This article will discuss the best cashback credit cards in Canada and their annual fees and cashback rates. A cashback credit card provides a percentage (%) of cashback when people purchase a qualifying product.
Some cashback credit cards provide a flat rate on every purchase people make, while others might pay a larger amount on specific bonus categories.
- You will understand what a cashback credit card is
- The 10 best cashback credit cards in Canada
- The annual fees and cashback rate of each credit card
- Answers to frequently asked questions on the best cashback credit cards in Canada.
The 10 best cashback credit cards in Canada
When choosing the best cashback card, people will want to consider several variables, including the annual Fee, the cashback rate, and if there are sign-up bonuses.
People will also want to determine if they want a cashback credit card that offers a higher rate on particular bonus categories or that provides a flat rate on all purchases. Below is a list of the 10 best cashback credit cards in Canada.
1. CIBC Costco World Mastercard
People who make most Costco purchases can expect $422.58 in annual cash back from this credit Card. That’s on top of World card benefits, like travel perks like car rental insurance, airport lounge access, and free Wi-Fi at Boingo hotspots through Mastercard Travel Pass.
People should remember that this card is invite-only, as people need $100,000 in annual household income or $60,000 in annual personal income to qualify.
The card may look like it doesn’t have an annual fee and it doesn’t, but people need a Costco membership, and the cost of an annual membership ($120 for Executive and $60 for Gold) might as well be an annual fee.
The card users get 3 percent cash back at restaurants and Costco gas. The users also get 2 (two) percent cash back at gas stations and on Costco.ca purchases. Finally, the users will receive 1 percent (%) cash back on all other purchases.
The annual Fee is $0 (requires Costco membership: $120 for Executive, $60 for Gold)
2. BMO Cashback World Elite Mastercard
The card, from an annual cashback earning perspective, it’s a little limited. Despite this, the card is still rewarding with truly steep cashback rates in certain purchase categories—notably, groceries.
Though the card has the highest cashback rate in Canada on groceries at 5 percent and an almost as high rate on electric vehicle charging and ground transportation at 4 percent, the problem is both categories are hard capped at a low dollar amount each month: $300 on electric vehicle charging and ground transportation and $500 on groceries.
5 percent (%) cash back on grocery purchases to a maximum of $500 per statement. Eligible ground transportation purchases get 4 percent cash back on the 1st $300 per billing cycle.
Gas and electric vehicle charging purchases on the first (1st) $300 per billing cycle get 3 percent (%) cash back. People will also get 2 percent (%) cash back on recurring bill payments, like a gym membership or subscription, on the first $500 each billing cycle. All other purchases get 1 percent (%) cash back with no limit.
The annual Fee is $120
3. Rogers World Elite Mastercard
This Mastercard may look like it will give people a break on their Rogers cable, internet, and phone bills, but it doesn’t, but it’s a sleeper hit for people who make most purchases in United States dollars. It is where people will find its highest cashback rate, so if they buy a lot of things in U.S. $ (dollars), this is a card they should consider.
This card’s status gives people access to many travel and insurance benefits, including 1,300 airport lounges worldwide and rental car insurance through the Mastercard Travel Pass app facilitated by DragonPass.
However, It should also be noted that beyond the rate of cash back on dollar (U.S.) purchases, there isn’t much here, and that’s with the income requirement of maintaining 15,000 dollars in annual income a year to stay qualified.
3 percent (%) cash back on U.S. dollar purchases and 1.5 percent (%) cash back on all purchases with no spending cap.
The annual Fee is $0
4. Scotia Momentum Visa Card
The Scotia Momentum Visa card has a lower annual income requirement of $12,000, a more reasonable annual fee of $39, and an uncomplicated cashback structure.
Though the cashback isn’t as high as most of its counterparts, the card still delivers decent annual value, and if people carry a balance, it has a perfect promotional interest rate on balance transfers. People should look to this card if they want to put a dent in their debt.
The 0 percent (%) interest on balance transfers for 6 months is a benefit that cannot be understated. Low promotional balance transfer exists among a few credit cards in Canada. Regarding drawbacks, the card has a shame that no purchase categories elicit a cashback rate higher than 2 percent (%) on this card. It ranks higher if the card had more insurance options besides an extended warranty and purchase protection.
The card users get 2 percent (%) cash back on grocery, gas, and drugstore purchases, recurring bills, with a $25,000 annual cap on groceries and gas. The users also get 1 % (percent) cash back on all other purchases.
The annual Fee is $39
5. Simplii Financial Cash Back Visa
Simplii Financial Cash Back Visa offers an enticing cashback card for urbanites and social butterflies. The credit card offers generous cashback rates on restaurant, bar, and coffee shop purchases.
More than that, if people tend to carry a balance, they will like the lower promotional purchase interest rate of 9.99 percent (%) for six months, giving them a chance to pay down their debt before the APR jumps back to a standard 19.99 percent.
While the cashback rewards at restaurants, bars, and coffee shops, there’s a huge drop-off rate for any other purchase, with only 1.5 percent cash back for everyday staples like groceries, gas, and drugstore purchases.
