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I’ve written about The Amex EveryDay® Preferred Credit Card from American Express in a broader context several times, though in this post I wanted to talk specifically about this card, since I think it’s one of the best cards out there for the average American consumer looking to earn points. I’m always surprised by how many readers don’t have this card.
Here’s what you need to know about this card:
Amex EveryDay Preferred Card annual fee
The card has a $95 annual fee, which isn’t waived the first year.
Amex EveryDay Preferred Card sign-up bonus
This card isn’t known for having an especially big sign-up bonus, but rather it’s a card you get because of the return it offers on everyday spend. The card offers a sign-up bonus of 15,000 Membership Rewards points after making $1,000 in purchases within the first three months.
The sign-up bonus is valid “once in a lifetime,” meaning you’re not eligible for the bonus if you’ve had the card before. However, you are eligible if you’ve had any other card, including The Amex EveryDay® Credit Card from American Express, which is the no annual fee version of this card.
Amex EveryDay Preferred Card return on spend
This is where the card really shines. The Amex EveryDay Preferred Card offers:
- 3x points at U.S. supermarkets, on up to $6,000 of purchases per year
- 2x points at U.S. gas stations
- A 50% points bonus when you use your card 30 or more times per billing period, less returns and credits
That 50% bonus applies even to the bonus categories. Assuming you make at least 30 transactions per billing cycle, that means you’re earning:
- 4.5x points at U.S. supermarkets, on up to $6,000 of purchases per year
- 3x points at U.S. gas stations
- 1.5x points on non-bonused spend
So in practice this is the card I use for supermarket purchases (for what it’s worth, in my experience most liquor stores are also coded as grocery stores), gas stations, and largely for non-bonused spend.
For example, I pay my federal income taxes by credit card, and frequently use my Amex EveryDay Preferred Card to do so. You can pay taxes by credit card for a convenience fee of 1.87%, which is a way to pick up Membership Rewards points for ~1.25 cents each. That’s an exceptional value, in my opinion.
Personally I value Amex points at ~1.7 cents each, meaning that earning 1.5 Membership Rewards points per dollar spent is the equivalent of a ~2.55% return.
Is it worth paying the Amex EveryDay Preferred Card annual fee?
There’s a no annual fee version of this card — the Amex EveryDay Card. Understandably a lot of people prefer no annual fee cards whenever possible, so how does this card stack up? It offers 2x points at U.S. supermarkets, on up to $6,000 of purchases per year, plus a 20% bonus when making at least 20 purchases per billing cycle. When factoring in the 20% bonus, you’re earning:
- 2.4x points at U.S. supermarkets, on up to $6,000 of purchases per year
- 1.2x points on non-bonused spend
So, who should be paying the $95 annual fee rather than going for the no annual fee version? To do some basic breakeven analysis based on a valuation of 1.7 cents per Membership Rewards point, you’ll breakeven of your $95 annual fee after any of the following:
- ~$2,660 of grocery spend
- ~$3,104 of gas station spend
- ~$18,627 of everyday spend
So if you spend a decent amount on gas or groceries, you’ll generally come out ahead on the Amex EveryDay Preferred Card.
Along with the 5x points on airfare offered with The Platinum Card® from American Express, the Amex EveryDay Preferred Card is the card that helps me earn the most Membership Rewards points. Not only does the card have huge bonus categories, but the 1.5x points on everyday spend is valuable as well.
Anyone else love the Amex EveryDay Preferred Card as much as I do?