The Blue Cash Preferred® Card from American Express and the Bank of America® Customized Cash Rewards credit card are two cash back credit cards that can hold value in your wallet. But the Blue Cash Preferred is our top pick because of its cardholder perks and rewards that are good for travel and day-to-day, all while potentially offsetting the ongoing annual fee.
Even though both reward you for grocery purchases, the Blue Cash Preferred offers a higher cash-back rate on your purchases at supermarkets, along with more travel and everyday perks.
On the flip side, the Bank of America credit card has a lower rewards rate on certain categories and fewer perks, it’s still a force to be reckoned with -- it has no annual fee and a longer introductory APR offer for purchases and balance transfers. The welcome bonus for the Customized Cash Rewards card is also easier to obtain. Plus, you have the flexibility to choose which category earns 3% cash back each month (up to $2,500 in combined choice category, grocery store and wholesale club quarterly purchases, then 1%).
Deciding which of these two cards is best for you boils down to your spending habits and financial goals. To help you choose between the Blue Cash Preferred and the Customized Cash Rewards, we’ve highlighted some of the key differences and factors to consider below.
Rewards
Winner: American Express Blue Cash Preferred Credit Card
Compare the card’s rewards programs.
The Blue Cash Preferred earns:
- 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more
- 3% cash back at U.S. gas stations
- 1% cash back on other purchases
(Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit)
The Customized Cash Rewards Card earns:
- 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores or home improvement/furnishings (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, then 1%)
- 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, then 1%)
- 1% on all other purchases
If a large chunk of your budget goes toward groceries, the Blue Cash Preferred is the clear winner. With this card, you’ll earn 6% cash back on U.S. supermarket purchases (up to $6,000 per year, then 1% after). The Customized Cash Rewards card only offers 2% cash back at grocery stores and wholesale clubs (up to $2,500 per quarter in combined 3% and 2% categories, then 1%). If you spend $2,500 on groceries annually, you can earn up to $150 with the Blue Cash Preferred card at U.S. supermarkets, compared to $50 with the Customized Cash Rewards card.
The Blue Cash Preferred card also earns 6% cash back on select U.S. streaming subscriptions and 3% on transit and U.S. gas stations. Overall, this card offers rewards at a higher rate compared to the Customized Cash Rewards card.
However, if you want to earn rewards in a different category -- like online shopping, dining, gas, drug stores, travel or home improvement/furnishing -- and you want the flexibility to change your top spending categories each month, the Customized Cash Rewards card lets you earn 3% on the category of your choice for up to $2,500 per quarter.
You can also boost your rewards value with the Customized Cash Rewards Card when you enroll in Bank of America’s Preferred Rewards. The three-tier program offers 25% to 75% more cash back on purchases. The higher your combined Bank of America account balances, the better the rewards are with this program. You can redeem your rewards through the Bank of America online banking site.
Rewards redemptions
Winner: Bank of America Customized Cash Rewards
- American Express Blue Cash Preferred: Rewards can be redeemed for a statement credit.
- Bank of America Customized Cash Rewards: Rewards can be redeemed for a statement credit, mailed check or deposited into a Bank of America checking or savings account or eligible Merrill account.
You can redeem your Customized Cash Rewards for a statement credit in any amount. Or you can have a paper check mailed or deposited into a Bank of America or eligible Merrill account.
On the other hand, the options for redeeming Blue Cash Reward Dollars are limited. You can only redeem your cash back as a statement credit. That means you can make a purchase with your Amex credit card, then apply the statement credit to lower your balance, but no other redemption options are available.
Welcome offer
Winner: Bank of America Customized Cash Rewards
- American Express Blue Cash Preferred: $250 statement credit if you spend $3,000 in purchases within the first six months of account opening.
- Bank of America Customized Cash Rewards: $200 online cash rewards bonus if you spend at least $1,000 within the first 90 days of account opening.
There’s only a $50 difference in the welcome offers for these two cards -- but the spending thresholds are much different.
The Customized Cash Rewards card has a $200 online cash rewards welcome bonus when you spend $1,000 within the first 90 days of account opening (roughly $334 each month). The Blue Cash Preferred has a slightly higher welcome offer of a $250 statement credit if you spend $3,000 within the first six months of account opening (roughly $500 each month). When comparing the two offers, you can spend $2,000 less with the Customized Cash Rewards to still earn a solid welcome bonus. And you’ll earn it sooner than the Blue Cash Preferred.
Annual fees
Winner: American Express Blue Cash Preferred
- American Express Blue Cash Preferred: $0 introductory annual fee for the first year, then $95 after that.
- Bank of America Customized Cash Rewards: $0
When first opening an account with either card, you won’t have an annual fee. The big difference is that the Blue Cash Preferred has a $95 annual fee after the $0 intro annual fee for the first year. If you spend $1,600 or more in groceries at U.S. supermarkets annually, you’ll essentially cover the annual fee for this card in the rewards you earn. And if you take advantage of other rewards categories, such as 6% cash back on select U.S. streaming subscriptions and 3% on U.S. gas station purchases, you can earn even more cash back.
To decide if the charge is worth it, think about the card’s value to your wallet. For instance, even though the Blue Cash Preferred comes with a $95 annual fee after the first year, if you earn more than this cost through rewards and statement credits, it may be worthwhile. But if you can’t maximize the rewards the American Express card offers, consider the Customized Cash Rewards card or another card without an annual fee.
