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Groceries are an essential part of any budget, but their costs keep going up. According to the latest Consumer Price Index from the Bureau of Labor Statistics, grocery prices shot up more than 3% from late 2024 to late 2025. One way to combat rising grocery prices is to take advantage of grocery store cash-back credit cards and grocery store rewards programs.

Several major credit cards offer special cash-back rates when used at grocery stores. Combining a grocery-specific cash-back credit card with a grocery store loyalty program and grocery cash-back apps like Ibotta and Upside will maximize how much cash you get back at the grocery store.

What Is Grocery Story Cash Back?

Grocery store cash-back is a specialized type of cash-back credit card that pays you a higher cash-back rate when you use your card to pay for food.

Other cards from major banks and credit card companies offer similar promotions; some cards (usually with an annual fee) may even pay up to 6%.

How Does Grocery Store Cash Back Work?

Grocery store cash-back credit cards are easy to use. Once you’re approved for and activate the credit card, you can use it to pay for groceries like you would any other card. But when you use it at qualified grocery stores, your credit card company will label the transaction as “grocery” or “supermarket,” and once the transaction processes, it will qualify for cash back at the advertised rate.

You’ll then be able to claim that cash back in your mobile app. A popular way to redeem the cash back earned from the grocery store is as a statement credit (which reduces how much you owe to the credit card company). In effect, this makes all your groceries discounted. For instance, if you get 5% cash back on groceries, and you use that cash back as a statement credit to pay your credit card bill, it’s as if you bought all your groceries at 5% off. That said, you may also be able to redeem cash back:

•   As a gift card, check, or direct deposit

•   To shop with Amazon, PayPal, or other online retailers, sometimes through a special shopping portal

•   To book vacations through a special travel portal

In addition to cash-back credit cards, you can download cash-back apps like Ibotta and Upside, which allow you to choose specific offers at grocery stores (for instance, 5% cash back on a specific brand of peanut butter). You then go to the store, purchase the cash-back-eligible products, submit your receipt, and earn some money back.

Some consumers may also use the term “grocery store cash back” to refer to an option you can use at the register when paying with a debit card. Much like an ATM, some grocery store registers will give you cash from their register when you pay with a debit card; you’ll receive the cash, and the amount they hand you is deducted from your checking account and paid to the grocery store.

This article will focus specifically on grocery store cash-back credit cards.

Recommended: Your Grocery Bill Explained

Benefits of Grocery Store Cash Back

Grocery store cash back offers a number of benefits:

•   Save money on groceries: First and foremost, cash back is essentially a way to save money on groceries. Because you’ll earn cash back on every grocery purchase, it’s like each item at the store is on sale.

•   Find other savings: Today’s grocery stores sell more than just groceries. If you have a cash-back credit card that works at a grocery store, you can earn cash back on any items in the store, which might include clothing, home goods, and office supplies, too.

•   Discourage dining out: By and large, it’s more affordable to cook at home than it is to eat out. When you know you earn cash back at the grocery store, you’ll be motivated to spend more money there and less on dining out, maximizing your savings.

Recommended: Grocery Budget for Family of 5

Examples of Grocery Store Cash Back Scenarios

There are a few ways you might earn cash back at grocery stores:

•   Flat-rate cash-back credit card: Some credit cards pay a standard flat cash-back rate no matter where you spend it. That means you’ll earn the same amount whether you use the card to book travel, fuel up your car, or, yes, buy groceries. This can make your finances easier to manage because you don’t have to think about which card to use for which purchase.

•   Tiered cash-back credit card: On the flip side, some cards offer tiered cash-back amounts. If you have a large grocery bill, prioritize finding a card that pays a higher rate of cash back on grocery store transactions.

•   Reward points credit card: It’s not only cash-back credit cards that reward spending at groceries. Some credit cards may earn points (or miles) instead of cash back, but they may pay out extra points for spending at a grocery store. You can still typically redeem those points as cash back (statement credit, gift card, etc.), but you may also get more value out of those points by using them to book travel or make purchases through the credit card’s online portal.

•   Apps: Again, you can maximize your cash-back earnings by downloading an app that rewards specific purchases.

Ways to Earn Grocery Store Cash Back

There are a few key ways to earn grocery store cash back:

•   Pay with a rewards credit card: Whether it’s a cash-back card or a point-based card, you’ll be rewarded when you spend anywhere. While you’ll get the most bang for your buck with a store that specifically rewards grocery store purchases, any cash-back card is better than nothing.

•   Use an app: Shopping apps like Ibotta and Upside are a great way to earn cash back on specific products. Download the app, browse it before each trip to the store, and choose items that 1) you need and 2) have good offers. If there’s a specific brand of bread you usually buy, for instance, but a rival brand is offering 7% cash back and is the same price, try the other brand for a week and enjoy the cash-back savings.

