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MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial workforce of skilled journalists works carefully with main private finance specialists in Canada. That will help you discover the perfect monetary merchandise, we examine the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Be taught extra about our promoting and trusted companions.
The perfect money again playing cards in Canada by class
Money again bank cards are a particularly common kind of rewards card in Canada. Every money again bank card has its personal options and advantages, so that you’ll wish to examine the annual payment, earn fee and any further advantages earlier than you apply. That will help you choose the best card we’ve put collectively a listing of our favourites primarily based on completely different classes.
Greatest general money again bank card
At a look: This money again card presents spectacular earn charges on grocery and gasoline purchases, two of the most-used spending classes. Crucially, it additionally has the very best base earn fee in Canada, at 2%. Mixed with strong insurance coverage protection, entry to Amex advantages and free supplementary playing cards, that is palms down one of many greatest bank cards in Canada.
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SimplyCash Most well-liked from American Categorical
- Annual payment: $120
- Earn fee: 4% money again on eligible gasoline and grocery purchases; 2% money again on all the things else
- Welcome supply: You may earn a $40 assertion credit score for every month-to-month billing interval by which you spend $750 in purchases in your card.
- Annual earnings requirement: None
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- This card pairs wholesome earn charges with spending caps that the standard consumer received’t ever attain, so you may get essentially the most out of each greenback spent. The true profit right here is the minimal 2% money again on each single buy you make.
- There’s no specified earnings requirement for approval, making this an excellent accessible money again card.
- The cardboard comes with Amex advantages like eating and retail experiences, in addition to Amex Entrance of the Line, which supplies you early entry to occasion tickets. Month-to-month Amex Affords tailor-made to your spending habits could be downloaded by way of your Amex app or on-line account.
- Free supplementary playing cards provide help to maximize the cardboard’s money again potential.
Cons
- Amex isn’t accepted at as many locations as Visa or Mastercard. Those that store at Loblaw banner shops, for instance, like Actual Canadian Superstore and No Frills, would seemingly wish to carry a secondary card.
- Redemptions aren’t versatile. You’ll obtain your money again as an announcement credit score as soon as yearly, in September.
Honourable point out
At a look: Just like the SimplyCash Most well-liked Card, this one comes with a number of the greatest money again charges on groceries and gasoline. And there’s no restrict on the overall amount of money rewards you possibly can earn.
CIBC Dividend Visa Infinite
- Annual payment: $120
- Earn charges: 4% money again on eligible gasoline, EV charging and grocery purchases; 2% on eating, day by day transit and recurring funds; and 1% on all the things else
- Welcome bonus: You may Earn 10% money again welcome bonus of as much as $200 (first 4 statements). Provide not obtainable to QC residents. Phrases and situations apply.
- Annual earnings requirement: Private earnings of $60,000 or family earnings of $100,000
Execs
- Spending classes are very broadly outlined with this card, which means that you simply’ll get boosted rewards on extra purchases. The transportation class, for instance, contains taxis, journey sharing and public transport.
- While you hyperlink your card with Journie Rewards, you’ll save 3 cents per litre each time you refill at Pioneer, Fas Fuel, Ultramar and Chevron gasoline stations. Each time you attain 300 Journie Rewards factors, you’ll get an extra 7 cents off per litre.
- You may get your money again everytime you want it.
Cons
- The bottom earn fee of 1% is fairly customary. Nonetheless, that’s half the bottom fee of the SimplyCash Most well-liked Card.
- With a $60,000 minimal annual earnings ($100,000 family), it might be harder to qualify for this card than some others.
Greatest no-fee money again card
At a look: Not like many no-fee playing cards, the SimplyCash Card doesn’t skimp on the bottom fee. At 1.25%, it’s among the many highest on this class so that you’ll have extra incomes energy. Accelerated charges of two% again on groceries and gasoline make this a powerful contender within the money again class.
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SimplyCash from American Categorical
- Annual payment: $0
- Earn fee: 2% money again on eligible gasoline and grocery purchases as much as $300 yearly; 1.25% money again on all the things else
- Welcome supply: You may earn a $10 assertion credit score for every month-to-month billing interval by which you make a minimum of $300 in purchases (for a complete worth of as much as $100).
