As a premium version of the regular SimplyCash Card from American Express, the SimplyCash Preferred Card has everything you love about the former, only better. Unlimited earning potential combined with a 2% cashback rate on any purchase, no strings attached, is one of the best offers you’ll find for a cashback card in the market. Of course, these extra benefits aren’t free, and the card comes with an annual fee of $99, but they’re worth far more than that, even after the first year of card membership.
As an added bonus, you get a welcome cashback rate of 5% on the first $6,000 in purchases (equivalent to $300 cashback) during the first six months of card membership. This welcome rate alone is worth an extra $180, almost doubling the annual fee.
If you’re looking for a great cashback card you can use anywhere without having to worry about purchase categories, with the best possible earning potential and that includes great premium Amex perks like travel and purchase insurance, this is the one!
This SimplyCash Preferred Card review is broken down into the following sections, to make it easier to read:
Table of Contents
Pros and Cons of the SimplyCash Preferred Card From American Express
In the following table, you’ll find a list of the most important things you’ll love about this card, as well as the things you need to be aware of when signing up.
| • Welcome cashback rate of 5% worth up to $180|
• The best flat-rate cashback on all purchases of any cash card in the market
• Limitless earning potential at the base rate
• Balance transfer offer to help you save on interests while paying your debts with other credit cards
• Great travel and purchase insurance package
• Referral bonus of $150 per approved SimplyCash Preferred Card, with a maximum of $2250 per year
| • You’ll only get the cash back reward once a year|
• Cashback rewards are only redeemable for a statement credit. There’s no option for a check or a deposit
Features and Benefits Of The Amex SimplyCash Preferred Card
|Welcome Cashback Rate||5% on the first $6,000 in purchases during the first 6 months of card membership|
|Base Cashback Rate||2% on all purchases without a cap|
|Additional Card Fee||Up to 9 supplementary SimplyCash Preferred Cards for free|
|Travel Insurance Coverage|| • $5,000,000 Emergency Medical Insurance|
• $100,000 Travel Accident Insurance policy
• Lost or Stolen Baggage Insurance
• Flight and Baggage Delay Insurance
• Hotel/Motel Burglary Insurance
• Car Rental Theft and Damage Insurance
|Purchase Insurance|| • Buyers Assurance Protection Plan|
• Amex Purchase Protection Plan
|Optional Balance Transfer Offer|| • Introductory Interest Rate of 1,99% for the first 6 months|
• Transfer up to 50% or $7,500 of your assigned credit limit
• No Balance Transfer fee
|Type of Card||Credit Card|
|Preferred Interest Rate|| • 19,99% on purchases|
• 22,99% on funds advances
|Eligibility|| • You are a Canadian Citizen or Resident|
• You are the age of majority in your state or province
• You have a Canadian Credit File
Ok. That was just an overview, but what does it all mean? Keep on reading to learn all the details behind each of these features and benefits, and, most importantly, find out what they mean to you.
How Does The SimplyCash Preferred Card’s Cashback System Work?
If you already read our post on the no-fee SimplyCash Card, then this section won’t shed light onto anything new. In that case, you can jump to the next section regarding the SimplyCash Preferred Card’s annual fee.
If not, then keep on reading!
Cashback is the easiest to understand credit card rewards system. You simply use your card to pay for purchases, and Amex rewards you by giving you back part of the total purchase you made.
But, how does Amex give it back?
It’s very simple. When you use your card, you accumulate cashback rewards and every September, American Express will give you all you have accumulated in the form of a statement credit. You can then use this statement credit to pay off your cards balance. In other words, The SimplyCash Preferred Card’s rewards system is intended to help you pay for the purchases you make with your card.
The fact that you can only redeem your rewards for a statement credit, and the fact that you can only get that statement credit once a year, are the only real downfalls of both the SimplyCash and the SimplyCash Preferred Cards.
However, American Express more than makes up for these downfalls by offering great earning rates as well as unlimited earning potential.
The SimplyCash Preferred Card’s Annual Fee
Since it’s a premium card, then the American Express SimplyCash Preferred Card comes with an annual fee. This fee, which is $99, gets you more than twice the earning potential and a handsome set of insurance policies that’ll let you save tons when you travel.
As far as annual fees go, $99 isn’t a big sum. In fact, it’s below middle ground between the less expensive and the ultra-premium cards Amex offers. Still, for it to make sense to pay the fee, even if it is small, you want to make sure that it’s worth it. I can tell you up front that it is, but you’ll have to read on to find out why.
If you’re looking for a no-fee cashback card, I definitely recommend you go for the regular SimplyCash Card. However, keep in mind that being free also means a lot less benefits and, in that case, a lot less earning potential.
Having gotten the fee out of the way, let’s take a look at all the things you’ll get for the yearly $99.
American Express SimplyCash Preferred Benefit #1: The Welcome Cashback Rate
There are many different cashback cards out there, and to compare which one is better, the first thing you have to look at is how much they’ll give you back for your purchases. In other words, you need to compare the cash back rate. The Amex SimplyCash Preferred Card comes with two earning rates: A welcome rate when you sign up to the card for the first time, and the card’s regular base rate.
In the following paragraphs we’ll discuss the SimplyCash Preferred Card’s welcome cashback rate.
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When you sign up for the SimplyCash Preferred Card from American Express for the first time, you’re entitled to a welcome cashback rate of 5% during your first six months of card membership. This is probably one of the best earning rates on cashback cards you’ll find, but it’s capped at the first $6,000 of purchases. Additionally, the rate only applies during the first six months after you sign up.
What do these numbers tell us?
Basically two things:
- The most you can earn in cashback rewards with the welcome rate is $300 (5% of $6,000)
- You need to charge a minimum of $6,000 to your SimplyCash Preferred Card during the first 6 months to get the maximum possible bonus cashback reward.
Compared to the regular SimplyCash Card, this welcome rate is much better for a couple of reasons.
The first one is obvious: the welcome rate is twice the welcome rate of the SimplyCash Card, so you’ll earn cashback twice as fast.
The second one is that you get twice the length of time to charge the $6,000 in purchases needed to reach the maximum “welcome bonus” of $300. This means that instead of having to charge an average $2,000 a month for three months, as with the Amex SimplyCash Card, you only need half of that in monthly purchases with the Preferred Card.
The bottom line is that, with the Amex SimplyCash Preferred Card, you can get twice the cashback reward with half the pressure.