•   Join a grocery store loyalty program: Free grocery store loyalty programs are a great way to get special discounts on grocery items. While it might not put cash back in your wallet like a rewards credit card, it does help you save money at the store. Specific loyalty programs may offer additional benefits. Kroger, for instance, lets you collect fuel points toward discounted gas—and speaking of Kroger, the store occasionally offers loyalty members coupons like “$17 off $170,” which is essentially a 10% discount on groceries. Combined with a cash-back credit card, it can net you savings.

Recommended: Grocery Inflation Is Heating Up Again

Grocery Store Cash Back Tips

Here are some tips to make the most of your grocery store cash-back experience:

•   Choose a card that rewards grocery purchases: Rather than use a flat-rate cash-back credit card, find a credit card that has a big cash-back payout for groceries, especially if you have a big family with a high weekly grocery budget.

•   Read the terms and conditions carefully: Some grocery stores exclude popular stores that sell groceries (commonly Target and Walmart), so check before you swipe. Similarly, some cards may only offer cash back on groceries up to a certain dollar amount each year; once you’ve maxed out your benefit for the year, use a different card that pays a high grocery cash-back rate.

•   Maximize savings with apps, coupons, and loyalty programs: To save the most money on each trip to the store, use a combination of grocery store credit cards, shopping apps that offer cash back, coupons (both digital and physical), and loyalty programs that offer deep discounts and rewards.

•   Only buy what you need: Don’t let the promise of cash back tempt you to overspend. Only buy what you need. This is especially important with apps like Ibotta and Upside, which may pay cash back on specific items; just because you see a cash-back offer doesn’t mean you need to buy an item!

Recommended: With Higher Grocery Prices, Is Eating at Home Still Cheaper?

The Takeaway

Grocery store cash-back rewards are a great way to offset the rising cost of food at the supermarket. You can best cope with your weekly grocery expenses by using a grocery budget calculator as well as a grocery cash-back credit card, special grocery cash-back apps, and even grocery store loyalty programs that reward your spending.

FAQ

Can you get cash back at the grocery store?

Yes, you can get cash back at the grocery store by spending with a cash-back credit card and using shopping apps that offer cash back. You may also be able to withdraw cash from your checking account by paying with a debit card at the register, if the store offers this perk.

Can I get cash from a grocery store?

You can get cash from a grocery store in multiple ways:

•   Earn cash back on purchases with a grocery store credit card and/or a cash-back app.

•   Visit an ATM or bank at the grocery store, if your store offers either of these.

•   Pay with a debit card at the register to withdraw cash from your checking account.

What is the 5-4-3-2-1 rule for groceries?

The 5-4-3-2-1 rule for groceries is a way to shop with your health in mind. Each number represents a quantity of foods to buy:

•   5 vegetables

•   4 sources of protein

•   3 fruits

•   2 carbs

•   1 treat, like snacks or desserts

Do all grocery stores accept cash?

Major grocery store chains are likely to accept cash, and several states have laws that require stores to accept cash, as it’s legal tender. However, in states where it’s not required, it’s possible some grocery stores may not accept cash. If you plan to pay with cash and aren’t sure of the store’s policies, it’s a good idea to ask at guest services before filling up your shopping cart.

Which card gives cash back on groceries?

Several credit cards give you cash back on groceries, including SoFi’s Everyday Cash Rewards Card, the Capital One Savor, and American Express Blue Cash Everyday and Blue Cash Preferred.

Is $300 a month good for groceries?

If you’re wondering how much you should spend on food, it depends on how many people you’re feeding and the cost of living where you are. That said, the average monthly grocery bill for one person is between $238.46 and $434.33, according to Bureau of Labor Statistics data. A $300 monthly grocery bill puts you right in the middle, if you’re shopping only for yourself.

What is a realistic monthly grocery budget?

According to the Bureau of Labor Statistics, the average monthly grocery bill for a single person is between roughly $240 and $435. However, this can vary depending on where you live. Plus, if you’re shopping for a larger family, you can spend less on each person because cooking meals for more people is usually more economical.

Your grocery budget should also factor in how often you dine out, if your children receive any free lunches (or you pay for hot lunches) at school, and if any meals are catered by your employer.

What is the cheapest food to live off of?

According to the Cleveland Clinic, some of the healthiest yet cheapest foods to buy are whole foods (or foods that are minimally processed). Choosing frozen or canned fruits, veggies, and meat ensures the food won’t go bad as quickly and is generally cheaper. Grains like rice and oatmeal can help meals stretch, as can beans, crackers, and pasta. Plus, you can save money by buying store brands and shopping for discounted items.

Photo credit: iStock/Liubomyr Vorona

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Invest®

SOMB-Q425-017

Grocery prices have increased significantly in recent years, costing shoppers nearly 30% more than they did at the beginning of 2020. That’s driven many people to search for extra ways to save money on their monthly shopping list.

