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Update: Some offers mentioned below are no longer available. View the current offers here – American Express Cash Magnet® Card
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 card holders $150 after they spend $1,000 in the first three months.
The value proposition of the Cash Magnet card is pretty straightforward: Earn cash back with no annual fee (See Rates & Fees). 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 15.24% to 26.24%. (See Rates & Fees)
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, (See Rates & Fees) so it’s not a good choice when you’re traveling overseas.
With 1.5% back on 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 an 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.
Featured photo by dolgachov/Getty Images.
For rates and fees of the Amex Magnet card, please click here.
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NEW INCREASED OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel