AMEX Will Give You a 20% to 50% Bonus to Use These 2 New Cards “EveryDay!”

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I recently spoke with David Rabkin, the Senior Vice President of Consumer Lending Products at American Express about 2 new credit cards from American Express.  He’s responsible for some of our favorite American Express cards such as the Starwood card etc!

AMEX Will Give You A 20 To 50 Bonus To Use These 2 New Cards EveryDay

You Can Apply for the New AMEX EveryDay Cards in April 2014

 2 New Cards

American Express has long been the leader in charge cards (where you pay the balance back in full) targeted towards the affluent market.  But American Express has been very clear that they need to cater to new markets to continue to grow.

For example, American Express Bluebird was targeted at a completely different segment and has done extremely well because it was very thoroughly researched and was a much better product than other checking alternatives and pre-paid cards.  It also helps to have Wal-Mart as your partner!

AMEX Will Give You A 20 To 50 Bonus To Use These 2 New Cards EveryDay

Bluebird Was Designed to Reach Consumers Who Wouldn’t Otherwise Use American Express Products

American Express is introducing 2 new cards, the EveryDay (no annual fee!) and the EveryDay Preferred ($95 annual fee).  As a former Brand Manager, I’ve introduced consumer products to the market, and I know that it takes a long time from when you come up with an idea to when it is introduced in the market.  I was told that both these cards took years to develop (market research takes time!)

And they target a very different market.  In particular, folks within the US who would like to earn bonus points for their “everyday” spending – hence the card name “EveryDay.”  The cards target folks who are already using debit and credit cards ~40 times a month, but who wonder why their spending is not rewarded.

After all, business owners get 5X Ultimate Rewards Points per $1 on the Chase Ink Plus or Ink Bold cards by shopping at Office Supply stores.  But there’s no comparable product which gives you bonus points for your regular household spending!  Sure, you get 2X Ultimate Rewards points per $1 for travel and dining on the Chase Sapphire Preferred, but there really aren’t many cards designed for folks who spend more on gas and groceries than on travel and dining!

AMEX Will Give You A 20 To 50 Bonus To Use These 2 New Cards EveryDay

5X Points at Office Supply Stores & Telecom With the Ink Cards!

The good news is that BOTH these cards earn American Express Membership points, even the EveryDay card with no annual fee.  And even better – you can transfer these Membership Rewards points to airlines or hotels!

Readers often ask how they can prevent their Membership Rewards points from expiring when they close other Membership Rewards cards such as the Business Gold card or the Premier Rewards Gold card which have high annual fees.  The easiest way to keep your Membership Rewards points from expiring is to have another American Express card open which earns Membership Rewards points.

And these 2 new credit cards make it very easy to have an American Express Membership Rewards card open – especially because 1 card doesn’t charge an annual fee.

EveryDay Credit Card

The 1st new card is the EveryDay credit card which earns 10,000 Membership Rewards points after spending $1,000 within 90 days.

The sign-up bonus is not a lot, but the card has NO annual fee.  So the sign-up bonus is comparable to the sign-up bonus on the Chase Freedom card.

You earn:

  • 2X Membership Rewards points per $1 at US supermarkets up to $6,000 a year and
  • 1X Membership Rewards points per $1 on other purchases

But if you use the card to make more than 20 purchases within a billing cycle, you will earn an extra 20% Membership Rewards points, less returns and credits.  There is no minimum transaction amount for any of those 20 purchases.

AMEX Will Give You A 20 To 50 Bonus To Use These 2 New Cards EveryDay

You Can Keep Your Membership Rewards Points Alive With the No-Annual Fee AMEX EveryDay Card

So you’re effectively earning:

  • 2.4X Membership Rewards points per $1 at US supermarkets up to $6,000 a year and
  • 1.2X Membership Rewards points per $1 on other purchases

This isn’t too bad and is a good way to have a card which keeps your Membership Rewards points active!

Is it Better Than the AMEX Premier Rewards Gold Card?

This is also a good card for folks who don’t want to pay the $175 annual fee on the Premier Rewards Gold card which earns only 2X Membership Rewards points per $1 on groceries and gas.

Of course, you also earn 3X points on airfare per $1 with the Premier Rewards Gold card and 15,000 extra Membership Rewards points after spending $30,000 within a calendar year.  But for many folks, the EveryDay card is a better card for groceries!

Is it Better Than the AMEX Blue Cash Everyday Card?

Sure, the Blue Cash Everyday with no annual fee earns:

  • 3% cash back at supermarkets (up to $6,000 a year) &
  • 2% cash on gas

But you can’t transfer those points to airlines and hotels like you can with the EveryDay card.

I’m guessing that American Express knows that there are folks who want to be able to transfer their points to airlines and hotels for their everyday spending.  That’s because they know how to extract the most value from their airline miles or hotel points!

EveryDay Preferred Credit Card

The 2nd new card is the EveryDay Preferred credit card which earns 15,000 Membership Rewards points after spending $1,000 within 90 days.

