- While most of the US is under a quarantine or stay-at-home order of some kind right now as a result of the continued spread of the COVID-19 coronavirus, essential businesses like grocery stores are one of the few remaining places left that people are allowed to go to outside their home.
- Below, we present several credit card offers for what we think are the best options specifically for grocery spending.
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Thanks to the coronavirus outbreak, it’s a pretty good bet that most people’s food-related spending has drastically changed in recent weeks. You might be ordering takeout and meal delivery even more than you were in the days before the virus-related shutdowns and quarantines, or you might have gone to the opposite extreme and are now spending heavily on on groceries to keep yourself stocked up for an extended period. Suffice it to say, most of us are probably spending well above what folks used to spend on food and groceries during a normal month, which amounted to about 10% of disposable income, according to the USDA.
In these strange times, it might be worth re-evaluating your personal credit card situation and making sure you have a rewards credit card in your wallet that maximizes one of the biggest line items of your personal budget, whether you head to the store to shop the aisles or press a few buttons online and have the groceries brought to your doorstep. Unlike travel credit cards, where the choices are wide and plentiful, there are only a handful of points-earning and cash-back cards that offer groceries as a solid bonus category, and many of the top choices come from one issuer — American Express. In this post, we’ll present some recommendations of the top credit cards that can earn rewards worth hundreds of dollars or more annually for the typical household. The larger your grocery budget, the more you stand to benefit from a rewards credit card tailored perfectly for grocery spending, whether you do that online or you happen to be one of those hardy souls venturing into physical stores right now.
Here’s a rundown of our recommendations:
- American Express® Gold Card: For people who spend a lot on groceries
- The Amex EveryDay Preferred® Credit Card from American Express: For spenders who want a low annual fee
- Blue Cash Preferred® Card from American Express: Best for cash back
- Target REDcard: Best for Target loyalists
- Amazon Prime Rewards Visa Signature Card: Best for Amazon/Whole Foods purchases
- The Amex EveryDay® Credit Card from American Express: Best for no annual fee
Grocery rewards: Earn 4x points at US supermarkets on up to $25,000 per year in purchases (then 1x points after that).
Other rewards and perks: Earn 4x points not only on groceries, but also on dining, 3x points on flights booked directly with airlines or on $10 in statement credits monthly when you pay with your card at participating partner restaurants, and get up to $100 annually in travel credits when the qualifying airline you choose charges you incidental fees. This card also has no foreign transaction fees.and 1x points on other purchases. Earn up to
Welcome bonus: Earn 35,000 Membership Rewards points after you make $4,000 in purchases in your first three months.
Annual fee: $250
Grocery rewards: Earn 3x Amex points at US supermarkets on up to $6,000 per year in purchases (then 1x points after that).
Other rewards and perks: Earn 2x points at US gas stations and 1x points on other purchases. Use your card 30 or more times on purchases in a billing period and earn 50% more points on those purchases (less returns and credits).
Welcome bonus: Earn 15,000 Membership Rewards points after you make $1,000 in purchases in your first three months.
Annual fee: $95
Grocery rewards: Earn 6% cash back at US supermarkets (on up to $6,000 per year in purchases, then 1% afer that).
Other rewards and perks: Earn 6% cash back on select US streaming services, 3% cash back at US gas stations, 3% cash back on transit and 1% back on other purchases.
Welcome bonus: Receive a $250 statement credit after you spend $1,000 in purchases within the first three months.
Annual fee: $95
Grocery rewards: Earn 5% savings on qualifying purchases at Target.
Sign-up bonus: N/A
Annual fee: N/A
Keep in mind: Target offers the REDcard as either a debit or credit card. This card is only valid at Target, so you can save on your grocery shopping and any other shopping you do at the large retailer, and you’ll do so by saving 5% at checkout.
Grocery rewards: Earn 5% cash back at Whole Foods and on Amazon purchases.
Other rewards and perks: Earn 2% cash back at restaurants, gas stations, and drugstores. The card also has no foreign transaction fees.
Sign-up bonus: You’ll typically get an Amazon gift card when you are approved, though the precise amount varies.
Annual fee: None, but you must have an Amazon Prime membership.
Grocery rewards: Earn 2x points at US supermarkets on up to $6,000 per year in purchases (then 1x points after that)
Other rewards and perks: Earn 1x points on other purchases. Use your card 20 or more times on purchases in a billing period and earn 20% more points on those purchases (less returns and credits).
Welcome bonus: Earn 10,000 Membership Rewards points after making $1,000 in purchases in your first three months.
Annual fee: None