American Express Cash Magnet Review

American Express just launched a cash back card that earns 1.5% on everything to compete with cards like the Chase Freedom Unlimited and the Bank of America Travel Rewards card. 

The Amex Cash Magnet is a credit card, not a charge card. If you don't qualify for the bonus, the new welcome bonus qualification tool should pop up

American Express Cash Magnet

  • Annual fee: $0
  • Signup bonus: $150 after you spend $1,000 within the first three months of account opening
    • Earn $150 when you spend an additional $6,500
  • 1.5% Unlimited cash back on everything

$300 Signup Bonus

Although the signup bonus is advertised as $300, you'll need to spend $7,500 within the first year to earn $300.

  • Tranche 1: $150 / $1,000 = 15% Return On Spend (ROS)
  • Tranche 2: $150 / $6,500 = 2.3% ROS
  • Total (Blended): $300 / $7,500 = 4% ROS

The American Express Cash Magnet is a mediocre card in my book because there are better alternative cards out there that offer a $150 signup bonus after $500 in spend within the first three months of account opening. 

The Amex Cash Magnet also earns cash back only, and not Membership Rewards points. 

Is the Amex Cash Magnet Worth It?

If you want to see if the Amex Cash Magnet is worth it for you, enter your numbers in the calculator below.

Instructions: 

  1. Access the calculator here: http://bit.ly/2JGeqFm
  2. Make a Copy or Download As
  3. Enter your numbers in the YELLOW cells

Alternatives to the Amex Cash Magnet

Instead of getting the Amex Cash Magnet, there are a few card setups that might be a better alternative based on if you want purely cash back or travel.

You can view credit card offers by going to the "Credit Card Offers" tab. Find offers for the respective cards in "Cash Back Credit Cards" and "Point Rewards Credit Cards." You don't have to use our links, but we're grateful when you do. Thank you for supporting AskSebby!

Pure Cash Back Setup (Not interested in travel at all):

  1. Citi Double Cash = 2% on everything (no cap)
  2. Ducks Unlimited = 5% on gas (no cap)
  3. American Express Blue Cash Everyday = 3% on supermarkets (on up to $6,000)
  4. Barclays Uber Visa = 4% on dining + 3% on hotel/airfare (no cap)

* no annual fees for any of these cards

Chase Trifecta Setup (Travel now or in the future):

  1. Chase Freedom = 5x points on rotating categories each quarter your activate
  2. Chase Freedom Unlimited = 1.5x on everything
  3. Chase Sapphire Preferred = 2x on dining and travel OR
  4. Chase Sapphire Reserve = 3x on dining and travel

The core Chase products earn Ultimate Rewards points which are worth 1 cents per point (5x = 5%) at a minimum. UR points can be worth up to 2 cents if you're savvy (5x = 10%). Learn more about the Chase Trifecta in this post