Grocery shopping is a necessity, and for most households, it represents a significant portion of their monthly budget. Optimizing your spending on groceries can lead to substantial savings over time. One of the smartest ways to do this is by using a credit card that offers rewards specifically tailored to grocery purchases. Choosing the right card can translate into significant cash back, points, or miles, helping you stretch your grocery budget further.
This guide provides a comprehensive overview of the best credit cards for groceries in 2024, helping you make an informed decision based on your spending habits and financial goals. We'll delve into the rewards structures, annual fees, and other benefits to help you find the perfect card to maximize your grocery savings.
| Card Name | Rewards Rate on Groceries | Key Benefits & Notes |
|---|---|---|
| American Express® Gold Card | 4x Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1x). | High rewards rate, valuable Membership Rewards program, monthly dining credits, annual fee applies. Best for those who can maximize the spending cap and value the Amex ecosystem. |
| Blue Cash Preferred® Card from American Express | 6% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). | High cash back rate, streaming service credits, annual fee applies. A strong choice for those who spend heavily on groceries and streaming. |
| Capital One SavorOne Cash Rewards Credit Card | 3% Cash Back on groceries, dining, entertainment, and streaming services. | No annual fee, broad rewards categories, good for everyday spending. A solid all-around card with a decent grocery rewards rate. |
| Chase Freedom Flex℠ | 5% Cash Back on rotating quarterly categories (usually includes grocery stores, up to a quarterly maximum). | Rotating categories require activation, no annual fee, good for maximizing limited-time offers. Requires active management to maximize rewards. |
| Chase Sapphire Preferred® Card | 2x points on travel and dining, including eligible delivery services, and select streaming services. 1 point per dollar spent on other purchases. | Points are worth more when redeemed for travel through Chase Ultimate Rewards, annual fee applies. Great for those who prioritize travel rewards. |
| Citi Custom Cash® Card | 5% Cash Back on your highest spending category each billing cycle (up to $500 spent, then 1%). | Automatically adjusts to your top spending category, no annual fee. Useful if grocery spending is consistently your highest category. |
| U.S. Bank Shopper Cash Rewards™ Visa Signature® Card | Choose two retailers to earn 6% cash back on (on up to $1,500 in combined quarterly purchases), plus 2% cash back on your choice of everyday category. | Customizable rewards, requires active selection of categories, annual fee may apply. Can be highly rewarding if you frequently shop at the selected retailers. |
| Discover it® Cash Back | 5% Cash Back on rotating quarterly categories (often includes grocery stores, up to a quarterly maximum). | Rotating categories require activation, no annual fee, often offers a first-year cash back match. Similar to Chase Freedom Flex, requires active management. |
| Wells Fargo Active Cash® Card | 2% Cash Back on all purchases. | Simple, flat-rate rewards, no annual fee. A straightforward option if you prefer simplicity over maximizing specific categories. |
| Amazon Prime Rewards Visa Signature Card | 5% Back at Amazon.com and Whole Foods Market with an eligible Prime membership. | Requires Amazon Prime membership, good for Amazon and Whole Foods shoppers, no annual fee. Best for those who already have Prime and frequently shop at Whole Foods. |
Detailed Explanations
American Express® Gold Card: This card is a powerhouse for earning points on groceries. You'll earn 4x Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1x). The Membership Rewards program is highly valued for its transfer partners, allowing you to redeem points for travel with airlines and hotels. The card also offers monthly dining credits, adding to its overall value. However, it comes with an annual fee, so it's best suited for those who can maximize the bonus categories and appreciate the Amex ecosystem.
Blue Cash Preferred® Card from American Express: If you're looking for cash back specifically, the Blue Cash Preferred® Card is a strong contender. It offers 6% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). It also includes streaming service credits, further offsetting the annual fee. This card is a great choice for families who spend a significant amount on groceries and streaming services.
Capital One SavorOne Cash Rewards Credit Card: The SavorOne card provides a balanced approach to rewards. You'll earn 3% Cash Back on groceries, dining, entertainment, and streaming services. The key advantage is that it has no annual fee. This makes it an excellent everyday card for those who want to earn rewards across multiple popular spending categories without paying an annual fee.
Chase Freedom Flex℠: This card is known for its rotating quarterly categories, which often include grocery stores. You can earn 5% Cash Back on these categories, up to a quarterly maximum. However, you need to remember to activate the bonus categories each quarter. This card is a great option for those who are willing to actively manage their credit card rewards to maximize their earnings. It also comes with no annual fee.
