Top Cash Back Credit Cards in Canada
After you guys gave me your favorite credit cards in my article “Ask the Readers: Favorite Rewards Credit Card?“, I did a little research and came up with what I think are the best free cash back cards in Canada. With rewards points constantly depreciating in value, sometimes it’s best to get cold hard cash back.
Here are the contestants for the coveted title of The Top Cash Back Credit Card in Canada:
MBNA PremierRewards Platinum Plus (editors pick)
- 1% cash back on all purchases.
- No maximum rebate.
- Car Rental Insurance.
- Purchase Protection – 90 days insurance in case of theft or damage.
- Extended Warranty – doubles warranty up to 1 yr.
Capital One 1% Cash Back Platinum Mastercard (editors pick)
- 0.50% cash back up to $3,000 in spending.
- 1% cash back on all purchases greater than $3,000.
- No maximum rebate.
- Purchase Protection – 90 days insurance in case of theft or damage.
- Extended Warranty – doubles warranty up to 1 yr.
- Car Rental Insurance.
- Baggage Delay Insurance.
- Notes: Instead of redeeming your rebate once a year, you can redeem anytime your rewards account is above $15.
American Express Costco Platinum Cash Rebate Card (editors pick)
- 0.25% cash back on the first $2,000 in purchases.
- 0.50% cash back on the next $3,000 in purchases.
- 1.50% cash back on any amount over $5,000.
- Maximum rebate of $500 ($37,000 spending).
- Purchase Protection – 90 days insurance in case of theft or damage.
- Extended Warranty – doubles warranty up to 1 yr.
- Notes: Need a Costco Membership ($55/yr), rebate is collected every Janurary @ Costco as a gift card or cash.
- 1% cash back on all purchases.
- Maximum of $250 cash back / year ($25,000 spending).
- Price Protection (if you find a lower price within a certain time frame of your purchase, Citibank will refund the difference).
Canadian Tire Cash Advantage Mastercard
- 1% cash back when you spend over $1000 during a billing cycle.
- 2% cash back for purchases at Canadian tire stores and gas stations.
- No maximum rebate.
- Pays out rebate quarterly which is applied against your balance.
- 0.25% cash back on annual purchases up to $1,500.
- 0.50% cash back on annual purchases from $1,500.01 to $3,000.
- 1% cash back for net annual purchases over $3,000.
- No maximum rebate.
- Purchase Protection – 90 days insurance in case of theft or damage.
- Extended Warranty – doubles warranty up to 1 yr.
Based on my Scenario, I spend around $30k / year on my credit card. This would equate to a cash back rebate of:
- MBNA PremierRewards: $300 (no maximum)
- AMEX Costco: $395 – costco membership ($55) = $340
- Enrich: $250 (max)
- Capital One: $285
- Cash Advantage: $300 (more if I make purchases @ CT store/gas station)
- Dividend: $281.25
Conclusions
If I were to choose a cash back card based on my spending levels (~$30k / year), it would probably be the Costco AMEX card. We enjoy shopping at Costco, and it gives us a great rebate to boot. The only problem I can see is that it’s an American Express Card which isn’t as widely accepted as M/C or Visa.
If I wasn’t a big Costco shopper and looking for a widely accepted cash back credit card, it would be close race between the MBNA and Capital One card. I think the MBNA PremierRewards Platinum Plus Mastercard wins by a hair as I like that it gives 1% cash back from the first dollar that you spend with no maximum rebate along with a comprehensive insurance package.
Depending on how much you value insurances, the Capital One card has more coverage than the rest. Since they only give you 0.5% cash back on the first $3,000 of spending, it’s like an imaginary $15 charge for baggage delay insurance and the choice of receiving your rebate at any time your rebate surpasses $15 (instead of once a year like the rest). You’ll have to decide for yourself whether it’s worth it or not.
Any thoughts?
Do you spend more than $21,000 on your credit card every year? If so, then the capital one platinum plus 2% cash back credit card will beat these 1% cards even after the $59 annual fee.
84 Comments, Comment or Ping
1. Canadian Capitalist
I have the Costco Amex card and I get about $300 back every year. Like you say, the only problem is Amex is not accepted everywhere, so it is necessary to have backup card.
Aug 9th, 2007 @ 10:31 am
2. Moneydork.com
What a unique post! I never really thought a lot about how Canada might differ from the types of credit cards you could get. I’m going to send this to my cousin in Alberta. Good work, eh. :)
Aug 9th, 2007 @ 10:42 am
3. SavingsJourney
PC Financial Mastercard, http://www.pcmastercard.pcfinancial.ca/rocen/cardapp/index.htm. $25 incentive for signing up, about 1% cashback, but could be greater if you redeem PC points for movie tickets for example, which would give you about 1.25% – 1.4% cashback. Also rental vehicle insurance coverage, and free warranty doubling on product purchases, as well as the other typical types of incentives like it. No cap on reward points that I’m aware of.
