Best credit cards for groceries for September 2024

VaselineSeptember 2, 2024

0 13 minutes read

Best credit cards for groceries for September 2024

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. We’ve rounded up the best credit cards for groceries to help you choose the right one for your supermarket sweeps.

Best grocery credit cards for September 2024

Annual fee: $0 intro annual fee the first year, $95 annually after that (see rates and fees)
Welcome offer: Earn $250 after spending $3,000 within the first 6 months
Rewards:
- 6% cash back at U.S. supermarkets (up to $6,000 spent per year), then 1%
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on transit (includes taxis, rideshares, parking, and more)
- 3% cash back at U.S. gas stations
- 1% cash back on all other purchasesCash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout
More card details: Blue Cash Preferred has a generous introductory APR on purchase and balance transfers. It also has a few potentially valuable annual credits with partners. Earn up to $84 per year ($7 statement credit per month, with enrollment) when you spend at least $9.99 or more each month on an auto-renewing Disney Bundle subscription (valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.).

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 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.

The Amex Blue Cash Preferred can bring a lot of value to your other regular spending with additional cash-back categories for streaming, transit, and U.S. gas stations — as well as annual partner statement credits. Plus, you can enjoy plenty of outsized value over the first year between the intro $0 annual fee, generous introductory APR, and welcome bonus.

Annual fee: $0
Welcome offer: Earn $200 after spending $500 within the first 3 months
Rewards:
- 5% cash back on hotels and rental cars booked through Capital One Travel
- 3% cash back on dining
- 3% cash back on entertainment
- 3% cash back on popular streaming services
- 3% cash back at grocery stores
- 1% cash back on all other purchases
More card details: In addition to the rewards above, you’ll get 8% cash back on Capital One Entertainment purchases and 10% cash back rewards on Uber and Uber Eats purchases — plus complimentary Uber One membership (though Nov. 14, 2024). There’s also a generous introductory APR on new purchases and balance transfers.

Why we like it: The Capital One SavorOne 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.

Those other categories make this no annual fee card a great option overall for anyone who budgets money for both staying in and going out, with the same 3% cash back on dining, streaming services, and entertainment (which includes concert tickets, amusement parks, movie theaters, and tourist attractions).

Annual fee: $325 (see rates and fees)
Welcome offer: Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases in the first 6 months, plus 20% back on restaurant spending worldwide (up to $100 in statement credits) for new cardmembers through November 6, 2024. New cardmembers can also opt for the limited-edition White Gold Card design (while supplies last).
Rewards:
- 4x points at restaurants worldwide (on up to $50,000 per year), then 1x
- 4x points at U.S. supermarkets (up to $25,000 spent per year), then 1x
- 3x points on flights booked directly with airlines or AmexTravel.com
- 1x points on all other purchases
- NEW: Up to $84 per year ($7/month) in statement credits after using your American Express Gold Card to pay at more than 9,000 Dunkin’® locations nationwide
- NEW: Up to $100 in annual statement credits ($50 semi-annually) when you use your American Express Gold Card on eligible purchases at U.S. restaurants on the Resy app or Resy.com Check out all the new Amex Gold card features and benefits
More card details: The Amex Gold offers up to $120 in annual Uber Cash when you connect your card through the Uber app ($10 per month; you must have the latest version of the Uber App downloaded; Amex benefit may only be used in United States). You can also get up to $120 in annual dining statement credits ($10 per month, with enrollment) toward purchases with Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and now Five Guys. On top of that, you can explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit toward eligible charges with every booking of two nights or more through AmexTravel.com (eligible charges vary by property).

Why we like it: With 4x Membership Rewards bonus 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.

Beyond that, the Amex Gold can also help you maximize restaurant spending and flight purchases — in line with many other travel card options today. While it does carry a $325 annual fee (see rates and fees), the annual dining credits and Uber Cash cover part of the cost. Just remember to think about whether you already spend that money each month. If you’re spending money simply to earn a monthly statement credit, you could end up paying more than you save over the long run.

