Saving At The Supermarket: The Best Credit Cards for Groceries

Saving At The Supermarket: The Best Credit Cards for Groceries

Posted on August 23, 2012

Fall is the season for food.  Bring on the after-school snacks, tailgate parties, Halloween candy, and turkey with all the trimmings. Besides using coupons, swiping your credit card is an extremely easy way to save at the supermarket. Here's a look at our list of the best credit cards for grocery shopping:

Cash-Back Credit Cards: The Best

Cash Rewards Visa Signature By Bank of Americacash rewards visa

This card gets you 2% back on groceries, as well as 3% back on gas. The cash back applies to the first $1500 you spend on grocery and gas, combined, each quarter.  You'll get 1% back on everything else. There's no annual fee and new cardholders get a $100 bonus for spending $500 in the first 90 days.

Another perk is that cardholders who redeem their rewards directly into a Bank of America checking or savings account get a 10% bonus: if you spend the full $1500 on groceries, you'll earn $30 back, plus an extra $3 for redeeming it into your account.

When compared to the Blue Cash Everyday, the 10% bonus is the only special feature about this card. If you're sticking point is a card with no annual fee, you're still better off with Blue Cash Everyday, which offers an unlimited 3% back on groceries, versus 2% back (with the $1500 limit) offered by Cash Rewards Visa.

Cash-Back Credit Cards: The Rest

Chase Freedomchase freedom

Chase Freedom offers 5% back on rotating categories, including grocery stores.  To optimize your savings, you'll need to monitor when the grocery category is valid, and schedule your major spending during those times. During non-promotional times, you'll still get the standard 1% back on your grocery purchases. There's no annual fee and you get a $100 cash bonus when you spend $500 or more in your first 3 months.

Discover Morediscover more

Discover More works the same way as the Chase Freedom. You'll get 5% back on grocery purchases when supermarkets are a featured category. Categories are featured in 3 month increments, but there's no guarantee as to how often your category will be promoted. We checked their 2012 rewards calendar, and it didn't show any grocery store promotions scheduled for this year.

Both cards are designed for small spenders, because you only get the 5% back on your first $1,500 spent in that category. Anything over the $1500 will still get 1% back, the standard amount for most cash-back cards.

Also, keep in mind what actually qualifies as "groceries" for that category. A store that sells food, as well as other products, may be labeled as a "grocery" store by one credit card, but labeled as a "discount" or "general" store by another. If you're loyal to a particular superstore, confirm with your card carrier that those purchases will get the 5% back when the promotional period starts.

Alternative Credit Cards

Target RedCardtarget redcard

Shoppers who get their groceries at a Super Target or Target Greatlands can use this card to get 5% off their groceries year-round. Unlike a traditional credit card, you can only use it at Target stores, so it's not ideal for people who buy their groceries from a variety of stores. The perk? That 5% discount applies to everything in the store, and you also get free shipping on all online purchases charged to the card.

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