Choosing the right credit card can significantly enhance your savings when maximizing cashback on grocery purchases. Various credit cards offer attractive rewards tailored specifically for grocery shopping, making evaluating your spending habits and preferences essential. Below is an overview of some of the top credit cards that provide the most cashback on groceries.
Top Credit Cards for Grocery Cashback
1. Blue Cash Preferred® Card from American Express
- Cashback Rate: 6% at U.S. supermarkets (on up to $6,000 per year, then 1%).
- Annual Fee: $95 (waived for the first year).
- Highlights: This card is ideal for families or individuals who spend heavily on groceries. The generous cashback rate is complemented by a welcome offer that can further boost your rewards. Additionally, it offers 3% cash back on U.S. gas stations and select streaming subscriptions, making it a versatile choice for everyday spending.
2. Citi Custom Cash® Card
- Cashback Rate: 5% in your top eligible spending category (including grocery stores) on up to $500 per billing cycle (then 1%).
- Annual Fee: $0.
- Highlights: This card automatically adjusts to your spending habits, allowing you to earn higher rewards in categories where you spend the most. It’s a great option for those who may not have consistent grocery spending but want flexibility in their rewards.
3. Capital One SavorOne Cash Rewards Credit Card
- Cashback Rate: 3% on grocery store purchases (excluding superstores like Walmart and Target).
- Annual Fee: $0.
- Highlights: This card is particularly beneficial for food lovers as it also offers 3% cash back on dining and entertainment, making it a well-rounded option for those who enjoy eating out as well as cooking at home.
4. Blue Cash Everyday® Card from American Express
- Cashback Rate: 3% at U.S. supermarkets (on up to $6,000 per year, then 1%).
- Annual Fee: $0.
- Highlights: While it doesn’t offer as high a cashback rate as its Preferred counterpart, this card is excellent for those who want to avoid annual fees while still earning rewards on grocery purchases.
5. U.S. Bank Cash+® Visa Signature® Card
- Cashback Rate: Choose your categories to earn 5% cash back on the first $2,000 in combined eligible purchases each quarter (including groceries), and 2% on one everyday category like gas or dining.
- Annual Fee: $0.
- Highlights: This customizable card allows you to tailor your cashback categories based on your spending habits, which can lead to significant savings if you frequently shop at specific grocery stores.
6. Chase Freedom Flex®
- Cashback Rate: 5% on rotating categories that include grocery stores each quarter (activation required), and 1% on all other purchases.
- Annual Fee: $0.
- Highlights: The rotating categories can lead to substantial rewards during certain quarters if you plan your grocery shopping accordingly. However, this requires some attention to ensure you activate the categories.
7. Costco Anywhere Visa® Card by Citi
- Cashback Rate: 2% cash back at Costco and Costco.com.
- Annual Fee: $0 (but requires a Costco membership).
- Highlights: If you shop at Costco frequently, this card provides excellent cashback rates not only on groceries but also on gas and travel purchases.
Factors to Consider When Choosing a Grocery Cashback Card
When selecting a credit card for grocery purchases, consider the following factors:
Spending Habits
Evaluate how much you typically spend on groceries monthly and choose a card that maximizes rewards within that range.
Annual Fees
Some cards with higher cashback rates may charge annual fees. Make sure the rewards outweigh these costs.
Redemption Options
Consider how easy it is to redeem your cashback or points. Some cards offer statement credits, while others may require more complex redemption processes.
Additional Benefits
Look for cards that offer additional perks such as travel rewards, purchase protection, or extended warranties which can add value beyond just cashback.
Conclusion
Choosing the right credit card for grocery shopping can lead to significant savings over time. The Blue Cash Preferred® Card from American Express stands out with its high cashback rate at supermarkets, making it an excellent choice for frequent shoppers. However, options like the Citi Custom Cash® Card and Capital One SavorOne provide flexibility and additional benefits that might suit different lifestyles better.
Ultimately, assess your grocery spending patterns and preferences carefully before selecting a card. By doing so, you can ensure that you are maximizing your cashback rewards effectively while enjoying the convenience of credit card payments in your everyday shopping routine.
Frequently Asked Questions
Some credit cards have a cap on how much you can earn. For example, the Blue Cash Preferred® Card offers 6% cashback on up to $6,000 spent annually on groceries, after which it drops to 1%.
Most cards that offer cashback on groceries include major supermarkets, but some exclude wholesale clubs (e.g., Costco) or discount stores (e.g., Walmart). Check the card’s terms to see eligible stores.
Many cards offer cashback on both in-store and online grocery purchases, as long as the purchase is made from an eligible supermarket or grocery store.
The highest cashback on groceries is typically 6%, offered by cards like the Blue Cash Preferred® Card from American Express, though rewards vary based on your spending and card terms.
Some cards with high cashback rates on groceries, like the Blue Cash Preferred® Card, have annual fees, while others, like the Capital One SavorOne, offer lower cashback rates without fees. Consider your spending habits when choosing a card.
Grocery cashback rewards typically offer a percentage of the amount spent on groceries as cashback. For example, if a card offers 5% cashback on groceries, you will earn $5 for every $100 spent.
No, cashback rates can vary significantly between cards. Some cards may offer higher rates for specific categories or have caps on earnings, while others provide flat rates across all purchases. It’s essential to compare different options based on your spending habits.
Evaluate your typical grocery spending, consider whether you want a card with an annual fee or not, and look for cards that align with where you shop most frequently. Compare the cashback rates and any additional benefits to find a card that fits your lifestyle best.
Disclaimer:
The information provided on this blog is for general informational purposes only and does not constitute financial advice. While we strive to present accurate and up-to-date content, credit card terms, conditions, and offers are subject to change at the discretion of the card issuers. Readers are encouraged to thoroughly review and verify all terms before applying for any credit card.