- Annual earnings requirement: None
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- Any purchases outdoors or past these in accelerated classes will get you a return of 1.25% with no limits. This can be a notably stellar return contemplating most no-fee playing cards have a base earn fee of 0.5%.
Cons
- American Categorical is much less broadly accepted in Canada than Visa or Mastercard, so that you would possibly wish to additionally carry a secondary card for purchases at sure shops.
- Your earnings are utilized as an announcement credit score as soon as per 12 months somewhat than on an as-needed foundation.
- The cap of $300 money again on groceries and gasoline (on the primary $15,000 spent) is comparatively low for bonus classes, however this card makes up for it with a beneficiant earn fee on all subsequent purchases.
Honourable point out
At a look: The Tangerine Cash-Again Credit score Card takes a barely completely different strategy to offering a no-fee money again card by permitting you to choose as much as three bonus classes, incomes at 2% every, from a potential record of ten. Plus, you possibly can change your classes as wanted, with 90 days’ discover.
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Tangerine Cash-Again Credit score Card
- Annual payment: $0
- Earn charges: 2% in as much as 3 classes of your selection (together with groceries, gasoline and eating) and 0.5% money again on all the things else
- Welcome bonus: You may earn an additional 10% again on as much as $1,000 in on a regular basis purchases throughout the first 2 months. Should apply by April 30, 2024.
- Annual earnings requirement: Private or family earnings of $12,000
Execs
- By letting you choose your 2% bonus classes, this card presents unmatched flexibility. You may get a 3rd bonus class at 2% by robotically depositing your earnings right into a Tangerine account.
- You aren’t locked into your bonus classes, however somewhat can change them as you need with 90 days’ discover. For instance, when you’ve got a renovation developing, you would select house enchancment and furnishings as two of your spending classes.
- Playing cards for added customers are free and there are not any caps in your money again earnings.
- If you happen to meet the earnings necessities of $60,000 personally or $100,000 for the family, you’ll robotically be thought of for the no-fee Tangerine World Mastercard, which comes with the identical earn charges, however extra perks like free Boingo Wi-Fi and Mastercard Journey Cross Offered By DragonPass which will get you entry to airport lounges.
Cons
- The one insurance coverage protection is buy assurance and prolonged guarantee, that are two of essentially the most fundamental coverages.
- Redemptions are solely semi-flexible, with earnings paid out month-to-month.
- This card has an earnings requirement of $12,000 per 12 months. That makes it accessible, however some playing cards, like our high choose, don’t have a specified earnings requirement.
Greatest flat-rate money again card
At a look: If you need the simplicity of a constant and excessive 1.5% return on all of your Canadian purchases, with out worrying about bonus classes or spending limits, this no-fee card is an efficient possibility. Plus, as a World Elite Mastercard, you’ll get entry to extras like free Boingo Wi-Fi and Mastercard Journey Cross Offered By DragonPass, which will get you entry to airport lounges. The one factor to be careful for are the eligibility necessities.
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Rogers World Elite Mastercard
- Annual payment: $0
- Earn fee: 1.5% money again on all purchases; 3% money again on all U.S.-dollar purchases
- Welcome bonus: You may earn $25 welcome bonus in money again rewards upon first card buy inside 3 months of receiving your card.
- Annual earnings requirement: Private earnings of $80,000 or family earnings of $150,000
Execs
- With an earn fee of 1.5% on all purchases in Canada (in-store and on-line), this card presents strong, straightforward rewards. And as a Mastercard, it’s one of many greatest playing cards to make use of at Costco, a retailer that doesn’t settle for Visa or American Categorical.
- If you happen to often store within the U.S., it’s like having a no foreign exchange payment card as a result of the accelerated 3% earn fee on purchases in U.S. {dollars} covers the two.5% overseas transaction payment.
- Not like most World Elite Credit cards in Canada, this card has no annual payment.
- You may redeem your rewards in opposition to purchases in your card as quickly as you’ve $10 banked.
Cons
- As a World Elite Mastercard, the $80,000 private and $150,000 family earnings necessities places it out of attain for some.
