Tag: Rewards cards

How does turkey with a side of rewards sound? With the best grocery credit cards, you can buy your Thanksgiving essentials and earn valuable cash back, points, or miles at the same time, bringing you extra savings to pair with your holiday cheer.

Why we like it: At 6% cash back, the Blue Cash Preferred is the ultimate rewards card for U.S. supermarket shoppers. There is a $6,000 annual cap (after which you’ll earn 1% cash back in the category), which averages out to around $500 in grocery purchases per month. If you have a large family and eat mostly at home, you may exceed that annual limit — but it is still within Americans’ average spending of just over $5,700. If you are able to meet the 6% spending limit, you’ll get up to $360 in cash back, far exceeding the card’s ongoing $95 annual fee.

Read our full review of the Amex Blue Cash Preferred Card

Why we like it: The Capital One Savor has a lot of potential value for shoppers who spend a lot on groceries. Unlike other cards on our list, there’s no cap to the amount of grocery purchases you can earn 3% cash back on each year. If you spend around the national average of $5,703, you can earn a total of $171.09 annually, even before accounting for your savings across other categories.

Read our full review of the Capital One Savor Cash Rewards Credit Card

Why we like it: For no annual fee (see rates and fees), the Amex Blue Cash Everyday’s 3% cash back at U.S. supermarkets can translate to a big rewards return each year. There is a $6,000 annual cap (after which you’ll earn 1%) — but if you spend around the average $5,703 on groceries each year you’ll be able to maximize the category and get around $171.09 back.

Read our full review of the Blue Cash Everyday card

Why we like it: With 4x Membership Rewards points at U.S. supermarkets, the American Express Gold Card is one of the best options for turning your grocery purchases into travel rewards. It’s unlikely that most shoppers will reach the $25,000 annual spending cap — which averages out to a monthly supermarket bill over $2,000. But if you do, you could earn a whopping 100,000 Membership Rewards points from this bonus category. If your supermarket purchases are closer to the average $5,703 annually, you can still rack up 22,812 points each year.

Check out all the new Amex Gold card features and benefits

The Prime Visa card may not be top of mind when you think of grocery credit cards, but for some shoppers, it can be a great way to maximize food spending. The card’s top 5% cash back rate doesn’t only apply to Amazon.com purchases — you can earn the same amount at Whole Foods Market and Amazon Fresh. So if Whole Foods is your supermarket of choice or Amazon Fresh is the grocery delivery service you use most often, you could get an unlimited 5% back on groceries (rather than work around the spending caps set by many grocery rewards cards).

Read our full review of the Prime Visa credit card

Why we like it: The biggest bonus rewards category from Chase Freedom Flex offers 5% cash back in rotating quarterly categories, up to $1,500 in combined purchases each quarter. As a result, you may only earn 5% grocery rewards during one quarter each year — over the past few years, grocery stores have consistently shown up as a quarterly bonus category.

Read more: Current Chase Freedom bonus categories

Why we like it: This card takes some strategy to maximize, but the potential value of the U.S. Bank Shopper Cash Rewards may be worth it. To start, you’ll earn 6% cash back on up to $1,500 in combined spending across two retailers you choose each quarter. Superstores like Target and Walmart are included among these choice retailers (unlike most grocery rewards cards), and this is a great option if you prefer to go grocery shopping there.

Why we like it: This card is our choice for regular monthly grocery spending because it can be ideal for grocery shoppers who have a set amount of money to put toward groceries each month. There is a $500 monthly spending cap, but it’s hard to beat the 5% you can earn up to that limit with the Citi Custom Cash. Over a year of maxing out the 5% with grocery stores as your category, you can earn up to $300 cash back. With the average $5,703 spread over a year, you could potentially earn $285.15. Just be aware of your spending and spread your grocery purchases out to not meet the monthly caps.

Read our full review of the Citi Custom Cash Card

A co-branded grocery credit card may offer even more savings if you tend to shop at the same store each week. That’s especially true if you do most of your grocery shopping at superstores or wholesale clubs — which are often excluded from earning bonus rewards with regular grocery credit cards.