It’s quite the reversal when these purchase categories are usually the marquee players of most cashback cards. However, if people live in a big city and cook at home or don’t drive often, this could be a great card for them.
They can also take solace in knowing they will get an extra $50 cash back when they spend a maximum of $500 for those restaurants, bars, and coffee shop purchases in the first 4 months.
However, if they are looking for insurance coverage, they should look elsewhere because this card only comes with purchase protection plans and an extended warranty.
The users of this credit card get 4 percent (%) cash back at bars, coffee shops, and restaurants up to $5,000 annually. They also get 1.5 percent (%) on eligible gas, groceries, drugstore purchases, and pre-authorized payments up to $15,000 per year.
The annual Fee is $0
6. CIBC Dividend Platinum Visa Card
This card’s combined 5 percent cash back in a few popular purchase categories (2% for transportation, dining, and recurring bill payments and 3% for gas and groceries) equates to just enough annual cashback rewards. With a reasonable annual fee, people can’t go wrong.
Earn 3 percent cash back on groceries and gas purchases, 2 percent cash back on dining, transportation, and recurring bill payments, and 1 percent on all other purchases.
The annual Fee is $99
7. TD Cash Back Visa Infinite Card
The unique aspect of this credit card is the extra mileage that comes with the card’s welcome offer. In addition to 10 percent (%) cash back in the first 3 (three) months (up to $2,000 in purchases), groceries, gas, and pre-authorized payments earn an additional 6 percent cashback up to a $1,500 additional spent over the same opening 3 months.
Earn 3 percent (%) in cash back on eligible gas purchases, grocery purchases, and regularly recurring bill payments. In addition, earn 1 percent (%) cash back on all other eligible purchases.
The annual Fee is $120
8. CIBC Dividend Visa Infinite Card
The card gives people the most in annual earnings from cash back, even with the annual Fee, at $537.50. With the annual Fee waived in the 1st year, people’s annual cashback earnings top out at $657.50.
The card doles out a huge amount of cashback yearly, including a $200 welcome bonus and eight types of insurance. There is still the matter of the $120 annual fee, which cuts into the cashback people got in the first year, and they have to pay to play, thanks to the high-income requirements of $100,000 in annual household income or $60,000 in personal needs to qualify.
Earn 4 percent (%) cash back on gas and grocery purchases and 2 percent (%) cash back on transportation, dining, and recurring bills or payments. However, there is a cap: Up to $80,000 in annual net credit card purchases or up to $20,000 in annual grocery and gas purchases). In addition, get 1 percent (%) cash back on all other purchases with no limit.
The annual Fee is $120
9. Scotia Momentum Visa Infinite Card
The card gives people a high 4 percent cashback rate on groceries and recurring bills along with 10 percent cash back in the first 3 months on a $2,000 spend—but people are also getting 11 types of insurance, including the exceedingly rare mobile device insurance.
Get 4 percent cash back for every $1 spent on grocery store purchases, subscription purchases, and recurring bill payments. Earn 2 percent for every $1 spent on gas and daily transit purchases. Plus, 1 percent cash back on all other purchases with no cashback limit.
The annual Fee is $120
10. SimplyCash Preferred Card from American Express
This card is a no-nonsense and no-limit card. People don’t have to worry about what cashback rate they get for what purchase category.
Instead, they get one rate of cashback, all the time, on every single purchase with no spending cap. If they don’t want to have to think about anything and get their cash back, this is the card they should get.
2 percent (%) cash back on all purchases with no limit.
The annual Fee is $119.88 (monthly payment of $9.99)
Many cash-back cards are on the market, but the credit card that will earn people the greatest rewards depends on their spending habits. Before committing to a credit card, look at their budget and see where they spend most frequently. Then choose the card that best fits their lifestyle.
Is there a good no-fee cash-back credit card in Canada?
Yes, there is a good no-fee cash-back credit card in Canada
Are cash-back credit cards worth it?
Cashback cards can be a better idea if people pay their credit card bills in full every month. It is because people are rewarded for spending money they would have spent anyway. If they sometimes pay off their credit card bill in full, then cashback credit cards are not an advisable choice.
What is the best cash-back credit card in Canada for no annual fee?
The Rogers World Elite Mastercard
Is cash back a thing in Canada?
Cash-back is a credit card benefit that refunds the card users’ account a small % of the sum spent on purchases. The rewards are cash that can be applied to receive a check, bank account deposit, or credit card bill.
Are cash-back cards a good idea?
If people pay their credit card bills in full every month, then cashback credit cards can be a better idea. It is because people are rewarded for spending money they would have spent anyway. If they sometimes pay off their credit card bill in full, then cashback cards are not an advisable choice.
How many credit cards should you have?
If people’s goal is to get or maintain a good credit score, 2 to 3 credit card accounts and other types of credit are recommended. This combination may help them improve their credit mix. Lenders and creditors like to see various credit types on people’s credit reports.
Is 2% cashback a lot?
2% percent cash back is the highest rate people find among these cards, which translates to about $0.02 back as a reward for every dollar spent.
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