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If You Spend $500 a Month on Groceries, This Card Earns You the Most Cash Back

  //food-wine.news-articles.net/content/2025/10/31 .. ries-this-card-earns-you-the-most-cash-back.html
  Published in Food and Wine on Friday, October 31st 2025 at 23:29 GMT by The Motley Fool
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Which Credit Card Earns the Most Cash Back on a $500‑a‑Month Grocery Bill?

For many households, groceries make up the largest portion of the monthly budget. A 2023 article on The Motley Fool tackled the question that every shopper asks: “If I spend $500 a month on groceries, which credit card gives me the best cash‑back return?” The analysis compared the top grocery‑reward cards, calculated the net cash back after annual fees, and concluded that the Citi Custom Cash card is the clear winner for shoppers who keep their grocery spending steady at $500 a month.

1. The Cards in the Ring

These are the cards most frequently mentioned in grocery‑reward discussions. The article links to each card’s official page for readers to get the latest details, but the core comparison remains the same.

2. How the Numbers Stack Up

To see which card yields the most cash back, the article performed a simple calculation: multiply the monthly grocery spend ($500) by each card’s grocery rate, then subtract the prorated annual fee (if any). The results are:

The Citi Custom Cash card delivers the highest net cash back at $25 per month ($300 per year). Even after accounting for the $95 annual fee on the Blue Cash Preferred card, the Custom Cash still tops the list, largely because it offers a 5% return on groceries without any fee at all. The Blue Cash Everyday card, while free, pays only $15 per month and would require a hefty spending increase to match the Custom Cash’s output.

3. Why Citi Custom Cash Wins

• No Annual Fee – Many reward cards entice users with high‑rate categories but tack on a hefty fee. The Custom Cash offers a generous 5% return on groceries with zero fee, making it cost‑effective for regular shoppers.

• Broad 5% Category – The 5% rate applies not just to groceries but also to gas, restaurants, and drugstores. For households that also spend heavily on fuel or pharmacy items, the savings multiply further.

• Sign‑Up Credit – A $75 statement credit after spending $4,500 in the first three months helps offset any initial effort to reach the spending threshold.

• Intro 0% APR – Balance‑transfer and purchase APRs start at 0% for 18 and 15 months respectively, giving consumers flexibility if they need to carry a balance.

• No Spending Cap on 5% – The card caps the 5% rate at $6,000 per year, but for most consumers this threshold is far beyond their grocery spend, so the 5% applies throughout the year.

4. When Blue Cash Preferred Is Worth It

The Blue Cash Preferred card can still be a good fit if you also enjoy:

• High Spending on Restaurants & Gas – It offers 3% on those categories, while the Custom Cash only gives 1% on everything else after the 5% cap.

• Travel Perks – Blue Cash Preferred includes travel insurance, trip cancellation protection, and a 1% discount on travel purchases.

• Sign‑Up Credit – The $200 statement credit after $3,000 in spending can offset part of the $95 fee, reducing the effective cost to $75.

However, if groceries are the sole or primary driver of your credit‑card spending, the Custom Cash card remains the most efficient.

5. Quick Decision Guide

1. Spend $500/month on groceries.
2. Prefer no fee. → Choose Citi Custom Cash.
3. Spend heavily on restaurants/gas. → Blue Cash Preferred may be more attractive.
4. Looking for a broader cash‑back portfolio. → Consider Chase Freedom Unlimited for a flat 1.5% across all purchases.

6. Applying and Managing Your Card

The article encourages readers to apply via the card links provided, which direct to the official application pages. It also stresses the importance of paying the balance in full each month to avoid interest, especially for cards with 0% APR offers that can last 15–18 months.

Most of the cards offer 24/7 customer support, mobile app tracking, and credit‑score monitoring. For frequent travelers, American Express cards also provide access to the Global Lounge Collection, a perk worth mentioning for those who travel often.

7. Bottom Line

After a thorough comparison, the Citi Custom Cash® card delivers the highest net cash back for a steady $500 monthly grocery spend, thanks to its 5% return on groceries, no annual fee, and solid sign‑up credit. If your spending patterns include high levels of restaurant dining or gas purchases, the American Express Blue Cash Preferred® might still be a strong candidate, but the Custom Cash remains the optimal choice for pure grocery shoppers.

So the next time you add a $500 grocery list to your wallet, consider applying for the Citi Custom Cash card and watch your monthly expenses shrink by $25 in free cash back.