Here are a few store credit cards for groceries to consider:

For no annual fee beyond your Costco membership price, you can use the Costco Anywhere Visa to earn 4% cash back on eligible gas station and EV charging station purchases (up to $7,000 per year, then 1%), 3% cash back at restaurants, 3% cash back on eligible travel spending, and 2% cash back on purchases at Costco and Costco.com. Everything else earns 1% cash back. If you already have a Costco membership and do much of your monthly shopping there, this card can help you maximize that grocery spending as well as other regular expenses.

Related: How to save on travel with your Costco credit card

Target recently revamped its Target Circle rewards program — and part of the relaunch included the Target Circle Card, which offers a lot of potential savings for frequent shoppers. You’ll earn 5% cash back at Target stores and on Target.com with the no annual fee card and, if you’re approved for the Target Mastercard version, also earn 2% cash back on dining, 2% at gas stations, and 1% cash back on all other non-Target purchases.

Read more: Target Circle 360 vs. Walmart+ and Amazon Prime

There are two primary ways that grocery credit cards can help you save money during the holidays and beyond:

1. Welcome bonuses: New cardholders are typically eligible to earn a sign-up bonus on a rewards credit card. If you’re able to meet the spending requirement, you can significantly pad your rewards balance by making purchases you were already planning, including buying groceries.

2. Everyday rewards: Apart from the welcome bonus, you can continue earning rewards on your everyday spending, including trips to the grocery store. These rewards won’t initially be as much as earning the sign-up bonus, but they’ll add up over time.

The value you get from your rewards depends on how you use them. For cash-back credit cards, you typically get a statement credit or a deposit into your bank account. You can use either redemption option to easily offset expenses during the holiday season.

For travel credit cards, you can often redeem rewards toward flights, hotel stays, or rental cars. This can take a lot of the upfront cost out of a holiday trip or a future vacation.

Between weekly hauls, restocks, and the occasional pitstop on the way home from work, grocery shopping is likely one of your biggest monthly expenses. In fact, the average cost Americans incur for food at home is $5,703 each year — nearly $500 monthly. With regular grocery bills that high, it pays — a lot — to have a grocery rewards credit card in your wallet.

Keeping multiple credit cards in your wallet can be useful for earning the best rewards and taking advantage of the best benefits on nearly every purchase you make. So if, like many Americans, supermarket spending is among your most common monthly expenses — a credit card for groceries can make a lot of sense.

There are a few reasons you may want to hold off, though. For one, if opening a new credit card encourages you to spend more than you can afford just to earn rewards, it might be more costly than budget-friendly. Many of the best grocery credit cards also require a great credit score — so if you’re still building a solid credit history, you may want to wait to apply.

Overall, comparing the potential value to your own spending at the grocery store is the best way to decide. Here are a few more factors to consider:

• Where you shop most often: If you always do your grocery shopping at the same chain, or a rotation of a few different supermarkets, make sure you can earn rewards there with your grocery credit card. Read the card’s terms before you apply to see whether any exclusions apply that may keep you from maximizing your spending.

• What type of rewards you want to earn: You can find grocery bonus categories among both cash-back credit cards and rewards credit cards that earn points and miles. Narrow down your options by deciding whether you prefer the simplicity of cash back or want to earn points that you can put toward a future travel purchase.

• How much you spend on groceries: Several of the best credit cards for groceries cap the amount you can spend before maxing out top rewards for the month, quarter, or year. Look back at your total supermarket spending over the past year to compare your totals with each card’s spending cap to secure the most value for you over the long term.

Like any credit card bonus category, the details of your grocery rewards can differ between cards and card issuers.

The language used by the issuer to refer to a card’s grocery rewards can make a big difference in your potential earnings.

For example, many grocery credit cards earn rewards solely at “grocery stores” or “supermarkets” and specify that the same bonus rewards rate does not apply to large superstores like Walmart and Target or warehouse clubs like Costco and Sam’s Club. If you prefer to complete all your shopping at your local Super Target or you’re a loyal Costco member, you’ll probably be better off with a card that earns rewards at those stores specifically.

This is also important if you use online grocery delivery. Whether you prefer Instacart, Amazon Fresh, or another grocery delivery service, you’ll want to make sure you can earn your grocery rewards while using it.

Finally, look for any restrictions on where you spend. Some grocery credit cards only earn rewards at stores within the United States. If you plan to use the card to buy food on trips abroad, you might forfeit some rewards earnings.

