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MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial staff of educated journalists works carefully with main private finance specialists in Canada. That can assist you discover the very best monetary merchandise, we evaluate 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 very best money again playing cards in Canada by class
Money again bank cards are an especially common sort of rewards card in Canada. Every money again bank card has its personal options and advantages, so that you’ll wish to evaluate the annual payment, earn charge and any further advantages earlier than you apply. That can assist you decide the correct card we’ve put collectively a listing of our favourites based mostly on completely different classes.
Finest general money again bank card
At a look: This money again card presents spectacular earn charges on grocery and fuel purchases, two of the most-used spending classes. Crucially, it additionally has the very best base earn charge in Canada, at 2%. Mixed with stable insurance coverage protection, entry to Amex advantages and free supplementary playing cards, that is palms down one of many finest bank cards in Canada.
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SimplyCash Most well-liked from American Categorical
- Annual payment: $120
- Earn charge: 4% money again on eligible fuel and grocery purchases; 2% money again on the whole lot else
- Welcome supply: You’ll be able to earn a $40 assertion credit score for every month-to-month billing interval through 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 everyday person received’t ever attain, so you will get probably 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 a brilliant accessible money again card.
- The cardboard comes with Amex advantages like eating and retail experiences, in addition to Amex Entrance of the Line, which provides you early entry to occasion tickets. Month-to-month Amex Provides tailor-made to your spending habits may be downloaded by way of your Amex app or on-line account.
- Free supplementary playing cards show you how 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 among the finest money again charges on groceries and fuel. And there’s no restrict on the full amount of money rewards you’ll be able to earn.
CIBC Dividend Visa Infinite
- Annual payment: $120
- Earn charges: 4% money again on eligible fuel, EV charging and grocery purchases; 2% on eating, day by day transit and recurring funds; and 1% on the whole lot else
- Welcome bonus: You’ll be able to Earn 10% money again welcome bonus of as much as $200 (first 4 statements). Supply not accessible to QC residents. Phrases and circumstances 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 just’ll get boosted rewards on extra purchases. The transportation class, for instance, contains taxis, trip sharing and public transport.
- Whenever 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 fuel stations. Each time you attain 300 Journie Rewards factors, you’ll get a further 7 cents off per litre.
- You may get your money again everytime you want it.
Cons
- The bottom earn charge of 1% is fairly customary. Nonetheless, that’s half the bottom charge of the SimplyCash Most well-liked Card.
- With a $60,000 minimal annual earnings ($100,000 family), it might be tougher to qualify for this card than some others.
Finest no-fee money again card
At a look: Not like many no-fee playing cards, the SimplyCash Card doesn’t skimp on the bottom charge. 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 fuel make this a robust contender within the money again class.
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SimplyCash from American Categorical
- Annual payment: $0
- Earn charge: 2% money again on eligible fuel and grocery purchases as much as $300 yearly; 1.25% money again on the whole lot else
- Welcome supply: You’ll be able to earn a $10 assertion credit score for every month-to-month billing interval through which you make not less than $300 in purchases (for a complete worth of as much as $100).
- Annual earnings requirement: None
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- Any purchases exterior 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 charge 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 yr fairly than on an as-needed foundation.
- The cap of $300 money again on groceries and fuel (on the primary $15,000 spent) is comparatively low for bonus classes, however this card makes up for it with a beneficiant earn charge on all subsequent purchases.
Honourable point out
At a look: The Tangerine Cash-Again Credit score Card takes a barely completely different method to offering a no-fee money again card by permitting you to select as much as three bonus classes, incomes at 2% every, from a potential checklist of ten. Plus, you’ll be able to 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, fuel and eating) and 0.5% money again on the whole lot else
- Welcome bonus: You’ll be able to earn an additional 10% again on as much as $1,000 in on a regular basis purchases inside the first 2 months. Should apply by April 30, 2024.
- Annual earnings requirement: Private or family earnings of $12,000
Execs
- By letting you decide your 2% bonus classes, this card presents unmatched flexibility. You may get a 3rd bonus class at 2% by mechanically depositing your earnings right into a Tangerine account.
- You aren’t locked into your bonus classes, however fairly can change them as you need with 90 days’ discover. For instance, in case you have a renovation arising, you possibly can select dwelling enchancment and furnishings as two of your spending classes.
- Playing cards for extra customers are free and there are not any caps in your money again earnings.
- For those who meet the earnings necessities of $60,000 personally or $100,000 for the family, you’ll mechanically 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 Go 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 probably 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 yr. That makes it accessible, however some playing cards, like our prime decide, don’t have a specified earnings requirement.
Finest flat-rate money again card
At a look: In order for you 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 effective possibility. Plus, as a World Elite Mastercard, you’ll get entry to extras like free Boingo Wi-Fi and Mastercard Journey Go 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 charge: 1.5% money again on all purchases; 3% money again on all U.S.-dollar purchases
- Welcome bonus: You’ll be able to 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 charge of 1.5% on all purchases in Canada (in-store and on-line), this card presents stable, straightforward rewards. And as a Mastercard, it’s one of many finest playing cards to make use of at Costco, a retailer that doesn’t settle for Visa or American Categorical.
