Best credit cards for groceries in Canada
When it comes to choosing a rewards credit card, we’re firm believers that the best credit card for one person may not be the best credit card for everyone. What you spend money on is extremely personal, and can be based on a number of factors, including what you do for a living, how many people are in your household, and what your hobbies and interests are.
For families, there’s no doubt that one of the most expensive categories in each household budget is food. Fortunately, you can feed your family a delicious home-cooked meal and earn points or receive cash back, if you have the right credit card in your wallet. We’ve done the math and found the best credit cards in Canada to pay for your groceries with.
In these examples, we assumed a family was spending $750/month on groceries. Check out the annual returns on the top 4 credit cards to help you choose one that suits your needs.
1. TD Aeroplan Visa Infinite
In your first year, the TD Aeroplan Visa Infinite credit card offers the highest annual return of 5.13%. With the Aeroplan program, you can redeem miles for a wide range of rewards, such as free flights, hotel stays, rental cars, gift cards and merchandise. When you book a trip with the card, you will also have access to benefits with Air Canada and travel insurance coverage. To earn extra miles, shop at stores that accept Aeroplan membership cards, and show that to the cashier when you pay with your Aeroplan credit card.
2. Scotiabank Gold American Express
If you want to use a travel rewards credit card, but don’t want to be restricted to flying with Air Canada, the Scotiabank Gold American Express will give you the freedom you need. And even with its annual fee, it still has a high annual return of 4.57% in the first year – and remember, that’s just on your grocery spending alone. With this card, you earn 4 points per $1 spent on groceries, gas, restaurant and entertainment purchases, and 1 point per $1 spent on everything else. To redeem for your next trip, all you have to do is pay for a travel expense with your credit card, then log into your online account and “erase” your purchase with points.
3. Scotia Momentum Visa Infinite
If you’d rather earn cash back (applied to your bill once/year), the Scotia Momentum Visa Infinite gives you just that. With this card, you’ll earn 4% cash back on groceries and gas, 2% cash back at drug stores and on recurring bill payments, and 1% cash back on everything else. In the first year of using the Scotia Momentum Visa Infinite, you’ll see an annual return of – you guessed it – 4% (because the annual fee is waived). When you book a trip with this card, you’ll also have access to a suite of Visa Infinite travel benefits, including travel insurance, discounts on certain rental cars and hotels, and their Infinite Complimentary Concierge service, Infinite Dining Series and Infinite Luxury Hotel Collection. This card was included in our list of Top 5 Cash Back Credit Cards in Canada.
4. SimplyCash Card from American Express
Finally, if you want to earn cash back but don’t want to pay an annual fee, use the SimplyCash Card from American Express when you go grocery shopping. In the first six months, you can earn 5% cash back (up to $250) when you shop at eligible grocery stores, gas stations and restaurants, and after that you’ll earn 1.25% cash back on everything. If you spent $750/month on groceries for your family, you would see a return of 3.13% in the first year. When you book a trip with the card, you will also have automatic travel insurance and car rental collision and damage coverage, and you can add a supplementary cardholder for free.
Flickr: Cleber Mori