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)

It was all old junk websites and offer-withdrawn cards from several banks.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.

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.

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…

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

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.

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.