According to the United States Department of Agriculture, the average young family spends $900 per month on groceries. Grocery shopping is an excellent opportunity to earn cash back, airline miles, or hotel points. However, not all credit cards are created equal. And the credit card that works for your neighbor or favorite blogger may not be the best credit card for groceries.The best credit card for buying groceries will depend on if you want to earn. When you decide on cash back, airline miles, or hotel points you will know which credit card will be best for you.
Table Of Contents
- Cash Back Credit Cards For Grocery Purchases
- Best Airline Miles Credit Cards For Groceries
- Earn Hotel Points When Buying Groceries
- Other Ways To Save Money On Grocery Shopping
- Stacking Rewards To Maximize Your Grocery Store Spending
Cash Back Credit Cards For Grocery Purchases
As great as airline miles and hotel points can be, nothing beats the flexibility of cold hard cash. There are several cashback credit cards that are great for grocery store spending.
The Capital One® Savor® Cash Rewards CreditCard and its sister product the Capital One® SavorOne® Cash Rewards Credit Card both earn an unlimited 2% on all grocery spending. And for those times when you do go out to eat, the Savor earns 4% cash back and the SavorOne earns 3%.
Blue Cash Preferred Card from American Express earns 6% cash back at grocery stores. However, keep in mind that it is limited to $6,000 per year. If you're spending $500 per month at the grocery store, you'll max out this excellent cash back rate. Once you max out the 6% opportunity, additional spending will only earn 1% cash back.
If you're a member of Amazon Prime and like to shop at Whole Foods, you can earn 5% cash back. The Amazon Prime Rewards Visa provides an unlimited 5% cash back at Whole Foods and on purchases at Amazon.com. You'll also earn 2% cash back on restaurants, gas stations, and drug stores, plus 1% on everything else.
Target is also a popular place to get groceries and other household items. The Target REDcard gives a 5% discount on in-store and online shopping at Target.
You'll also receive free two-day shipping and have an extra 30 days to make returns. In the past, I've even skipped the Black Friday lines at Target thanks to my wife's REDcard! That perk alone was worth having this no annual fee credit card. If you're not interested in another credit card, these benefits also extend to the debit card version as well.
The Blue Cash Everyday Card from American Express is the no annual fee version of the Blue Cash Preferred Card. It earns 3% cash back instead of 6% but doesn't have the $95 annual fee of its sister card. If you're going to spend over $3,200 on groceries per year on a credit card, it makes sense to pay the annual fee. Less than that, this no-fee credit card is right for you. Learn more about this card here.
Best Airline Miles Credit Cards For Groceries
Most airline credit cards are focused on providing bonuses for spending on flights and restaurants. There are a few that offer bonus grocery store rewards.
The American Airlines AAdvantage MileUp Card from Citibank earns 2x miles on purchases with American Airlines and at grocery stores. It does not have an annual fee and saves cardholders 25% on in-flight purchases of food and beverages.
Both JetBlue credit cards from Barclays offer 2x points when you purchase groceries and saves cardholders 50% when buying food or drinks while flying JetBlue. The JetBlue Card has no annual fee and also earns 3x points with JetBlue.
I prefer the JetBlue Plus Card because it also provides free checked bags for you and three companions and gives you 10% of your redeemed points back. Big spenders will earn complimentary Mosaic status after spending $50,000 on the credit card each calendar year.
Earn Hotel Points When Buying Groceries
I can fly Economy to my next vacation if it means I get to stay at a luxury hotel. My family prefers to use our grocery shopping to earn hotel points towards our next vacation.
Hilton offers two credit cards from American Express that earn Hilton Honors points when grocery shopping. The Hilton Honors Credit Card From American Express has no annual fee and earns 5x points on groceries, restaurants, and gas within the US.
The Hilton Honors American Express Surpass Card has a $95 annual fee and earns 6x points at grocery stores, restaurants, and gas stations. It comes with complimentary Hilton Honors Gold status and cardholders can earn one free weekend night after spending $15,000 within a calendar year.
Chase offers the IHG Rewards Club Premier Card earns 2x hotel points when buying groceries. It earns 25x points at IHG properties and comes with automatic Platinum status. Cardholders receive one free hotel night each year and get the 4th night free when redeeming points for their stay. Learn more about this card here.
Best Debit Card for Buying Groceries
Did you know that you can earn cash back when buying groceries even while using a debit card? Radius Bank has a great checking account called the Rewards Checking account. The Rewards Checking account from Radius Bank will pay you 1% cash back on your “signature-based” debit card purchases, including groceries. (Signature-based means when you choose “credit” and then sign for the transaction… rather than enter your PIN.)
On top of cash-back you can also earn 1% interest on the money in your Rewards Checking account.
There's no other fees or minimum balance requirements on the account. However, to earn the cash back and the interest you'll need to keep an average balance of at least $2,500.–Open your Rewards Checking account here.
Finding the right credit card isn’t the only way to save money on grocery shopping. Here are some of my favorite strategies that my family uses to reduce our grocery bill and keep more of our money in our wallet.
Grocery Store Loyalty Programs
Many grocery chains also have an app that makes it simple to clip virtual coupons and unlock deals. Some of these offers are exclusive to the app and can be selected while you’re in the store.
I’m totally old school when I recommend the newspaper. But the Sunday paper is one of the best ways to get valuable coupons that will reduce your grocery expenses. Most newspapers will allow you to subscribe just to the Sunday paper so you don’t need to waste money on a 7-day subscription.
Online Coupon Portals
You can clip or print out coupons at home before heading out to the grocery store. Sites like Coupons.com are great tools to help reduce the cost of your grocery bill.
I love using third-party apps to reduce my grocery bill because they don't interfere with coupons, promos, and credit card rewards.
Stacking Rewards To Maximize Your Grocery Store Spending
Grocery shopping is a great opportunity to reduce your overall expenses and earn rewards. Picking the best credit card for groceries for you is the first step. There are many options that will help you reach your goals with either cash back, miles, or points. Then you can stack the benefits of grocery store loyalty programs, coupons, and third-party cash back apps to maximize the value of your time and money.
What are your favorite ways to save money on grocery shopping? Which credit card do you use to earn rewards? Please let us know in the comments below.
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