Who doesn’t want the chance to save as much money as possible on their grocery and gas bill? If you’re not inclined to cut coupons or follow gas station specific rewards, your next best option might be a rewards credit card.
One of the best credit cards for groceries and gasoline is the Blue Cash Everyday® card from American Express. Here, we’ll explain why you should seriously consider this card to save on your groceries and gas expenses.
What does the Blue Cash Everyday card offer?
- Reward rate: 3% cash back in US supermarkets (up to $ 6,000 per year, then 1%); 2% Cash Back at U.S. gas stations and select U.S. department stores; 1% cash back on all other purchases
- Welcome offer: $ 200 credit on your statement after spending $ 2,000 on purchases with your new card in the first six months
- Annual subscription: $ 0
- APR introductory purchase: 0 percent for 15 months (see rates and fees)
- Regular APR: variable from 13.99% to 23.99%
This card not only offers a generous welcome bonus of $ 200 after spending $ 2,000 on purchases in the first six months after opening, but there is also no annual fee. The rewards structure allows you to earn money on the categories where many families spend the most: groceries and gasoline. Then you always get 1% cashback on all your other purchases.
Additional advantages and benefits
This card is quite light on the benefits as there is no annual fee and would rather be considered a beginner rewards card. The card provides basic purchase protection, which reimburses you up to $ 1,000 per qualifying incident (up to $ 50,000 per card) for repairs or replacement. In addition, you can get rental car loss and damage insurance when you put your rental on this card. You must decline rental agency coverage and your eligible rental vehicle has secondary damage or theft insurance.
For more payment flexibility, the Blue Cash Everyday card also offers an introductory period of 0% APR for 15 months and access to the Plan It function. Plan It allows you to reimburse eligible large purchases over time for a fixed monthly fee.
Example of Blue Cash Daily Spending
If you are interested in knowing how much cash back you can earn with this card, it may be helpful to review a hypothetical spend example. Suppose you spend the following each year with your Blue Cash Everyday card:
- Grocery: $ 11,400
- Gasoline: $ 3,600
- Department stores: $ 1,800
- Miscellaneous: $ 4,800
In this example, you would earn $ 234 on groceries ($ 6,000 at 3% and $ 5,400 at 1%), $ 72 on gasoline and $ 66 on your department store and miscellaneous expenses for a total of $ 372 in cash back every year.
However, the first year rewards are bolstered by the welcome bonus, so you will get a total of $ 572 in first year rewards with the Blue Cash Everyday card, which is a respectable amount of money for any given year. When it drops to $ 372 after the first year, it’s still a decent amount of money to save by slipping for groceries and gasoline.
How does the Blue Cash Everyday card compare to similar rewards cards?
If you are considering this card for your groceries and gas expenses, it is fair to compare it to cash back cards which also offer similar rewards:
Bank of America® Custom Cash Rewards credit card
- 3% Cash Back in the category of your choice, including gasoline, online shopping, meals, travel, drugstore or home improvement
- 2% at grocery stores and wholesale clubs (up to $ 2,500 in combined purchases of 3% and 2% each quarter, then 1%)
- 1% discount on all other purchases
The Custom Cash Rewards card offers a similar reward rate for groceries and gasoline expenses, but you can only earn 3% on one “Choice Category” at a time. Choice of bonus categories include gasoline, online shopping, dining, travel, drugstores, or home improvement / furnishings purchases. Plus, the 3% and 2% categories share a combined spending limit of $ 2,500 per quarter, which could really limit the amount of cash back you could earn on groceries and gasoline.
Chase Freedom Flex℠
- 5% cash back on grocery store purchases (excluding Target or Walmart purchases) up to $ 12,000 spent in the first year
- 5% cash back on bonus category purchases activated each quarter (up to $ 1,500 in purchases, then 1%)
- 5% Discount on Chase Ultimate Rewards Travel Purchases
- 5% Cash Back on Lyft trips (until March 2022)
- 3% cash back on meals (including restaurants, take out and qualifying delivery services) and pharmacy purchases
- 1% cash back on all other purchases
The Freedom Flex offers a much higher rate on grocery expenses (for the first year only) with a significantly higher spending limit in the category. In the first year alone, you could earn $ 570 on groceries based on the expense example above. Additionally, this card offers 5% cashback on rotating bonus categories, which could include gasoline.
After the first year, you will only earn 1% on races with a moderate chance of saving on gas for a quarter, so it might not be a better choice than the Amex Blue Cash Everyday card if you spend a lot on races and gas.
Capital One Walmart Rewards® Mastercard®
- 5% Cash Back at Walmart.com including pickup and delivery
- 2% cash back at Walmart stores and gas stations, restaurants and travel
- 1% cash back everywhere else Mastercard accepted
If you’re a regular Walmart shopper, you could get your money’s worth with this card, which can also be used at Sam’s Club. Both retail brands offer gas stations, and you can get the 5% off your family’s fuel as well. The only downside to this card is that to get the 5 percent back, you have to be pretty determined to shop at Walmart and Sam for your groceries and car fuel expenses on a consistent basis.
Other Amex cards for groceries and gasoline
If you don’t mind paying an annual fee, there are a few other Amex cards you might consider for higher rewards on groceries and gas: the American Express® Gold card and the Blue Cash Preferred® card. ‘American Express, which have a fee of $ 250 and $ 95, respectively. If you spend enough on groceries and gas, you should be able to justify these annual costs.
Another no-annual fee alternative is American Express’s Amex EveryDay® credit card, which has a moderate earning rate on supermarket spending but allows you to earn Amex Membership Rewards points. If you want to earn points that can be redeemed for travel with the Amex Travel Portal, this card could be an option, although your potential to earn a lot of rewards is limited.
The bottom line
Being able to save money on groceries and gasoline can take the strain off your family’s budget. The Blue Cash Everyday card gives you this opportunity without having to pay an annual fee. If you spend a lot more in these categories, you might want to consider another rewards card or an Amex card that might help you earn a little more in return.