Let's just get to the point: The American Express® Gold Card is one of the best options out there for your everyday spending, and maybe one of the best travel rewards cards, period.
It earns 4x Membership Rewards points at U.S. supermarkets (up to $25,000 spent each year) and 4x Membership Rewards points at restaurants. While other cards may offer higher bonuses on different spending categories, no single credit card can outpace the Amex Gold Gold card for what comprises such a large portion of our expenses. We all need to eat, right?
Further, it is currently offering a welcome bonus of 60,000 Membership Rewards points after spending $4,000 on eligible purchases in the first six months of card membership.
But with these and other lucrative benefits the card provides, The Amex Gold Card annual fee clocks in at $250 (see rates & fees), and is not waived for the first year of card membership. So let's dive into the card and see whether or not it's worth that price tag.
Read More: Amex Membership Rewards Points: A Guide to Earning & Burning in 2022
Click Here to learn more about the American Express Gold Card.
American Express Gold Card Benefits
American Express updated the benefits of the Gold card back in 2018, and in my opinion, they knocked it out of the park with the updates on the Amex Gold Card.
Here's the full breakdown:
- Earns 4x points per dollar spent at Restaurants
- 4x points per dollar spent at U.S. supermarkets on up to $25,000 per calendar year (Then 1x)
- 3x points per dollar spent directly with airlines or at amextravel.com
- Up to a $120 annual dining credit which is split up in $10 monthly amounts for charges at GrubHub, The Cheesecake Factory, Wine.com, Milk Bar, Goldbelly, and participating Shake Shack locations.
- The Amex Gold Card also offers $120 in Annual Uber Credits split up into $10 monthly amounts. These can be used for Uber rides or for Uber Eats food delivery.
- Amex Gold cardholders get a free year of Uber Eats Pass – Uber Eats' paid membership with unlimited $0 delivery fees, 5% off all food deliveries over $15 on eligible restaurant deliveries.
- The Amex Gold Card Annual Fee of $250 and is not waived for the first year (see rates & fees)
Click Here to learn more about the American Express Gold Card.
Is the Amex Gold Card Annual Fee Worth It?
The annual fee on my American Express Gold Card recently came due. And as I do with all the cards I carry, I make sure to do the math to make sure it still makes sense to pay an annual fee. As long as I am getting more value out of a credit card than the annual fee, I will keep it open. If I am not, I'll simply close the card.
I originally opened the card because of how valuable I think it is for both restaurant and grocery store spending. It's the leader in the points and miles world for both of those categories and thus I think it is a great option for many.
But am I really getting that much benefit out of it? There are five main benefits on the card that needed a closer look, so let's break them down.
Read More: Amex Gold vs Chase Sapphire Preferred: Which Credit Card is Right for You?
$120 Annual Dining Credit
One of the benefits to the Amex Gold Card that needs to be considered when weighing the $250 annual fee is the $120 annual dining credit. The credits are split up in $10 monthly increments for charges at GrubHub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar, & Participating Shake Shack locations.
It is a use it or lose it credit: If you don't use the $10 in a given month, it doesn't roll over.
I value this benefit at face value as both GrubHub and Seamless offer food delivery service where I live. Ordering lunch or dinner once a month from either of these services hasn't been an issue and I used my $10 credit each and every month of my first year with the card.
Total Benefit Value: $120
$120 Annual Uber Credit
Starting in early 2021, you will receive $120 toward Uber rides or food delivery on Uber Eats. You will be issued $10 each month for a total of $120 each year.
You must use the full credit each month or you will lose any remaining value. The credits do not carry over from month to month. And even if you don’t often take Uber rides, the credit can also be used on UberEats, Uber’s food delivery platform. If Uber eats is available in your area, it makes it relatively easy to maximize this benefit each and every year.
This is identical to the $200 annual Uber credit that is offered on the Platinum Card from American Express.
Additionally, Amex Gold, Green, & Platinum cardholders get a free year of Uber Eats Pass – Uber Eats' paid membership with unlimited $0 delivery fees, 5% off food deliveries over $15 at eligible restaurants. Enrollment is required by 12/31/2021.
Similar to the $10 dining credit ($120) annually, I don't foresee any issues taking advantage of this credit. And because of that, I value this benefit at $120.
Total Benefit Value: $120
4x Membership Rewards at Restaurants
One of my favorite benefits of the American Express Gold Card is that it earns 4x Membership Rewards points at restaurants. This is a category I spend a decent amount of money on each year, so it has a lot of appeal to me. There isn't another credit card out there that provides this kind of return on restaurant spending.
I value Membership Rewards points very highly. Not only can you transfer them to a number of partner airlines like Delta, Singapore Airlines, etc., but you can also sometimes transfer to partners with a transfer bonus as is often the case with Virgin Atlantic transfers.
For the sake of this analysis, let's say each Membership Rewards point I earn is worth 1 cent each – a very conservative valuation. And let's also assume that my wife and I spend $100 a week at restaurants, on average.
- Weekly restaurant spend: $100
- X 52 Weeks in a year = $5,200
- X 4 Membership Rewards Points = 20,800
- X .01 (Membership Rewards Point Valuation) = $208
Total Benefit Value: $208
4x Membership Rewards at U.S. Supermarkets
Another great benefit of the Amex Gold Card is that it earns 4x Membership Rewards points at U.S. supermarkets (up to $25,000 annually, then 1x). It is our choice as the best credit card for grocery store spending.
Again, my wife and I spend a decent amount on groceries, so the 4x multiplier goes very far.
As mentioned above, we will value Membership Rewards points at 1 cent each for this analysis, as you should always be able to get at least that amount for them. I will also assume for the sake of this analysis that my wife and I spend on average $125 a week at U.S. supermarkets.
- Weekly Supermarket spend: $125
- X 52 Weeks in a year = $6,500
- X 4 Membership Rewards Points = 26,000
- X .01 (Membership Rewards Point Valuation) = $260
Total Benefit Value: $260
Final Valuation
Is the American Express Gold Card annual fee worth $250? For me, the answer is a clear yes, though that will be different for everybody. Even though I am not eligible to earn the welcome bonus in my second year of card membership, there is still huge value in holding this card.
From my analysis above, I estimate that I can squeeze $538 of value out of the card each year. That is $288 more than the $250 annual fee. As long as that number is larger than the annual fee, I will continue to keep this card in my wallet.
The Amex Gold card is currently offering a welcome bonus of 60,000 Membership Rewards points after spending $4,000 in the first six months of card membership. But make sure to check CardMatch. You could be targeted for a 75,000 point offer for the same spending requirement.
So if you haven't yet had the card, and you are eligible for the welcome bonus, the value of the card for the first year is even better. Using the same valuations from my analysis above, you can fairly easily squeeze over $1,000 in value out of the card for the first year.
Bottom Line
We always encourage our readers to do the math before ruling out cards with larger annual fees. While it's never fun to pay a big annual fee, you may be able to get far more value out of that card than the payment.
While the Amex Gold card annual fee is $250, I can fairly easily come out ahead by keeping it open as long as my spending habits remain similar. If you are eligible for the welcome offer bonus, that number gets even better for the first year.
Click Here to learn more about the American Express Gold Card.
Does the dining credit accumulate or does it expire if unused at the end of each month like the Platinum Uber credit?
It expires just like the Platinum Uber credit. Use it or lose it.