Citi Custom Cash vs. Amex Blue Cash Preferred

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Both the Citi Custom Cash® Card and the Blue Cash Preferred® Card from American Express offer generous cash back rewards and welcome bonuses. So what sets these cards apart, and which option is right for you?

It depends on your monthly spending. Do you spend a lot in one particular category (such as groceries, gym memberships or streaming services), or do you spend a lot in several categories? Are you willing to pay an annual fee? Your answers can help you decide which one of these top cash back cards deserves a space in your wallet.

Main details

Citi Custom Cash vs. Amex Blue Cash Preferred highlights

Welcome bonus winner

Blue Cash Preferred® Card from American Express

• Why it won

  In the battle between the Citi Custom Cash vs. the Amex Blue Cash Preferred, the Blue Cash Preferred’s welcome offer is the winner — but just barely.

  With the Amex Blue Cash Preferred, you can earn a $250 statement credit after you spend $3,000 in purchases within the first six months. The Citi Custom Cash offers 20,000 Citi ThankYou points — worth $200 in cash back — after spending $1,500 on purchases in the first six months.

  Although the Blue Cash Preferred offers $50 more than the Custom Cash (which is why we give it a slight edge in this category), you’ll have to spend twice as much to earn the bonus offer. On average, you’ll have to spend $500 each month for six months to earn the Blue Cash Preferred’s bonus and $250 monthly for six months to earn the Citi Custom Cash’s bonus.

Rewards rate winner

Blue Cash Preferred® Card from American Express

• Why it won

  Both cards offer flexibility and the chance to earn plenty of cash back, but the Blue Cash Preferred wins this round simply because it offers a higher cash back rate with a higher spending cap, as well as more cash back categories that are active simultaneously. However, the right card for you depends on the type of cash back card you’re looking for. The Blue Cash Preferred’s rewards structure offers more flexibility for people who want to earn as much cash back as possible on everyday spending. It offers:

  • 6 percent cash back on purchases made at U.S. supermarkets (on up to $6,000 in spending per year, then 1 percent back)
  • 6 percent cash back on select U.S. streaming subscriptions
  • 3 percent cash back at U.S. gas stations and on transit (such as rideshares, parking, tolls, trains and buses)
  • 1 percent cash back on other purchases

  The Citi Custom Cash also offers flexible rewards but is a better fit for people who value simplicity. You’ll earn 5 percent cash back on the first $500 you spend in your top eligible spending category each billing cycle. Your top category is automatically determined by the amount of money you spend in the eligible categories, which include:

  • Restaurants
  • Gas stations
  • Grocery stores
  • Select travel
  • Select transit
  • Select streaming services
  • Drugstores
  • Home improvement stores
  • Fitness clubs
  • Live entertainment

  While that’s a large selection of potential bonus categories, you’ll only be able to earn elevated rewards in one category in a given month.

  If you go over the $500 limit, you’ll earn 1 percent cash back on those purchases until your billing cycle starts again. You’ll earn 1 percent back on non-category purchases. You’ll also earn an additional 4 percent back on hotels, car rentals and attractions booked using the Citi Travel portal.The Blue Cash Preferred’s 6 percent back in 2 categories and 3 percent back in 2 additional categories gives it the edge if you can take advantage of those rewards categories. But if groceries aren’t your biggest spending area or your everyday spending changes from month to month, the Custom Cash gives cardholders more flexibility to earn boosted rewards that are automatically applied to their highest eligible spending category every billing cycle.

Annual fee winner

Citi Custom Cash® Card

• Why it won

  The Citi Custom Cash Card charges no annual fee, while the American Express Blue Cash Preferred charges a $95 annual fee ($0 intro annual fee for the first year). If you’re just looking to avoid the annual fee, Citi Custom Cash will be your winner. But don’t write off Blue Cash Preferred before doing the math. If you max out the 6 percent grocery category alone (on up to $6,000 spent annually), you’ll earn $360 just on those purchases, more than enough to offset the annual fee.

Intro APR offer winner

Citi Custom Cash® Card

• Why it won

  A 0% intro APR offer gives cardholders a set period of time to pay off purchases or past debt without having to worry about interest charges. When comparing the Amex Blue Cash Preferred vs. the Citi Custom Cash Card, both have solid intro APR offers for purchases and balance transfers. But the Custom Cash Card gives cardholders three months longer (15 months) than the Blue Cash Preferred (12 months), making it a clear winner – at least for new purchases.

  Learn more: Best cards for no foreign transaction fees

Foreign transaction fee winner

Blue Cash Preferred® Card from American Express

• Why it won

  The Blue Cash Preferred charges a 2.7 percent foreign transaction fee, while the Citi Custom Cash charges a 3 percent foreign transaction fee. Although neither card is great for foreign transactions, the Amex Blue Cash Preferred is a slightly better option.

Which card earns the most?

The amount you can earn from either of these cards depends on your monthly spending habits. The Blue Cash Preferred card is worth it if the card’s bonus categories fit your lifestyle and you earn enough rewards to justify the $95 annual fee (after the $0 intro annual fee the first year). If you tend to spend regularly on one particular category or don’t want to go through the hassle of determining which categories you spend the most in each month, you might do well with the Citi Custom Cash.

