Aside from mortgage payments or rent, Canadians typically spend the biggest chunk of their budget on groceries. And given the rising costs of food these days, it’s not hard to see why.
According to a recent study by Global News, a family of 4 spends an average of $220 per week on groceries. That adds up to $11,440 a year, just on food. That’s a big sum of money, but you can lessen the financial blow by using a rewards-based credit card to make your purchases. With the right card in hand, you could be seeing a free cart of groceries on a regular basis.
Let’s take a look at some of the top credit cards for groceries in Canada.
| Earn Rate for Groceries | Annual Fee | Interest Rate | |
| BMO eclipse Visa Infinite Card | -Earn 5 rewards points on groceries -Earn 1 point on gas, transit, and restaurants | $120 | Purchase rate: 20.99% Cash advance rate: 23.99% (21.99% for Quebec residents) |
| Scotia Momentum Visa Infinite | -Earn 4% cash back on groceries and recurring bills -Earn 2% cash back on gas and transit-Earn 1% cash back on all other purchases | $120 (first year waived) | Purchase rate: 20.99% Cash advance rate: 22.99% |
| PC Financial World Elite Mastercard | -Earn 25 points for every $1 spent at Shoppers Drug Mart/Pharmaprix -Earn 10 points for every $1 spent on all other purchases, including where President’s Choice products are sold | $0 | Purchase rate: 20.97% Cash advance rate: 22.97% |
| Tangerine Money-Back Credit Card | Earn up to 2% on purchases in 2 categories of your choice | $0 | Purchase rate: 19.95% Cash advance rate: 19.95% |
| American Express Cobalt | -Earn 5 points for every $1 spent on groceries and restaurant purchases -Earn 2 points for every $1 spent on transit, gas, and travel -Earn 1 point for every $1 spent on all other purchases | $10/month | Purchase rate: 19. 9%Cash advance rate: 21.99% |
Best for: Flexible grocery rewards.
The BMO eclipse Visa Infinite Card is one to consider if you’re looking for a card that comes with a lot of flexibility on rewards when you buy groceries. With this card, you’ll earn 5 reward points for every dollar spent on groceries. You’ll also earn 1 point for every dollar you spend on gas, transit, and restaurants.
To help you get a head start on collecting points, you can earn up to 40,000 bonus points when you first sign up.
If you add an authorized user to the account, you’ll earn 10% bonus rewards. You’ll also get a $50 lifestyle credit every year, which will be automatically applied to the first $50+ purchase you make. And while there’s a $120 annual fee, it’s waived the first year you have the card.
Best for: Shopping at Loblaws grocery stores.
If you’re a regular shopper at Loblaws Superstore, then you may want to take a closer look at the Scotia Momentum Visa Infinite. With this card, you’ll earn 4% cash back on groceries and bills, 2% cash back on transit and gas, and 1% cash back on all other purchases. There’s also a high spending limit of $25,000 per year in the 2% and 4% cash back categories.
To entice you to sign up, Scotiabank is offering a welcome bonus that allows you to earn up to 10% cash back on all purchases over the first 3 months. The card also comes with 11 types of insurance products, which can come in handy when you travel. Plus, the $120 annual fee is waived for the first year.
Best for: Shopping at PC grocery stores and Shoppers Drug Mart.
Loyal PC brand shoppers may find the PC Financial World Elite Mastercard enticing thanks to its attractive rewards program and no annual fee.
With this card, you’ll earn 25 PC Optimum Points for every dollar spent at Shoppers Drug Mart and Pharmaprix, and 10 points for every dollar spent on all other purchases, including where President’s Choice products are sold.
To give you a leg up on your points earnings, you can earn up to 100,000 PC Optimum bonus points on the first purchase you make with your card at participating retailers. Plus, you can take advantage of an ultra-low 0.97% interest rate for 6 months on balance transfers.
Best for: Shopping at Walmart.
Anyone who spends a big chunk of their budget at Walmart — whether for groceries or any other items available at this retail giant — may want to consider adding the Tangerine Money-Back Credit Card to their wallets.
With this credit card, you will learn 2% on expenditures made in 2 categories of your choice, including groceries from Walmart. If you deposit your earned rewards into a bank account with Tangerine, you can choose a third category to spend in. You’ll also earn 0.50% on all other purchases.
All these perks come with no annual fee.
Special Offer
When you apply for a Tangerine Money-Back Credit Card by July 31st, 2022 you’ll earn an extra 10% back (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.*
Best for: Welcome bonus.
You’ll earn 5 points for every dollar spent on groceries and restaurant purchases, 2 points for every dollar spent on transit, gas, and travel, and 1 point for every dollar spent on all other purchases.
A nice perk that applicants will find is the lack of minimum income requirements, which makes this card easier to secure compared to many others.
The only drawback to report with the American Express Cobalt Card is that you’ll first need to verify whether or not American Express is accepted at your grocery store. While Visa and Mastercard are accepted just about anywhere, American Express isn’t as widely accepted. That said, if you use a grocery delivery service like Instacart, you may be able to use your American Express to pay.
If your goal is to get as many free groceries as you can, there are several factors to consider before you choose a credit card to apply for:
Credit cards often offer many attractive perks, but there may be a high annual fee to pay in exchange for these benefits. In addition to assessing the perks of the card, be sure to weigh them against the annual fee.
Creditors may offer a welcome bonus as an incentive to get you to sign up for their card. These bonuses typically come in the form of bonus rewards points, a low promotional rate, or a waived annual fee.
If you want your money to work for you by earning points with every purchase you make, then a rewards system is something to look for in a credit card. The higher the points offered per dollar spent, the better. And if your goal is to use points towards groceries, look for a card that favours grocery store purchases with higher points.
The interest rate charged on a credit card is what you owe the creditor on balances carried over month to month. A lower rate is more attractive for obvious reasons, especially if you have a tendency to carry balances.
A cashback credit card is an excellent way to stretch your dollar further. With every purchase you make, you can earn points that can later be used to redeem for free groceries. And considering how much you likely spend on groceries every week, it would be nice to get a free grocery load from time to time with the right cash back credit card in hand.Â
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Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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