Is the New AMEX Gold Card Worth the Increased Annual Fee?
The American Express (AMEX) Gold card has long been a favorite among cardholders, and it is celebrated for its ability to earn valuable rewards on everyday spending, particularly for groceries and dining. However, unlike some of its competitors with low or no annual fees, the AMEX Gold card comes with a hefty annual fee for its category. Recently, AMEX revamped the card, raising the annual fee and altering its benefits. So, is the card still worth keeping despite the higher cost? Let's dive into the details:
AMEX has given its popular Gold card a makeover, upping the annual fee and tweaking its benefits.
Sign-Up Bonus & Multipliers
Currently, the AMEX Gold card offers a generous welcome bonus of 60,000 Membership Rewards (MR) points after spending $6,000 in the first six months. Additionally, new cardholders can enjoy 20% back on restaurant purchases worldwide during this period, though the rebate is capped at $100. This offer is available until November 6, 2024. Valuing MR points at 2 cents each, the welcome offer equates to an impressive $1,300.
The AMEX Gold card has an increased sign-up bonus for new card members. Photo by AMEX.
When it comes to earning potential, the card shines with 4 MR points per dollar on restaurant purchases worldwide (up to $50,000 annually), and 4 MR points per dollar at U.S. supermarkets (up to $25,000 annually). Beyond these limits, the earning rate drops to 1 MR point per dollar. Additionally, you’ll earn 3 MR points per dollar on flights booked directly with airlines or through the AMEX Travel portal, while all other purchases yield 1 MR point per dollar.
Annual Fee & Benefits
The card's annual fee has increased to $325, a $75 hike from its previous rate. With this increase, AMEX has introduced several revamped benefits.
$120 Dining Credit
The AMEX Gold card provides a $10 monthly dining credit, totaling $120 annually. However, the credit is limited to specific merchants, including Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Notably, Shake Shack is no longer on the list, and only U.S. purchases qualify. The credits expire at the end of each month and do not roll over. Enrollment is required to activate this benefit, which can be done on AMEX’s website.
Sadly, Shake Shack is off the list, but Five Guys has stepped in to take its place. Photo by Thomas Habr on Unsplash.
$120 Uber Cash
Similarly, the card offers a $10 monthly Uber credit, adding up to $120 annually. This credit can be used for Uber rides or Uber Eats orders, but like the dining credit, it’s only valid in the U.S. and doesn’t roll over. Cardholders don’t need to pay with their AMEX Gold card; they just need to link it to their Uber account to receive the credit. For those living in cities, the monthly Uber credit is easy to use, whether it’s for a ride or food delivery.
The monthly Uber Cash can be redeemed for either Uber rides or Uber Eats orders. Photo by Kai Pilger on Unsplash.
$84 Dunkin’ Credit
One of the new perks is the Dunkin’ credit, which offers a $7 monthly credit, totaling $84 annually. While the new Dunkin’ credit may be appealing for Dunkin’ fans, it’s less valuable for those living in areas where Dunkin’ locations are scarce, particularly in the West and Midwest. The benefit is clearly designed with Dunkin’s stronghold on the East Coast in mind, which might leave some cardholders feeling shortchanged.
For those living beyond the East Coast, Dunkin' isn't always readily available. Photo by Isabella Fischer on Unsplash.
$100 Resy Credit
Another new benefit is the $100 Resy credit, split into two $50 credits each year. To take advantage, cardholders must dine at one of the Resy-listed restaurants and pay with their AMEX Gold card. While Resy is growing in popularity in major cities, those in rural areas might find it difficult to utilize the new Resy perk. However, the biannual redemption period offers some flexibility.
Card members living in big metropolitan areas shouldn't have trouble making the most of the Resy benefit. Photo by Stefan Johnson on Unsplash.
Other Benefits
The AMEX Gold card also provides a suite of travel protection perks, including secondary car rental insurance, travel insurance, and luggage insurance. Cardholders can enroll in ShopRunner for complimentary two-day shipping at eligible online stores. When staying two or more nights at select boutique hotels in AMEX’s Hotel Collection, cardholders can enjoy benefits such as a $100 hotel credit (often for dining or spa services), room upgrades, and late checkout, subject to availability.
Is the AMEX Gold Card’s New Annual Fee Worth It?
If you can fully leverage every benefit of the AMEX Gold card, the credits alone can exceed the new $325 annual fee, potentially offering over $400 in value. However, if you’re going out of your way to use these perks, their value diminishes. For most people, it’s challenging to exceed the 4X MR points thresholds on dining and groceries, meaning the card is best suited for those who spend heavily in these categories and can maximize the new benefits. If you're not taking full advantage of all the perks, the AMEX Gold card might not be worth the newly increased $325 annual fee, even with the added benefits.