Aug 9th, 2007 @ 11:47 am
4. FrugalTrader
SavingsJourney, the PCF M/C is a great card. But the reason I didn’t include it in my list is b/c it doesn’t pay back cold hard cash. If it was just based on points, then I would pick the SPG card to be the winner.
Aug 9th, 2007 @ 11:53 am
5. FrugalTrader
CC, looks like you made a decent choice! When you get your rebate at the end of the year, do you simply go to the service desk and get cash?
Aug 9th, 2007 @ 12:29 pm
6. Ross
there is actually a pretty good comparison of other no-fee cards at redflagdeals under the article section. I love my amex costco – especially when you pair if up with their executive membership which gives you an additional 2% rebate.
Aug 9th, 2007 @ 1:39 pm
7. FrugalTrader
That’s interesting Ross, so working out the numbers, the exec membership is $45 more than the regular which means that you would have to spend $45/2% = $2250 @ costco/yr to justify the higher cost.
Aug 9th, 2007 @ 1:46 pm
8. Neil
I don’t see the Capital One 1% Cash Back Platinum Mastercard offered on their website. The link takes me to the Capital One No Hassle Rewards Platinum MasterCard which is a miles card, not a cash rebate card. Is this card available to the general public?
Aug 9th, 2007 @ 2:07 pm
9. FrugalTrader
Neil, I think it’s in their “faq” or terms and conditions where it states that with this card you can choose the “1% cash back option” instead of points. I would call their CS before applying.
Aug 9th, 2007 @ 2:10 pm
10. Investoid
Thanks for the information! It’s sad to see how much higher US cash back cards can be (like Amex Blue).
Aug 9th, 2007 @ 4:28 pm
11. FrugalTrader
Investoid, yes, it’s unfortunate that we don’t have the competition like our US neighbors have. The Amex blue website has a pretty nifty calculator too. :)
Aug 9th, 2007 @ 4:32 pm
12. nobleea
FrugalTrader;
I assume you would have to spend $2250 extra a year at Costco to make the exec membership worthwhile? But that must be hard since one would think your current purchases at Costco are already included in the 30K you charge.
Aug 9th, 2007 @ 6:27 pm
13. nancy (aka money coach)
not precisely cash back, but for ‘feel good’, Citizens Bank of Canada visa cards donate 10¢ to your choice of Amnesty international or Oxfam Canada each time you use it. In addition, you can redeem your rewards points for RRSP contributions or term deposits.
Aug 10th, 2007 @ 2:21 am
14. just called
Yes, you can redeem miles for cash back and get either a cheque or a credit to your account. To initiate cash back, you need a minimum of 10,000 miles, which equals $75.00.
Sounds like it only works out to 0.75% cash back on the capital one platinum card :(
http://www.capitalone.ca/canada/faqs/rewards_card_offer.php?linkid=CAN_Z_Z_Z_CRPLAT_C1_01_T_RCOFQ#12_pg_sl
Aug 10th, 2007 @ 6:01 pm
15. Sue
I use PCF M/C. I use the points to pay for groceries at Loblaws stores. Here in Alberta, that would be The Real Canadian Superstore. I earn 1% in points. I can apply points in $10 increments ($1,000 worth of card expenditures) off my groceries as right at the checkout. Not cold, hard cash — but works like cash. Since I shop there every week or so, it works out fine. I have never redeemed points for anything else.
Aug 10th, 2007 @ 8:14 pm
16. SavingsJourney
Hi FT, thanks for the info about the SPG card. I read your review of it as well. I’m using the American Express Aeroplan Plus Gold card, http://www10.americanexpress.com/sif/cda/page/0,1641,19913,00.asp. I’ve been a long time Aeroplan reward miles member. Do you think that the SPG rewards system would be more beneficial, considering I typically book flights on Star Alliance airlines?
Also off the top of your head, do you think that the Aeroplan card is less beneficial than the CIBC Aerogold, http://www.cibc.com/ca/visa/aerogold-visa-card.html? The reason I ask about this is because we’re actually in the process of switching to this car, because of the 15,000 Aeroplan reward miles incentive they offer for sign up. Strangely enough I submitted an application several weeks ago online and still haven’t heard from them. Anyway, the 15,000 miles incentive is enough for one flight to the closer U.S. states and Canadian provinces, which we do often enough.
Aug 12th, 2007 @ 10:56 pm
17. FrugalTrader
The SPG might not be your best option if you fly with the star alliance often b/c star alliance requires 30k points for the same flight that 25k would get you on aeroplan. SPG, in my opinion, is best for their hotel redemptions b/c of the no blackouts and diverse selections.
