up, especially if you commute long distances or travel frequently. This cash back rate can provide significant savings throughout the year.

For families who anticipate spending more in these categories, this card can provide dividends that are practically unmatched among no-annual-fee cards.

No Annual Fee

Another attractive feature of the American Express Blue Cash Everyday Card is that it comes with no annual fee. Most cashback cards that offer high rewards rates in specific categories often come with hefty annual fees that can eat into your overall savings. The Blue Cash Everyday card allows you to maximize your rewards without the concern of whether you’re actually covering the cost of the card itself.

Flexible Redemptions

Earning cash back is only beneficial if you can easily use those rewards. American Express provides multiple avenues to redeem your cash back. This can include statement credits, gift cards, or direct deposits. This flexibility ensures that the rewards you earn can be tailored to suit your financial needs and preferences.

Introductory Offers

American Express often provides attractive introductory offers to new cardholders. This may include 0% APR on purchases for an extended period and bonus cash back offers after spending a certain amount within the first few months. These introductory offers can be highly beneficial for big spenders, effectively reducing the cost of larger purchases during the initial phase of card ownership.

Apple Pay and Contactless Payments

In today’s digital age, contactless payments are becoming increasingly popular, and the Blue Cash Everyday card is compatible with Apple Pay and other contactless payment methods. This feature ensures that you can earn rewards on your purchases quickly and safely, reducing physical contact—a key concern in today’s pandemic-influenced world.

Additional Perks and Protections

Beyond the high cash back rates, the card provides several additional perks and protections that can enhance its value:

• Purchase Protection: Covers eligible purchases against accidental damage or theft for up to 90 days.

• Extended Warranty: Adds up to an extra year to the original manufacturer’s warranty, on warranties of five years or less.

• Return Protection: Guarantees that you can return eligible items within 90 days, even if the merchant won’t accept the return.

These safeguards ensure that your purchases are protected, adding another layer of value beyond cash back rewards.

Ideal for Budget-Conscious Households

Families and individuals who track their spending meticulously can find additional benefits with the Blue Cash Everyday card. The ability to earn cash back in essential categories like groceries and gas means you can see tangible savings month over month. If you have a budget for these categories, the card can function almost like a discount program, putting more money back in your pocket without changing your spending habits.

Comparing with Other Cards

It’s important to consider how the Blue Cash Everyday card stacks up against other options. Cards with higher reward rates often come with annual fees that may not be justified if you are not able to max out the reward categories. For instance, cashback cards like the Blue Cash Preferred from American Express offer 6% cashback on groceries but come with a $95 annual fee. This requires careful calculation to ensure that the annual fee does not negate the additional rewards.

Limitations

While the American Express Blue Cash Everyday Card offers many benefits, it’s important to consider its limitations. For example:

• Merchant Acceptance: While acceptance of American Express has improved, there are still some merchants who do not accept AMEX, potentially limiting your ability to maximize rewards.

• Foreign Transaction Fees: This card carries a 2.7% foreign transaction fee, making it less ideal for international use.

Maximizing Your Rewards

1. Align Your Spending: Focus your grocery and gas spending on this card to ensure you’re maximizing your cashback potential.

2. Track Spending Caps: Be mindful of the $6,000 annual cap on supermarket spending to ensure you’re optimizing your 3% cashback rate and switch to another card once you reach the cap.

3. Combine with Other Cards: Use the Blue Cash Everyday card for groceries and gas while utilizing other credit cards for categories where they might offer higher cashback rates.

FAQs

1. What is the cap on cash back at U.S. supermarkets?

The card offers 3% cash back at U.S. supermarkets, capped at $6,000 per year in purchases. After reaching the cap, you will continue to earn 1% on subsequent purchases.

2. Is there an annual fee for the Blue Cash Everyday Card?

No, there is no annual fee for the American Express Blue Cash Everyday Card.

3. How can I redeem my cash back?

Cash back can be redeemed as statement credits, gift cards, or direct deposits.

4. Are there any introductory offers?

Yes, American Express often provides introductory offers such as 0% APR on purchases for a certain period and bonus cash back for meeting spending requirements within the first few months.

5. What are the additional protection benefits?

The card offers purchase protection, extended warranty, and return protection on eligible purchases.

6. Does this card have foreign transaction fees?

Yes, the card has a 2.7% foreign transaction fee, making it less ideal for international spending.

7. What’s the cash back rate for gas stations?

The card offers 2% cash back at U.S. gas stations, which can add up significantly for heavy drivers.

8. How does this card compare to other grocery-friendly cards?

While some competing cards offer higher cashback rates, they often come with annual fees. The Blue Cash Everyday card offers a high rate without an annual fee, making it ideal for budget-conscious households.

In conclusion, the American Express Blue Cash Everyday card is an excellent option for those who spend heavily on gas and groceries. It offers substantial cash back, has no annual fee, and includes valuable protections and advantages, making it a compelling choice for maximizing rewards without incurring additional costs.