One way to lower your food bill is to take advantage of grocery rewards programs. There are many types of programs to choose from. Some can even be used together to maximize savings.

What Are Grocery Rewards?

Grocery rewards are a way for shoppers to save money through a variety of offers, such as coupons, cash back, and freebies. You can enroll in programs with specific stores in order to get discounts and other types of rewards. You can also use third-party programs, like discount apps and credit cards, to qualify for additional savings such as cash back.

Recommended: Price of Eating at Home vs. Eating Out

How Does Grocery Rewards Work?

Most grocery rewards programs offer discounts and other perks in exchange for your personal information. They track your purchases to gain insights on consumer habits and trends while also enticing you to return to the store for more savings. In-store programs may have you enter your phone number or swipe a membership card to identify you at checkout.

Many store programs are free, but some chains also have a paid membership upgrade. These programs usually come with bigger perks, so you’ll need to make sure the bonus deals justify the cost to sign up.

Third-party apps can be structured differently, often requiring you to upload photos of your receipts before you can access any available perks. Credit card rewards programs may also offer cash back on groceries when you make purchases with the card. Be aware that if you don’t pay off your balance each month, you’ll pay interest on the outstanding purchases.

Recommended: Grocery Budget Table

Benefits of Grocery Rewards

The biggest benefit of using a grocery rewards program is to save money on groceries. Here are common features you may see with different offerings.

•   Welcome rewards: This is usually a one-time offer when you sign up for a program for the first time. That gives you a perk as a new member, often as a cash discount on your first purchase using the rewards program.

•   Free or discounted products: Rewards members may receive rotating offers for free or discounted products from the store.

•   Exclusive coupons: You may get access to coupon offers that aren’t available without a rewards membership.

•   Delivery perks: Some rewards programs offer free or discounted Instacart services (typically with a paid membership upgrade).

•   Streaming services: You may also receive offers for complimentary streaming services (usually available in paid rewards programs).

•   Cash back: Apps, credit card grocery rewards, and other programs may give you cash back based on your spending. Then you can transfer the funds to your checking account or apply credit card cash back to your next statement.

•   Birthday perks: Some grocery rewards give you a gift during your birthday month, like an extra discount or free product.

Recommended: Grocery Budget for 3

Ways to Earn Grocery Rewards

Which grocery rewards should you use? Check out the commonest types of programs to see which ones fit your lifestyle and shopping habits.

Customer loyalty programs: Grocery stores create loyalty rewards programs to offer discounts in exchange for tracking your grocery purchasing habits alongside some personally identifying information. You may be able to access deals using your phone number, an app, or a membership ID card.

Paid membership programs: Some stores offer an upgraded customer rewards program with a monthly fee. These come with bigger benefits, such as free delivery services, fuel discounts, or member-exclusive deals.

Third party cash back apps: Grocery cash back apps provide perks like coupons, cash back, and gift cards when you create an account and upload your receipts into the app. An alternative option is to allow a browser extension that tracks your online purchases in exchange for deals and cash back rewards.

Credit card grocery rewards: Some credit cards let you earn cash back or points with each purchase. Your earnings accumulate as a percentage of your spending. If your credit card has bonus categories, you could also earn extra on grocery purchases throughout the year. Check what date cycles apply for grocery bonus rewards in order to max out your earnings. Just make sure you pay off your balance so you don’t accrue unnecessary interest.

Recommended: Grocery Budget for 5

Grocery Rewards Tips

How do you maximize grocery store rewards programs? Follow these tips to make the most of your savings when grocery shopping on a budget.

Stack deals: There are many different types of grocery rewards programs, but the good news is that you can often stack perks for each one. For instance, you can sign up for a store rewards program, pay with a grocery rewards credit card, and then submit your receipt into a cash back app for triple savings opportunities.

Check for program limits: Some types of grocery rewards may come with limitations. For instance, you may only be able to earn up to a certain dollar amount with cash back programs. If you accumulate fuel discounts, there may be a cap on the lowest price allowed. Scrutinize the terms when you sign up so you’re not disappointed by any limits.

Look at credit card rewards categories: If your credit card has a special cash back or points rate for grocery stores, find out what stores actually fall under that category. Wholesale clubs or general stores like Target and Walmart may not count.

Recommended: Average Monthly Expenses for One Person

The Takeaway

Groceries may be more expensive than they were a few years ago, but that doesn’t mean you have to blow your budget every month. Explore all of the available rewards programs for a low-effort way to keep prices low and access personalized discounts and cash back.

FAQ

What is the 6-to-1 grocery rule?

The 6-to-1 grocery rule is a simple grocery budget method for one person. It breaks down your shopping categories into six easy-to-remember categories:

•   6 vegetables

•   5 fruits

•   4 protein sources

•   3 starches

•   2 sauces or spreads

•   1 fun item

Is $300 a month good for groceries?

