Best Cash Back Credit Cards in Canada for April 2024
What You Should Know
- Cash back credit card rewards are easy to redeem because they are equivalent to cash.
- Cash back credit cards usually have different categories with different cash back rates.
- It is best to look for a cash back credit card that offers high rewards on categories you spend the most.
- Cash back credit cards with no annual fees usually have low cash back rates and no additional perks. Premium cash back credit cards have better perks, but they usually have a hefty annual fee.
What Are Cash Back Credit Cards?
Cash back credit cards have the most straightforward reward system out of any credit card in Canada because you receive a certain percentage of money back with every purchase. They are ideal for those who want a simple rewards system that is not based on reward points. The cash back rate varies with your credit card but typically ranges from 1% to 4%. Some categories may earn a higher rate, depending on your credit card. The best cash back credit card for you will have the highest cash back rates in the categories you have the most spending.
The percentage rate you get back on your purchases is known as your cashback rate. While some cards offer a flat cash back rate on all purchases, most offer variable rates depending on what you buy. For example, you could get a credit card that offers high rewards on groceries if you spend a lot on groceries or get a credit card that offers great rewards on gas if you seek to get rewards and discounts at a gas pump.
Best Cash Back Credit Cards
How we Sort Credit Cards: We sort credit cards based onand the card's annual fee. We estimate the dollar value of the rewards you would get based on your spending categories, and we subtract the annual fee the card charges to get the best credit cards for your spending habits. We also use the salary to filter out cards based on the minimum income requirement.
$0.00
Purchase: 20.99%
Cash: 22.99%
No Income Required
580
or More
Cash Back
- 2% Cashback for each $1 spent on: grocery.
- 1% Cashback for each $1 spent on: everything else.
$0.00
Purchase: 21.90%
Cash: 21.90%
Transfer: 21.90%
No Income Required
580
or More
Cash Back
- 1% Cashback for each $1 spent on: all eligible purchases.
$0.00
Purchase: 20.99%
Cash: 22.99%
Household: $15,000
580
or More
- Get up to 5% in Cashback on eligible purchases in the first 3 months. (Max Cashback $97.50)
- 0.99% Balance Transfer Rate for 9 Months with a 2% transfer fee.
$0.00
Purchase: 20.99%
Cash: 22.99%
Transfer: 22.99%
No Income Required
580
or More
Cash Back
- 3% Cashback for each $1 spent on: grocery.
- 1% Cashback for each $1 spent on: recurring bills.
- 0.5% Cashback for each $1 spent on: everything else.
Common Cash Back Credit Card Rewards
The following table can help you identify the best credit cards based on your preferred categories. By clicking the heading for each column, you can sort by the highest-earning cards in that category. Additionally, you can filter out cards with annual fees.
| Cash Back Rate | |||
|---|---|---|---|
| Card | |||
| AMEX SimplyCash Preferred | 4.00% | 2.00% | $119.88 |
| BMO CashBack World Elite Mastercard | 5.00% | 1.00% | $120.00 |
| CIBC Dividend Visa Infinite | 4.00% | 1.00% | $120.00 |
| Desjardins Cash Back World Elite Mastercard | 4.00% | 1.00% | $100.00 |
| Meridian Visa Infinite Cash Back | 4.00% | 1.00% | $99.00 |
| Scotiabank Scotia Momentum Visa Infinite | 4.00% | 1.00% | $120.00 |
| Desjardins Odyssey Visa Infinite Privilege | 3.00% | 1.75% | $395.00 |
| Desjardins Odyssey World Elite Mastercard | 3.00% | 1.50% | $130.00 |
| CIBC Dividend Platinum Visa | 3.00% | 1.00% | $99.00 |
| Manulife ManulifeMONEY+ Visa Infinite | 3.00% | 1.00% | $139.00 |
Other Cash Back Credit Card Considerations
Although the cashback rate is what people look for when choosing a credit card, additional benefits and limitations may also be important to consider. These benefits and limitations include welcome bonuses, limitations on cashback, annual fees, and more. Some credit cards have instant approval feature that allows you to get a decision on your approval within minutes. You should also consider your credit score. If you have bad credit score, you may not be able to apply to high-end cash-back credit cards. Instead, you may be better off considering a credit card for bad credit before switching to a high cash-back credit card. This section will provide you with more information to help you choose the best cash back credit card.
Cash Back Welcome Bonuses
Some credit cards can provide hundreds of dollars in welcome bonuses, which makes it an important consideration. These are usually periods with a certain dollar spending limit where your cashback rates are enhanced. For example, Simplii Financial Cashback Visa offers a promotional 10% cash back on restaurant, bar, and coffee shop purchases. The promotion is valid for four months and up to $500 in spending. Below, you can find the best cashback welcome bonuses and their expiry dates:
Best Welcome Bonus Rewards for Cash Back Credit Cards
| Card | Welcome Bonus |
|---|---|
CIBC Dividend Platinum Visa Int. Rate: 20.99% Annual Fee: $99.00 |
|
AMEX SimplyCash Preferred Int. Rate: 20.99% Annual Fee: $119.88 | Up to $400.00 in Welcome Bonus Rewards:
|
BMO CashBack World Elite Mastercard Int. Rate: 20.99% Annual Fee: $120.00 | Up to $194.00 in Welcome Bonus Rewards:
|
AMEX SimplyCash Int. Rate: 20.99% Annual Fee: $0.00 | Up to $100.00 in Welcome Bonus Rewards:
|
BMO CashBack Mastercard Int. Rate: 20.99% Annual Fee: $0.00 | Up to $97.50 in Welcome Bonus Rewards:
|
Other Credit Card Perks
Many cash back credit cards also provide various perks that do not have a clear monetary value. For example, most cash back cards with an annual fee include some travel insurance policies that may be useful during travel or when purchasing electronics. If you are looking for a card with good travel insurance policies, you should consider looking at best travel credit cards instead of cash-back credit cards. Travel credit cards may have a loyalty points system, but they also have great travel insurance. Credit cards may also offer lounge access, access to exclusive events, personal concierge services, and others.
