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I’ll be honest — the prospect of paying an annual fee for a credit card hasn’t always filled me with joy. In fact, I canceled my oldest credit card not too long ago because I wasn’t using the card enough to justify the fee. But I still pay the annual fee on two cards in my wallet and I think they both pay for themselves.

One of those cards is the Blue Cash Preferred® Card from American Express. I whip it out every time I visit a grocery store, whether it’s the big local chain or the independent market.

This card comes with a $0 intro annual fee for the first year, then $95. (See rates and fees.) But despite the extra little hit to my budget, I’m OK with this annual fee. Here’s why.

It’s easy to outearn the annual fee on one of my biggest expenses

You might wonder why I opted to apply for this American Express card in the first place, given that I’m a bit annual fee–averse. Well, I am an unabashed foodie and avid home cook. The Blue Cash Preferred® Card from American Express offers a whopping 6% cash back on U.S. supermarkets (up to $6,000 per year) and select U.S. streaming subscriptions (terms apply). Groceries are a huge part of my monthly budget, so getting this card specifically was an easy call.

As I write this, we are nearly halfway through 2024 (I can’t believe it either). I just took a peek at my cash back earnings with this American Express card. Since Jan. 1, I’ve earned a little over $200 back on my spending. That puts me on track to earn around $400 this year, which is about as much as I did in 2023. It’s also more than four times the annual fee. I feel pretty comfortable continuing to pay to get such a high rate of cash back on one of my biggest expenses.

The other perks are worth it

Of course, 6% cash back on groceries isn’t the only benefit offered by this credit card. I also get 3% cash back on gas, tolls, and other transit costs (see rates and fees). Admittedly, I work from home and don’t drive a ton, so I don’t use this as much as other people could.

I also get 6% cash back on select streaming services and 1% cash back on everything else. I do, however, tend to use a different rewards credit card for non-bonus purchases, as it earns at least 1.5% back on everything instead of this card’s 1%.

Beyond the cash back rates, the Blue Cash Preferred® Card from American Express also comes with American Express’s legendary customer service, Amex Offers, and purchase and return protection. Plus, I use it to pay for The Disney Bundle of streaming services and get a $7 monthly statement credit back (terms apply, enrollment required). In short, this card’s benefits are just more reasons why the annual fee is worth paying.

Is this American Express card right for you?

I can’t answer that for you! But if your credit card spending looks like mine (heavy on the groceries, specifically), it could be a great fit. If you have a long commute by car, it’s worth considering because of the cash back on gas purchases. Heck, even if you commute by train or other public transit, you’ll still get that same 3% cash back.

Crunch the numbers on your own spending. If you can outearn the annual fee, I highly recommend the Blue Cash Preferred® Card from American Express.

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