Introductory APR
Winner: Bank of America Customized Cash Rewards
Introductory APR offers
| American Express Blue Cash Preferred | Bank of America Customized Cash Rewards | |
| Purchases | 0% introductory APR on purchases for the first 12 months from account opening (then 18.49% to 29.49% variable) | 0% introductory APR for the first 18 billing cycles for purchases (then 17.49% to 27.49% variable) |
| Balance transfers | 0% introductory APR on balance transfers for the first 12 months from account opening within 60 days of account opening (then 18.49% to 29.49% variable) | 0% introductory APR for 18 billing cycles for any balance transfers made in the first 60 days (then 17.49% to 27.49% variable) |
If you need more time to pay back a purchase or want to transfer existing debt to take advantage of an introductory APR, Bank of America’s Customized Cash Rewards is a better option. It has a longer introductory APR period for new purchases and balance transfers.
Both the Bank of America Customized Cash Rewards and the American Express Blue Cash Preferred have a 3% balance transfer fee (the Amex card has a $5 minimum, while the Bank of America card does not have a minimum). Balance transfers for both cards must be completed within the first 60 days of having the card in order to qualify for the intro APR offer.
Card perks
Winner: American Express Blue Cash Preferred
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Blue Cash Preferred offers additional card perks, including:
- Purchase protection
- Extended warranty
- Return protection
- Rental car insurance
- Global Assist Hotline
- ShopRunner membership
- Amex Offers
- $120 Equinox+ Credit
- $84 The Disney Bundle Credit
The Blue Cash Preferred includes over $200 in statement credits and access to American Express Experiences for ticket presale access and exclusive events. That includes an $84 Disney Bundle statement credit annually and up to a $120 annual Equinox+ membership statement credit. When traveling, you also get car rental loss and damage insurance and the 24/7 Global Assist® Hotline. Plus, you have purchase protection for up to 90 days on new purchases.
The Customized Cash Back Rewards card doesn’t have an annual fee, but it’s also lacking statement credits and perks. Aside from earning boosted points through the Bank of America’s Preferred Rewards program, this card doesn’t offer many additional perks.
Even though the Blue Cash Preferred’s perks can offset the annual fee and help you save on other purchases if you don’t think you’ll use the perks, it may be best to consider another card.
How Blue Cash Preferred® Card from American Express and Bank of America® Customized Cash Rewards credit card compare to other cards
- Intro Offer
-
$250 Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
- Annual fee
- $0 intro annual fee for the first year, then $95.
- APR
- 18.74%-29.74% Variable
- Intro Purchase APR
- 0% on purchases for 12 months
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- Good – Excellent
- Rewards rate
-
1% – 6% 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%); 6% Cash Back on select U.S. streaming subscriptions; 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more; 3% Cash Back at U.S. gas stations; 1% Cash Back on other purchases
- Intro Offer
-
$200 $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
- Annual fee
- $0
- APR
- 17.49% – 27.49% Variable APR on purchases and balance transfers
- Intro Purchase APR
- 0% Intro APR for 18 billing cycles for purchases
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- Good – Excellent
- Rewards rate
-
1% – 3% Earn 3% cash back in the category of your choice (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases).; Earn automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases).; Earn unlimited 1% on all other purchases.
- Intro Offer
-
$200 cash rewards Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
- Annual fee
- $0
- APR
- 19.74%, 24.74%, or 29.74% variable APR
- Intro Purchase APR
- 0% intro APR for 15 months from account opening
- Recommended Credit A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
- Good – Excellent
- Rewards rate
-
2% Earn unlimited 2% cash rewards on purchases
FAQs
The Global Assist Hotline is included as a card perk for American Express Blue Cash Preferred cardholders, and can provide travel assistance. Before you travel, you can get help with customs information, exchange rates, weather reports and more. When traveling, the hotline can help with emergency medical assistance, lost luggage and canceling your passport and credit card if your belongings are lost or stolen. Third-party services may come at an additional cost.
Bank of America’s Preferred Rewards program offers perks and boosted rewards rates based on your Bank of America and Merrill Investing account balances. The higher your combined balances, the higher the perks and rewards rates. Preferred Rewards is a three-tiered program that offers a 25% to 75% bonus to credit card rewards and a 5% to 20% bonus to your savings account annual percentage yield. You may also get discounted rates on certain loans depending on your tier.
If a credit card offers tiered cash-back rewards, you’ll earn a different cash-back rate for each tier. For example, a credit card may offer 5% on travel purchases, 3% on groceries, 2% on gas and 1% on all other purchases. Keep in mind that these types of credit cards may have spending caps for each category.
The bottom line
You’ll get the best bang for your buck with the Blue Cash Preferred card, as long as your spending habits align. The Amex card has higher rewards rates, valuable statement credits and extra perks that can more than make up for its annual fee. The main drawback is your redemption options -- you’re limited to only receiving a statement credit for all the rewards you earn.
If you want more flexibility, the Customized Cash Rewards is a better choice for transferring a balance, repaying a big purchase during the introductory APR period and choosing which rewards category earns you 3% each month (on up to $2,500 in combined 3% and 2% categories each quarter, then 1%). There’s also no annual fee and more redemption options than the Blue Cash Preferred.
For rates and fees of the Blue Cash Preferred Card from American Express, click here.
*Eligibility and benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
