Money again bank cards are an especially widespread kind of rewards card in Canada. Every money again bank card has its personal options and advantages, so that you’ll need to evaluate the annual price, earn fee and any extra advantages earlier than you apply.
Bank card comparability instrument
Examine your choices with our interactive instrument and filter bank cards primarily based on rewards worth, annual charges, earnings necessities and extra.
Finest money again playing cards by class
That will help you decide the suitable card we’ve put collectively a listing of our favourites primarily based on totally different classes.
| Finest card by class | Why we adore it |
|---|---|
| Finest total money again bank card SimplyCash Most well-liked Card from American Specific Annual price: $120 |
4% again on groceries and gasoline
2% on all different purchases (all the things from on-line procuring to journey and extra) |
| Honourable point out: Finest total CIBC Dividend Visa Infinite Annual price: $120 |
4% again on groceries and gasoline, and Visa’s widespread acceptance |
| Finest no-fee money again card SimplyCash from American Specific Annual price: $0 |
2% again on groceries and gasoline
No less than 1.25% on all purchases, with no annual price |
| Honourable point out: Tangerine MoneyBack Card Annual price: $0 |
2% again in as much as 3 bonus classes (select your individual bonus classes, from choices together with groceries, eating, and extra)
Get $100 money bonus upon approval with Ratehub.ca |
| Finest flat-rate money again card Rogers Purple World Elite Mastercard Annual price: $0 |
A flat 1.5% again on all of your Canadian purchases (or 2% again for Rogers, Fido and Shaw clients), plus sufficient again on all U.S.-dollar purchases to cowl foreign exchange charges |
| Finest money again bank card for college kids BMO CashBack Mastercard for college kids Annual price: $0 |
3% again on groceries and the flexibility to redeem rewards at any time |
Finest total money again bank card
At a look: This money again card gives 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 among the best bank cards in Canada.
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Amex SimplyCash Most well-liked
Annual price: $120
Welcome supply: Earn a bonus 10% money again on all purchases on your first three months (as much as $2,000 in purchases) and a $50 assertion credit score whenever you make a purchase order in month 13 (complete worth of as much as $250).
Card particulars
| Rates of interest | 21.99% on purchases, 21.99% on money advances |
| Revenue required | None specified |
| Credit score rating | 725 or increased |
Honourable point out
At a look: Just like the SimplyCash Most well-liked Card, this one comes with among the greatest money again charges on groceries and gasoline. And there’s no restrict on the entire amount of money rewards you may earn.
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CIBC Dividend Visa Infinite
Annual price: $120 (rebated first yr)
Welcome supply: earn a ten% money again welcome bonus of as much as $250 (first 4 statements). Provide not obtainable to QC residents. Phrases and circumstances apply.
Card particulars
| Rates of interest | 20.99% on purchases, 22.99% on money advances, 22.99% on steadiness transfers |
| Revenue required | Private earnings of $60,000 or family earnings of $100,000 |
| Credit score rating | 725 or increased |
Professionals
- Spending classes are very broadly outlined with this card, that means that you simply’ll get boosted rewards on extra purchases. The transportation class, for instance, consists of taxis, journey sharing and public transport.
- While you hyperlink your card with Journie Rewards, you’ll save 3 cents per litre each time you replenish at Pioneer, Fas Gasoline, Ultramar and Chevron gasoline stations. Each time you attain 300 Journie Rewards factors, you’ll get a further 7 cents off per litre.
- You will get your money again everytime you want it.
Cons
- The bottom earn fee of 1% is fairly commonplace. 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 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 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 robust contender within the money again class.
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SimplyCash from American Specific
Annual price: $0
Welcome supply: Earn a bonus 5% money again in your first $2,000 in purchases throughout your first three months (as much as $100 in bonus money again).
Card particulars
| Rates of interest | 21.99% on purchases, 21.99% on money advances |
| Revenue required | None specified |
| Credit score rating | 725 or increased |
Honourable point out
At a look: The Tangerine Cash-Again Credit score Card takes a barely totally different method 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 doable listing of ten. Plus, you may change your classes as wanted, with 90 days’ discover.
Tangerine Cash-Again Card
Annual price: $0
Welcome supply: 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 October 31, 2024.
Card particulars
| Rates of interest | 19.95% on purchases, 19.95% on money advances and 19.95% on steadiness transfers |
| Revenue required | Private or family earnings of $12,000 |
| Credit score rating | 660 or increased |
Professionals
- By letting you decide your 2% bonus classes, this card gives unmatched flexibility. You will 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 relatively can change them as you need with 90 days’ discover. For instance, when you have a renovation arising, you might select house 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.
- In case you 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 rental automobile insurance coverage.