- You’ll have to spend $15,000 yearly to keep up eligibility or your account could also be switched to a different Rogers Financial institution bank card.
Greatest money again bank card for college kids
At a look: With a 3% return on groceries, versatile redemptions and no annual payment, our choose for the greatest scholar bank card for money again is the BMO CashBack Mastercard. A further boosted spending class of 1% on recurring payments presents extra assist to cash-strapped college students.
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BMO CashBack Mastercard for College students
- Annual payment: $0
- Earn charges: 3% money again on groceries (on the primary $500 per thirty days), 1% on recurring payments and 0.5% on all the things else
- Welcome supply: You may earn 5% money again in your first 3 months. Situations apply.
- Annual earnings requirement: None
Execs
- Grocery procuring is among the most necessary bonus classes for college kids, and three% money again is the very best return on groceries for a no-fee bank card in Canada.
- You may redeem your money once you want it (with a $25 minimal) as an announcement credit score or deposit it into your BMO chequing, financial savings or InvestorLine account.
Cons
- You’ll solely earn rewards on the primary $500 you spend in every bonus class. That ought to be sufficient for many college students, but it surely’s nonetheless extra restrictive than different playing cards. For instance, if you happen to spend $200 per week on groceries ($800 per thirty days), you’ll earn 3% on the primary $500 and 0.5% on the opposite $100, for a complete of $15.50 in money again per thirty days.
How we decide the perfect money again playing cards
Our editors apply their bank card experience and information of Canadians’ monetary targets to provide you with choice standards that matches the wants of the supposed cardholder. With money again playing cards, what issues most is usually the return in your spending—the perfect playing cards have excessive earn charges, throughout a number of classes, with few or unnoticeable caps on spending. Past that, we contemplate annual charges, eligibility standards and different elements, particular to the class. The addition of hyperlinks from affiliate companions has no bearing on the outcomes. Learn extra about our choice course of and about how MoneySense makes cash.
Video: 5 causes to swap your debit card for a pay as you go money again card
profit from your money again bank card
By no means carry a steadiness
The payoff with a money again bank card is the money—a reward that’s simply cancelled out by the penalties and curiosity accrued if you happen to carry a steadiness. Like all rewards bank cards, money again playing cards have a tendency to hold annual rates of interest on the increased finish, normally round 19.99%. At this fee, unpaid debt will quickly accumulate curiosity costs that eat up any beneficial properties you’ve made. So long as you repay your steadiness in full each month, you’ll keep away from this pitfall, however if you happen to discover you recurrently carry a steadiness, you would possibly contemplate a low curiosity bank card as a substitute.
Examine your money again card choices
It’s straightforward to go together with the money again card provided by your present financial institution, however that’s not all the time the only option. Take the time to check your choices to determine the cardboard that delivers the very best return primarily based in your specific spending habits and way of life. Keep in mind: you don’t have to open a chequing or financial savings account with a financial institution as a way to get a bank card, and you may pay your invoice electronically from any checking account.
Don’t dismiss money again playing cards with an annual payment
Whereas it may appear counterintuitive to pay an annual payment on a money again card, bear in mind that playing cards with a payment typically ship higher rewards and perks. If these perks are value greater than the annual payment (and if the cardboard suits your spending habits in different methods), you would possibly select a money again card with a payment.
Think about using a number of bank cards
Utilizing too many bank cards directly is usually frowned upon, as this generally is a signal of insolvency. Nonetheless, a powerful credit-card technique can contain pairing playing cards to maximise advantages. For instance, the TD Money Again Visa Infinite presents 3% again on gasoline, groceries and recurring payments, however only one% on all the things else, whereas the Tangerine Cash Again Card has no annual payment and presents 2% again in as much as three spending classes of your selection. Strategically it could make sense to pick drug shops, parking/public transit and eating places to fill within the gaps on on a regular basis spends with out having to pay extra for the higher earn fee.
