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Now that most of us are practicing social distancing and relying on grocery stores to replenish our day-to-day needs, I figured it would be a good exercise to revise my list of best credit cards for groceries in 2020. In determining the best cards, I focused on cards perks that can be used towards non-travel redemptions. In fact, the best cards in this category are ones that offer both options, cashback and travel points. In order to calculate a yearly value for each card, I assumed a monthly spend of $1000 in groceries. Here is my list of the best credit cards for groceries in Canada;
A true all-star, no other card in Canada even comes close to offering the perks of the Amex Cobalt card. With an earning rate of 5% on Grocery and Dining ($30,000 yearly limit), it's easy to rake in the points with this card.
Annual fee: $120 ($10 per month)
Welcome Bonus: 30,000 Membership Rewards Select (MRS) points (2500 per month with min. $500 spend)
Earning Rate: 5x on eligible eats and drinks in Canada, including groceries and food delivery, 2X on Travel and Transit (including flights, hotels, taxis, gas, ride sharing, and transit passes), 1X on all other purchases.
Assuming a monthly spend of $1,000 on grocery, the card would earn 5000 MRS points monthly, or 60K yearly. Combine that with the welcome bonus of 30K MRS and the 90K MRS is worth at least $900 if redeemed as statement credit. MRS points also transfer to Marriott Bonvoy points at 5:6 ratio, where 90k points are enough for three nights at Cat-5 properties. Better yet, MRS points can also be redeemed through the Fixed Points Travel Program where 100,000 MRS points are good for a return flight in economy, anywhere in the world ($1700 in value).
No matter how you slice and dice it, Amex Cobalt card is a must have for all Canadians, for its versatility and ease of earning quick points for great returns! In my opinion, the best credit card in Canada.
Detailed list of benefits and perks of the card are listed here
Amex Cobalt and Scotia Amex Gold are truly the Batman and Robin of my wallet, especially when it comes to grocery spends. Scotia Amex Gold too, earns 5% in rewards on grocery spends (annual limit of $50,000).
Annual fee: $120
Welcome Bonus: 20,000 Scotia Rewards points ($1000 spend in first three months)
Earning Rate: 5x on Grocery, Dining and Entertainment, 3x on Gas, Daily Transit and Select Streaming Services, 1x on all other purchases.
Assuming a monthly spend of $1,000 on grocery, this card would earn 5,000 Scotia Rewards points monthly, or 60,000 points yearly. With a welcome bonus of 20k, the total yearly yield with grocery spend is an impressive 80k Scotia Rewards points. 80K points are worth $800 when applied directly towards booking made though any travel provider. Redeeming 80K Scotia Rewards points as statement credit would still yield an impressive value of ~$600.
Detailed list of benefits and perks of the card are listed here
The best non-Amex card for groceries and one of the strongest premium cashback cards in Canada - with a special offer to earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases) and no annual fee in the first-year, this card comes with $320 in value right off the back.
Annual fee: $120 (First Year Free)
Welcome Bonus: 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases)
Earning Rate: 4% on grocery store purchases, recurring bill payments, and subscription purchases, 2% on gas purchases and daily transit, 1% on all other purchases with no cash back limit
Assuming a monthly spend of $1,000 on grocery, this card would earn $200 in the first two months (10% cashback) and $400 in remaining ten months (4% cashback), for a yearly cashback of $600. No other non-Amex cashback card in Canada offers this kind of value on grocery spends.
Detailed list of benefits and perks of the card are listed here
We can't discuss groceries and not mention Costco, even if its not your typical "grocery store". For credit cards, Costco Canada exclusively accepts only MasterCard in stores (Mastercard and Visa online). With that constraint in mind, I went looking for the card that brings best value and could not look past the generous AIRMILES World Elite card. A welcome bonus of 3000 AIRMILES, first year annual fee waived, and earning rate of 1 miles for every $10 in purchases, no other MasterCard in Canada comes close to the perks this card offers, especially with Costco purchases. So I made an exception and included this travel card on my list.
Annual fee: $120 (First Year Free)
Welcome Bonus: 3000 AIRMILES bonus miles
Earning Rate: 1 Mile for every $10 in credit card purchases
Assuming a monthly spend of $1,000 on grocery, this card would earn 100 AIRMILES each month or 1200 in a year. With the welcome bonus thats an impressive 4200 AIRMILES for the year. 4200 AIRMILES are enough for a round-trip ticket to anywhere in Canada and most of Eastern US, which is easily worth $600 or more.
One of the underrated cashback cards in Canada, the no-annual fee Tangerine Money-Back card fares really well amongst the bigger credit cards in this category. The card currently comes with a limited-time offer of $250 Bonus ($5000 spend in three months) for new applications until March 31, 2020. Cardmembers can select up to 2 categories (including Grocery) for a 2% cashback. This card is also a great addition for Canadians that shop at Walmart stores, since it codes as grocery too.
Annual fee: No annual fee
Welcome Bonus: $250 Bonus ($5000 spend in three months) for new applications until March 31, 2020
Earning Rate: 2% money-back on two categories, no limit
Assuming a monthly spend of $1,000 on grocery, this card would earn $20 monthly, and $240 yearly. With the special offer of $250, the total value of the card for grocery can add up to $490.
Detailed list of benefits and perks of the card are listed here
If I missed your favourite card or you have a recommended card that offers better value at grocery spends in Canada, please share with a comment below.
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