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The anniversary date on our AmEx Blue Cash rewards card is in December. That means that the rewards that we’ve accrued throughout the year will be paid out this month. Curious as to how we’ve been doing, I logged in to check…
As a reminder, this card pays 5% on “everyday” purchases (gas, groceries, and drugstores) and 1.25% (formerly 1.5%) on all other purchases once you reach $6500 in total purchases. Prior to that level, you’ll earn 1%/0.5% on the two different categories.
After logging in and poking around, I learned that we’ve cleared 1.93% in rewards over the past year. Not too shabby, but slightly below the 2% offered by the Charles Schwab reward card.
Should we switch to the Schwab Visa?
On the plus side, the Schwab card is a Visa, so it’s more widely accepted. It also pays out the rewards on a monthly basis, which is nice. The downside is that you have to open a Schwab account into which the rewards will be deposited.
I’ve heard rumors that the terms of the Schwab rewards will be changing, but that they’ll be grandfathering existing cardmembers in under the old reward structure. Because of this, I’m thinking of applying for the Schwab card just in case.
11 Responses to “AmEx Blue Cash Rewards Performance”
I use the Schwab account. I just transfer the money to my checking account every so often…so having to open a brokerage is a bit of an extra step…but once you do it’s pretty painless to get your actual cash.
I’ve got an Orchard Bank Mastercard that pays 2% on everything. I only use a Costco Amex on gas and dining because it pays 3% on those categories. I tried to look for the Orchard Bank MC that I have, but couldn’t find it. Perhaps it has been discontinued.
Schwab cashback is deposited within a week after you pay your credit card bill and plus it’s 2% back on EVERYTHING with no limits. You just can’t find a better rewards card in my opinion.
Another option is the Pentagon Federal Credit Union that has a card that earns as noted below.
Earn 2% cash back on supermarket purchases*
Earn 5.00% cash back from gas purchases paid at the pump*
Earn 1.25% cash back from all purchases** you make with the card during each billing cycle
You can have a military connection to join the Pentagon Federal Credit Union, OR you can join the National Military Family Association (NMFA) with a one year membership for $20 and then you can joint the credit union– you don’t need to maintain your NMFA membership to be a credit union member. https://www.penfed.org/membershipApplication/2008/nmfa.asp?app=
I use combination of Schwab and Costco AmEx Business
2% at Schwab on all purchases
3% on Restaurants – AmEx
4% on Gas – AmEx
2.5% total cash back… not too bad
@John DeFlumeri Jr
Not on all purchases.
Only groceries, gasoline, pharmacy. But 5% starting from the first dollar that you spend.
Interesting. They’ve taken down the online application and I can’t find any mention of the card on their website. It still exists, though. You can apply by calling. According to the NY Times Bucks Blog, the number is:
They also quoted a company source as saying “the company had no plans to change the benefits for current cardholders.”
In other words, if you want this card, you should probably apply for it right now.
Five percent back on all purchases? That is so much, it’s hard to believe!
John DeFlumeri Jr
Your Schwab link goes to a broken page.
Still using Schwab. Huge fan of that 2% cashback being automatically deposited.
Marian brings up a great point that you have to use multiple cards to maximize your rewards. Personally, I have resisted this temptation because I believe I would start spending more than I would gain in rewards.
I still have the good old Chase Rewards card, with full 5% on everyday purchases and full 1% on the rest. Nobody beats that.
By the way, you can maximize your return by spreading around the spending.
For example, I use that Chase card only on groceries, gas and pharmacy (full 5%) because it has a limit of $300 a year on rewards and I for restaurants I use Chase Amazon card (2% cashback), for the rest I use Citi (1% from the first dollar, up to $300 a year in rewards) and sometimes Discover (nice rewards sometimes, based on a stupid calendar, combined with ridiculous low limits).