Add your companion as a certified consumer
Including a certified consumer, sometimes your companion, to your account generally is a cost-effective (and even free!) option to enhance your earnings on a premium card. With this setup, each cardholders accrue rewards or money again on their spends with out paying double the annual charges. If, for instance, your card has a $120 annual payment, you would possibly have the ability to get an extra licensed consumer for as little as $30 extra. Some premium playing cards, just like the SimplyCash Most well-liked from American Categorical, even allow you to add licensed customers free of charge. It does bear mentioning that this requires some thought as solely the first cardholder will probably be liable for paying off the steadiness—not the licensed customers.
Money again versus journey bank cards
When selecting a rewards bank card, many Canadians discover themselves torn between two sorts: Money again and journey. This shouldn’t come as a shock—each are common and have useful strengths. Right here we break down each card sorts that will help you resolve which card is best for you.
Simplicity
It’s necessary to have the ability to perceive your bank card rewards program, and money again playing cards are about as clear as you may get. If you happen to earn 2% again, you completely know you’re going to obtain $0.02 on each $1—no sophisticated math required. With journey rewards bank cards, there are typically completely different earn charges and redemption values. These variables can have an effect on how or once you wish to gather or redeem.
Backside line: If you happen to’re invested in incomes journey rewards, acquainting your self along with your card’s program could also be one of the simplest ways to go, in any other case you possibly can’t high money on the subject of simplicity.
Rewards and bonus classes
The way you earn could be simply as necessary as what you earn. Journey rewards bank cards normally supply a really extensive breadth of spending classes to earn in, whereas money again playing cards could be extra restrictive.
Except for a number of exceptions, the vast majority of money again bank cards supply the identical restricted collection of bonus classes (particularly gasoline, groceries and utility payments). As compared, journey bank cards have a far bigger collection of bonus classes (like eating places, lodge stays, flights, Uber rides and public transit, along with the groceries and gasoline), which implies you possibly can doubtlessly earn extra factors on extra varieties of purchases.
Backside line: You’re seemingly going to earn extra factors or miles, in additional spending classes, with a journey rewards card than money with a money again card.
Flexibility
The explanation they are saying “Money is king” as a result of it may be used for something you need, reminiscent of on a regular basis spending on gasoline and groceries. In distinction, the factors you earn on journey playing cards are normally geared in the direction of journey rewards and supply the perfect worth when redeemed for flights and lodge stays.
Backside line: Money is essentially the most versatile reward there may be, however if you happen to’re trying to save on flights and lodge stays, a journey card can supply significantly extra worth.
Welcome bonuses
Sometimes, journey rewards playing cards can supply a whole bunch of {dollars} in rewards as a sign-on bonus, whereas money again playing cards normally supply an elevated incomes proportion for a brief introductory time. One factor to notice is that bonuses on money again playing cards are normally simpler to earn—whereas journey rewards playing cards normally are value extra however have stricter spending necessities.
For instance, with the BMO World Elite Mastercard, you may get 3,000 bonus factors ($240 worth) solely after you spend $3,000 on the cardboard inside your first three months. In distinction, the BMO CashBack World Elite’s welcome supply allows you to earn 5% money again proper out of the gate on all of your purchases for the primary three months but it surely maxes out at simply $200.
Backside line: The welcome bonuses on money again playing cards are sometimes value much less however are simpler to get than the presents obtainable on journey playing cards.
Aspect perks
Perks are little extras obtainable to you as a cardholder. These are normally issues like airport lounge entry, longer and extra complete journey insurance coverage protection, or refunds on sure bills like a Nexus entry payment. As you possibly can see, perks are fairly often tied on to journey, so it ought to come as no shock that you simply’re extra prone to discover them on journey rewards playing cards than on money again playing cards.
Backside line: In some ways, money is the perk on a money again card. If you happen to’re searching for little extras, your greatest guess is a journey rewards card.
Different methods to earn cash-back rewards
Bank cards aren’t the one option to earn cash-back rewards. Contemplate a money again debit card. It’s a approach utilizing your personal cash and never falling to danger of owing any curiosity or not paying the steadiness off on time—which might negate a few of your rewards. One other hack: Use your money again checking account and switch cash to a pay as you go bank card. That’s good for journey or on-line procuring. Verify your banking app to see if that is an possibility with the cash-back financial savings account.
Video: 5 causes to swap your debit card for a pay as you go money again card
Extra of Canada’s greatest bank cards:
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