There are good sides and bad sides to both the amex and the cibc aerogold. What’s great about the amex is the comprehensive insurance package, free supplemntary card, and extra points once you reach $10k in spending. The downside to the amex is lower acceptance than Visa in Canada. The CIBC aerogold on the other hand costs extra for the supplementary card ($50 i believe) and lacks insurance for purchases. However, Visa is widely accepted by merchants, and the aerogold offers 1.5 points for spending @ gas stations, grocery and drug stores.
Aug 12th, 2007 @ 11:13 pm
18. SavingsJourney
Yes, acceptance is a biggie for us and something I’ve definitely noticed! We have Amex and PC Financial Mastercard, so the Mastercard has been acting as our backup card for that reason mostly.
Amex also has fantastic customer service and their security systems setup seem to be more robust, at least compared to my experience with it versus PC Financial Mastercard.
I try to fly Air Canada first with my reward miles, then Star Alliance second if that’s not possible. Re the SPG card, hotel redemptions are nice but are they only for Starwood properties?
Aug 13th, 2007 @ 9:25 am
21. westcoaster
I have the Canadian Tire cash back Mastercard along with other credit cards. I am now shying away from using them as it seems every one of them want your business and offer cash back, points or miles. For people who want the cash back and pay their bill on time, its a good way to get a few percent back but for those who run a balance, you really are not getting anything back. The card companies hope you always run a balance.
Aug 23rd, 2007 @ 11:22 pm
22. Jackboot
I just phoned capital one – they do NOT currently offer the cashback card!
If you google for “capital one cash back” the first result is for their cashback card – but when you click the link it brings you to their miles reward card. I was confused about wtf was going on so I just phoned and the rep confirmed that they are not offering a cashback card in Canada right now. I even took the rep through the links where it makes reference to the cashback program and she stated that was left up for customers that currently have the card and not for new signups. She said that she couldn’t even see the same info on her end because the offer wasn’t available for reps to see. Too bad – the reward is just slightly less than the CDN Tire cashback card but the Captial One offers other perks like purchase protection, extended warranty and car insurance which the CTFS card does not. Actually, the CTFS card offers a $5 / mo service which gives you purchase protection and warranty doubling up to 7 years. But that makes it a $60/year card so no deal.
Aug 24th, 2007 @ 6:25 am
23. FrugalTrader
Jackboot, perhaps they just haven’t updated their FAQ in a while. I’m going to modify the post to indicate that this card may not be available anymore.
Aug 24th, 2007 @ 4:24 pm
26. nicholas sean haydon
I,too, had the canadian tire mastercard.If one owns a house or a condo,this card is very good indeed.My reason for cancelling it concerned the
$5.00 monthly fee for the purchase protection and
extended warranty.For the moment,I am using the
rbc starbucks visa and the bmo mosaik with the .5%
cashback option.
Sep 19th, 2007 @ 7:11 pm
27. Bob Orchard
Seems to me that the best card is the Citi Bank Driver’s Edge card. It isn’t a cash back card per say but gives a full 2% on all purchases (up to $1000 back per year). If you buy cars and most of us do then it’s just like a cash back card and it can be used for new or used car purchases. It also has other featres included like purchase protection and has no fees at all.
Sep 21st, 2007 @ 11:32 am
33. lance t
with canadian cash back cards. do we have to declare the cash back as revenue on our income tax return.
thx lt
Mar 10th, 2008 @ 8:06 pm
34. Dimitrios P
Hello All,
I have a different solution.
I use the RBC Classic II card. It has a RBC points system similar to Aeroplan to buy merchandise and plane tickets. You get 1 point for every dollar spent. It does not sound fantastic until you realize you can convert up the RBC points for Esso Xtra points to get gas. Basically,3000 RBC points converts to 5000 Esso Xtra points the is values at $30.00 free gas. If you do the math, it is 1% cash back for gas without the wait. Also, if the have the Affinity savings account, the credit card annual fee is covered.
With gas getting more expensice, every little bit helps.
Regards, jim
Mar 23rd, 2008 @ 2:41 pm
36. Martin
I have the Citi Enrich Platinum MasterCard which is the best card for me. Here are the features. Note that this card is not available to everyone and is not on the website.
Citi Platinum Enrich Mastercard
*need to make $35,000 a year to get it or have a $5000 credit card limit already through Citibank*
Features:
- no annual fee
- ZERO LIABILITY: “should your card fall into the wrong hands, you won’t be held responsible for unauthorized purchases made in store, over the phone, or on the web. Feel safer now? That’s the idea.”
