Which Credit Card Is the Best for Groceries?

When it comes to grocery shopping, using the right credit card can make a significant difference in your monthly budget. Many credit cards offer cashback, points, or other rewards for purchases at supermarkets, and choosing the right one can help you maximize your savings. Here’s a breakdown of the best credit cards for groceries, including a top recommendation and two excellent runner-ups.

Top Pick

Blue Cash Preferred Card

The Blue Cash Preferred Card from American Express is an excellent choice for anyone who spends a significant amount on groceries. Here’s why it stands out:

• Cashback on Groceries: Earn 6% cashback on up to $6,000 per year in purchases at U.S. supermarkets (then 1%).
• Additional Rewards: Get 3% cashback on transit and at U.S. gas stations and 1% cashback on other purchases.
• Welcome Offer: Enjoy a generous welcome bonus when you meet the spending requirements within the first three months of opening your account.
• Annual Fee: The $95 annual fee (waived for the first year) is easily offset by the rewards if you spend at least $1,600 annually on groceries.

For families or individuals with high grocery expenses, this card is hard to beat.

The streaming bonus most people miss

The Blue Cash Preferred Card earns 6% back on select U.S. streaming subscriptions too, in addition to groceries. Most shoppers fixate on the grocery rate and never notice this second 6% category, even though a household with two or three subscriptions can pull another $50 to $100 a year from it without changing a thing. The card also carries up to $120 a year in Disney bundle credits, paid as $10 monthly statement credits for Disney+, Hulu, or ESPN+ subscriptions, with enrollment required.

Between the streaming rewards and the grocery rewards, the card can cover its $95 ongoing fee several times over for a household that was already paying for streaming. Treat those credits as a discount on subscriptions you would keep anyway, not a reason to subscribe to something new.

Runner-Up #1

Citi Double Cash Card

If simplicity is your priority, the Citi Double Cash Card offers consistent rewards without the need for tracking bonus categories:

• Flat Rewards: Earn 2% cashback on all purchases—1% when you buy and 1% when you pay off your balance.
• No Annual Fee: This card is ideal for budget-conscious users who don’t want to pay yearly fees.
• Versatility: Cashback can be converted into points in Citi’s ThankYou Rewards program, offering flexibility for travel or other redemptions.

While it lacks the high grocery-specific cashback of the Blue Cash Preferred Card, its simplicity and lack of an annual fee make it a solid choice for smaller grocery budgets or diverse spending habits.

Runner-Up #2

Capital One SavorOne Cash Rewards Credit Card

The Capital One SavorOne Card is perfect for those who value dining and entertainment as much as grocery shopping:

• Rewards Breakdown: Earn 3% cashback on groceries, dining, and entertainment, and 1% on all other purchases.
• No Annual Fee: Maximize your rewards without worrying about fees.
• Introductory APR: Benefit from a 0% introductory APR on purchases and balance transfers for a set period, making it great for managing short-term expenses.

This card strikes a balance between grocery rewards and perks for dining and entertainment, making it ideal for well-rounded spenders.

Choosing the Right Card for Your Needs

When selecting a credit card for groceries, consider your spending habits and financial goals:

1. High Grocery Spending: If you spend heavily at supermarkets, the Blue Cash Preferred Card offers the highest cashback potential.
2. All-Around Rewards: For consistent rewards across all categories, the Citi Double Cash Card is a great option.
3. Lifestyle Flexibility: If you want rewards on dining and entertainment alongside groceries, the Capital One SavorOne Card is a fantastic choice.

Using the right credit card can transform your grocery shopping into an opportunity to save or earn rewards. Evaluate your needs, and start maximizing your spending.

Before you apply: the Walmart trap

The fine print on the 6% supermarket rate matters. It applies at U.S. supermarkets only, which excludes big-box stores like Walmart and Target and wholesale clubs like Costco and Sam’s Club. Know where you actually shop before choosing. A family spending $600 a month at a traditional supermarket puts $7,200 a year through the grocery category: 6% on the first $6,000 is $360, plus 1% on the remaining $1,200 is $12, for $372 back in a year, nearly four times the annual fee.

The same family spending that $600 a month at Walmart earns the base 1%, or $72 a year, a $300 difference from the exact same grocery bill. If your weekly haul happens at Walmart or Costco, this card is not the play, and one of the runner-ups here becomes the better pick. Card math only works when it matches your real receipts.