Best Credit Cards for Buying Groceries in 2018
Grocery spending makes up a large part of family’s budget. A family of four could spend between $500 and $1,300 per month on groceries, depending on the age of the children, according to the U.S. Department of Agriculture’s Cost of Food Report for February 2018. Even smaller families and couples could see grocery spending as high as $700 per month.
What if you could get some of that money back in the form of credit card rewards. By using the right credit card for groceries, you can rack up a sizeable amount of credit card rewards. Pick the right credit card and you can even earn rewards on other credit card purchases too.
Blue Cash Preferred From American Express
The Blue Cash Preferred American Express credit card pays the highest cash back rate on groceries of any credit card. You’ll earn 6 percent cash back at U.S. supermarkets on up to $6,000 per year in purchases. That’s $360 if you spend all $6,000 on groceries. You’ll also earn 3 percent cash back at U.S. gas stations and select departments and 1 percent cash back on everything else, including grocery purchases above $6,000 in a calendar year.
You’ll earn a $200 bonus statement credit if you spend $1,000 on purchases in the first 3 months. That automatically makes up for the $95 annual fee, for the first year at least.
Blue Cash Everyday Card From American Express
If the idea of a $95 annual fee turns you off, the Blue Cash Everyday Card from American Express may look better in your wallet. The card pays 3 percent cash back at U.S. supermarkets on up to $6,000 per year in purchases—$180 in total if you spend $6,000 on groceries. You’ll earn 2 percent cash back at U.S. gas stations and select departments and 1 percent cash back on everything else, including grocery purchases above $6,000 in a calendar year.
Earn a $150 bonus statement credit if you spend $1,000 on purchases in the first 3 months.
Amazon Prime Rewards Visa
With the Amazon Prime Rewards Visa, you’ll earn 5% back on Amazon.com and Whole Foods Market purchases, plus 2 percent back at restaurants, gas stations, and drugstores, and 1 percent back on everything else.
Amazon Prime members in select regions will give you access to Prime Pantry, a store where you can shop for groceries and household products. Use your Amazon Prime Rewards Visa on these grocery purchases and earn 5 percent back.
There’s no annual fee, but you must have a Prime membership to be approved for the credit card. Prime Membership currently costs $49 per year for students and $99 per year for everyone else. You’ll have to spend enough to offset the Prime Membership cost for the credit card to be worth it.
Bank of America Cash Rewards Credit Card
Earn 3 percent back on gas and 2 percent back on groceries and wholesale clubs on the first $2,500 in combined grocery, gas, and wholesale club purchases each quarter; then 1 percent back on everything else.
If you have a bank or investment account with Bank of America or Merrill Lynch you can earn up to a 10 percent bonus on your rewards. And if you maintain a balance of $20,000 or more in one of those accounts, the cash rewards rate skyrockets to 25 percent to 75 percent depending on your balance.
As a signup bonus, you can earn $150 if you spend $500 in the first three months of opening your account. Plus, enjoy a 0 percent introductory APR for the first 12 billing cycles on purchases and balance transfers made within the first 60 days. There’s no annual fee.
Chase Freedom Unlimited
The Chase Freedom Unlimited makes cash rewards simple. All purchases—including grocery purchases —earn 1.5 percent unlimited cash back with no annual fee. You can receive a $150 bonus after you spend $500 on purchases in the first 3 months of opening your account. If you’re a big grocery spender, you can earn the signup bonus within just a month or two. There’s no minimum redemption amount for your cash back, you can redeem at any time, and your rewards never expire as long as your account is open and in good standing.
If you have another Chase credit card, like the Chase Sapphire Preferred for example, you can combine you rewards to increase their value. Note that to be eligible for the signup bonus you must not have received another bonus from Chase within the past 24 months.
Enjoy 0 percent introductory APR for 15 months on purchases and balance transfers. After that, the regular APR is 16.24 percent to 24.99 percent. Keep in mind balance transfers don’t earn rewards and any balance you transfer reduces your available credit and makes it harder to meet the spending requirement for the signup bonus.