New Amex EveryDay Preferred

Personal referral link for Amex Everyday Preferred

Yesterday I mentioned the introduction of two new Amex cards. That is always good news, because it gives more choices to consumer. The sign-up bonus is not substantial, but are they a good fit for a regular family in the long term? It depends on your preferences. Take a look at the details below.

EveryDay Credit Card (No Annual Fee)

• Sign-up bonus: 10,000 points when you spend $1,000 in 90 days
• Earning: Earn 2x Membership Rewards points at U.S. supermarkets (not including warehouse stores like Costco), on up to $6,000 per year on purchases (then 1x); and 1x points on all other purchases.
• Spending Bonus: Use the Card to make 20 or more purchases in a billing period and earn 20% extra points on all those purchases less returns and credits.
• App: A digital counter in the Amex Mobile app helps keep track of each qualifying purchase for the bonus, so Card Members always know when they’re close to earning 20% extra Membership Rewards points.
• Other features: The Card will also come with smart chip technology and a 0% introductory rate on purchases and balance transfers for the first 15 months.

EveryDay Preferred Credit Card ($95 annual fee)

• Sign-up bonus: 20,000 points when you spend $1,000 in 90 days (via referral link)
• Earning: Earn 3x Membership Rewards points at U.S. supermarkets (not including warehouse stores like Costco), on up to $6,000 per year on purchases (then 1x); 2x on US standalone gas stations; and 1x points on all other purchases.
• Spending Bonus: Use the Card to make 30 or more purchases in a billing period and earn 50% extra points on all those purchases less returns and credits.
• App: A digital counter in the Amex Mobile app helps keep track of each qualifying purchase for the bonus, so Card Members always know when they’re close to earning 50% extra Membership Rewards points.
• Other features: The Card will also come with smart chip technology and a 0% introductory rate on purchases and balance transfers for the first 15 months.
• Annual fee: $95

         

         Which card is the best fit for a regular family?

• Both cards earn  Membership Rewards, which I value conservatively at 1.10 cents. The only option that interests me personally is the transfer to Avios when there is a bonus. Your preferences may be different from mine, though. If you only want a card to occasionally top off your Avios (British Airways) or any other partner mileage account, then the no-fee card would make the most sense. If,  however, you plan to put all of your yearly spending, which card should you pick?
• Let’s assume $24000 yearly spending, $500 on groceries per month (you get a bonus on up to $6000 yearly grocery purchases) and $300 per month gas bill. I assume, you will maximize the bonus, which kicks in after a certain number of purchases. You can probably buy small gift cards from Amazon if needed. Let’s do the math:
• Everyday Amex(no fee):
• 1) Groceries:  12000 points plus the 20 percent bonus of 2400 points. Total 14400 points.
• 2) The rest of the spending: 18000 points plus the bonus of 3600 points. Total 21600 points.
• Grand total: 36000 points. That’s currently enough for 4 roundtrip tickets from Miami to Grand Cayman through Avios program. Not bad!

       

         Everyday Preferred Amex($95 fee):

1) Groceries: 18000 points plus 9000 bonus points. Total 27000 points.

2) Gas: 7200 points plus 3600 bonus points. Total 10800 points.

3) The rest of the spending: 14400 points plus 7200 bonus points. Total 21600 points.

Grand total: 59400 points. 

So, we have 36,000 points vs. 59400 points. It would mean an extra 23400 points for an annual fee of $95 dollars.  The conclusion: Yes, it’s absolutely worth it to pay an annual fee if you charge  most of your expenses on one card. In fact, you could  divert some of your spend towards getting a few sign-up  bonuses per year and still come out ahead. It would be a good idea to have a no-annual fee Visa or Mastercard in your wallet, just in case.

In fact, if you  are mostly after Avios through everyday spend  and are debating whether to renew Chase Sapphire Preferred or apply for this card, Amex would be the clear winner. That’s because CSP card earns  2  points per dollar on only dining and travel. I won’t even do a side-by-side comparison, because Amex would literally slaughter the CSP card for most regular families.

Note, that I assume you shop at a regular grocery store because Amex  usually codes Walmart  as a warehouse. However, IMO it would be worth it to buy prepaid Visa gift cards at a grocery store and then  spend them elsewhere, because the fees would equal $60, not  a deal breaker.

In fact, Everyday Preferred  would beat CSP/Freedom combo for most families. If you read this post, you’ll see that you can expect to get close to 50,000 Ultimate Rewards points, as in Amex card’s case, it’s close to 60,000 Membership Rewards. Plus, remember, Amex runs transfer bonuses, while Chase does not. Also, you might make up for the annual fee through various Amex promotions.

 

Bottom line

If you like to collect flexible points (with strong preference for Avios) through your everyday spend, Everyday Preferred Amex is your “king” credit card. This card belongs in my “keeper” collection. It does  pay me commission if you apply through my site.