If you’re in the market for a new credit card, you’ve likely come across the American Express Blue Cash Everyday vs Cash Magnet cards. Both of these cards offer generous rewards and perks, at no annual fee, making them very popular options for everyday spending.
However, there are a few differences between the two cards that you should consider before making a decision.
Our Take
Blue Cash Everyday is a better card for the average cardholder thanks to its 3% on groceries, gas and online retail.
Only cardholders with much higher spendings, or with high of non-groceries or non-gas spending might get more value from the Cash Magnet.
For more details, use our Blue Cash Everyday vs Cash Magnet rewards calculator
Overview: Blue Cash Everyday vs Cash Magnet
 Blue Cash Everyday |
 Cash Magnet |
|
| Annual Fee | $0 | $0 |
| Signup Bonus | $200 after spending $2,000 in the first 6 months of account opening | $200 after spending $2,000 in the first 6 months of account opening |
| Rewards | • 3% cash back on Groceries (up to $6,000/year) • 3% cash back on U.S. Online Retail Purchases (up to $6,000/year) • 3% cash back on Gas (up to $6,000/year) • 1% cash back on all other purchases |
• Unlimited 1.5% cash back on all other purchases |
| Benefits | • $84 The Disney Bundle Credit every year • $180 Home Chef Credit • Car Rental Loss and Damage Insurance |
• Car Rental Loss and Damage Insurance |
Amex Blue Cash Everyday vs Cash Magnet Highlights
A tie for Annual Fees and Signup Bonus
Both cards have no annual fee, and currently offer a $200 signup bonus after spending $2,000 in the 6 months following the account opening. Simply put, it’s a tie.
Cash Magnet for 1.5% back everywhere
Cash Magnet shines by offering an unlimited 1.5% back on all purchases. This comes in handy for people who have a lot of spending that don’t fall in the typical spending categories (Utility bills, Gym, Shopping for example). This is the most simple credit card as the cash back is a flat 1.5% without any conditions. However, we suggest you take a look at flat 2% credit cards that can offer the same simplicity, overall rewards and an additional 0.5%!
Blue Cash Everyday for most people
The Blue Cash Everyday offers a higher cash back rate on Groceries, Gas and U.S. Online Retail (at 3% vs 1.5% for Cash Magnet). So wether the Blue Cash Everyday worth it or not depends on your spending in these three categories. A quick calculation shows that if Groceries, Gas and Online Retail represent more that 25% of your monthly budget, then Blue Cash Everyday will earn you more rewards. This should be the case for most people based on average credit card spending data.
What about the $6,000 spending limit on Blue Cash Everyday?
Beyond this $6,000 yearly limit, you will only earn 1% and no longer 3%. However, it would take pretty high spending to make the 1.5% worth more than “3% then 1%”. The chart below helps visualize that, and shows how your groceries/gas spending would need to be closer to $2,000/month before Cash Magnet becomes worth it. Again, for the average cardholder, the $6,000 limit won’t make Blue Cash Everyday less interesting.
Run the numbers for your spending
To determine which card is right for you, you’ll need to consider your spending habits and how much you’re willing to pay for an annual fee. To make an informed decision, you can use our cash back calculator, which allows you to input your estimated monthly spending on various categories to determine which card will earn you the most cash back.
Sample result of Blue Cash Every Day vs Cash Magnet calculator for average spending
Which card should you choose?
Overall, the Blue Cash Everyday seems to be the winning card for most people. With 3% on very popular categories like groceries, gas and online retail, it easily beats a flat 1.5% on everything.
As with every rule, there are exceptions. If groceries, gas and online retail make up for less than 25% of your yearly budget, or if you spend more than $2,000 monthly in these categories, then you should look closer into the Cash Magnet.
If you are any close to these exceptions, use our Blue Cash Everyday vs Cash Magnet rewards calculator to run the numbers and settle the debate!