If you’re wondering how much to spend on food, $300 a month per person is considered relatively thrifty. The USDA generally recommends budgeting around $250 to $320 per month for an adult, depending on age and sex.

What is a realistic monthly grocery budget?

A realistic monthly grocery budget depends on the size of your family and the ages of everyone in your household. A family of four on the USDA’s Thrifty Food Plan could expect to spend around $1,000 each month. But you may need more or less depending on factors like your location and dietary restrictions.

What is the cheapest food to live off of?

There are many cheap and nutritious foods to choose from when grocery shopping on a budget. A dozen eggs, beans, rice, potatoes, oatmeal, and pasta are filling staples to include on your shopping list each week while also utilizing a grocery rewards program.

What is the 5-4-3-2-1 rule for groceries?

The 5-4-3-2-1 rule for groceries is a popular budgeting strategy that helps you choose nutritious foods at an affordable price point. Different sources may show different breakdowns of each category, but here is a common interpretation: 5 vegetables, 4 proteins, 3 fruits, 2 carbohydrates, and 1 treat.

How much should I spend on groceries?

Choose how much to spend on groceries after accounting for your non-negotiable expenses in your monthly budget. Then you can see how much money you have left for other costs, like groceries, entertaining, and saving for long-term goals. Adjust each category until you find a grocery budget that works for you while also leaving enough for other spending.

How much do groceries cost per month?

For an individual, groceries on average cost between $250 and $320 per month for someone on a thrifty budget. For a family of four, the average cost is just over $1,000.

What is the 50-30-20 rule for groceries?

The 50-30-20 rule is for your overall budget, not groceries. This strategy allocates 50% of your income to needs, 30% towards wants, and 20% towards savings. Groceries fall under the needs category, although you have room to adjust how much you spend each month.

Photo credit: iStock/Ivan Pantic

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Invest®

SOMB-Q425-016

A grocery rewards credit card is a strategic way to save money every time you shop at the supermarket. Each shopping trip helps you earn rewards you can apply to future purchases.

Even when you factor in rising grocery prices, the cost of eating at home is still cheaper than eating out. Using a grocery rewards credit card helps you manage every part of your budget while controlling food costs.

What Are Grocery Rewards?

Grocery rewards are programs that help you save money on your store purchases in a variety of ways. Grocery rewards credit cards let you earn cash back or points whenever you use the card to purchase groceries.

Other types of grocery rewards, such as store loyalty programs or cash back apps, track your spending data in exchange for perks like discounts and free products. Whether you’re creating a grocery budget for five people or a food budget for three people, you can lower your overall spending by using a combination of grocery rewards programs.

Recommended: Grocery Budget for 1

How Do Grocery Rewards Credit Cards Work?

A grocery rewards credit card comes with several perks for the cardholder. In order to get this type of credit card, you need to submit an application and get approved by the issuer. The approval process is based on your credit history and your income. Having a strong credit score with plenty of on-time payments and low debt balances can improve your chances of getting approved. Plus, you’ll qualify for better interest rates when you carry a balance.

Every time you make an eligible purchase with your grocery rewards credit card, you may accrue points, miles, or cash back — depending on your card’s specific program. Once you’ve accrued your rewards, you can redeem them.

For cash back cards, you can typically choose between receiving a check, direct deposit, or a statement credit on your card account. Miles and points can be redeemed for eligible purchases. While you may not directly save money on groceries (unless you use your cash back rewards at the supermarket), you may be able to lower your average monthly expenses by using a grocery rewards credit card.

Types of Grocery Rewards Credit Card

You can earn grocery rewards in a few different ways when using a credit card. Some cards offer a flat rate of points or cash back on all purchases, including groceries. Others have bonus spending categories. You could find one that offers a higher rewards rate for groceries year-round. Or you could find a credit card with rotating rewards categories. In this situation, grocery stores usually earn a higher rate during one quarter every year.

Benefits of Grocery Rewards Credit Card

Here are some of the top perks of using a grocery rewards credit card.

Sign-up bonuses: Some card issuers offer a sign-up cash bonus when you qualify for a new credit card. Typically, you need to meet minimum purchase requirements within a certain time frame in order to receive the bonus, which is eventually credited to your account.

General rewards: A grocery rewards credit card often lets you earn points or cash back in several different spending categories. So not only can you shop for groceries on a budget, you can also accumulate rewards in other spending areas.

Credit improvement: Responsibly using a grocery rewards credit card may help improve your credit score. That, in turn, can lead to more favorable financing terms and interest rates in the future. For starters, build your credit history by making at least a minimum payment on time every month. By paying off your balance in full each month, you’ll give yourself a larger overall credit limit, which will lower your credit utilization ratio — and could raise your score.