- For those who ceaselessly store within the U.S., it’s like having a no foreign exchange payment card as a result of the accelerated 3% earn charge 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’ll be able to redeem your rewards in opposition to purchases in your card as quickly as you may have $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.
Finest money again bank card for college students
At a look: With a 3% return on groceries, versatile redemptions and no annual payment, our decide for the finest 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 30 days), 1% on recurring payments and 0.5% on the whole lot else
- Welcome supply: You’ll be able to earn 5% money again in your first 3 months. Situations apply.
- Annual earnings requirement: None
Execs
- Grocery purchasing is among the most vital bonus classes for college students, and three% money again is the very best return on groceries for a no-fee bank card in Canada.
- You’ll be able to redeem your money while 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, nevertheless it’s nonetheless extra restrictive than different playing cards. For instance, in the event you spend $200 per week on groceries ($800 per 30 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 30 days.
How we decide the very best money again playing cards
Our editors apply their bank card experience and information of Canadians’ monetary objectives to give you choice standards that matches the wants of the meant cardholder. With money again playing cards, what issues most is usually the return in your spending—the very best playing cards have excessive earn charges, throughout a number of classes, with few or unnoticeable caps on spending. Past that, we think about annual charges, eligibility standards and different components, 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
Easy methods to benefit from your money again bank card
By no means carry a stability
The payoff with a money again bank card is the money—a reward that’s simply cancelled out by the penalties and curiosity accrued in the event you carry a stability. Like all rewards bank cards, money again playing cards have a tendency to hold annual rates of interest on the larger finish, normally round 19.99%. At this charge, unpaid debt will quickly accumulate curiosity fees that eat up any features you’ve made. So long as you repay your stability in full each month, you’ll keep away from this pitfall, however in the event you discover you recurrently carry a stability, you would possibly think about a low curiosity bank card as an alternative.
Evaluate 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 at all times your best option. Take the time to match your choices to establish the cardboard that delivers the very best return based mostly in your explicit spending habits and life-style. Keep in mind: you don’t have to open a chequing or financial savings account with a financial institution to be able to get a bank card, and you’ll 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, remember that playing cards with a payment usually ship higher rewards and perks. If these perks are price greater than the annual payment (and if the cardboard matches 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 without delay is usually frowned upon, as this is usually a signal of insolvency. Nonetheless, a robust credit-card technique can contain pairing playing cards to maximise advantages. For instance, the TD Money Again Visa Infinite presents 3% again on fuel, groceries and recurring payments, however only one% on the whole lot 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 might make sense to pick out 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 charge.
Add your associate as a licensed person
Including a licensed person, sometimes your associate, to your account is usually 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 a further licensed person 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 might be liable for paying off the stability—not the licensed customers.
Money again versus journey bank cards
When selecting a rewards bank card, many Canadians discover themselves torn between two varieties: Money again and journey. This shouldn’t come as a shock—each are common and have worthwhile strengths. Right here we break down each card varieties that will help you resolve which card is best for you.
Simplicity
It’s vital to have the ability to perceive your bank card rewards program, and money again playing cards are about as clear as you will get. For those who 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 while you wish to accumulate or redeem.
Backside line: For those who’re invested in incomes journey rewards, acquainting your self along with your card’s program could also be one of the best ways to go, in any other case you’ll be able to’t prime money in terms of simplicity.
Rewards and bonus classes
The way you earn may be simply as vital as what you earn. Journey rewards bank cards normally supply a really large breadth of spending classes to earn in, whereas money again playing cards may be extra restrictive.
Apart from just a few exceptions, the vast majority of money again bank cards supply the identical restricted number of bonus classes (specifically fuel, groceries and utility payments). As compared, journey bank cards have a far bigger number of bonus classes (like eating places, lodge stays, flights, Uber rides and public transit, along with the groceries and fuel), which suggests you’ll be able to doubtlessly earn extra factors on extra kinds 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 rationale they are saying “Money is king” as a result of it may be used for something you need, comparable to on a regular basis spending on fuel and groceries. In distinction, the factors you earn on journey playing cards are normally geared in the direction of journey rewards and supply the very best worth when redeemed for flights and lodge stays.
Backside line: Money is probably the most versatile reward there may be, however in the event you’re seeking to save on flights and lodge stays, a journey card can supply significantly extra worth.
Welcome bonuses
Usually, journey rewards playing cards can supply tons of of {dollars} in rewards as a sign-on bonus, whereas money again playing cards normally supply an elevated incomes share 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 price extra however have stricter spending necessities.
For instance, with the BMO World Elite Mastercard, you will 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 helps you to earn 5% money again proper out of the gate on all of your purchases for the primary three months nevertheless it maxes out at simply $200.
Backside line: The welcome bonuses on money again playing cards are sometimes price much less however are simpler to get than the presents accessible on journey playing cards.
Aspect perks
Perks are little extras accessible 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’ll be able to see, perks are fairly often tied on to journey, so it ought to come as no shock that you just’re extra more likely 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. For those who’re searching for little extras, your finest wager 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 manner utilizing your personal cash and never falling to threat of owing any curiosity or not paying the stability off on time—which may 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 excellent for journey or on-line purchasing. 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 finest bank cards:
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