Tax Rebate + Reward Credit Card = Big Grocery Savings

April 23, 2008

In case you haven’t heard, grocery chain Kroger (KR) is offering to add 10% to your economic stimulus tax rebate if you swap it out for a Kroger gift card. So instead of receiving $300, $600, or $1200, you’ll get $330, $660, or $1320 worth of groceries.

What’s even better is that you don’t actually have to show your check to take advantage of this deal — and you can make payment with cash, personal check, or credit card! So…

Let’s assume that you take advantage of this offer and make payment with a reward credit card such as the AmEx Blue Cash Rewards card. Because this card offer 5% cash back on grocery store purchases, you’ll get the 10% bonus from Kroger plus 5% cash back from AmEx.

An example:

Purcahse a $300 gift card purchase and get $330 in credit. On top of that, you’ll receive an additional $15 cash back from AmEx, meaning that you’ll spend $285 to get $330 worth of groceries. That’s an instant return of nearly 16%. Not bad for a quick trip to the service counter.

Posted in Credit Card Tips, Reward Cards