The sign-up bonus is not a lot, especially when compared to the Chase Sapphire Preferred or the Barclays Arrival card.  The card has a $95 annual fee, which will be waived for the 1st year.

But the earnings are much better!  You earn:

  • 3X Membership Rewards points at US supermarkets up to $6,000 a year
  • 2X Membership Rewards at US gas stations
  • 1X Membership Rewards points on other purchases

And if you use the card to make more than 30 purchases within a billing cycle, you will earn an extra 50% Membership Rewards points, less returns and credits.  There is no minimum transaction amount for any of those 30 purchases.

So you’re effectively earning:

  • 4.5X Membership Rewards points at US Supermarkets up to $6,000 a year and
  • 3X Membership Rewards at US gas stations
  • 1.5X Membership Rewards points on other purchases

Much Better Than the Premier Rewards Gold for Groceries & Gas!

This makes it much better than the Premier Rewards Gold card which offers only 2X Membership Rewards points for groceries & gas.

AMEX Will Give You A 20 To 50 Bonus To Use These 2 New Cards EveryDay

The EveryDay Preferred is Much Better Than the Premier Rewards Gold for Groceries & Gas!

And this is perhaps the best card for everyday spending (assuming you value American Express Membership Rewards) because you will earn 1.5X Membership Rewards points compared to ~1 point for spending on most other cards.

Of course, you have to make at least 30 purchases (less returns and credits) within a billing cycle to earn the 50% bonus to get you to 1.5 Membership Rewards Points per $1.  But that shouldn’t be too hard!

What About the Blue Cash Preferred?

Yes, the Blue Cash Preferred will earn:

  • 6% cash back at US supermarkets up to $6,000 and
  • 3% back at gas stations and select department stores

But you earn cash back from the Blue Cash Preferred and can’t transfer those points to airlines and hotels like you can with the EveryDay Preferred card.  So what do you prefer?  4.5 Membership Rewards points (which you can transfer to airlines or hotels) or 6% cash back?

And AMEX knows that the EveryDay Preferred is more appealing to folks who know how to get the most value from their airline miles or hotel points and who want to transfer their points to airlines and hotels.

When Can I Apply for the Cards?

You can’t apply for these cards until April 2, 2014.  But you can see how Tina Fey is using the card in the AMEX commercials!

http://youtu.be/nCE8RdXckBI

Bottom Line

You don’t get the new American Express EveryDay cards for the sign-up bonus, but to actually spend money on.  That’s because you now have an option to spend money on cards – with either no annual fee or a reasonable annual fee – but which still earns Membership Rewards points which you can transfer to airlines or hotels.

Another reason to get the cards is because it is an easy way to prevent your Membership Rewards points from expiring!

I would have liked the cards to have no foreign transaction fee and a higher sign-up bonus, but these are still some exciting new options!  Of course, these cards aren’t for everyone.  But I’m sure that some folks will really like these cards.

What do y’all think about the new EveryDay cards?

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These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

27 Responses to AMEX Will Give You a 20% to 50% Bonus to Use These 2 New Cards “EveryDay!”

  1. I don’t see how either of these cards are a better deal (other than a small bonus on supermarkets) than the Starwood card. Am I missing something?

  2. My analysis: They spent years of research and came out with yet another Amex that will rip you off if you use it overseas. Don’t get me wrong – these cards will be in the mix when I consider my next round of applications – but I sure won’t have them along in my wallet for everyday spend while traveling. The paltry signup bonuses are another issue, as it will take lots and lots of spend at the incremental advantage they do indeed present in order to make them a better choice than an application for a card which offers several times that much from the outset. The no fee version is a candidate in order to retain MR points.

  3. “For example, American Express Bluebird was targeted at a completely different segment and has done extremely well because it was very thoroughly researched and was a much better product than other checking alternatives and pre-paid cards.”

    C’mon. Maybe you have to say that to remain in the Rolodex of the SVP of fancy credit card matters, but BB is successful because of the well off MSets who run thousands if dollars through the product with beans. Not because of proper market segmentation, untapped market, blah blah blah MBA speak blah blah nonsense.

  4. 2 questions:

    1. Will I be able to convert my existing Amex credit cards (hilton, delta, etc.)? I’m assuming I can’t convert a platinum or gold card to tis new card because they are charge cards.

    2. Does owning either of these cards make ineligible to get the sign up bonus on a new Premier Rewards Gold or Platinum card?

  5. I agree with the excellent analysis DaveS wrote above…

    The ONLY benefit I see for myself is the MR points retention.

    ———————————————————-

    For now though, I (and I strongly recommend to other MMS readers to follow suit) will wait until AMEX offers a substantial sign-up bonus before applying for these cards.

    ———————————————————–

    I’m a little surprised you wrote up this article the way you did – I appreciate that you disclosed the relationship with the AMEX marketing folks.

    Also, did you you “really” use the term, “reasonable” annual fee!!!!

