These Are the 3 Best Grocery Credit Cards to Have in Your Wallet

Grocery credit cards earn more cash back or rewards for purchases made at supermarkets and grocery delivery services. Since grocery purchases can take up a lot of space in our budgets, it can pay to have at least one credit card that earns more for this category. If you're currently earning 1% to 3% back on groceries, here are three credit cards that could boost your rewards. 

1. Blue Cash Preferred® Card from American Express

The Blue Cash Preferred® Card from American Express has the best earning rate for groceries. Cardholders will earn 6% cash back on up to $6,000 in annual spending at U.S. supermarkets, then 1% after (terms apply). If you hit the spending limit, you would earn $360 in rewards on eligible grocery purchases. 

It earns that triumphant 6% rate on groceries, but the card also has a $0 intro annual fee for the first year, then $95. (See rates and fees.) Since the fee is waived for the card's first year, you can effectively test drive it without any losses. After that, you'll need to spend about $1,584 each year (roughly $132 monthly) to earn $0 intro annual fee for the first year, then $95. in rewards. Considering the average American spent about $475 on groceries in 2022, it's not hard to cover this fee in rewards. 

The card performs other tricks too. It earns 6% on select U.S. streaming subscriptions, 3% back on transit, 3% back at U.S. gas stations, and 1% everywhere else. Terms apply. All in all, it's a solid choice for those who spend a lot in some (or all) of these categories.

2. AAA Daily Advantage 

The AAA Daily Advantage Visa Signature® Credit Card earns 5% back on grocery store purchases, 3% back on gas, EV charging stations, wholesale clubs, pharmacies, and AAA purchases, and 1% everywhere else. Few credit cards earn a flat 5% back on groceries all-year round, making this a solid choice for big grocery spenders. 

However, as with the Amex Blue Cash Preferred, there are limits to your rewards. Cardholders can earn up to $500 in cash back annually in combined spending at grocery stores, wholesale clubs, and gas stations. If you only used this card on groceries, you could spend $10,000 in a calendar year before your 5% rate dropped to 1%. 

Even with the cap, it can be a great companion card to the Amex Blue Cash Preferred. If you spend more than $6,000 per year on groceries, the AAA Daily Advance could replace the Amex Blue Cash Preferred and keep a high cash back streak. It also has no annual fee, nor requires an AAA membership to apply, thus keeping more cash in your pocket. 

3. Citi Custom Cash® 

The Citi Custom Cash® Card is one of my favorites (Citi is an advertising partner of The Ascent). This cash back credit card earns 5% cash back in your top spending category from a list of 10. The 5% rate is capped at $500 (1% after), thus affording you the chance to earn $25 monthly or $300 annually. The 10 categories include the following: 

• Grocery stores
• Restaurants
• Gas stations
• Select travel
• Select transit
• Select streaming services
• Drugstores
• Home improvement stores
• Fitness clubs
• Live entertainment

If you don't spend more than $500 monthly on groceries, the Citi Custom Cash® Card might be the only grocery card you'll need. For those with bigger grocery budgets, however, it can pair nicely with one (or both) of the two aforementioned cards, ensuring you never earn less than 5% back on groceries. 

I could mention other great grocery credit cards, too, like the American Express® Gold Card, Capital One Savor Cash Rewards Credit Card, or Instacart Mastercard®. Some of these cards have annual fees, but if groceries are one of your biggest monthly expenses, the rewards can be more savory than the fee you dish out.