- extra security: free photocard (your photo and signature are digitally imprinted on the front of the card; this is a free service)
- free supplementary card(s) (by the way, supplementary card numbers are exactly the same as the number for the primary cardholder’s Mastercard; I think Citibank is the only company I know of that does it like this, and I personally think it’s nuts)
- 1% cash back from the first dollar you spend (in other words–there’s no minimum you have to spend first) up to a max of $500 cash back (or $50,000 spent on your card per year).
- price protection for 60 days (if you find the exact same item advertised for cheaper elsewhere, you’ll get the difference back) up to $100 difference per item (and up to a max of $500 per year). Computer hardware and software, food, cars, and pets are excluded from price protection (and you can only submit up to 3 duplicate items at once, I think; for example, if you purchase 5 duplicate shirts, you can only claim 3 for price protection on the same insurance form). You have to submit an insurance claim form each time
- (notice it’s $500,000) travel accident and baggage delay insurance: “You receive up to $500,000 Common Carrier Travel Accident Insurance coverage whenever you travel by plane, train, bus, or boat–at no extra cost–when you purchase your tickets in full on Citi Enrich Platinum Mastercard. You’re covered for up to a maximum of $500,000 for losses resulting from injuries while traveling.” If your baggage is delayed for more than 24hrs Chubb Insurance Company of Canada will reimburse the cardholder up to $300 ($100 per day your baggage is delayed for up to 3 days).
- Car Rental Collision/Loss damage waiver : “When you charge the full cost of the car rental to your Citi Bank Enrich Platinum Mastercard, you’ll be insured up to the actual cash value of the car if it is damaged or stolen.”
This usually saves anywhere from $10-$20 on car rentals, since you don’t
have to pay extra for insurance.
- Insurance from loss, damage, or theft on items purchased for up to 90 days
- Extended Warranty (doubles manufacturer’s warranty for up to a full year)
Mar 28th, 2008 @ 11:34 pm
37. kasm
Here is a great site comparing CAsh Back credit Cards:
http://www3.telus.net/CalgaryBen/
American Express Gold Credit Card with Cash Back give up to 2% with no annual fee.
Apr 4th, 2008 @ 9:30 pm
38. molly
Use TD Canada trust’s rebate credit card if you spend over 3k per year you get 1 % rebate with no annual fee, and it’s a visa card which is accepted nearly everywhere.
Apr 30th, 2008 @ 3:16 am
39. zeromoney
thanks for this post! I read your blog, but I guess I hadn’t started when you made this one.. a quick google search for “credit cards canada cash back” gave me your post right at the top of non sponsored links.
May 28th, 2008 @ 10:18 am
40. Detractor
I have never experienced such extremely awful customer service until I encountered President Choice Financial. I would strongly recommend that you consider any other option in Canada before signing up with President’s Choice. It would be hard for me to imagine that any company could have customer service that is more awful than this firm.
Their policy is that they will only give new customers a $3,000 dollar credit limit regardless of credit history, income, etc.. When I told them they were forcing me to get another card and take my business elsewhere by imposing such a low limit, their response was to ask me if they should cancel my card.
After 5 years of paying my bill in full each month, I was late on a payment as I was out of the country. They put a block on my card and it stopped working. No one notified me, no one called me to explain what they had done and when I called them it was made very clear to me that it was my problem not theirs and they really didn’t care if it was an inconvenience for me nor were they apologetic. I immediately paid the bill in full but they continued to charge me interest for two additional months after this. They had a very complicated explanation about charging interest on the average monthly balance of a bill regardless if you paid it in full during the month. The interest charges were excessive and no where could one calculate these numbers using any common way of applying the advertised interest rate. It doesn’t take being late more than once to offset any of the free points you think you’re earning here.
During the same time frame that they blocked my card, I received a letter from the SVP of the company telling me what I great customer I was and how I was going to be recognized with double points. I then wrote a letter to this SVP expressing my concerns and he never bothered to even reply to my letter. I tried speaking with a number of customer service reps and the common theme was they are told to be very aggressive and not to apologize for anything and they really could care less if you take your business elsewhere. That was made very clear when they were unwilling to reverse an interest charge for $1.69.
I would rarely ever take time to post my concerns about a business but after what I experienced I think it’s really important to prevent others from having to find this out on there own. I have taken my business elsewhere and I advise you to do the same.
Aug 26th, 2008 @ 10:51 am
41. MultifolDream$
I’m using CIBC Dividend Visa and I’m satisfied, but I’m also thinking for having also a Mastercard …
Sep 11th, 2008 @ 12:22 am
42. Credit Card Rewards Geek
You might also find this Canadian rewards credit card calculator useful. You enter your categorical spending profile and it calculates your reward with various Canadian cards. It also find the best combinations of cards for you:
http://www.creditcardtuneup.com/?country_cd=CA
Nov 10th, 2008 @ 12:13 am
43. Pinkmel
President Choice didn’t offer cash back but redeem for free groceries. I find it the best among all credit cards.
