Best Credit Cards for Groceries
Using a credit card to pay for your groceries and for your everyday shopping is convenient. You do not need to worry about carrying enough cash with you when you leave home. Your card also provides the benefit of a free credit period. The amount that you spend will be payable only when you receive your billing statement from the credit card company.
In addition to these benefits, a credit card could reward you with a cash back facility that could add up to a significant amount over the months.
The following cards are among the best available for grocery shopping.
Citi Cash Back Card
Buying groceries with this card earns you 8% cash back amount. Of course, there are conditions attached.
For one, you are required to spend at least S$888 every month to be eligible for this rebate. If you don’t cross this threshold, the cash back amount will be limited to 0.25% of the sum that you spend. Another important condition that you need to keep in mind is that your cash back on groceries is limited to S$25 every month.
The Citi Cash Back Card offers several other benefits.
- In addition to groceries, generous cash back amounts are available for other categories of spending too. Amounts spent at restaurants, cafes, and bars also earn cash back at 8%. But you have to remember that the total amount is restricted to S$25.
Dining and groceries are considered as separate categories. Consequently, you can earn S$25 on groceries every month in addition to the S$25 that you make on the amount spent on eating out.
- Grab rides earn you 8% in cash back, and is subject to a cap of S$25 per month.
- You can also save by purchasing petrol using your Citi Cash Back Card. Fuel bought at Esso and Shell petrol stations earns you 20.88% in cash back. The monthly cap for this category is also S$25.
If you are planning to go overseas, the Citi Cash Back Card offers an attractive free travel insurance package. You are entitled to medical and dental expenses that are incurred on your trip and the insurance even covers the cost of emergency medical evacuation in certain conditions.
The insurance package also compensates you for lost baggage, delays in receiving your baggage, and flight delays. To become eligible for free insurance, you need to charge your travel tickets to your Citi Cash Back Card.
American Express True Cashback Card
At times, a credit card that offers a generous cash back benefit caps the amount that you can earn every month. While this is not a problem for those cardholders who spend just enough to earn the maximum amount of cash rebate that is available, it can lead to lower benefits for those who have higher monthly expenditure.
The American Express True Cashback Card is perfect for those individuals who spend large amounts on their credit cards every month. It offers unlimited cash back at a rate of 1.5% of the amount that you spend. Practically any expenditure that you make, including your monthly bills for your telephone, your grocery shopping, your internet expenses, and your gym membership fees are eligible to earn cash back at the stipulated rate.
An added benefit is that you earn double the regular rate of 1.5% for the first six months after acquiring your new card. This extra cash rebate is limited to an expenditure of S$5,000.
The following chart prepared by the bank illustrates how you can earn S$216 in the first year if your monthly expenditure on the Amex True Cashback Card is S$800 per month.
Amex is also currently running a promotional offer that provides cardholders with the opportunity to win a pair of business class tickets on Singapore Airlines to different destinations every month. Every S$50 that you spend gives you a chance to get two tickets to places like Cape Town, Sydney, and New York. The scheme is valid till March 2018.
Which card is better?
Each of the cards listed here has its advantages. While the Citi card offers the highest cash rebate in percentage terms, the amount is subject to a fairly low limit. The Amex card offers cash rebates that are practically unlimited but the amount that you can earn for each transaction is substantially lower.
When selecting between these cards, you would have to examine your spending patterns and then choose the card that best meets your individual needs.
Disclaimer: All credit card information is accurate at time of writing and should only be used as a reference. For the latest promotions, benefits, and terms and conditions, please refer to the respective credit card company websites.