Chase Offers Big Grocery Perk for New Credit Card Customers

If you are considering adding a cash back credit card to your wallet, the Chase Freedom and Chase Freedom Unlimited cards have a new offer you may want to check out.

As an add-on to the existing $200 welcome bonus that comes with each card, Chase has upped the ante with a grocery store cash back offer that could be worth up to $600.

That’s a total of $800 in potential rewards just for signing up and spending with the card for a year. That checks out favorably when compared to some of the other top credit card welcome bonuses available.

Chase’s New Grocery Store Welcome Bonus Offer

Here’s how the new offer works:

  1. Spend $500 within the first three months of card membership to get the standard $200 welcome bonus. There are no category spending restrictions for this.
  2. Use your new Chase card for grocery store shopping within the first year of membership to earn 5% cash back on purchases.
  3. Earn up to $600 in cash back at grocery stores for that first year.

If your household spends an average of $1,000 per month on groceries, you’d be on pace to max out this offer by the end of your first year owning the card. Even if you spend only half that, you’re still in line for $300 in cash back over 12 months.

Some more details you’ll want to know about this offer:

  1. Cardholders cannot earn the bonus grocery cash back reward at superstores like Target or Walmart. You can, however, earn the standard cash back rate at these stores.
  2. You can’t qualify for the welcome bonus if you received another new cardmember bonus from Chase in the last 24 months.
  3. While Chase promotes this as a cash back offer, you’re actually going to earn 100 Ultimate Rewards points for each dollar you spend. You can convert those points to a cash back reward as one of several redemption options.
The Chase Freedom and Chase Freedom Unlimited welcome bonus now includes grocery cash back.

Chase Freedom vs. Chase Freedom Unlimited: What’s the Difference?

While the names are similar and the welcome bonus applies to both cards, there are some noticeable differences in the way the Freedom and the Freedom Unlimited hand out cash back rewards.

Chase Freedom

The Chase Freedom card is a rotating 5% cash back rewards card. This means that Chase picks a spending category — such as gasoline or restaurants — and boosts cash back rewards to 5% on those purchases for a period of time. These reward categories typically change every three months. Purchases made outside the bonus spending category earn 1% in cash back rewards.

Chase Freedom Unlimited

The Chase Freedom Unlimited offers a standard 1.5% cash back on everyday purchases. Aside from the welcome bonus deal, you’ll find that you receive the same 1.5% cash back reward rate no matter where you make a purchase with the card. There are no rotating bonus categories for this card.

There is no expiration date on cash back rewards for either card nor is there a redemption minimum.

Some perks that you’ll receive — no matter which card you pick — include:

  • No annual fee
  • The welcome bonus mentioned above
  • Introductory 0% APR on new purchases for 15 months
  • 5% cash back on Lyft rides through March 2022
  • 3 free months of DoorDash’s DashPass subscription service

Team Clark completed a more in-depth comparison of the two cards to help you decide which is best for your wallet.

Final Thoughts

If you are in the market for a credit card for grocery shopping during the coronavirus pandemic, this welcome bonus from Chase could make the Freedom or Freedom Unlimited card an attractive short-term answer.

The 5% offered by Chase does not top the 6% cash back offered at supermarkets from the Blue Cash Preferred® Card from American Express, but it doesn’t carry an annual fee. Amex charges $95 per year for access to the Blue Cash Preferred.

Ultimately, money expert Clark Howard would advise you to look beyond the welcome bonus when choosing a credit card. Taking advantage of this deal could be great, but make sure that the other characteristics of these Chase cards fit your long-term financial goals.

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