Citi Custom Cash vs. Amex Blue Cash Preferred spending example

Let’s say your top spending category during a particular billing cycle is grocery stores, and you spend $500 on those purchases, fully maxing out the Citi Custom Cash’s 5 percent category. In doing so, you’ll earn $25 in cash back. If you spend another $1,000 during that billing cycle on non-category purchases (for example, $500 on gas and another $500 on online shopping), you’ll earn an additional $10 in cash back. That’ll bring you to $35 in cash back earnings for that billing cycle. The drawback here is that you can only spend up to $500 per billing cycle in your top category before the cash back rate drops from 5 percent to 1 percent.

Now, let’s also assume that you spend the same $500 on U.S. supermarket purchases over the course of a month with the Blue Cash Preferred. Doing so will net you $30 in cash back. To fully match the example above, let’s say you spend an additional $1,000 that month ($500 on gas and $500 on online shopping). Since U.S. gas station purchases earn 3 percent cash back with this card, that’s an additional $15 in cash back earned. Online shopping would classify as non-category spending, earning you an additional $5 in cash back. In total, that’s $50 in cash back earnings for the month with the Blue Cash Preferred versus $35 in cash back with the Citi Custom Cash. While it’s possible to earn more with the Blue Cash Preferred, keep in mind that it comes with a $95 annual fee after the first year.

Why should you get the Citi Custom Cash?

The Citi Custom Cash card is worth it if you like the simplicity of automatically earning the top rewards rate on your highest spending category each billing cycle and don’t want to pay an annual fee. The Citi Custom Cash is also a good choice for anyone who’s willing to book travel through the Citi Travel portal, as the extra 4% cash back provides a nice boost in rewards.

Another reason why you should get the Citi Custom Cash card is that it pairs well with other no-annual-fee credit cards. You can use the Custom Cash solely for your spending in the 5% category, and use another card with different bonus categories or a higher flat rewards rate for all the purchases that would otherwise earn only 1% with the Custom Cash. So if you don’t mind juggling multiple cards in order to maximize rewards, the Citi Custom Cash is also a winner.

Lastly, the Citi Custom Cash works well as part of a larger Citi ThankYou points-earning strategy. Pair this card with a premium Citi card to turn your earnings into transferrable Citi ThankYou points.

• Additional benefits

  The Citi Custom Cash is a fairly basic rewards card, but it does have some additional benefits. You can set up automatic alerts if you’re getting too close to your spending limit, and easily manage your account through the Citi mobile app. You can also choose your own payment date. Other perks include identity theft protection, $0 fraud liability, access to Citi Entertainment and free access to your FICO credit score.

• Redemption options

  The Citi Custom Cash card technically awards you in the form of basic Citi ThankYou points, which can be redeemed for statement credits, direct deposits, checks, gift cards, Amazon.com purchases and travel through Citi.To get the best redemption value with this card, though, you’ll want to pair it with a premium Citi card such as the Citi Strata Premier℠. Doing so will allow you to transfer your ThankYou points to travel partners for potentially better redemption value.

• Recommended credit score

  The recommended credit score range for the Citi Custom Cash is good to excellent (670 to 850).

Why should you get the Amex Blue Cash Preferred?

The Blue Cash Preferred is more than just one of the best grocery rewards cards; it’s also one of the best standalone cards thanks to all the everyday rewards categories and additional features that come with the card.

What it isn’t is a Membership Rewards-earning card. That means it won’t help you if you’re working on a larger travel rewards strategy involving American Express cards.

• Additional benefits

  The Blue Cash Preferred offers a wider range of benefits than you’ll get with the Citi Custom Cash. You’ll get access to American Express’ Global Assist Hotline, which offers 24/7 emergency assistance while traveling. You can use the hotline as long as you’re at least 100 miles from your home. The card also comes with car rental loss and damage insurance, purchase protection, return protection and extended warranty coverage. Cardmembers can get special ticket access to select sports, music, and theater events through Amex Experiences.

  Cardholders also get a $7 monthly statement credit after spending $9.99 or more each month on a Disney Bundle subscription. Enrollment is required for this offer.

• Redemption offers

  Cash back is earned in the form of Reward Dollars, which can be redeemed for a statement credit to your account or at Amazon.com during checkout.

• Recommended credit score

  The recommended credit score range for the Blue Cash Preferred is good to excellent (670 to 850).

The bottom line

So, which card is better? The Amex Blue Cash Preferred might be worth it If you spend a lot in the following combination of categories: grocery store purchases, streaming services, gas and transit. The card is especially appealing considering you earn unlimited boosted rewards on select U.S. streaming subscriptions, on transit and at U.S. gas stations.

However, the Citi Custom Cash Card is also a great option, especially if your top spending category changes from month to month. It holds its own as a grocery rewards card and is a great fit if you tend to spend a good amount in niche categories like live entertainment, fitness clubs and home improvement stores. Your own spending habits will determine which of these cards is better for you, but both have the potential to earn you significant cash back each month.