Read more

Spending limits are likely one of the first things that stand out when you begin comparing credit cards for groceries. You’ll often see a card offer something like 5% cash back on grocery store purchases up to the first $500 per month or 6% back on grocery store spending up to the first $1,500 per quarter.

While a spending cap can hurt your potential earnings, it’s not a reason to rule out a card altogether. In fact, the cards we compared generally have spending limits well within the amount average Americans spend on food at home each year.

What’s more important is how each card’s restrictions fit your specific grocery spending.

If you have a large family, for example, and spend well beyond the limits each year, you might want to look for a card that doesn’t have any annual limit on what you can earn — even if it does have a lower reward or cash-back rate. Or maybe your grocery spending tends to be much higher at certain times throughout the year when you eat at home more. Then, you might prioritize a card with a more flexible annual limit rather than specific monthly or quarterly limits.

Before you decide on the best credit card for the grocery stores and supermarkets where you shop most, find out more with these frequently asked questions:

Right now, two credit cards on our list offer 6% cash back on your grocery purchases. Though their reward structures are very different, both of these cards cap the total 6% rewards you can earn.

The Blue Cash Preferred Card from American Express offers 6% cash back on the first $6,000 you spend at U.S. supermarkets each year (then 1%), along with other rewards categories. The U.S. Bank Shopper Cash Rewards Visa Signature Card earns 6% cash back on the first $1,500 you spend in combined purchases each quarter with two choice retailers. While this card doesn’t explicitly have a grocery category, eligible 6% retailers do include Target and Walmart — so if you often buy groceries at those superstores, you could earn 6% on eligible spending.

When you’re looking for a new rewards credit card, it’s smart to start with your budget. Look back on past expenses over the past several months — if grocery stores and supermarkets make up a significant portion of your spending, a credit card for groceries can be a great way to save.

Many of the best credit cards with grocery rewards don’t only earn rewards on groceries, though. Take time to evaluate the other rewards categories (along with the annual fee, welcome bonus, and other details) to make sure you choose the right one for your overall budget and everyday spending.

Learn more: Which credit card is best for me? A guide to help you choose

There are several options for grocery rewards credit cards with no annual fee, especially if you’re looking for cash-back rewards. You can find more information about each one via our full list of best grocery credit cards above:

Credit card issuers often have different parameters for “grocery stores” or “supermarkets,” so it’s always a good idea to read your card’s rewards agreement to ensure you can maximize rewards where you shop most. Rewards categories also often rely on merchant category codes, which can vary by retailer.

An eligible U.S. supermarket as defined by American Express, for example, “offers a wide variety of food and household products such as meat, fresh produce, dairy, canned and packaged goods, household cleaners, pharmacy products and pet supplies.” But it does not include superstores, convenience stores, warehouse clubs, or meal kit delivery services.

Capital One, on the other hand, specifies that purchases at a supermarket, meat locker, freezer, dairy product store, or specialty market can all earn grocery rewards, but explicitly states that superstores like Target and Walmart do not count toward the category bonus. It also clarifies that grocery purchases “made at gas stations, convenience stores, warehouse clubs, discount stores, and superstores (or at grocery stores associated with discount stores or superstores,” will not earn bonus rewards for the grocery category.

While qualifying stores will often overlap, knowing exactly what counts for your specific card (and exclusions that may apply) can help you maximize your card’s rewards.

Our list of the best credit cards for groceries started by compiling all of the credit cards available from major issuers — from cash-back cards to rewards and travel credit cards — that earn grocery rewards. In total, we evaluated nearly three dozen cards for this list.

From there, we determined each credit card’s annual grocery rewards potential based on the average amount that Americans spend on food at home according to the Consumer Expenditures survey from the Bureau of Labor Statistics. As of 2022 — the most recent available data — that amount is $5,703.

We then assigned each of the potential cards a rating. The data points used for this include standard details like APR, annual fee, welcome bonus, security protections, and more. But we also included some features specific to grocery rewards, including the potential cash back earned using the BLS data and actual rewards rate.

The cards that make up our list include both the top-scoring cards overall and the cards with the top potential annual earnings. While we wanted to guarantee each of our options could help maximize grocery spending, we also included a range of annual fees, rewards types, and spending limits so that you can use your individual spending habits and goals to find the best fit for your grocery budget.

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