    As I have often wrote about, I despise annual fee’s and avoid them as much as possible – I have never came across a “reasonable” annual fee – it takes away from bonus offer and with as much as the spend requirements are – the credit card companies are making a killing in credit card fees from the merchants we use. If I was a frequent traveller for business than paying the high annual fee ($450+) for airline lounge access may be worth paying an annual fee but I’m not there.

    And to quote Amy Poehler on Tina Fey as a spokesperson for AMEX – http://www.thefrisky.com/wp-content/uploads/2013/06/18/really-amy-poehler.gif

    REALLY!

    Do you “really” think for one second Tina Fey lives “everyday” like the rest of us?
    I would have been more impressed if AMEX would have used an “everyday soccer mom” type in their ad vs. some liberal Hollywood elitist like Tina Fey!

    Tina Fey has never seen the inside of a grocery store or a dry-cleaners – REALLY!

    ;-)

  6. Do you think you will be able to link the membership rewards accounts together from a blue cash preferred with one of these. That way the points I have now will be able to transfer to hotels or airlines.

  7. Last time I signed up for an Amex card for the signup bonus using your link, I received 25,000 Membership Rewards points. I was then able to sell my points to rewards2cash for $312.50

    http://rewards2cash.com/AMEX_MR?tracking=4f8fb6a3e7219

    The company has positive reviews on slickdeals, yelp, fatwallet and facebook.

  8. Hi Daraius! How good are AMEX points though? Do they transfer 1:1? To which airlines?

  9. Unless you really need AE points, go for other cards that have sign up bonuses. These should really be on the bottom of your list and if you have a business and can get more lucrative cards like the 5x bonus cards I would avoid these. There are comparable no annual fee cards. Nothing really exciting here, but always good to see an analysis from Daraius nonetheless.

  10. Will I be able to convert my AMEX Blue Cash Preferred to the AMEX Everyday Preferred? If so, what will happen to pending reward dollars I’ve earned?

  11. None of you see that the Everyday (no annual fee) card can replace the Gold, in term of no fees, keep Points, and transferable to airlines and hotels?

  12. goals^n^dreams

    I have blue Amex. Do you think that it is good to convert Amex Blue to No-annual fee EveryDay card?

  13. @MPW – You can earn 1.5 Membership Rewards points with the EveryDay Preferred card, compared to ~1.25 Starwood points on the Starwood points (assuming you transfer to airlines in increments of 20,000 points).

    @DaveS – These cards weren’t designed for folks who travel, but for folks who spend at those categories within the US. That said, I’d like to see the AMEX travel cards i.e. Gold, airline and hotel cards remove the foreign transaction fees.

    @Josh @Dave – We won’t know until it is time to apply for the cards.

    @rick – No.

    @rick – They do transfer 1:1 to many airlines. Check the link in the post to see the complete list of transfer partners.

    @DaveL – Bingo! And the EveryDay Preferred could be a stronger contender than the Premier Rewards Gold for many folks who spend money on the card.

  14. Will AMEX offer same type of rental car coverage as they do with their current cards?

  15. There are pretty much no overseas merchants that take Amex, so it seems like a non-issue that the cards have a foreign transaction fee. Your only options overseas are usually Visa and MC.

  16. I have a Delta platinum card that I don’t use anymore and annual fee goes up to $195. I think I am going to convert the card to the Everyday card without annual fee. nice!

  17. Darius, your link to view the airline partners requires an AMEX log-in. Not really helpful for non-AMEX customers.

  18. Wow, its like one giant ad for American Express. This blog is changing…

  19. B – I met Tina Fey at our local bakery – twice – so at least she buys her own bread LOL

    More important – the new card with no fees will be ideal to park one’s MR and I even will get some additional MR for that!

  20. Travelin' Tim

    C’mon guys, give Daraius a break! As someone who earned over 500k miles last year on $100K spend, the Everyday Preferred card will become my go to card for grocery/gas and non-premium spend. For at least the first year, it will be a free approach to beef up my Delta and BA balances. I’ll still use Chase Freedom for the rotating 5% categories of course, Ink Plus for it’s 5% categories and Sapphire for travel/dining. I think the Everyday Preferred is a great development. Amex will be the big winner and Chase/Citi losers on my daily spend!

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  22. @Josh, I called to see if I can convert my Amex HHonors into Everyday and they said the option was not available in the system yet. Rep had no idea when it will become available.

  23. Hi Darius;

    Kudos to your blog. I’ve learned a lot from reading your blogs. I am interested in the Everyday Preferred card. This blog states that the AF will be waived the first year. Is this something special that your link will provide? The reason I ask is the currrent A/E website offer for the Preferred card does not waive the annual fee. of $95.

    Aloha;
    Gary

  24. @Gary,

    The annual fee isn’t waived for the first year. Doesn’t matter what link you use, I think it was just an error on Darius’ part. Usually AmEx waives the annual fee for the first year, so it’ll be interesting to see if this is changed.

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