Chase Sapphire Preferred® Card: While not specifically a grocery rewards card, the Chase Sapphire Preferred® Card offers 2x points on travel and dining, including eligible delivery services, and select streaming services. The real value lies in the Chase Ultimate Rewards program. Points are worth more when redeemed for travel through Chase Ultimate Rewards, and you can transfer them to various airline and hotel partners. This card is ideal for those who prioritize travel rewards over cash back. It does have an annual fee.
Citi Custom Cash® Card: The Citi Custom Cash® Card offers a unique rewards structure. You'll earn 5% Cash Back on your highest spending category each billing cycle (up to $500 spent, then 1%). This means that if groceries are your highest spending category in a given month, you'll automatically earn 5% back. The card has no annual fee, making it a flexible option for those whose spending habits vary from month to month.
U.S. Bank Shopper Cash Rewards™ Visa Signature® Card: This card allows you to choose two retailers to earn 6% cash back on (on up to $1,500 in combined quarterly purchases), plus 2% cash back on your choice of everyday category. The customization is a significant benefit, but it requires active selection of categories. An annual fee may apply. This card can be highly rewarding if you frequently shop at the selected retailers.
Discover it® Cash Back: Similar to the Chase Freedom Flex℠, the Discover it® Cash Back card offers 5% Cash Back on rotating quarterly categories (often includes grocery stores, up to a quarterly maximum). You'll need to activate the bonus categories each quarter. Discover often offers a first-year cash back match, making it even more rewarding in the first year. It has no annual fee.
Wells Fargo Active Cash® Card: If you prefer a simple, straightforward rewards structure, the Wells Fargo Active Cash® Card is a good choice. It offers 2% Cash Back on all purchases, including groceries. There's no need to worry about bonus categories or annual fees. This card is ideal for those who want a flat-rate rewards card without any complications.
Amazon Prime Rewards Visa Signature Card: For Amazon Prime members who frequently shop at Whole Foods Market, the Amazon Prime Rewards Visa Signature Card is a must-have. You'll earn 5% Back at Amazon.com and Whole Foods Market with an eligible Prime membership. The card has no annual fee (beyond the Prime membership fee). This card is a no-brainer for loyal Amazon and Whole Foods shoppers.
Frequently Asked Questions
What is the best credit card for groceries if I spend a lot? The American Express® Gold Card or the Blue Cash Preferred® Card from American Express are excellent choices due to their high rewards rates on grocery spending, but remember to consider the spending caps and annual fees.
Which credit card is best for groceries with no annual fee? The Capital One SavorOne Cash Rewards Credit Card, Chase Freedom Flex℠, Citi Custom Cash® Card, Discover it® Cash Back, Wells Fargo Active Cash® Card, and Amazon Prime Rewards Visa Signature Card (with Prime membership) are all good options with no annual fee.
How do rotating category cards work? Rotating category cards like the Chase Freedom Flex℠ and Discover it® Cash Back offer bonus rewards (typically 5% cash back) on specific categories that change each quarter; you must activate these categories to earn the bonus.
What are the benefits of using a credit card for groceries? Using a credit card for groceries can earn you cash back, points, or miles, help build your credit score (when used responsibly), and provide purchase protection and fraud protection.
Should I choose a cash back or travel rewards card for groceries? The best choice depends on your spending habits and financial goals; if you prefer cash back, a cash back card is better, while if you prioritize travel, a travel rewards card may be more suitable.
What should I consider besides the rewards rate? Consider the annual fee, spending caps, redemption options, interest rates, and any additional perks or benefits offered by the card.
How do I maximize my rewards on groceries? Choose a card with a high rewards rate on groceries, track your spending to stay within bonus category limits, and redeem your rewards strategically.
What is an APR, and how does it affect my credit card use? APR stands for Annual Percentage Rate and represents the interest rate you'll be charged on any balance you carry on your credit card; paying your balance in full each month avoids interest charges.
What is a welcome bonus, and how can it benefit me? A welcome bonus is an offer for new cardholders, typically awarded after meeting a certain spending requirement within a specific timeframe; it can provide a significant boost to your rewards balance.
How does my credit score affect my chances of getting a credit card? A good to excellent credit score increases your chances of approval and may qualify you for cards with better rewards and lower interest rates.
Conclusion
Choosing the best credit card for groceries depends on your individual spending habits, financial goals, and tolerance for annual fees. Cards like the American Express Gold and Blue Cash Preferred offer high rewards rates but come with annual fees, making them suitable for high spenders. Cards like the Capital One SavorOne, Chase Freedom Flex, and Citi Custom Cash offer valuable rewards without annual fees, making them good choices for everyday spending. Evaluate your needs and preferences to select the card that will maximize your grocery savings in 2024.