Nov 20th, 2008 @ 7:47 pm
44. Moose
I did not see the unadvertised, but available American Express Gold card. It offers a 2% rebate on purchases, no maximum. the first 5000 spent in the year is prorated at a lower rate, but once you are over the 5k, all of your purchases will yield 2% back. They send you a cheque in January. No annual fee.
Information about this can be obtained at redflagdeals.com
Great card.
Nov 23rd, 2008 @ 5:23 am
45. FrugalTrader
Moose, I wrote about the AMEX 2% cash back card here as my fav cash back credit card here. However, I’ve heard that this card isn’t available anymore. Do you know any different?
Nov 23rd, 2008 @ 7:11 am
46. mcmatterson
MBNA Canada now offers a 1% non-tiered cashback with platinum benefits (purchase protection, warranty extension, rental car damage waiver, etc.) called PremierRewards. This is comparable to the Citi Platinum Enrich. There are two links for the card on their website, but only one leads to the no annual fee version. Go to “Popular Cards”.
I have the SPG card for the signup bonuses, but I don’t travel a lot so I’ll be switching to PremierRewards.
Nov 26th, 2008 @ 12:07 am
47. mcmatterson
Haha…didn’t see that you’d already listed that one above…sorry.
Nov 26th, 2008 @ 12:44 pm
48. FrugalTrader
mcmatterson, I actually added it yesterday after reading your comment. So thanks. :)
Nov 26th, 2008 @ 1:26 pm
49. elman
I am surprised nobody mentioned
VISA Desjardins Elegance GOLD.
aside from the card benefits below, its the only card I know that only charges 1.8% foreign currency conversion rate instead of the standard 2.5%
for every card mentioned here. btw Capital One cards in Canada charges the standard 2.5% as well.
Card features
A rewards program that allows you to accumulate BONUSDOLLARS and exchange them against travel, gifts, tickets to shows and Desjardins products and services.
Travel and accident insurance.
Insurance in case of loss, theft, damage or fire for most goods purchased with your card.
An extended warranty of up to one year on goods purchased.
Accord D Desjardins financing, a second, separate credit limit.
Cash advances up to $5,000 a day, anywhere in the world.
ZERO liability in the event of unauthorized use of your card.
Better security through chip technology.
Other advantages
discounts up to 20% at Hertz worldwide
access to AccèsD to manage your VISA account online
free access to our Travel Assistance Service
low-cost additional card
register for the Overdraft Transfer service to cover a cheque, bill payment, or any other transaction that exceeds the balance in your Personal Chequing Account (PCA) or any other eligible account.
Dec 4th, 2008 @ 6:15 pm
50. Frank
WARNING: Most of these cards accrue interest “on the later of: (1) the transaction date of the Purchase, or (2) the first day of the billing cycle in which the Purchase occurred. Interest Rate Finance Charges accrue daily”, and the rates are in the range of 19.99%!!
This means a $100 purchase would cost .33 a day, and increase daily (paying interest on the interest).
If you don’t pay the credit card company within 3 days, it is already costing you more than the 1% you get back. Lets say you wait until you get your bill, and then wait another 10 days or so (until the payment is due) for a total of about 30 days. This will cost $9.86. Instead of saving $1, you pay $8!
If you have debts, for example a line of credit at 6%, it would be better to get a card with a grace period and pay one or two days before the due date. With a grace period, you can make a large purchase (lets say $2000) and avoid the interest you pay on that purchase for about 30 days. (save nearly $6.00)
Dec 7th, 2008 @ 11:50 pm
51. FrugalTrader
Frank, do you have paper work to support your theory? Credit cards do not work that way. You get a grace period where it is completely interest free. After that point, you will owe interest if you only pay the minimum balance. IF you carry a balance, THEN you will be charged interested from the day any new purchases.
Dec 8th, 2008 @ 8:43 am
52. Craig
The one thing left out is with most bank credit cards, payment with online banking is easy and FREE. Thats one of the main reasons I have stuck with the CIBC dividend. Takes seconds to pay it off and no charge for transfers within my CIBC accounts.
Dec 22nd, 2008 @ 3:20 am
53. peter wong
I have the citibank enrich platinum master card and it pays 1% of any amount spent up to 50K
Dec 27th, 2008 @ 9:49 pm
54. L505
“The one thing left out is with most bank credit cards, payment with online banking is easy and FREE. Thats one of the main reasons I have stuck with the CIBC dividend. Takes seconds to pay it off and no charge for transfers within my CIBC accounts.”
You can pay any card off for “free” if you have a ICICI HiSave Chequing account (can transfer money from your HiSave Savings Account). Alternatively you can use PC Financial Chequing account. Bill payments are free.