Examples of Grocery Credit Card Spend Scenarios

Let’s take a look at a few different scenarios to see how much you could earn with a grocery rewards credit card.

We’ll also use spending plans from different types of households using data from the Grocery Budget Calculator Table, then calculate their annual food costs based on a moderate budget.

Recommended: How Much Should I Spend On Food?

Alternatives to Grocery Rewards Credit Cards

Looking for more ways to save on your grocery bill? Here are some credit card alternatives (and additions) to consider.

•   Customer loyalty programs: Join loyalty rewards programs at grocery stores you frequent.

•   Paid grocery memberships: Consider upgraded membership programs from certain grocery stores. The benefits are usually more substantial and make sense if they pay for themselves.

•   Third party cash back apps: Download cash back apps and upload your grocery receipts to get extra cash back and discounts.

Grocery Rewards Tips

Follow these tips to maximize your credit card grocery rewards.

Buy gift cards at the grocery store: If you ever give gift cards as presents, buy them at a grocery store using your rewards card. It’s a great way to boost your grocery earnings on something you may normally buy elsewhere.

Check store eligibility: Even if you’re buying grocery items at a gas station or convenience store, your card issuer may not count the transaction as a grocery store purchase. Find out what qualifies in the category in order to use the right credit card for your rewards.

Use a delivery service: Some credit cards categorize delivery services as a grocery store. You may be able to order from stores that aren’t normally included in the grocery category.

Understand annual caps: Many rewards cards have a quarterly or annual cap on how much you can earn in specific spending categories.

The Takeaway

Using a grocery rewards credit card can be a smart way to save on your groceries and enjoy perks throughout the year.

FAQ

What are the advantages of using a grocery rewards credit card?

A grocery rewards credit card lets you earn cash back or points on everyday purchases you’d likely be making anyway. You can redeem your cash back or use points for things like travel perks, gift cards, and more. As long as you pay your balance in full each month, you can take advantage of the rewards without accruing interest on your balance.

What is the difference between a grocery rewards credit card and a grocery store card?

A grocery rewards credit card lets you charge your groceries and other transactions onto a credit card account while earning points or a cash back percentage on eligible purchases. A grocery store card, on the other hand, is a loyalty rewards program for specific grocery stores. Loyalty members get access to perks like discounts, freebies, and coupons.

What is the 5-4-3-2-1 rule for groceries?

The 5-4-3-2-1 rule for groceries is a way to budget that sets limits on purchases in certain categories. A common interpretation of the rule allows for 5 vegetables, 4 proteins, 3 fruits, 2 grains or other carbs, and 1 treat item.

How much should I spend on groceries?

The amount you spend on groceries is a personal decision. It largely depends on how expensive an area you live in and how many people are in your household. If you’re trying to cut back on your overall expenses each month, spending less on groceries can be a good place to start.

How much do groceries cost per month?

According to the USDA, a family of four on a thrifty grocery plan spends about $1,000 per month.

What is the 50-30-20 rule for groceries?

The 50-30-20 rule doesn’t apply to groceries; it’s an overall budgeting strategy. It breaks down your monthly income into three categories:

•   Needs: 50% of income

•   Wants: 30% of income

•   Savings: 20% of income

So if you earn $7,500 per month, you would spend $3,750 on necessities, $2,250 on wants, and $1,500 on your savings goals.

Photo credit: iStock/Drazen Zigic

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Invest®

SOMB-Q425-014

Many grocery stores offer their customers loyalty programs with rewards such as discounts, cash back, points, or free items for purchasing groceries they already need. Details vary from store to store, but these programs can offer big benefits to customers and stores alike.

Everyone is aware that food prices have gone up in recent years, with the Bureau of Labor Statistics reporting an increase of 2.9% from May 2024 to May 2025. Every bit of savings can help. Understanding how these grocery store reward programs work can help you make informed choices before you head for the check out.

What Are Grocery Store Rewards?

Grocery store rewards are useful for grocery shoppers on a budget. They are targeted benefits that shoppers receive for participating in a loyalty program. In return shoppers typically provide access to data on their purchasing habits, which can be invaluable information for stores.

How Does a Grocery Store Rewards Program Work?

Grocery store rewards programs usually require you to sign up for a card or app by providing personal information, such as your name, phone number, and email address.

To earn and redeem rewards, shoppers are asked to present their card or app when they check out to buy grocery items like eggs or household products, like sponges or dish soap.

Grocery store reward programs offer benefits in both directions. Stores like to use them because they encourage loyalty and repeat visits. They also use these programs to gather data on what their customers are buying, which helps shape marketing campaigns and inventory decisions.

Types of Grocery Store Rewards

Some reward programs offer entertainment benefits. Grocery store rewards programs try to offer shoppers the chance to earn a number of different benefits linked to food shopping, such as:

•   Points: Shoppers may receive points that they can redeem for money off in-store purchases. Some stores may offer points that can be redeemed for discounts on gas at partnering gas stations.

