As I have done a good few credit card reviews in the past, I’ve received several emails regarding the Scotia Momentum cash back Visa (link). Usually when so many readers ask about the same product, there has to be something of value there. So off I went to dig up some information to see how it compares to my other favorite cash back cards.
- 2% cash back on gas, groceries, drug stores and recurring bill payments (cable, phone, internet etc.) up to $25,000 in spending per year then 1% afterward.
- 1% cash back on all other purchases up to $100,000 (including the $25,000 max on the 2%).
- Purchase Protection – 90 days insurance in case of theft or damage (up to $10,000).
- Extended Warranty – Doubles warranty up to 1 yr.
As the rewards seem tempting, the biggest downside of this card is the annual fee of $39/year. However, the annual fee may be worth it if the rewards consistently pay you more (after fees) than a typical free 1% cash back credit card. So really, it depends on your spending habits – in particular how much you routinely spend on groceries, gasoline, and recurring bills.
The thought that may come to mind is, how does it compare to the MBNA Smart Cash credit card? With very similar features, I would say that the MBNA card out performs the Scotia momentum in terms of rewards and insurance. In addition, the MBNA card has no annual fee which resonates with me. However, there is a dark side to the MBNA Smart Cash Card.
Another direct competitor would be the Capital One 1.5% cash back card (no annual fee). The Capital One card offers 1.5% cash back with no spending limits. As well, they have a comprehensive insurance package that includes car rental insurance and baggage delay insurance in addition to what the Scotia card offers.
Overall though, I would say that the Scotia Momentum Cash Back Visa has a lot of competition. If MBNA could get their act together with the Smart Cash credit card, it would blow this Scotia Visa out of the water. However, the benefits offered by Scotia are enticing, especially the 2% on recurring payments. I can see this card being of benefit to heavy spenders.
What do you think? Is the annual fee worth the rewards offered?If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).