This Underrated Capital One Card Earns Unlimited 3% at Grocery Stores With No Annual Fee

If you're anything like my family, food is one of your biggest monthly expenses. Between grocery store runs, eating out on busy nights, and the occasional "we're too tired to cook" delivery order, it's easy to spend $1,000 to $2,000 a month without really trying.

When a single category eats up that much of your budget, the credit card rewards you earn (or don't earn) actually matter.

One card that doesn't get nearly enough attention is the Capital One Savor Cash Rewards Credit Card (see rates and fees). It earns unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®) -- plus more on Capital One Travel purchases -- all with no annual fee (see rates and fees).

For households like mine, that combo is hard to beat.

Why this card fits everyday food spending

The Capital One Savor Cash Rewards Credit Card is built for how people actually live and spend. You just use it for groceries, dining, and everyday purchases, and the cash back adds up in the background.

Here's the quick breakdown of what the card offers:

• Unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®)
• $0 annual fee, so there's no pressure to "earn it back"
• Earn a $200 cash bonus after you spend $500 on purchases within 3 months from account opening
• 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
• 8% cash back on Capital One Entertainment purchases
• Intro APR offer: 0% intro APR for 12 months on purchases and balance transfers (balance transfer fee applies); a regular ongoing 18.49% - 28.49% (Variable) APR applies at the end of the intro period
• No foreign transaction fees and a top-rated mobile app

A lot of cash back cards cap how much you can earn or limit bonus categories to certain quarters. This card has unlimited rewards, which makes it a great fit whether your food spending is modest or consistently high.

How to earn the $200 welcome offer

Right now, you can earn a $200 cash bonus, and it's one of the easier offers to earn.

You'll get the $200 cash bonus after you spend $500 on purchases within the first 3 months of account opening. For most households, that's just a few grocery store trips, a couple dinners out, or a mix of everyday bills.

The key is to use the card naturally. Put your regular food spending on it, maybe add a streaming subscription or two, and let the spending happen organically. There's no need to manufacture purchases or shift your budget around.

Once you hit the $500 mark, the bonus will be credited to your account.

How much you can earn in a year

To show some real numbers, I'll use my family's spending profile, since it's probably similar to a lot of households with busy schedules and growing grocery store bills.

Between groceries, eating out, and the occasional delivery night, we spend about $2,000 per month on food. At 3% cash back, that comes out to $720 per year in rewards just from food spending. On top of that, we run roughly $1,000 per month through credit cards for everyday, non-bonus purchases, which would earn another $120 per year at 1% cash back.

All in, that's $840 in annual cash back from spending we already have -- before factoring in the welcome offer.

For a card with no annual fee, that's real money back in our budget without changing how we spend.

Who this card is best for

The Capital One Savor Cash Rewards Credit Card (see rates and fees) is a good fit if food is a major line item in your budget. Families, couples, and busy professionals who split their spending between groceries, dining out, and streaming services will likely get the most value.

It's less compelling if flights are your biggest expense, since airfare only earns 1% cash back. In that case, pairing Capital One Savor with a dedicated travel rewards card can make sense.

Another important note: Wholesale clubs and big box stores like Target and Walmart aren't included as grocery store spending, even if you buy food there. This card makes sense if you shop at traditional grocery store chains.

If you want a deeper look at the rewards, fees, and how it compares to similar cards, check out our full Capital One Savor Cash Rewards Credit Card review to see if it fits your spending style.