•   Discounts: Rewards program members may have access to coupons through a store’s app, for example.

•   Members pricing: Certain products may be priced lower for rewards members.

•   Cash rewards: Cashback rewards give you a certain percentage of your money back as a rebate when you make purchases.

Benefits of Grocery Store Rewards

The biggest—and perhaps most obvious—benefit of a grocery store rewards programs is savings. Rewards can help you lower your grocery bill or provide points for discounts with other retailers, such as gas stations or pharmacies. Savings are quick and easy, usually applied at the point of checkout.

Other less obvious benefits are connected to the data grocery stores collect on your purchases. This information may allow them to target special offers to you based on your purchasing patterns. This way you receive offers for items that you already buy rather than a collection of random promotions.

Rewards apps often offer purchase histories and savings summaries that allow you to track your spending as well as how much you typically spend on deals. This information can be helpful as you build your monthly budget.

Finally, because grocery store rewards help incentivize you to shop at the store, they can also incentivize eating at home versus eating out regularly. This can be a boon to budget-conscious shoppers, since the cost of eating at home hovers around $4 to $6 per person on average, while dining out can be $15 or more per person.

Recommended: What Are the Average Monthly Expenses for One Person?

Examples of Grocery Store Rewards Program

There are many different rewards programs from major retailers. Some are relatively elaborate. For instance, Kroger, a major grocery store chain, offers a free card with personalized deals, digital coupons, and points that can be redeemed for gas. The retailer offers a paid tier membership which doubles fuel points, offers free grocery delivery, and several free streaming services.

Other rewards programs may be simpler. Publix, for instance, offers digital coupons and notifications for buy-one-get-one sales.

Ways to Earn Grocery Store Rewards

Usually, all you have to do to earn grocery store rewards is sign up for the program and redeem benefits at checkout.

Some retailers offer a paid membership that can unlock further rewards, such as free delivery on purchase over a certain amount, free shipping for online purchases, no-rush returns, or access to a selection of free gifts or exclusive discounts.

Alternatives to Grocery Store Rewards Program

Not all grocery rewards programs operate as in-house benefits. For example, certain bank cards may offer cashback on grocery story purchase.

Other cards may offer different types of rewards for spending, such as points that can be redeemed for airline tickets or hotel rooms. Some cards may offer higher rewards for spending at grocery stores, while others may not differentiate them from other retailers.

Grocery Store Rewards Tips

To maximize rewards programs use tips that can help you save money on groceries. For instance, make use of coupons and shop sales for items that you already need. If you are using a rewards credit card, pay your bill in full each month. This way you will avoid carrying a balance, which triggers interest payments that could erase the cost savings you gained at the store.

Recommended: Average Grocery Budget for Family of 3

The Takeaway

Whether you’re looking to stretch your budget or pick up extra savings to use toward other financial goals, understanding rewards programs can help you make informed decisions and which programs to sign up for. Ultimately the goal is to maximize your benefits to ensure that you are getting real value from these programs.

FAQ

What are advantages of using a grocery store rewards program?

Grocery store rewards programs can help you save money, allowing you to stretch a grocery budget or secure savings for other financial goals. They can also provide more targeted offers for items that you already buy.

What is the 6-to-1 grocery rule?

The 6-to-1 grocery rule was designed by chef Will Coleman and suggests that when grocery shopping, shoppers buy six vegetables, five fruits, four proteins, three starches, two sauces, and one fun item. According to Coleman, this should provide shoppers with cost-effective, versatile ingredients that can be used for a week’s worth of meals.

Is $300 a month good for groceries?

Wondering how much you should spend on food? Your grocery budget will depend on your food preferences, where you shop, and the size of your household. That said, spending $300 a month on food is well below the approximately $504 monthly average Americans spend according to the Bureau of Labor Statistics (BLS). It may be a big enough grocery budget for a single person. However, the grocery budget for a family of five, for example, might need to be much larger.

What is a realistic monthly grocery budget?

The average cost of groceries is $504 a month, according to the BLS. This may serve as an appropriate benchmark. The United State Department of Agriculture provides food budget estimates of around $300 to $500 per month per adult. Costs also vary widely by age, household size, and location. A grocery budget table can help you determine the average cost for your situation.

Photo credit: iStock/FreshSplash

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Invest®

SOMB-Q425-015

It’s no secret that banks appreciate affluent depositors and their high account balances. To attract and keep these wealthy customers, many banks and credit unions have established premium banking services, also known as premier banking.

Premium banking typically brings high-dollar clients a suite of benefits such as higher savings yields, waived account fees, dedicated customer service, and no-charge ATM access.

If your balance is big enough, you can receive extra privileges and services. Here’s what to know if you’re looking to pursue deluxe status.