Cons
- The one insurance coverage protection is buy assurance and prolonged guarantee, that are two of essentially the most primary 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 high 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 efficient choice. Plus, as a World Elite Mastercard, you’ll get entry to extras like free Boingo Wi-Fi and Mastercard Journey Move Supplied 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 Purple World Elite Mastercard
Annual price: $0
Welcome supply: This card doesn’t have a welcome bonus at the moment.
Card particulars
| Rates of interest | 20.99% on purchases, 22.99% on money advances, 22.99% on steadiness transfers |
| Revenue required | $80,000 per yr |
| Credit score rating | 725 or increased |
Professionals
- With an earn fee of 1.5% on all purchases in Canada (in-store and on-line), this card gives strong, simple rewards. And as a Mastercard, it’s among the best playing cards to make use of at Costco, a retailer that doesn’t settle for Visa or American Specific.
- Rogers, Fido and Shaw clients earn much more: Get a further 0.5% money again on all purchases, plus a 1.5x redemption bonus whenever you redeem for Rogers, Fido or Shaw purchases—that’s equal to three% again.
- In case you regularly store within the U.S., it’s like having a no foreign exchange price card as a result of the accelerated 3% earn fee on purchases in U.S. {dollars} covers the two.5% international transaction price.
- Not like most World Elite Credit cards in Canada, this card has no annual price.
- You possibly can 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 take care of eligibility or your account could also be switched to a different Rogers Financial institution bank card.
Finest money again bank card for college kids
At a look: With a 3% return on groceries, versatile redemptions and no annual price, our decide for the very best pupil bank card for money again is the BMO CashBack Mastercard. An extra boosted spending class of 1% on recurring payments gives extra assist to cash-strapped college students.
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BMO CashBack Mastercard
Annual price: $0
Welcome supply: earn 5% money again in your first 3 months Circumstances apply.
Card particulars
| Rates of interest | 20.99% on purchases, 22.99% on money advances, 22.99% on steadiness transfers |
| Revenue required | None specified |
| Credit score rating | None specified |
How we decide the very best money again playing cards
Our editors apply their bank card experience and data of Canadians’ monetary targets to give you 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 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
Find out how to 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 for those who 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 for those who discover you frequently carry a steadiness, you may think about a low curiosity bank card as an alternative.
Examine your money again card choices
It’s simple to go together with the money again card supplied 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. Bear in mind: you don’t have to open a chequing or financial savings account with a financial institution with the intention 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 price
Whereas it might sound counterintuitive to pay an annual price on a money again card, remember that playing cards with a price usually ship higher rewards and perks. If these perks are price greater than the annual price (and if the cardboard suits your spending habits in different methods), you may select a money again card with a price.
Think about using a number of bank cards
Utilizing too many bank cards directly 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 gives 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 price and gives 2% again in as much as three spending classes of your alternative. Strategically it could 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 fee.
Add your companion as a licensed consumer
Including a licensed consumer, usually your companion, to your account is usually a cost-effective (and even free!) approach to increase 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 price, you may be capable to get a further approved consumer for as little as $30 extra. Some premium playing cards, just like the SimplyCash Most well-liked from American Specific, even allow you to add approved customers totally free. 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 approved 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 widespread and have useful strengths. Right here we break down each card sorts that can assist you determine which card is best for you.
Simplicity
It’s essential to have the ability to perceive your bank card rewards program, and money again playing cards are about as clear as you will get. In case you 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 generally totally different earn charges and redemption values. These variables can have an effect on how or whenever you need to accumulate or redeem.
Backside line: In case you’re invested in incomes journey rewards, acquainting your self together with your card’s program could also be the easiest way to go, in any other case you may’t high money on the subject of simplicity.
Rewards and bonus classes
The way you earn might be simply as essential 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 might be extra restrictive.
Except for just a few exceptions, the vast majority of money again bank cards supply the identical restricted choice of bonus classes (specifically gasoline, groceries and utility payments). As compared, journey bank cards have a far bigger choice of bonus classes (like eating places, resort stays, flights, Uber rides and public transit, along with the groceries and gasoline), which suggests you may probably 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 direction of journey rewards and supply the very best worth when redeemed for flights and resort stays.
Backside line: Money is essentially the most versatile reward there’s, however for those who’re trying to save on flights and resort stays, a journey card can supply significantly extra worth.
Welcome bonuses
Usually, journey rewards playing cards can supply a whole lot 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 allows you to earn 5% money again proper out of the gate on all of your purchases for the primary three months however it maxes out at simply $200.
Backside line: The welcome bonuses on money again playing cards are usually price much less however are simpler to get than the gives obtainable on journey playing cards.
Facet 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 price. As you may 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. In case you’re on the lookout for little extras, your greatest wager is a journey rewards card.
Different methods to earn cash-back rewards
Bank cards aren’t the one approach to earn cash-back rewards. Take into account a money again debit card. It’s a means utilizing your individual cash and never falling to danger of owing any curiosity or not paying the steadiness 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 good for journey or on-line procuring. Test your banking app to see if that is an choice 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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