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Chase has announced a new spending bonus for new cardholders with the Chase Freedom Flex and Chase Freedom Unlimited credit cards. In addition to the cards’ standard sign-up bonus, users will also earn 5% cash back on the first $12,000 spent at grocery stores over the first 12 months from account opening.

Key Takeaways

  • The Chase Freedom Flex and Unlimited cards are offering accelerated rewards on grocery store purchases over the first year for new cardholders.
  • The new 5% grocery bonus replaces one the card issuer offered on gas station purchases.
  • Between the cards’ standard bonus and the grocery bonus, new cardholders can earn up to $800 in cash back over their first year with the card.

Chase Freedom Cardholders Get a Break on Groceries

When you open a new Chase Freedom Flex or Chase Freedom Unlimited credit card, you’ll earn a $200 cash bonus after you spend $500 during the first three months. On top of that, you can also earn up to $600 in cash back when you use your card to shop at grocery stores.

The bonus includes 5% cash back on up to $12,000 in grocery store purchases over the first year of card membership.

It’s important to note, however, that the grocery store category does not include all retailers that sell groceries. In particular, Chase excludes Target and Walmart in the bonus language. The card issuer’s terms also exclude warehouse clubs like Sam’s Club and Costco, as well as drugstores and other smaller merchants that specialize in only a few grocery items.

The Chase Freedom Flex sometimes offers the same rewards rate on grocery store purchases as one of its rotating category bonuses—it was one of two 5% bonus categories during the first quarter of 2022. But there aren’t many cards that will offer that rate on more of an ongoing basis, giving new cardholders an excellent way to rack up cash back during their first year.

Another card, the Blue Cash Preferred Card from American Express, offers a 6% cash-back rewards rate on U.S. supermarket purchases that doesn’t expire after a year, though it caps your spending at $6,000 per year, after which you earn just 1% back.

If you’re considering one of the Chase Freedom credit cards to take advantage of the grocery bonus, make sure you also consider the long-term value you can get and whether the cards’ other rewards rates align with your spending habits. Take your time to compare rewards credit cards to ensure that you find the right fit for you.

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