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If you’re looking to earn cash back on your spending without paying an annual fee, the recently launched American Express Cash Magnet™ Card offers 1.5% cash back on all purchases, and it’s currently offering new cardholders $150 after they spend $1,000 in the first three months, plus another $100 when they spend an additional $6,500 in the first 12 months.
The value proposition of the Cash Magnet card is pretty straightforward: Earn cash back with no annual fee. If you need to carry a balance, note that the card has a 0% intro APR on purchases and balance transfers for 15 months, after which it’ll be a variable rate from 14.99% to 25.99%.
The Cash Magnet card also comes with other benefits, including car rental insurance, travel accident insurance, ShopRunner membership and purchase protection, as well as access to the Amex Offers program. The card features Amex’s “Pay It Plan It” program, which is a way to pay off individual items that cost more than $100 over a period of three to 24 months without interest but with a fixed monthly fee. Finally, the card charges a 2.7% foreign transaction fee, so it’s not a good choice when you’re traveling overseas.
With 1.5% back on all spending, the Cash Magnet is an obvious competitor to the Chase Freedom Unlimited, which offers an identical earning structure and also doesn’t charge an annual fee. However, with the Chase card, you have the option to redeem your rewards as transferrable points provided you have an Ultimate Rewards card to transfer the cash back to, whereas with the Cash Magnet card, you’ll be locked in to redeeming your cash back as statement credits or toward gift cards and merchandise.
The Cash Magnet card earns 1.5% back on all purchases, which is respectable though not the highest you can get with a cash-back card. The Citi Double Cash Card takes the cake there, with 1% cash back when you buy and 1% back when you pay your bill, and the Chase Freedom Unlimited also has a slight advantage for rewards-minded users, since they can actually redeem their cash back with travel partners once they transfer rewards over to a Ultimate Rewards card. But the sign-up bonus isn’t bad for a cash-back card with no annual fee, so if you’re looking to put some money in your purse or wallet, the Amex Cash Magnet’s not a bad way to go.
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- Earn up to $250 back. Here's how: Earn a $150 statement credit after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.
- Plus, earn an additional $100 statement credit after you spend an additional $6,500 in purchases within your first 12 months.
- Unlimited 1.5% Cash Back on your purchases.
- Cash Back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
- Low intro APR: 0% for 15 months on purchases and balance transfers, then a variable rate, currently 14.99% to 25.99%.
- With Plan It℠, you can set up a monthly payment plan for large purchases with a fixed monthly fee and no interest charges, all with the same rewards and protections you expect from American Express.
- Over 1.5 million more places in the U.S. started accepting American Express® Cards in 2017.
- No Annual Fee.
- Terms Apply.
- See Rates & Fees