Recognized for his or her simplicity and flexibility, money again playing cards eradicate the effort of monitoring loyalty factors and supply the final word reward—a proportion of what you spend again in money.
If you wish to maximize your money again rewards, begin with certainly one of these three playing cards, which go well with the preferences and habits of most Canadians. Or preserve scrolling for a curated checklist of suggestions throughout much more classes.
The most effective money again bank cards in Canada for 2024
Every money again bank card has its advantages and downsides. Right here we break down the highest playing cards in Canada for various classes, and spotlight what units every card aside.
| Greatest card by class | Why we adore it |
|---|---|
| Greatest total money again bank card SimplyCash Most popular Card from American Specific* Annual price: $120 |
4% again on groceries and fuel
2% on all different purchases (every part from on-line procuring to journey and extra) |
| Honourable point out: Greatest total CIBC Dividend Visa Infinite Annual price: $120 |
4% again on groceries and fuel, and Visa’s widespread acceptance |
| Greatest no-fee money again card SimplyCash from American Specific* Annual price: $0 |
2% again on groceries and fuel
At the least 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 personal bonus classes, from choices together with groceries, eating, and extra)
Get $80 money bonus upon approval with Ratehub.ca |
| Greatest flat-rate money again card Rogers World Elite Mastercard* Annual price: $0 |
A flat 1.5% again on all of your Canadian purchases, plus sufficient again on all U.S.-dollar purchases to cowl foreign exchange charges |
| Greatest money again bank card for college kids BMO CashBack Mastercard for college kids* Annual price: $0 |
3% again on groceries and the power to redeem rewards at any time |
Greatest total money again bank card
At a look: This money again card provides spectacular earn charges on grocery and fuel purchases, two of the most-used spending classes. Crucially, it additionally has the best base earn price 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 finest bank cards in Canada.
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SimplyCash Most popular from American Specific
- Annual price: $120
- Earn price: 4% money again on eligible fuel and grocery purchases; 2% money again on every part 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
Execs
- This card pairs wholesome earn charges with spending caps that the everyday consumer gained’t ever attain, so you may get essentially the most out of each greenback spent. The actual 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 enable you 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 popular Card, this one comes with among the finest money again charges on groceries and fuel. And there’s no restrict on the whole amount of money rewards you may earn.
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CIBC Dividend Visa Infinite
- Annual price: $120
- Earn charges: 4% money again on eligible fuel, EV charging and grocery purchases; 2% on eating, every day transit and recurring funds; and 1% on every part else
- Rates of interest: 20.99% on purchases, 22.99% on money advances (21.99% for Quebec residents), 22.99% on steadiness transfers
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, consists of taxis, experience sharing and public transport.
- Once you hyperlink your card with Journie Rewards, you’ll save 3 cents per litre each time you refill at Pioneer, Fas Gasoline, Ultramar and Chevron fuel stations. Each time you attain 300 Journie Rewards factors, you’ll get an extra 7 cents off per litre.
- You will get your money again everytime you want it.
Cons
- The bottom earn price of 1% is fairly commonplace. Nevertheless, that’s half the bottom price of the SimplyCash Most popular Card.
- With a $60,000 minimal annual earnings ($100,000 family), it might be tougher 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 price. 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 Specific
- Annual price: $0
- Earn price: 2% money again on eligible fuel and grocery purchases as much as $300 yearly; 1.25% money again on every part else
- Welcome supply: You may earn a $10 assertion credit score for every month-to-month billing interval by which you make no less than $300 in purchases (for a complete worth of as much as $100).
- Annual earnings requirement: None
Execs
- 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 price of 0.5%.
Cons
- American Specific is much less extensively 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 quite 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 price 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 choose as much as three bonus classes, incomes at 2% every, from a attainable checklist of ten. Plus, you may change your classes as wanted, with 90 days’ discover.
