Safeway Launches a No-Annual-Fee Amex Credit Card With up to 5% Back

Safeway customers now have a credit card built specifically for their trips to the grocery store.

The Safeway^® forU American Express^® Card earns up to 5% back on online orders and charges no annual fee. New applicants can also pick up a $50 statement credit as part of the card’s introductory offer.

The card is issued by First Electronic Bank and powered by Imprint, which also manages the card’s rewards program.

Should you add the Safeway forU card to your wallet? Let’s see what it offers and how it stacks up against the cards we already recommend for grocery spending.

Safeway forU Card Overview

The Safeway forU card’s earning structure rewards you most for buying groceries online through Safeway. Here’s how it breaks down:

• 5% back on eligible grocery purchases made through the Safeway website or app, including pickup and delivery orders
• 3% back on eligible grocery and pharmacy purchases at Safeway stores, including prescriptions, immunizations, and over-the-counter health products
• 3% back on gas, dining, and bills
• 1% back on other purchases

The card’s welcome offer for new applicants is modest: You’ll get a $50 statement credit after spending $1,000 in net purchases within the first 90 days from account opening. However, only spending outside Albertsons Companies stores will count toward earning the $50 statement credit. That means your Safeway groceries won’t count toward earning the welcome bonus. The terms say that the credit should post to your account within 8 to 12 weeks of qualifying and may arrive in multiple deposits.

You can use the card’s offer page to check whether you’re approved without affecting your credit score. If you accept the offer, Imprint will do a hard pull on your credit.

Because this is an American Express credit card, you also get access to Amex Offers and Amex Experiences, providing perks like ticket presales for concerts and sporting events.

How It Compares to Our Top Grocery Cards

The Safeway forU card’s biggest limitation is that its best earning rates only apply at a single grocery chain. Here’s how it compares with some of our favorite cards for supermarket spending.

American Express^® Gold Card

The Amex Gold card earns 4 Membership Rewards points per $1 at U.S. supermarkets on up to $25,000 per calendar year (then 1x points). We value those points at 2.2 cents each, which works out to an 8.8% return on spending. That beats the Safeway forU card’s in-store rate by a wide margin, and it works at any U.S. supermarket.

You’ll also earn 4x points at restaurants worldwide on up to $50,000 on spending per calendar year. The trade-off is a $325 annual fee (rates & fees). Its dining, Uber, Resy, and Dunkin’ credits can offset much of that, but only if you use them (enrollment required for some of these benefits).

Blue Cash Preferred^® Card from American Express

The Blue Cash Preferred card earns 6% cash-back at U.S. supermarkets on up to $6,000 per year, then 1% back. If you spend $6,000 on groceries in a year, you’ll earn $360 in cash-back. Meanwhile, if you put that same $6,000 on the Safeway forU card (at eligible stores), you’d earn $180 at the 3% rate or $300 at the 5% rate if all of your shopping comes from online orders.

The Blue Cash Preferred card has a $0 intro annual fee for the first year, then $95 (rates & fees). Even after that fee, it comes out ahead for most heavy grocery spenders. It also earns 3% cash-back at U.S. gas stations and on transit, plus 6% cash-back on some U.S. streaming subscriptions.

Final Thoughts

The Safeway forU card makes sense if you do nearly all your grocery shopping at Safeway — especially if those are online or delivery orders — and you don’t want to pay an annual fee for your grocery rewards credit card. For everyone else, it’s less than ideal.

If you’re brand agnostic and shop at various grocery stores — or if you spend heavily on groceries — another card will likely earn you more rewards each year.