Cash Back Limits
Most cashback credit cards in Canada are unlimited to the cash back you can earn. However, some credit cards may limit how much money you can earn in specific categories. This may lower the average cash back rate on a category if you spend above the set limit.
For example, the Simplii Financial Cash Back Visa provides a 4% cash back on restaurant purchases for up to $5,000. Your return rate will drop if you spend more than $5,000 in this category every year. Any amount above this threshold receives a 0.5% cashback rate in this scenario.
Annual Fees
Most credit card companies offer cashback credit cards with no annual fee and premium cashback cards. Premium cashback cards usually cost between $39 to $120 annually, but there are some cards that may cost as much as $300 to $400. In general, the more you pay for a card, the more benefits you can expect. Generally, cash back credit cards with higher annual fees provide you with a higher average cashback rate.
Aside from quantitative benefits, credit cards with higher annual fees may offer you valuable insurance, lounge access, exclusive events, etc. You may choose the credit card with an appropriate annual fee depending on what benefits are worth the cost.
| Annual Cost | Standard Benefits | Our Top Picks |
|---|---|---|
| $0 |
| |
| $39 |
| |
| $99 |
| |
| $120 |
| |
| Over $120 |
|
Redemption Amount and Frequency
The other thing to understand is how to receive the cashback. Every card has different mechanisms. While most cards will automatically deduct the cashback from your credit bill each month, some cards may give you the option to redeem your cash back. The redemption amount depends on the credit card, but many cards have a redemption minimum of $25.
For example, the Brim Cashback card requires you to "redeem" the cashback on eligible purchases. In contrast, the Simplii Cashback Visa collects the cashback and applies it to your statement every December.
Interest Rates
Most cash back credit cards have an interest rate of around 19.99%, but it may vary depending on the credit card. Some credit cards with low interest rates are an attractive option for people who keep a balance on their credit cards. If you are planning to keep the balance on your credit card, estimate your interest rate cost before choosing a high interest rate card with good cashback. You may be better off choosing a low-interest credit card if your interest rate cost is high. Other credit cards may have higher interest rates, but they usually have other perks that justify a high interest rate. There are prepaid credit card options available that allow you to earn cashback and not worry about interest rate.
Credit card interest rates are generally significantly higher than mortgage rates in Canada. Out of all available lending products, credit cards have some of the highest interest rates. This is why it's important to fully pay off your statement to avoid unnecessary interest charges.
Network Acceptance
Another consideration is the network of your credit card. There are three primary credit networks - Mastercard, Visa, and American Express. Depending on where you plan to spend your card, they may only accept specific networks. For example, American Express is only widely accepted in North America and the United Kingdom. Likewise, Canadian Costco stores only accept Mastercard, whereas American locations only accept Visa.
Cash Back Credit Cards FAQ
It depends on your spending habits. You can use our interactive table near the top of this article to find the best cash back credit card.
Each card has different redemption requirements. For example, some cards will automatically deduct the cash back from your credit bill each month, while others require you to "redeem" the cash back on eligible purchases.
Most cash back credit cards have an annual fee. However, there are many premium cards with an annual fee.
Most cash back credit cards have no income requirements. However, the premium cards with annual fees above $99 tend to have income requirements of $60,000 per person or $100,000 per household. Additionally, some cards have requirements above $80,000 personal income or $150,000 per household.
It depends on your spending habits and how often you travel. Travel rewards credit cards are best if you spend a lot on travel and can take advantage of the benefits. Cash back credit cards are ideal if you don't travel frequently or prefer a more straightforward redemption.
Most cash back credit cards have foreign transaction fees of 2.5%. However, there are a few cards that do not charge this fee. For example, Brim credit cards have no foreign exchange fees and cashback rates ranging from 0.5% to 2.00%.
Additionally, the Rogers World Elite Mastercard earns you a 3% cash back on purchases made in U.S. dollars. Although the Rogers World Elite charges a 2.5% foreign exchange fee you can consider it a net 0.5% cashback purchases made in USD. Make sure to be cautious with refunds if using this card because you will lose the cashback amount and be stuck with a 5% total foreign exchange fee.
Cash back credit cards work by accumulating cash back on each purchase you make. This cash back can be redeemed for a statement credit, gift card, or direct deposit into a bank account. The best cash back credit cards will have high earn rates, flexible redemption options, and valuable perks.
When looking for the best cash back credit card, it's important to compare all the features and benefits of each card. This includes the earn rate, redemption options, annual fee, and valuable perks. You can use our interactive table near the top of this article to compare cash back credit cards side-by-side.