Annual fee: $95, waived to $0 for the first year
Welcome offer: Earn $250 after spending $2,000 within the first 120 days
Rewards:
- 6% cash back on your first $1,500 in combined spending each quarter with two choice retailers (choices include Apple, Amazon.com, Chewy.com, Ikea, Kohl’s, Target, Walmart, and many more)
- 3% cash back on your first $1,500 spent each quarter in one choice everyday category (wholesale clubs, gas and EV charging stations, or bills and utilities)
- 1.5% cash back on all other purchases
More card details: There aren’t many added perks to this card, but you will save on the annual fee cost for the first year — after which this card has a $95 annual fee. You can also earn 5.5% cash back if you book prepaid hotels or car rentals through the U.S. Bank Rewards Travel Center.

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.

And that’s not all: The added option to choose wholesale clubs as your 3% category (up to $1,500 in spending each quarter) means you can further maximize your grocery spending up to $3,000 in purchases each quarter. Plus, you’ll earn a minimum of 1.5% cash back on all non-category spending, even after exceeding the quarterly spending limits.

But let’s say you just spend the average $5,703 each year on groceries, and fit all of your spending into the 6% category with merchants that sell groceries as your choice retailers. You’ll get a total $342.18 in cash back with this card each year — and even more if you take advantage of other categories.

Annual fee: $0 (see rates and fees)
Welcome offer: Earn $200 after spending $2,000 within the first 6 months
Rewards:
- 3% cash back at U.S. supermarkets*
- 3% cash back on U.S. online retail purchases*
- 3% cash back at U.S. gas stations*
- 1% cash back on all other purchases
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout*Up to $6,000 in each category per year, then 1%
More card details: Like the Blue Cash Preferred from Amex, the Blue Cash Everyday has a 0% intro APR on new purchases and balance transfers and comes with up to $84 in annual credits ($7 per month) when you spend at least $9.99 per month on an eligible auto-renewing Disney+ subscription. You can also get up to $180 per year ($15 per month) in statement credits toward an auto-renewing Home Chef subscription.

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.

If you also spend much of your monthly budget filling up the gas tank or shopping online, you can get even more value from this card. Each of these categories has the same $6,000 annual spending limit. If you reach the max across all three, that’s a potential $540 in annual cash back. Plus, if you already have subscriptions to Disney+ and Home Chef, count on more savings in the form of monthly statement credits.

Read our full review of the Blue Cash Everyday card

Annual fee: $0
Welcome offer: Earn $200 after spending $1,500 within the first 6 months
Rewards:
- 5% cash back on your top eligible spending category each billing cycle (up to $500 in monthly purchases, then 1%)
- 1% cash back on all other purchases
More card details: Eligible spending categories for the 5% category include grocery stores as well as restaurants, gas stations, select streaming services, home improvement stores, and more.

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.

Unlike some other customized cash-back credit cards, the Citi Custom Cash makes it easier to maximize these categories. Instead of opting into your choice category each billing cycle, you’ll automatically earn 5% on purchases in the eligible category where you spend most. So if you want to use this as your grocery rewards card, you may want to designate it solely for your regular trips to the supermarket to ensure you’re getting the max 5% rewards when you spend.

Grocery retail credit cards

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:

Costco Anywhere Visa® Card by Citi

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.

However, you will redeem your Costco card rewards differently than other cash-back credit cards. Each year, you’ll receive a rewards certificate which you can use in one transaction at a Costco warehouse location. As with any card, ensure you understand the details of how to best earn and use your rewards before you sign up.

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

Target Circle™️ 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.

Other Target benefits include free two-day shipping on eligible purchases, a longer window for returns or exchanges, and other deals for cardholders that vary throughout the year. As a bonus, you can get $50 toward a future purchase after you’re approved.

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

Should you get a credit card for groceries?

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.

Grocery reward limitations

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

Types of grocery stores

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:
Best credit cards for Walmart
Best credit cards for Target

Spending limits

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.

Our methodology

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.

This article was edited by Rebecca McCracken

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.

VaselineSeptember 2, 2024

0 13 minutes read