If you spend a lot of money at the grocery store, it’s smart to look for a credit card that rewards you for all that spending. If there’s one thing that’s certain, your family has to eat – you might as well earn extra points or cash back for every gallon of milk you buy.
Below you’ll find the Nerds’ favorite credit cards for big grocery spenders. Let’s dig in!
Nerd tip: The cards discussed here are great, but keep in mind that we also recommend you keep a second, high-value card for your non-grocery purchases. Unless you’re feeding an army, you won’t build up a ton of rewards just from the spending you do at the supermarket. To maximize perks, keep another card on standby and use it for your other regular purchases.
Our favorite overall: Blue Cash Preferred® Card from American Express
If you want to earn a huge return on the spending you do on groceries, look no further than the Blue Cash Preferred® Card from American Express. With it, you’ll get 6% cash back on every dollar at U.S. supermarkets (up to $6,000 spent per year — then 1%), 3% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on all other purchases. This is a truly stellar rewards rate that’s tough to beat!
The Blue Cash Preferred® Card from American Express also carries a pretty great signup bonus: $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months. Terms Apply. But keep in mind that it has an annual fee of $95.annual fee, consider alternatives. The Blue Cash Everyday® Card from American Express earns 3% back at U.S. supermarkets (up to $6,000 spent per year — then 1%), 2% back at U.S. gas stations and select U.S. department stores, and 1% back on everything else – certainly nothing to sneeze at. But assuming you’re spending at least $61 per week at the supermarket, you’re actually better off paying the annual fee on the Blue Cash Preferred® Card from American Express to get the higher rewards rate.
If you don’t spend quite enough on groceries to outweigh an annual fee: Bank of America® Cash Rewards credit card
In some cases, paying an annual fee is worthwhile, but if you don’t spend quite enough on groceries to justify coughing up that kind of cash, the Bank of America® Cash Rewards credit card might be right for you.
With this card, you’ll earn 2% cash back at grocery stores and wholesale clubs, and 3% cash back on gas purchases, up to $2,500 in combined spending per quarter. Plus, you’ll get 1% cash back on all other purchases. What’s more, if you’re a Bank of America® banking customer, you’ll have the opportunity to earn a points dividend of 25%, 50% or 75% through the Preferred Rewards program. The bonus you’ll receive depends on the type of account you have and the total amount of your assets. But even if you don’t qualify for Preferred Rewards status, just having a Bank of America® checking or savings account will give you a boost: You’ll get a 10% dividend on the points you redeem into your account. Not too shabby!
In addition, the Bank of America® Cash Rewards credit card carries a small signup bonus: $150 online cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening.. The bottom line: This card is a good option for slightly more modest grocery spenders who also do quite a bit of spending at the pump or at wholesale clubs.
Updated Aug. 2, 2017.
Grocery shopping image via Shutterstock