Last year, over half of Americans with New Year’s resolutions planned to improve their finances and eat healthier. Tackling both of those at once can seem daunting, but luckily, a rewards credit card can be the right tool to kick-start 2021.
The USDA estimates the average U.S. family of four on a moderate budget spends up to about $1,107 per month on groceries. Just 2 percent cash back would give you nearly $266 back per year with the right grocery credit card. Depending on your biggest everyday expenses, the best credit card for groceries might also help you rack even more cash back or miles on other parts of your budget, like gas or dining.
Take a look at this year’s top cards for groceries and grocery delivery and learn how you can use them to maximize your rewards.
Best grocery credit cards
Best for cash back: Blue Cash Preferred® Card from American Express
With 6 percent cash back at U.S. supermarkets (up to $6,000 per year, then 1 percent), the Blue Cash Preferred card offers the best cash back for groceries available on a rewards card. It’s also one of the few cards to offer 6 percent back on select U.S. streaming services and 3 percent cash back on transit and U.S. gas station purchases, making it a front-runner for commuting shoppers.
Even with a $95 annual fee, the Blue Cash Preferred is a leading choice at its price tag.
Best for rotating categories: Chase Freedom Flex℠
The Chase Freedom Flex edges out other rotating category cards like the Discover it® Cash Back because of its extra ongoing reward categories. You can earn unlimited 5 percent back on Lyft purchases (through March 2022) and Chase Ultimate Rewards travel with another 3 percent on dining and drugstore purchases to boot.
Although the main drawback is that Chase Freedom Flex rotating categories are only announced one quarter in advance, pairing it with other Chase Ultimate Rewards cards (like the Chase Sapphire Reserve®) could make it a valuable addition.
The Reserve card is also excellent for grocery rewards, since the Pay Yourself Back feature allows you to cover grocery store purchases through April 30, 2021, at a boosted 1.5-cent value per point redeemed. Plus, grocery store purchases can be covered by the Reserve’s annual $300 travel credit until June 30, 2021.
Best for wholesale clubs: Bank of America® Cash Rewards credit card
If you value versatility but want a higher reward rate than a flat-rate credit card, the Bank of America Cash Rewards card is your safest bet. It earns 2 percent cash back at grocery stores and wholesale clubs, which can increase by up to 75 percent in value if you’re a Bank of America Preferred Rewards member.
The card is also a great choice for those whose budgets are more flexible, as it comes with 3 percent back in a category of your choice (from six options) that you can change once per month. That way, you can pair your grocery earnings with cash back on purchases such as travel, home improvement or dining based on what matches your spending. Just keep in mind that your 2 percent and 3 percent rewards categories share a $2,500 in combined purchases per quarter spending limit (then 1 percent back).
Best for superstores: Discover it® Cash Back
Besides the usual October to December Walmart.com, Target.com and Amazon.com rewards, Discover rotating categories consistently provide grocery and superstore coverage throughout the year. The Discover it Cash Back card typically offers 5 percent cash back (activation required, on up to $1,500 in quarterly purchases, then 1 percent) on PayPal purchases in the third quarter, which extends to online superstore grocery orders. It’s also common to receive the same high cash back rate on grocery and wholesale club purchases each calendar year……Read More>>