This Amex Card Saves Me Over $400 on Groceries per Year

There's no way around it -- we've all got to eat. And if your grocery bills in the last few years have been noticeably higher, you're not alone. Inflation figures have come down overall in the wake of Federal Reserve rate hikes, but inflation on food is still positive. As of the most recent Consumer Price Index report (covering February 2024), the cost of food at home was 1% higher than a year prior.

Another often-discussed issue in the world of high grocery prices is shrinkflation -- paying the same (or higher) prices for smaller product sizes. The New York Times found that it's a particular problem for items like cleaning supplies, paper products, and (gasp) candy and snacks. A bigger grocery tab and a smaller bag of your favorite chocolate bars -- that's a total bummer.

Thankfully, you have options for coming out ahead on your grocery costs. I added a grocery rewards credit card to my wallet near the end of 2022, and I'm happy to report that the cash back I'm earning every month makes me feel better about my supermarket tab. Here's a closer look at one of my favorite cards -- the Blue Cash Preferred® Card from American Express.

My cash back tab for 2023

Just how much cash back did I earn last year? I'm happy to report that I redeemed a total of $510.49 in cash back as statement credits throughout 2023. Those statement credits reduced the cost of my next bill, at an average of almost $43 per month. Not bad! That figure isn't straight profit, however, because the Blue Cash Preferred® Card from American Express isn't free to keep in my wallet.

It comes with a $0 intro annual fee for the first year, then $95. (see rates and fees). I had to pay that fee for the first time last year, and I actually didn't mind at all, since my cash back earnings came to more than four times the fee amount.

How did I manage to earn so much? Overwhelmingly, it was the spending I did at grocery stores. This Amex card pays 6% cash back at U.S. supermarkets on up to $6,000 worth of purchases (1% thereafter; terms apply). To math that out, 6% of $6,000 comes out to $360 -- and that doesn't include any other cash back you can earn with this card.

I used this to its fullest last year -- not only did I use it at my neighborhood chain grocery store just about every week, but I also visited my favorite local butcher shop and natural foods store. And my favorite online snack purveyor even counts for 6% cash back. The Blue Cash Preferred® Card from American Express is the perfect card for someone like me -- and my experience with it goes to show that it's really worth reading credit card reviews to find the right fit for your finances.

Other ways to save with Amex Blue Cash Preferred

Any credit card worth its salt will have multiple great features. This Amex card is no exception -- its other big bonus category is gas and transit, where you can earn 3% cash back (terms apply). The fact that this is such a broad category really makes it useful for a lot of people. Got a long commute by car? Use it to pay for gas. Rely on public transportation (like trains) instead? You're still covered.

I don't drive much these days, by virtue of working from home, but I love a good road trip, and this card comes with me for gas purchases. I also recently used it to get around the New York City boroughs of Manhattan and the Bronx on a weekend trip -- 3% back on subway rides!

It's safe to say that groceries and transportation are two of the bigger line items in many Americans' budgets. If you want to pay less for these costs by earning cash back on them, the Blue Cash Preferred® Card from American Express may just be a good fit for you. Just be sure to only charge what you can pay off every month. This card comes with an intro APR of 0% for 12 months on purchases and balance transfers, but after that ends, the go-to 19.24%-29.99% Variable APR will eat up any cash back benefit you've earned. If you can avoid paying that, you can come out ahead.