Only real downside with these free chequing accounts is that you pretty much have to keep a bank account open at your other big 5 financial institution too (for emergency customer service situations where you need to talk to a real bank), which complicates your paper work a bit by having so many accounts open. But oh well, having a credit card complicates things too and it seems no way to get around complexity when it comes to saving dimes
Dec 28th, 2008 @ 4:37 pm
55. cannon_fodder
I was looking for a comparison for all cards, free and with annual fee. The calculator mentioned in post 42 does take into account a way to compare cahs back and rewards cards. Unfortunately I’m not sure it has all of the available CC in Canada since I didn’t see any of the cards I actually use.
Jan 6th, 2009 @ 12:15 pm
56. newbie
@Detractor post#40 -
I got a $5,000 credit limit upon applying in 2005 (I actually asked for a lower limit). I didn’t even apply at a PC pavilion, just filled out an application form and mailed it in.
My experience with them thus far has been good, can’t complain about the free cheques and no-fee banking.
Frankly, I’ve seen clients with $10K- $20K credit limit who max out all the time and refinance their mortgages every 2-3 years to pay off those balances.
Jan 12th, 2009 @ 12:52 pm
57. Ramy Y
Regarding post 33, you do have to include such income on your tax return.
I know it was mentioned on the Capital One website.
Jan 15th, 2009 @ 3:50 am
58. Narajin
Capitolone Cashback also has the option of cash advancing with your cheques as if you were just using your card.
I think thats pretty handy.
Feb 10th, 2009 @ 11:56 pm
59. Narajin
PLus MBNA premier has a $29 annual fee.
Feb 10th, 2009 @ 11:59 pm
60. Jim
Hi guys,
Can someone comment on annual fees for high end point cards? I have a RBC Visa Infinite Avion. You can read up on it here:
http://www.rbcroyalbank.com/visainfiniteavion/index.html
Lately, I have been second guessing whether or not the annual $120 fee is worth it. You get all these points that u can use for travel, merchandise, etc… But I am also paying $120/yr. So whatever I end up purchasing with the points I can add $120 to it! For that matter, I have had the Avion card for like 10 years ($1,200 to date in fees). Am I wasting money here???
PS: Please read the fine print on any credit card that mentions Vehicle Rental Collision Insurance. You’ll be suprise on how many vehicles are excluded (e.g.: trucks, cargo vans, etc… Caveat emptor!).
Thank you,
Jim
Mar 1st, 2009 @ 11:43 am
61. khai
How about Ultramar card? It seems that you can earn up to 1.25% back.
http://www.nbc.ca/bnc/cda/productfamilymc/0,6326,divId-2_langId-1_navCode-15959,00.html
Does anybody have it?
Mar 7th, 2009 @ 2:46 am
62. naz
how about the CIBC DIVIDENd credit card 2% cash back.(after $3000.00).
no fee.
doubles your warrenty.
Apr 8th, 2009 @ 6:17 am
63. khai
2naz: it seems that 2% is the past. CIBC web says 1%.
Apr 8th, 2009 @ 1:08 pm
64. moneytech
Found this on RFD forum
MBNA Smart Cash mastercard.
It is a Platinum card. No annual fee FOREVER (not just waived in the 1st year).
5% for gas/groceries 6 months
afterwards 3%.
1% cashback no cap on other purchases.
No annual fee
13.99%
10 months for 1.99% B/T promo
can request rebate once cashback hits $50.
otherwise same as premier rewards platinum plus aka prp+.
Grocery/gas vendors that gets 3% cashback.
Apr 23rd, 2009 @ 4:16 pm
65. drew
Wow – what a great post – I wish it was current though.
Jul 8th, 2009 @ 9:52 pm
66. Pierre
In my opinion the best card is CITI Bank Drivers Edge Master Card, 2% dividend accumulate for upto 5 years. You can redeem for buying a car or any vehicle. No fee, and has all other coverages such as insurance, rental collision coverage etc.
Aug 13th, 2009 @ 4:06 pm
67. Mr. Bubba
Don’t waste your time with anything mentioned here for other cards.
Simple even a dummy can figure this out:
Get the MBNA Smart Cash Card (Canada) 1-888-876-6262 – please call them directly to obtain this card as it is not online yet for some reason.
Benefits:
No annual fee – Yes exactly and no catches
3% standard cashback on Gas and Groceries (Promo – 5% for the first 6 months) on first $600 spent per month. All major/smaller grocery chains and gas stations – no issues.
1% Cashback on everything else no exceptions (no maximum limits).
ex. other cards require you to spend 1st $1,000 to achieve 1% cash back but prior to 1K spend it is at 0.5% cash back or have maximum limits on 1% . Not with MBNA smart cash
13.99% – (Promo – 1.99% on Balance Transfers for the first 10 months).