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Tangerine Cash-Again Credit score Card
- Annual price: $0
- Earn charges: 2% in as much as 3 classes of your alternative (together with groceries, fuel and eating) and 0.5% money again on every part else
- Welcome bonus: You may 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 provides 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 quite can change them as you need with 90 days’ discover. For instance, if in case you have a renovation arising, you can select residence 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.
- Should you meet the earnings necessities of $60,000 personally or $100,000 for the family, you’ll robotically be thought-about 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 Supplied 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 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 prime decide, don’t have a specified earnings requirement.
Greatest flat-rate money again card
At a look: If you’d like 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 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 World Elite Mastercard
- Annual price: $0
- Earn price: 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 price of 1.5% on all purchases in Canada (in-store and on-line), this card provides strong, 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 Specific.
- Should you incessantly store within the U.S., it’s like having a no foreign exchange price card as a result of the accelerated 3% earn price 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 may 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.
Greatest 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 finest scholar bank card for money again is the BMO CashBack Mastercard. A further boosted spending class of 1% on recurring payments provides extra assist to cash-strapped college students.
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BMO CashBack Mastercard for College students
- Annual price: $0
- Earn charges: 3% money again on groceries (on the primary $500 per 30 days), 1% on recurring payments and 0.5% on every part else
- Welcome supply: You may earn 5% money again in your first 3 months. Circumstances apply.
- Annual earnings requirement: None
Execs
- Grocery procuring is likely one of the most essential bonus classes for college kids, and three% money again is the best return on groceries for a no-fee bank card in Canada.
- You may redeem your money if 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, however it’s nonetheless extra restrictive than different playing cards. For instance, for those who 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 most effective 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 most effective 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
Methods to take advantage of 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 greater finish, normally round 19.99%. At this price, unpaid debt will quickly accumulate curiosity costs that eat up any good points 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 usually carry a steadiness, you would possibly contemplate a low curiosity bank card as an alternative.
Evaluate your money again card choices
It’s straightforward to go along with the money again card provided by your present financial institution, however that’s not at all times the only option. Take the time to check your choices to establish the cardboard that delivers the best return primarily based in your explicit spending habits and life-style. Keep in mind: you don’t must open a chequing or financial savings account with a financial institution with a view 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 price
Whereas it might sound counterintuitive to pay an annual price on a money again card, remember that playing cards with a price typically 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 would possibly 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. Nevertheless, a robust credit-card technique can contain pairing playing cards to maximise advantages. For instance, the TD Money Again Visa Infinite provides 3% again on fuel, groceries and recurring payments, however only one% on every part else, whereas the Tangerine Cash Again Card has no annual price and provides 2% again in as much as three spending classes of your alternative. 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 price.
Add your associate as a certified consumer
Including a certified consumer, sometimes your associate, to your account is usually a cost-effective (and even free!) method 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 would possibly be capable to get an extra approved consumer for as little as $30 extra. Some premium playing cards, just like the SimplyCash Most popular 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 chargeable 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 will help 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 may get. Should 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 typically completely different earn charges and redemption values. These variables can have an effect on how or if you wish to gather or redeem.
Backside line: Should 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 prime money in the case of simplicity.
Rewards and bonus classes
The way you earn could be simply as essential 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.
Other than a couple of exceptions, the vast majority of money again bank cards supply the identical restricted choice of bonus classes (specifically fuel, 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 fuel), which suggests you may probably earn extra factors on extra sorts 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, equivalent 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 most effective worth when redeemed for flights and resort stays.
Backside line: Money is essentially the most versatile reward there’s, however for those who’re seeking to save on flights and resort stays, a journey card can supply significantly extra worth.
Welcome bonuses
Usually, journey rewards playing cards can supply lots of 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 price 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 permits 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 sometimes price much less however are simpler to get than the provides 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 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. Should you’re in search of little extras, your finest guess is a journey rewards card.
Different methods to earn cash-back rewards
Bank cards aren’t the one method to earn cash-back rewards. Think about 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. Examine 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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