When it comes to frugal grocery shopping, scouring through weekly circulars and clipping coupons can only save you so much (though extreme couponers might disagree).
By using a cash back credit card tailored for grocery shoppers, you can slash your grocery spending even more.
According to the Bureau of Labor Statistics, the average U.S. household spent $3,838 on food at home in 2011. Every 1% cash back would yield annual cost savings of $38, but some credit cards offer more than a mere 1% cash back on groceries.
1. Blue Cash Preferred from American Express
Blue Cash Preferred from American Express is the must-have cash back credit card for anyone who regularly visits the supermarket.
It does come with a $75 annual fee but it is worth the price if you spend $2,500 per year, or roughly $48 per week, at the supermarket.
Noteworthy card features:
- $75 annual fee
- 6% cash back at stand-alone supermarkets (up to $6,000 spent annually at supermarkets, 1% thereafter), 3% cash back at stand-alone gas stations and department stores, and 1% cash back on everything else
2. Target REDcard
The Target REDcard does not offer cash back. Instead, it acts like a membership card that enables cardmembers to get a flat 5% discount at checkout when the REDcard is used to pay for the purchase.
Yes, for those who didn’t know, Target does sell groceries.
Noteworthy card features:
- No annual fee
- 5% discount at Target stores or Target.com
3. Blue Cash Everyday from American Express
Blue Cash Everyday from American Express is the little brother of Blue Cash Preferred from American Express.
For no annual fee, Blue Cash Everyday offers less cash back on groceries but it is still a very generous amount.
Noteworthy card features:
- No annual fee
- 3% cash back at stand-alone supermarkets (up to $6,000 spent annually at supermarkets, 1% thereafter), 2% cash back at stand-alone gas stations and department stores, and 1% cash back on everything else
4. U.S. Bank Cash+ Visa Signature
The young U.S. Bank Cash+ Visa Signature card is better known for is 5% cash back on various categories that may change from quarter to quarter.However, cardmembers can also choose to earn 2% cash back on groceries.
Additionally, it has a redemption bonus that’s worth plenty of consideration.
Noteworthy card features:
- No annual fee
- Choose 2 of 12 categories that earn 5% cash back (categories may change quarterly) and 1 of 3 categories (groceries, gas and drug stores) that earn 2% cash back, 1% cashback on everything else
- Get a $25 bonus prepaid card when you redeem $100 or more at once
5. Bank of America BankAmericard Cash Rewards
Bank of America’s BankAmericard Cash Rewards card is very similar to the Blue Cash Everyday card from American Express. But, the cash back rates for groceries and gas are swapped -- BankAmericard Cash Rewards offers 2% cash back on groceries and 3% cash back on gas.
It’s a solid choice if you’re also on the market for a gas credit card.
Noteworthy card features:
- No annual fee
- 2% cash back on groceries and 3% on gas for the first $1,500 in combined gas and grocery purchases each quarter, and 1% cash back on everything else
- Cash back redeemed into a Bank of America checking or savings account will be 10% greater ($27.50 cash back on a $25 redemption)
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