Best credit cards for groceries for January 2022 – CNET

Whether you’re shopping for groceries for yourself or your family, the Blue Cash Preferred® Card from American Express is a solid option for most people. It provides the highest cash-back rate of any card we researched, earning 6% cash back on up to $6,000 spent at U.S. supermarkets each year — for as much as $360 back per year at this rate. Plus, you’ll still earn 1% cash back if you exceed $6,000. 

Additionally, you’ll earn 6% cash back on select U.S. streaming subscriptions and 3% back on U.S. gas station purchases and transit. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. 

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

The Citi Custom Cash Card is unique in that it automatically selects your highest spend category and applies 5% cash back rewards (up to $500 of expenditure per billing cycle). Groceries are one of these categories, as are restaurants, gas stations, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment. As long as you’re not spending more on the other categories than on groceries with this card, you’ll earn 5% cash back on all your grocery purchases, without limitations on location or expenditure like some other cards impose. This card has no annual fee, so you can easily keep it as solely a grocery credit card to avoid confusion.

If you’re a regular shopper at Amazon and Whole Foods, the Amazon Prime Rewards Visa Signature Card* is a great way to earn cash back on your purchases. It offers 5% cash back at Whole Foods Market and on Amazon Fresh and other Amazon.com purchases, which can be redeemed at checkout or as a statement credit from Chase. You can also score up to a $150 Amazon gift card upon account approval.

This card also features 2% cash back at restaurants, gas stations and drug stores and 1% on everything else. You must have an Amazon Prime membership — $119 per year — to apply for this card, but we’re guessing if you’re a heavy Amazon shopper, you’re already a member.

If you would like to redeem grocery rewards for travel, the American Express® Gold Card is a great choice. On up to $25,000 of purchases per calendar year at U.S. supermarkets, you can earn 4x Membership Rewards® Points (then 1x points) — valued at 2 cents each when redeemed for travel, according to The Points Guy. That’s essentially an estimated 8% return on your U.S. supermarket purchases toward travel. 

Keep in mind this card has a higher-than-average annual fee of $250, and for the most bang for your buck (or points), you must book travel through the American Express Travel Portal. When redeemed for cash back (received in the form of statement credits), these points are only worth roughly 0.6 cent each.

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

How do you choose the right grocery credit card?

Deciding which grocery credit card is right for you will depend largely on your shopping habits. Keep in mind that most major credit card companies do not consider wholesale clubs and big-box stores like Walmart and Target to be grocery stores, so your purchases there might not qualify for the same rewards. Before applying for a grocery credit card, you’ll want to closely read the fine print to make sure that your needs will be met depending on where you shop.

One last thing to keep in mind: Don’t get overly enamored of credit cards with a welcome bonus offer. While the immediate cash back can be appealing, it is typically a one-time or short-lived reward. Groceries are purchases that you need to make every month. You’re better off focusing on maximizing these rewards over time rather than going for the up-front bonus.

How do you earn rewards with grocery cards?

Here’s the way cash-back rewards credit cards typically work: Let’s say your credit card offers 3% cash back on groceries. That means for every $100 you spend on groceries, you will get $3 back. While it’s called “cash back,” the card issuer won’t actually give you physical cash. Instead, the “cash” will be associated with your account. Depending on your card, your cash back earned could appear as a statement credit or could be redeemed in other ways, like for travel or as gift cards.

To make the most of your cash back, it’s important to pay off your balance in full each month, in order to avoid accruing interest that would essentially void any rewards you may have earned.

Is a grocery credit card right for me?

Grocery cards can be a great way to earn rewards for essentials you purchase every week or month. But that doesn’t mean they’re the best option for you. It all comes down to how you spend your money. If you travel frequently, travel rewards credit cards or airline credit cards might make more sense. And if you’re worried about overspending to earn rewards, consider a flat-rate cash-back card that will earn you the same rewards rate for any purchase.