Over at TBB, a commenter called The Grim Blogger wrote:
Only one major blogger has consistently said that after the first year you would need to spend $45,000 a year on the card to exceed the return of the Fidelity Amex.
Since I’m a happy Fido Amex customer and I don’t have an Arrival, I had never thought about a head-to-head breakeven with those two before. Obviously, it was time to head for Excel (which, lest you’ve forgotten, can be purchased really cheap if you have the right employer).
The Fidelity Amex has 2% cash back and no annual fee, whereas the Arrival gives you 2.22% back on travel expenditures but has an $89 annual fee. Given those numbers, let’s plot the breakeven point:
Sure enough, the breakeven point is right there at $45K in annual spending. If you spend a lot of money on this card, then it’s possible you’d be better off with the annual fee. Otherwise, I don’t know why you’d want to keep this card after the first year. I would guess the vast majority of the populace would be better off switching back to the Amex after the annual fee comes due.
And in case you’ve forgotten, you can actually get more than 2% with the Amex.
That’s all for today, have a great weekend!