What Are Premium Banking Services?

Premium banking services are elite privileges that a bank extends to its loyal and financially comfortable customers. The benefits often center on a rewards checking account paired with a rewards savings account; qualified customers may also receive exclusive deals on bank credit cards or loans.

Amenities may include:

•   Dedicated personal bankers

•   Investment consultations

•   Lower fees for other financial products within the same bank or credit union

•   Higher annual percentage yields (APYs) on savings accounts

•   Reduced annual percentage rates (APRs) on loans

•   Increased daily or weekly limits for withdrawals, purchases, and money transfers

•   Free or low-cost wire transfers

•   Overdraft protection

•   Rewards credit cards

•   ATM fee reimbursements

How Does Premium Banking Work?

As noted above, premium banking enhances services and lowers costs for preferred customers. To qualify for these perks and price breaks, clients generally must keep high average daily balances in their checking and savings accounts; they may also maintain investment accounts and have multiple bank loans.

The required balances vary, but amounts between $10,000 and $15,000 are common. Clients can use the total of their balances from different types of bank accounts to meet these financial requirements.

In exchange, the bank may waive monthly fees, pay higher APYs on savings accounts, and provide discounts on loans. A designated personal banker typically handles the client’s account needs and coordinates perks and services such as credit card bonus offers and free financial consultations.

Types of Premium Banking

The phrase “premium banking” usually refers to upgrades and privileges made available to banks’ affluent or relationship-focused clients. Sometimes, though, the term has a broader meaning. It may encompass the top-tier services of private banking and wealth management for depositors with high or ultra-high net worth.

Premium Banking

In brief, premium banking typically bundles premium checking accounts and savings accounts with loans, mortgages, or other financial products. Clients enjoy discounted loan APRs or lower fees across the board due to their many connections to the bank.

If a high-yield savings account is part of the premium banking package, it’s likely to have an amped-up APY and few or no fees.

There may also be other special deals, including enhanced credit card rewards.

Banks generally assign dedicated financial officers to manage relationships with premium clients. Your personal banker can troubleshoot for you and act as a point person for exclusive perks (e.g., airport lounge access when traveling) as well as ordinary bank business like wire transfers or safe deposit box rentals.

Private Banking

A more rarefied version of premium banking is private banking. This type of retail banking caters to wealthy individuals, so minimum balance requirements can be quite steep. Clients may need to maintain average daily balances ranging from $100,000 to $10 million or more, depending on the bank.

Some institutions have established service tiers (such as gold, platinum, or diamond) that reflect the client’s combined balances. As a rule of thumb, the higher the balance, the more exclusive the tier and the more extensive the benefits.

The assistance provided by private bankers can be narrowly focused or expansive. It may include anything from strategizing to maximize credit card rewards for lavish travel to facilitating a jumbo mortgage to setting up a financial plan.

Wealth Management

Wealth management can be seen as an extension of private banking, so the two are sometimes marketed together to high net worth and ultra-high net worth individuals. In addition, wealth management professionals may work with private family trusts, including those with governing boards.

Wealth management goes beyond banking functions, however. A private banker might help you with various bank accounts, credit cards, and loans, as discussed above. A wealth management specialist would get familiar with all the ins and outs of your financial life in order to advise you on investments, trusts, retirement planning, or estate planning. These issues can be extremely complex, especially for ultra-high net worth clients.

Benefits of Premium Banking Services

Talking and teaming up with a personal banker can be beneficial in itself — and not just for tips on saving or making money. A personal banker can teach an affluent person how to move from being a depositor to being a steward of their wealth.

The banker uses their deeper expertise to give you individually tailored support and guidance. Meanwhile, you can learn from their knowledge and experience.

The banker may also have a network of contacts you can work with on larger issues such as estate planning or tax strategy.

Examples of Premium Banking Services

Premium banking services can include any number of price breaks and lifestyle bonuses. Some familiar examples are:

•   Preferential rates: These could be higher interest rates on savings accounts and certificates of deposit (CDs) or discounts on loans, insurance, mortgages, and lines of credit.

•   Upgraded credit cards: Visa Signature and Mastercard Platinum are examples. Preferred customers can thereby access more advantages of credit cards, such as enhanced rewards, discounts, and travel perks.

•   Global and international banking support: Assistance with currency services and offshore accounts may be available, plus sweeteners such as zero foreign transaction fees and access to emergency cash services.

•   Travel privileges: Premium status may mean priority boarding at airport gates, free lounge access, or rental car discounts.

•   Concierge services: These include assistance with booking travel, making dining reservations, and getting tickets to exclusive events such as SoFi Plus Experiences.

•   Advanced cash management and financial planning: Wealthy customers can sort out complex cash flow issues and, if needed, get professional advice from investment and insurance experts.

