# Top Credit Card for Purchasing Groceries (updated on February 6, 2023)

Several major grocery chain stores in Canada had a price freeze on their in-house products, such as Loblaws’ No Name brand. The price freeze was to help shoppers offset against the high inflation between October 17, 2022 and January 31, 2023. This month, we are back to free for all. Today, let’s re-visit the best credit cards, along with some calculations (found below each credit card) to use on grocery spending.

### Personal strategy

Before I get into listing my top picks, I wanted to share my personal strategy. My favourite way to use a credit card is to meet a spending requirement to qualify for a sign up bonus. For example, a credit card can require us to spend $1,500 in the first 3 months to receive a full sign up bonus. Therefore, my priority is always to meet those spending requirements. Once completed, it is time to move on to the next spending requirements.

However, I understand that not everyone is interested in churning, especially considering that companies are really clamping down on this practice, That being said, this post will focus primarily on cards that give ongoing multiplier bonuses on grocery purchases.

### Top credits cards for daily grocery spending

We identified these specific credit cards because they give cardholders at least a 4% equivalent or more return on grocery spending. Note that there are spending limits to obtain the higher multiplier bonus before the return drops down.

The cards are listed in alphabetical order, along with the calculations of the multiplier bonus returns.

- $12.99 monthly fee
- No annual fee for a supplementary cardholder (maximum of 9)
**Earn 5 points for every $1 spent on grocery purchases (earn 2,500 monthly bonus points on a maximum of $500 in monthly spending, for a total of 30,000 per year)**- Note that the $30,000 in annual spending is cumulative with other spending categories

- Earn 1% cash back on all purchases thereafter

The 5 points per dollar counts for different categories. So assuming a cardholder only uses this card for earning 5 points on $30,000 in annual grocery spending, that is the equivalent of earning **$1,500** (5% x $30,000) in cashback (because 1 point is worth at least 1 cent, usually worth more depending on how it is leveraged). If we subtract the 1 point per dollar (1% x $30,000 = **$300**) that cardholders would have normally earned on all purchases, the 5 points per dollar comes out to a **bonus of at least $1,200** ($1,500 – $300).

**American Express SimplyCash Preferred Card**

- $9.99 monthly fee
- No annual fee for a supplementary cardholder
**Earn 4% cash back for every $1 spent on grocery purchases (up to $30,000 in annual spending)**- Earn 2% cash back on all purchases thereafter

For earning 4% cash back on $30,000 in annual grocery spending, that is the equivalent of earning **$1,200** (4% x $30,000) in cashback. If we subtract the 2% per dollar (2% x $30,000 = **$600**) that cardholders would have normally earned on all purchases, the 4% per dollar comes out to a **bonus of $600** ($1,200 – $600).

### BMO Cash Back World Elite MasterCard

- $120 annual fee (waived the first year if you apply before July 23, 2023)
**Earn 5% cash back for every $1 spent on the first $500 per month (up to $6,ooo per year) in grocery purchases**- Earn 1% cash back for every $1 spent on all purchases and thereafter

For earning 5% cash back on $6,000 ($500 x 12) in annual grocery spending, that is the equivalent of earning **$300** (5% x $6,000) in cashback. If we subtract the 1% per dollar (1% x $6,000 = **$60**) that cardholders would have normally earned on all purchases, the 5% per dollar comes out to a **bonus of $240** ($300 – $60).

**CIBC Dividend Visa Infinite Card**

- $120 annual fee for first time cardholders (first year fee waived)
**Earn 4% cash back for every $1 spent on grocery purchases (up to $20,000 in annual spending)**- Earn 1% cash back on all purchases thereafter

For earning 4% cash back on $20,000 in annual grocery spending, that is the equivalent of earning **$800** (4% x $20,000) in cashback. If we subtract the 1% per dollar (1% x $20,000 = **$200**) that cardholders would have normally earned on all purchases, the 4% per dollar comes out to a **bonus of $600** ($800 – $200).

**MBNA Rewards World Elite MasterCard**

- $120 annual fee
- $50 for a supplementary cardholder
**Earn 5 points for every $1 spent on groceries (up to $50,000 in cumulative annual spending)**- Note that the $25,000 in annual spending is cumulative with other spending categories

- Earn 1 point for every $1 spent on all purchases and thereafter

The 5 points per dollar counts for different categories. So assuming a cardholder only uses this card for earning 5 points on $50,000 in annual grocery spending, that is the equivalent of earning **$2,500** (5% x $50,000) in cashback (because 1 point is worth 1 cent). If we subtract the 1 points per dollar (1% x $50,000 = **$500**) that cardholders would have normally earned on all purchases, the 5 point per dollar comes out to a **bonus of $2,000** ($2,500 – $500).

**Meridian Visa Infinite Cash Back Card**

- $99 annual fee (first year fee waived)
- $30 annual fee for supplementary cardholders
**Earn 4% cash back for every $1 spent on grocery purchases (on the first $25,000 in purchases)**- Note that the $25,000 in annual spending is cumulative with other spending categories

- Earn 1% cash back on all purchases thereafter

Let’s say the cardholder maximises earning 4% cash back on $25,000 in annual grocery spending only, that is the equivalent of earning **$1,000** (4% x $25,000) in cashback. If we subtract the 1% per dollar (1% x $25,000 = **$250**) that cardholders would have normally earned on all purchases, the 4% per dollar comes out to a **bonus of $750** ($1,000 – $250).

**Scotiabank Gold American Express**

- $120 annual fee (waived the first year by applying before April 30, 20231)
**Earn 6 points for every $1 spent at Chalo! FreshCo, Co-Op, Foodland, FreshCo, IGA, IGA West, Les Marchés Tradition, Rachelle Béry, Safeway, Sobeys, Thrifty Foods, Voilà par IGA, Voilà by Safeway, Voilà by Sobeys**- Earn 5 points for every $1 spent on grocery purchases
- Earn these 6 and 5 multiplier bonus points on the first $50,000 in annual spending cumulative of the above mentioned categories
- Earn 1 point for every $1 spent on all other purchases and thereafter

For this card, let’s say the cardholder optimises the earning ratios by getting the full 6 points per dollar on $50,000 in annual grocery spending, that is the equivalent of earning **$3,000** (6 points x $50,000) in cashback. Each point is worth at least 1 cent a piece, depending on how the points are redeemed. If we subtract the 1 point per dollar (1% x $50,000 = **$500**) that cardholders would have normally earned on all purchases, the 6 points per dollar comes out to a **bonus of $2,500** ($3,000 – $500).

**Scotiabank Momentum Visa Infinite Card**

- $120 annual fee (first year fee waived for applying before October 31, 2022)
- Earn 10% cash back on all purchase in the first 3 months or up to $2,000 in spending (apply before October 31, 2022)
**Earn 4% cash back for every $1 spent on grocery purchases****(up to $25,000 in annual spending)**- Note that the $25,000 in annual spending is cumulative with other spending categories.

- Earn 1% cash back on all purchases thereafter

Let’s see the cardholder maximises earning 4% cash back on $25,000 in annual grocery spending only, that is the equivalent of earning **$1,000** (4% x $25,000) in cashback. If we subtract the 1% per dollar (1% x $25,000 = **$250**) that cardholders would have normally earned on all purchases, the 4% per dollar comes out to a **bonus of $750** ($1,000 – $250).

This wraps up the cards offered in Canada that give at least a 4% return.

*Did we missed any cards? Please let us know in the comment section below!*