Compare AMEX EveryDay and AMEX EveryDay Preferred Cards

AMEX EveryDay vs. AMEX EveryDay Preferred: how do they compare? Which is worth getting? Recently I was advising a reader to get the American Express EveryDay Preferred card for the grocery bonus and to a lesser extent the gas bonus, since she has an ongoing need for AMEX Membership Rewards points. It can be hard to rationalize paying an annual fee, especially even in the first year, so I thought I'd run through the numbers for other readers who are deciding between the AMEX EveryDay and AMEX EveryDay Preferred cards.

AMEX EveryDay Preferred (Also see the 30K AMEX EveryDay Preferred Targeted Offer)

Signup Bonus: $95 annual fee is NOT waived the first year

Annual Fee: 15,000 Membership Rewards points after $1000 spend within the first 3 months

Category Bonuses: 3X Membership Rewards points per $1 spent at U.S. supermarkets up to $6000 maximum per calendar year then 1X; 2X per $1 spent at U.S. stand alone gas stations (gas sold at superstores and warehouse clubs don't count); 1X per $1 for all other spend

Extra Bonus: Earn 50% more points for each billing cycle where you make 30 or more purchases

Example 1: Maximize Supermarket Bonus and 20 or More Transactions per Billing Cycle

If you maximize the 3X supermarket bonus for the first $6000 per year in supermarket spend, that gives you 18,000 Membership Rewards points. And if you also make 30 or more transactions per billing cycle, that gives you an earning power of 4.5X per $1 on groceries, for a total of 27,000 points. If you value Membership Rewards points at 1.8 cents per point, that's $486. 

If you'd otherwise have earned only 1X per dollar on grocery spend, that's a net gain of 21,000 points, or $378. Subtract the $95 annual fee, and you're still ahead by $283 per year on an ongoing basis, and that doesn't take into account the signup bonus of 15,000, worth $270 if you value Membership Rewards points at 1.8 cents per point.

Example 2: Maximize Supermarket Bonus but Fewer Than 30 Transactions per Billing Cycle

Let's say you don't use the card 30 times per billing cycle. In this case, if you spend $500 per month on U.S. supermarkets, total of $6000 per year, you'd earn 18,000 AMEX Membership Rewards points per year, but you wouldn't get any additional bonus. If you value Membership Rewards points at 1.8 cents per point, that's $324. 

If you'd otherwise earn 1 mile or point per dollar, your net gain is 12,000 points, or $216. Subtract the annual fee of $95 and you're still ahead by $121, but obviously this is much less compelling than if you manage to earn 4.5X per grocery dollar up to the $6000 per calendar year maximum, by making 30 or more transactions per billing cycle, and perhaps also earn 2X with 50% bonus for a total of 3X per dollar spent at stand alone gas stations.

AMEX EveryDay

Signup Bonus: No annual fee

Annual Fee: 10,000 Membership Rewards points after $1000 spend within the first 3 months

Category Bonuses: 2X Membership Rewards points per $1 spent at U.S. supermarkets up to $6000 maximum per calendar year then 1X; 1X per $1 for all other spend

2X Membership Rewards points per $1 spent at U.S. supermarkets up to $6000 maximum per caleyear then 1X; 1X per $1 for all other spend

Extra Bonus: Earn 20% more points for each billing cycle where you make 20 or more purchases

Example 1: Maximize Supermarket Bonus and 20 or More Transactions per Billing Cycle

If you maximize the 2X supermarket bonus for the first $6000 per year in supermarket spend, that gives you 12,000 Membership Rewards points. And if you also make 20 or more transactions per billing cycle, that gives you an extra 2400 points, for a total of 14,400 points. If you value Membership Rewards points at 1.8 cents per point, that's $259.

But keep in mind that if you'd used another card, you still would have earned at least 6000 miles or points, at 1 mile or point, and possibly more, depending on that other card's bonus categories. Let's say you also value those other 6000 miles or points at 1.8 cents; your net gain is 8400 Membership Rewards points, or $151.

Example 2: Maximize Supermarket Bonus but Fewer Than 20 Transactions per Billing Cycle

If you spend $500 per month on U.S. supermarkets with the AMEX EveryDay but don't use it 20 times a month, you'd earn 12,000 AMEX Membership Rewards points per year, with no annual fee. If you value Membership Rewards points at 1.8 cents per point, that's $216. And again, if compared to another card that earns a straight 1X, your net gain is 6000 points, or $108.

Grocery Spend: How to Do Better Than the AMEX EveryDay and AMEX EveryDay Preferred Cards

One of the reasons I haven't yet gotten either card for my family is that we do most of our shopping at Trader Joe's, Whole Foods and Amazon. We earn 5X on all Whole Foods and 5X on all Amazon spend with our Ink Plus and gift cards bought at Staples (or in the current Q4, 5X on all Amazon spend with the Chase Freedom). 

That leaves Trader Joe's, where we picked up a bunch of Trader Joe's gift cards during Q1 2015 (see 2015 Chase Freedom Calendar 5X Categories), and once we run out of that, we'll use new credit cards for which we're working on minimum spend. So via these methods we earn 5X on most of our grocery spend, although these are all Chase Ultimate Rewards points. If, as is true for this reader, you really need AMEX Membership Rewards points, then the AMEX EveryDay Preferred card makes more sense.

Bottom Line

If you have a need for AMEX Membership Rewards points and buy at least $500 in groceries per month, you should have either the AMEX EveryDay or AMEX EveryDay Preferred card. If you'll be able to make 30 or more transactions on the AMEX EveryDay Preferred card per billing cycle, it makes sense to get that card even with the annual fee, since even taking into account the opportunity cost of earning 6000 miles or points at 1X with another card and taking into account the $95 annual fee, you'll come out ahead $280 each year.