Also be sure to check for sign-up bonuses. I had the same complaint about the Chase card changes, but I figured that the $200 sign-up bonus from a similar rotating rewards program from Citi-Bank would be more "rewarding" in the short term (2-3 years) than the other programs available.
The Best 5 Credit Cards for Groceries
Photo: Bigstockphoto
Last year my Chase credit card, with which I had earned 5% back on groceries and gas since 2007, suddenly changed. They switched to some sort of rotating-category-that-earns-more-points system that I didn't particularly care for. Every few months, I have to opt in all over again to take advantage of whatever category they're giving the most points for that month. Even though I do my best to keep up with credit card rewards, I don't take credit card reward hacking to the extreme. I'd prefer not to have to carry around 10 cards in my wallet.
Nevertheless, I do prefer to get the most points in categories that I actually spend a lot of money on. After our mortgage, the highest percentage of our monthly expenses comes in the form of groceries. We prefer organic and local food, which can be pricey. So, I set out to determine which credit cards actually give the highest percentage back on groceries. (See also: Best Credit Cards for Travel)
Blue Cash Preferred® Card from American Express
- Earn 150 Reward Dollars after you make $1,000 in purchases in the first three months of Cardmembership.
- Earn Cash Back: 6% US supermarkets up to $6,000 per year in purchases, 3% US gas stations & select US dept stores, 1% other purchases. Terms and limitations apply.
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
- Simple and Straightforward: With the Blue Cash Preferred Card, you can start earning cash back. No rotating reward categories. No enrollment required.
- Terms and Restrictions Apply.
RedCard From Target
- 5% off everything at Target
- $0 annual fee
If you shop at a SuperTarget for groceries, the Target RedCard gives you 5% off at everything you purchase at the register. This isn't just a grocery rewards credit card; the cardholder will receive the same discount on all Target purchases. If you have a Target nearby that also sells groceries, this is a great way to save 5% on food, as well as a variety of other department store purchases. Unfortunately, this card has no affiliation with any credit card payment network such as Visa or MasterCard, so you can’t use it outside of Target stores.
Blue Cash Everyday® Card from American Express
- Earn $100 cash back in Reward Dollars when you spend $1,000 in the first three months of Cardmembership.
- Earn Cash Back: 3% at US supermarkets, up to $6,000 per year in purchases, 2% at US gas stations & select US dept stores, 1% on other purchases. Terms and limitations apply.
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
- Simple and Straightforward: With the Blue Cash Everyday Card, you can start earning cash back. No rotating reward categories. No enrollment required.
- No annual fee, 0% intro APR on purchases for 12 months. After that, your APR will be a variable rate, currently 12.99%-21.99% with flexibility to pay over time.
- Terms and Restrictions Apply.
The Blue Cash Everyday card is largely the same as the Blue Cash Preferred, but it has no annual fee and half the rewards across the board. Nevertheless, 3% cash back on groceries and 2% cash back at gas stations and select major department stores still represents a competitive rate of return. Finally, this is one of the few American Express cards offered without an annual fee.
Cash Rewards Visa Signature Card From Bank of America
- 3% on gas
- 2% on groceries
- 1% on everything else
- $0 annual fee
With the exception of the extra cash back at department stores, the Cash Rewards Visa Signature card has a similar reward structure to the Blue Cash Everyday card from American Express. Cardholders can receive their cash-back rewards as a direct deposit in any checking or savings account, as a statement credit, or even as a payment towards a mortgage held by Bank of America. In fact, rewards redeemed into a Bank of America checking and savings accounts receive an additional 10% bonus. Unfortunately, the bonus percentages only apply to customer’s first $1,500 spent in each category each quarter.
Capital One® Cash Rewards
- 1% on all purchases
- 50% bonus on the cash back
- $39 annual fee
This Capital One Cash Rewards offering brings up the rear of this list by offering only 1% cash back on gas and groceries, but don’t count it out. This card is offered to applicants with average credit, so it could be the ideal product for those who don’t qualify for other cards. Capital One also wins kudos for not charging foreign transaction fees on any of their cards. If you travel internationally, or just like to drive over the border for shopping, this card will save you some money over the other cards here.
The Best Credit Card Offer for You
If you like credit card rewards programs, but have recently been unhappy with changes to your card, it may be time to consider a new one. The best way to choose a cash-back rewards card is to simply look at what your biggest category of spending is each month, and find a card that gives you the most cash back on that category. For me, this category was groceries.
What's your biggest category of spending each month? Do you earn extra credit card points for those cards?
I have the blue cash amex. didn't know i could save 3% at grocery stores. very cool! does this apply to stores like trader joe's and whole foods?
I'm not sure, but I think the higher cash back would apply at WF and Trader Joe's.
However, I think it does NOT apply to grocery shopping at WalMart and Target. Ask,
before you go on a grocery buying buying spree at WalMart with the expectation
of the higher rewards. I'm not a member at a club store, so I don't know about
those....
Walmart and Target show up as discount stores unfortunately on the AMEX bill, so you don't get any cash back.
american express card not only gives discount on purchasing gas but also on groceries and others.there is no annual fee having this card.about 2% cash back from departmental store one can get.
The Blue Cash from AMEX is a good card to have. Although I don't condone credit cards since I help peolple get out of debt for a living, if you had to use one for groceries the first one would be the ideal card.
I personally have the 6% back AMEX card, I recommend that one the most! Very good perk for a credit card I think.
At the grocery store, you can buy no-fee giftc ards for many non-grocery merchants .. including iTunes, Home Depot, Kohl's, etc. You can even buy an American Express or Visa gift card. You get your 6% cash back. Then, you use the gift card for your other purchases. It works!
I love shopping at Target generally but I don't see them as a viable grocery alternative. You can pick up basics like eggs, milk, peanut butter etc, but their selection isn't big enough I still have to make a second trip.
But our local Target is a big supporter of our local schools. It wouldn't hurt to do more shopping there.
I use Costco's AMEX card, which offers 3% on gas, 2% on restaurants and 1% on everything else. For me it makes sense and has netted me a pretty nice check at the end of the year.
HOWEVER, I am completely against using credit cards to accrue "benefits" for anyone who is in debt. The cash system is the only answer until you are debt free and really know how to handle a credit card. Meaning...you never carry a balance.
Just my 2 cents...
Ree ~ I blog at EscapingDodge.com