•   Waived banking fees: Monthly maintenance charges, out-of-network ATM fees, wire transfer fees, foreign transaction fees, and charges for cashier’s checks or money orders may all be reduced or waived.

Alternatives to Premium Banking Services

Bank customers who don’t have thousands of dollars to park in a checking, savings, or investment account can still score better loan APRs, fewer fees, or specific financial benefits if they’re willing to cast a wider net.

•   Credit unions: For comparatively low loan rates and fewer fees, some people consider credit unions. They offer many of the same in-person services as traditional banks, and customer deposits are federally insured by the National Credit Union Administration.

•   Online banks: These banks typically have lower overhead costs because they operate entirely online. Customers may not mind the lack of physical branches if their bank saves them money on fees and gives them higher APYs on savings and checking accounts. Like traditional bank accounts, online bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC). Some online institutions also give you access to premium banking perks through membership programs such as SoFi Plus.

•   Financial technology (fintech) firms: For convenience, cash-back rewards, fewer monthly fees (e.g., fee-free overdraft coverage), and digital features such as budgeting tools, you might want to look into fintech options. These companies partner with traditional banks to provide app-based financial services along with FDIC insurance for customer accounts.

•   Brokerages: Financial giants such as Fidelity and Schwab offer cash management accounts that function like checking accounts but often provide better interest rates. That’s because these accounts keep a customer’s uninvested cash in money market funds. A brokerage account can work well for people who want to consolidate their investments and banking in one place.

•   Community banks: These local institutions focus on the needs of the communities they serve. They provide personalized service and a full range of banking products, often balancing the friendly feel of a credit union with the features of a traditional bank.

In weighing these and other options, it’s important to consider your specific needs. A credit union or community bank may be a good fit, for example, if you particularly want in-person support. Online banks or brokerage cash management accounts could be appropriate if high interest on savings is a priority.

Premium Banking Tips

•   Strategizing your spending — with or without guidance from your personal banker — could help you unlock additional value. For example, if you have augmented credit card points, exchanging them for cash often gives you the worst conversion rate. A banker might note that using those points for travel could get you a lot farther.

•   Get familiar with the less splashy perks that go along with your accounts. Examples might include early credit for direct deposits or transfer fee waivers.

•   If premium plastic is one of your benefits, you’ll want to stay current on relevant credit card rules, as some perks may be limited-time-only or have stringent terms and conditions.

•   Use your banker to coordinate with tax, legal, and investment specialists within the bank. Not only will this ensure that you get cohesive advice, but it should also save you time and effort.

The Takeaway

Premium banking offers affluent customers enhanced services, privileges, and perks. To qualify, customers usually must maintain very high average daily balances across their accounts; in exchange, they get added convenience and savings. Three common benefits are waived fees, higher savings rates, and free consultations with a dedicated personal banker.

FAQ

What is the meaning of premium banking?

The phrase “premium banking” refers to special account benefits and personalized financial services for high net worth individuals. These may include consultations with dedicated relationship managers, wealth management assistance, investment advice, and account perks like waived fees and better loan rates.

Is premium banking worth it?

The answer depends on your assets and your lifestyle. If you can easily maintain the necessary minimum balances or if you use multiple services from the same bank (such as loans, credit cards, and investments), the convenience and perks of premium banking may be worth the costs. Other customers may find that, for them, premium banking’s particular benefits don’t warrant the high fees or balance requirements.

What does a premium bank account mean?

A premium bank account is a bank account that offers extra features such as higher interest on deposits, discounts on loans, low or no fees on many transactions, and dedicated support from a personal banker. It’s generally marketed to customers who can maintain substantial balances or who contract for multiple bank products and services.

What are the four types of bank accounts?

The four types of customer accounts that are available at a bank or credit union are:

•   Checking accounts: This essential account provides quick access to funds for everyday spending and transactions.

•   Savings accounts: People often use this type of account to store money for emergencies and short-term goals while earning interest. High-yield savings accounts are widely available.

•   Certificates of deposit (CDs): This is a more constrained form of savings account in which customers lock up funds for a set period of time in exchange for fixed interest rates and guaranteed returns. Credit unions’ version of a CD is called a share certificate.

•   Money market accounts (MMAs): This type of savings account combines higher interest rates with checking account features.

What are the advantages of a premium bank account?

Common advantages of premium bank accounts include waived or reduced fees (e.g., for ATM use or overdrafts), higher APYs on savings account balances, lower rates on loans, and complimentary perks such as priority customer service, financial planning consultations, travel benefits, or identity theft protection.

Photo credit: iStock/fizkes

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*Based on a series of blinded surveys of financial memberships across banking, borrowing, investing, and credit cards. A nationally representative sample of 900 consumers were asked to rank offerings based on the question “Which financial membership brand is most rewarding?” Results as of January 2025. See sofi.com/plus-survey for details.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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