Note: Do not transfer any amounts to this card as it not accounted for the cash back mechanism.
If you do not pay the full balance on all your spends then this card is not for you as the monthly interest payments would then eventually outweigh your cash back stimula.
Ex. Say you spend on groceries and gas in a month at the max of $600 then at the six month promo offer of 5% you get $30.00 per month back simple as that.
Then if you spend $1000 that same month on any other misc charges at 1% = $10.00. Total = $40.00 cash back for one month
You pay off the full balance when you receive the statement and your up 40 bones.
$40 x 6 months (promo) if this is your trend then:
Total during six month promo = $240 is collected.
Then if the trend remains the same the remainder six months (non promo) is $18.00 per month @ 3% cashback x 6 months = $108.00.
1% on all other purchases at 1K per month = $60.00 for remaining 6 months.
Total after promo = $168.00
Grand Total potential in 1st annual year ($240.00 + $168.00) = $408.00.
Can you say book a cheap trip to Vegas just by do nothing. heh
Say $170 per six months or $340 (annually) after promo at the same spend rate.
By the fifth year of having this card you could potentially of obtained close to $1,700 cashback for normal spending habits.
You know your savings rate currently is @ 0.50 or 0.75% per dollar saved.
MBNA are actually providing a better return then your scamming banks for things you spend on everyday.
What is also great about this card it is a MC / Paypass and accepted almost everywhere.
You can request MBNA to send out a cheque once accumulated to each $50.00 cashback period. They pay promptly and just received the cheque two weeks ago instead of waiting for end of the fiscal year or somehow it is applied to the statement, red tape such with other cash back cards etc..
Trust me this is best cash back card out there and if you weigh it out it is far superior then having cards for travel rewards / airmiles, other points card (PC points is ok but only good for groceries – boring). 1 airmile for $10 or $20 spent or other point systems requires you to spend like 50 to 80K before you can get a trip or high electronic merchandise out of them.
If you make everyday required purchases at $1,600 per month (all bills that can be applied to card, gas, groceries, trips, restaurants / bars, clothing, necessities = high yield of cashback in the end.
Thank you and show me the money.
Aug 17th, 2009 @ 9:35 pm
68. Tony
is there any US dollar credit cards with the reward issued in Canada? the BMO US air miles is one. what’s else
Aug 28th, 2009 @ 6:16 pm
69. knightmastery
Capital One’s “Cash Back Plus Platinum Mastercard with No Hassle Rewards” is the best cash card out there if you spend lots on your credit card ($30k or more). Rewards are 1% on first 10k, 1.5% on next 10k, and 2% on everything after 20k in a given year. CIBC Dividend Platinum also offers 2% cash back, but the levels are not as good and it caps rewards at $735 in a given year. Rewards for CIBC are 0.5% on first 3k, 1% on next 12k, 1.5% on next 20k, and 2% on next 15k, and no rewards after 50k of spending in a year. So for $30k spent, Capital Ones card would yeild $450 in rewards, and CIBC would yeild $360. Annual fee is better with Capital One ($59) versus CIBC ($79). With 50k spending, Capital One would yield $850, CIBC would yield $735.
Sep 1st, 2009 @ 11:52 am
70. Elbyron
Just to add to knightmastery’s analysis:
The MBNA Smart Cash card would pay you $444 on $30k spending (assuming $600 or more is spent each month on gas/groceries, and not counting the sign-up bonus). However, this card has no annual fee. The 2% Capital One card costs $59/year, so when you factor that in then the net yield is only $391. But at 50k the Smart Cash would yield $644, which underperforms both Capital One and CIBC even when the annual fees are included.
Those spending less than $35,300 on their credit cards would actually find the MBNA Smart Cash to pay better, provided that they always spend $600/month on gas/groceries. Over that amount, and the Capital One card pays better.
Sep 1st, 2009 @ 5:38 pm
71. Mr. Bubba
Elbryon is right and follow our wise words and you will get better returns with MBNA smart card period unless something new comes out to top this. Thank you.
Sep 15th, 2009 @ 9:40 pm
72. Jonathan
Has anyone heard of the scotiabank cash back visa, and how does it compare to the capital one and mnba cards
Oct 20th, 2009 @ 1:41 am
73. Mitchell
Has anyone looked into the MBNA Smart Cash Platinum Plus®?
http://www.mbna.ca/smartcash_cardList.html
Get 5% cash back†† with no annual fee
Exceptional cash back rewards
Get 5% on net gas and grocery purchases for the first 6 months††
Get 3% on net gas and grocery purchases thereafter‡
Get 1% on all other net retail purchases‡
Receive a cheque from us automatically once your cash back totals at least $50 per month
Card features
Around-the-clock fraud protection
Purchase protection against damage or theft for up to 90 days**
Up to $1,000,000 in common carrier travel accident insurance**
Immediate cash access at 430,000 ABMs worldwide
Unparalleled 24/7 customer service
Oct 29th, 2009 @ 10:41 am
74. Mr. Bubba
Jonathan and Mitchel get the MBNA smart cash card. Since I got it in late June. I have had three $50.00 cheques sent to me as of last week over that span.
