Amazon Prime Day is scheduled for June 21-22 this year. Here are the best credit cards to use to boost your savings even further.
Amazon Prime Day is nearly upon us once again. In 2020, the COVID-19 pandemic delayed the event from its customary mid-July time frame until mid-October. This year, it’s going to be held in June for the first time. Here are my top cash back credit card recommendations to help you maximize your Prime Day rewards.
Where better to start than Amazon’s own co-branded card? It normally gives an unlimited 5% cash back at Amazon.com and Whole Foods Market. On June 21 and 22, that will go up to 6% cash back. There’s also a 10% cash back offer on select small business brands between June 7 and June 20.
You have to be an Amazon Prime member to get this card (and to access Prime Day deals). New cardholders get a $100 Amazon.com gift card upon approval. All cardholders also get 2% cash back at restaurants, gas stations and drugstores and 1% everywhere else.
There’s the Amazon Prime Store Card, too. That gives prime members 5% cash back at Amazon.com (6% during the Prime Day sale), but not at Whole Foods. There’s also a secured version of that card, the Amazon Prime Store Card Credit Builder, for people who are building or rebuilding their credit and unable to qualify for the traditional (unsecured) versions.
All three of these cards have versions for non-Prime members as well.
The Prime Day angle here is for new card members – this card offers them 20% cash back on Amazon.com purchases (up to $200 in rewards) in their first six months. If you’re planning to spend a lot at Amazon.com on Prime Day or in the months to follow, this card is an excellent choice. And even though you usually earn just 1% cash back when you use the Blue Cash Preferred at Amazon.com, there’s a lot to like about the card.
It gives 6% cash back at U.S. supermarkets (up to $6,000 in annual purchases, then 1% cash back after that). Cardholders also get 6% cash back on select U.S. streaming subscriptions, 3% at U.S. gas stations and on transit and 1% on other purchases. Besides the Amazon.com promotion, new cardholders also get a $150 statement credit after spending $3,000 in their first six months. The Blue Cash Preferred has a $0 introductory annual fee for the first year, then $95.
Similar to the Blue Cash Preferred but without an ongoing annual fee, the Blue Cash Everyday also offers new cardholders 20% cash back at Amazon.com in their first six months. It has a slightly lower cap ($150 in rewards). Plus, newbies earn a $100 statement credit after spending $2,000 in their first six months.
All cardholders get 3% cash back at U.S. supermarkets (up to $6,000 in annual purchases, then 1% cash back after that), 2% at U.S. gas stations and select U.S. department stores and 1% elsewhere.
This flexible offering allows cardholders to select their 3% cash back category every month. One of the potential selections is online shopping, which would be an excellent choice for Prime Day devotees. Note that there’s a quarterly $2,500 limit (combined) on the 3% category of your choosing and the 2% categories (which are grocery stores and wholesale clubs). Other purchases earn 1% cash back.
These percentages can increase by 25%, 50% or even 75% thanks to Bank of America’s Preferred Rewards program. To qualify, you need to have at least $20,000, $50,000 or $100,000 in eligible deposits/investments, respectively, with Bank of America or its subsidiary Merrill Lynch. That means the 3% cash back category could pay out 3.75%, 4.5% or even 5.25%.
By combining store promotions such as Amazon Prime Day with the right rewards credit card, you can stack your savings even higher. Remember that credit card rewards only make sense if you can pay your bills in full and avoid interest.
If these cards don’t sound quite right for you, consider putting your Prime Day spending on another new card with a lucrative sign-up bonus. You normally have to spend at least a few hundred dollars in the first few months to earn the bonus – sometimes even a few thousand bucks. We’re currently seeing record-high bonuses on cards such as the Chase Sapphire Preferred Card and the Capital One Venture Rewards Credit Card.
If it’s money that you would have spent anyway and you won’t pay interest on it, then credit card rewards are a fantastic perk. You can turn the points or miles you earn on Prime Day into a fabulous trip or a cash back windfall.
Have a question about credit cards? Email me at email@example.com and I’d be happy to help.