By far the best value. No annual fee, simple cashback system, and good returns.
Nothing surpasses this for cash back or any other point system trust me.
Don’t waste your time on any other card and cut them all up and never use them again.
Note:
Please ensure you pay the full balance every month otherwise you got to be a moron to use this card if you rather pay a higher interest then the cash back mechanism outlined.
Thank you and have free money come in for everyday purchases that is deemed necessity or planned trips, etc..
Nov 1st, 2009 @ 6:01 pm
75. Jeff
Thanks for the in-depth look at those credit cards. It’s always nice to see which credit card people should be using and base it on an example!
Nov 15th, 2009 @ 2:16 pm
76. Andre
FYI – I have the Citibank Enrich *Platinum* Mastercard – the platinum doesn’t seem to be advertized on the web site. The max cash back for this is $500/year.
We spend between $35k to $45k per year, so now I’m reassessing. The choice seems between, ” MBNA Smart Cash Platinum Plus” and Capital One’s “Cash Back Plus Platinum Mastercard”.
I’m not averse to paying a annual fee as long as it evens out in the end. From my quick calculation, Capital One seems to win out (even with the annual fee).
Have I got it right?
Thanks for the article and all the good comments, very insightful…
Nov 27th, 2009 @ 11:09 pm
77. immaus
Since I received the letter from MBNA telling me that the best card in the Canadian rewards CC market today — MBNA SPG MC — is being discontinued in Q1-2010, I researched this a lot, and the best — although not as good as SPG MC — replacement for “general purposes” currently is the Smart Cash Platinum Plus.
Dec 7th, 2009 @ 3:20 pm
78. AMC
I have had the Costco AMEX now for 4 years. We are a family of 5 + a dog and a cat and we live with our credit cards and ALWAYS pay full balance each month.
For the past 3 years I have received $500 back from Amex and $200 from Costco for the same card. Since the max reward for non-Costco purchases is $500, I’ve found that I reach that once I’ve spent $25K on my card. I th continue using the Amex for my Costco purchases but from that moment on I switch to my backup card which is a Sears Mastercard for everything else, this gives me Sears points. This is convenient for me since I shop at Sears regularly.
So far this year, based on our spending, we will be receiving $500 + $200 from Amex/Costco and $250 in Sears gift cards. If anyone knows how I can beet this, please let me know.
Keep in mind that we use our credit cards for everything we can which is close to $45,000 each year.
Dec 23rd, 2009 @ 10:58 am
79. Topa
I’m surprised that no one mentioned about TD Cash Rebate card. It gives 1% cash bonus @ $0 annual fee.
Jan 20th, 2010 @ 2:37 pm
80. sunny
When I checked for top cash back cards, no card was available.
It was all old junk websites and offer-withdrawn cards from several banks.
Today’s saving account interest is 1% or less, what to talk of cash back.
Jan 21st, 2010 @ 3:53 am
81. Dan V.
I have checked this out very carefully and if you spend more the 25000.00 on
the CanadianTire Mastercard you get an additional bonus, I am quite sure it is the best bang for the buck as far as cash back. Now it is canadian tire money but surely you can use it up on car repairs Xmas gifts……
OR you can donate it to the humane society and get a tax receipt for donation
Win Win
Dan
Jan 21st, 2010 @ 11:22 pm
82. Leendert
Where does the money for this “cash back” come from? The retailers pay the transaction/interchange costs charged by the card issuers. The customer eventually pays for these fees anyways, since the retailers will price their goods to be profitable. I suppose everyone should join the cash back credit card game, because using debit or cash ends up subsidizing those with credit cards with lucrative rewards.
These credit card fees are ending up like a tax applied to all retail purchases, except it is levied by the credit card issuers and processors and does not add anything productive to the economy (unless one considers crappy sign up gifts and credit card sign-up flyers mailed out as a productive use of this money)
Jan 22nd, 2010 @ 1:41 am
83. Alicia
Does the retailer get charged more per transaction for offering cash back or other rewards to the consumer or does the bank eat those costs?
Mar 10th, 2010 @ 10:58 am
84. FrugalTrader
Alicia, my understanding is that premium credit cards ding the retailer a slightly higher transaction fee. I was looking at the Costco magazine last night, and their POS system offering charges 1.67% to the retailer for a regular credit card and around 2% for a premium credit card (I assume cash back, points etc).
Mar 10th, 2010 @ 11:11 am
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