Every card stack needs a default fallback card to use when in doubt, ideally one with strong benefits and valuable earning for an acceptable annual fee, your primary Keeper Card. While I typically focus on travel related cards for their outsized value propositions, I often get asked about cashback cards. For the person who doesn't have the time to master their point earning and redemptions, cashback provides a more predictable reward structure. You don't have to worry about the rewards being devalued, or making a bad redemption, $1 will always be $1... even if it can't buy you much anymore
In this article I'm going to explore the flagship cashback cards from the major banks and a few notable alternatives, this list isn't going to be exhaustive but as of writing it covers the 8 top choices you should consider. Referrals and disclaimers at the bottom.
Earn Rate
As is typically our approach with Keeper Cards, it is the long term earning that should matter most to us. Sign up bonuses are worth considering primarily if you're willing to rotate cards regularly to keep getting the best ones, something I call SUB Hunting, but again most people seeking cash back want a set it and forget it approach. Long term earning will be most sensitive to your largest regular credit card spend category and the earn rate they assign to it.
You'd think that comparing earning rates would be super easy with cash back cards - no need to come up with conversion rates, just pick the biggest percent back... But reality brings with it a lot of fine print. These cards have different spend categories, earning caps, and annual fees (which may or may not be waived). All of these factors play a role in the decision making.
BMO Cashback WE Mastercard - no annual fee (AF)
3% on groceries up to $500 per billing cycle
1% on recurring bill payments
0.5% base or after cap
BMO Cashback WE Mastercard - $120 AF
5% on groceries up to $500 per billing cycle
4% on transit (ridesharing, taxis, and public transit)
3% on gas and EV charging
2% on recurring bill payments
1% base or after cap
CIBC Dividend Visa Infinite - $120 AF waived first year and for some account types
4% groceries, gas, electric vehicles
2% dining, recurring bills, transportation
1% base or after cap of $20k bonus spending
RBC Mastercard - no AF
2% groceries
up to 1% base
NOTE: they very misleadingly state "unlimited cash back", but the terms still contain a cap after which the rates reduces (drops after 6k annual), and the base rate "up to 1%" is only 0.5% on the first 6k
RBC WE Mastercard - $99 AF
Unlimited 1.5% cashback
Rogers WE Mastercard - no AF
1.5% on all non USD purchases, increased to 2% if you have a rogers/fido/shaw service
3% on USD purchases
note 2.5% foreign transaction fees still apply
No cap
Cash back further 1.5x increased when redeemed against Roger/fido/shaw bills
Scotia momentum Visa Infinite - $120 AF waived first year and for some account types
4% groceries, recurring bills, subscriptions
2% gas and daily transit
1% base or after cap of $25k bonus spending
Tangerine MC - no AF
2% back in two categories of your choosing
unlock a third by having rewards deposited into Tangerine savings account
0.5% back base, no cap
TD Cashback Visa Infinite - $139 AF waived first year and for some account types
3% groceries, gas, recurring bills
1% base or after cap of $15k bonus spending
The RBC and BMO no fee cards in particular seem like particularly poor choices with lower earn rates and caps, despite their no annual fee.
Notable standouts include the CIBC card for including groceries and gas at 4% and dining at 2%, and the Scotia card for including groceries and recurring bills at 4% and gas at 2%. This high recurring bill return makes it an amazing choice to combine with bill payment service Chexy which charges a 1.75% fee, leaving you with an easy 2.25% net profit.
The Rogers card is a good choice for big spenders (no cap or categories) who have significant Rogers bills to offset to benefit from the extra 1.5x, it's increased earning on USD expenses also helps offset forex fees making it an honorable mention in that category.
While these are the top "cash back" cards, note should be made of other cards that can be used as cash back, I'll highlight the most popular below. Scotia cards that earn Scene+ points for example can redeem them at 1 cent per point against groceries (or some other categories). Amex's MR points can be redeemed at 1 cent per point against the statement (or converted to even more valuable travel for those who are interested). While MBNA points have greater value for travel (1cpp) they can also be redeemed for cash (0.83cpp)
Scotia Passport Visa Infinite - $150 AF waived in first year and for some account types
3x at Sobeys, Safeway, IGA, Foodland and other participating stores
1cpp cash back -> 3%
2x dining and groceries, movies/theaters and ticket agencies, rideshare and transit
1x base or after $50k cap
Scotia Gold Amex - $120 AF waived in first year and for some account types
6x at Sobeys, Safeway, IGA, Foodland and other participating stores
1cpp cash back -> 6%
5x dining and groceries, movies/theaters and ticket agencies
3x rideshare, transit and streaming
1x base or after $50k cap
Amex Cobalt - $12.99 monthly fee
5x on groceries, restaurants, delivery, food apps (instacart, uber eats etc)
1cpp for cash back -> 5%
2cpp travel -> 10%
3x subscriptions
2x travel and transit (this includes gas)
1x base, or on food above $2500/mo
MBNA World Elite - $120 AF
5x on grocery, restaurant, digital media, membership, household utility
0.83cpp cash back -> 4.15%
1cpp travel -> 5%
Birthday bonus of 10% more points to a max of 15,000 points
increases effective CB rate to ~4.57%
1x base after $50k cap
My personal bias favours the Cobalt due to its ability to work either as a 5% cashback or far greater travel rewards card. However for the cash back focused, if you shop at a participating grocery store the Scotia Gold Amex could be a better choice. The MBNA is a very strong choice despite being slightly lower cash back given its broad categories, wide acceptance as a mastercard, and high cap. To compare even more options check out our card comparison tool and search for cashback, scene+, and Amex MR earning cards.
Head to Head Example
One of the most popular categories is groceries and it is typically the headlining rate that these cards advertise so I'm going to use this as an illustrative example. The below does not consider annual fee waivers or the first year sign up bonus (as I'm assuming you're looking for the best long term option). Instead it shows how much cash back you'll get for what annual amount of spending on groceries and I've dropped the bottom performers to improve graphing clarity.
Also, we are assuming you are a rogers customer (so you can get the max value from a Rogers WE - if you're not with Rogers it is a weak performer), and are shopping at a Scene+ eligible store (so you get the 6x on the Scotia Gold). For non amex the best option is likely either MBNA, Scotia Passport Visa, or the Rogers WE card.
Insurances and Other Perks
Going with a cash back card as your primary card is usually a sign that you want to keep things simple. Maybe you plan to use this same card for all purchases, in which case it will be the sole provider for additional card benefits for you. For example, if you're using it for travel, you might benefit from better travel insurance. Broadly speaking the cards with annual fees have better insurances than their no fee counterparts.
Other benefits should also be considered, for example Scotia offers no forex fee cards and lounge passes already make it a keeper card on its own outside of the cashback potential. Meanwhile the Rogers WE comes with enhanced USD cash back which can be an alternative to no forex for US travel, and provides 5 "Roam like home" days a year for their mobile service users.
Conclusion
Cashback is a good safe option for people looking to earn with their spending. Consider what your main spend categories are, if the vendors you frequent take Amex, if your grocery store is a member of Scene+, and/or if you're a Rogers customer. My personal pick remains the Amex cobalt given its high earning rate and ability to be used as an incredible travel card (when used for travel it's points are 2x as valuable trouncing the competition). Combine it with a Visa or Mastercard non food and non Amex purchases to gain insurance too. If you want just a single card and don't have Rogers or Scene eligible groceries, consider the MBNA WE, Scotia Momentum, or CIBC dividend. If you're interested, check out my referral links below for additional cash back with many of these cards.
Referrals
Looking for help? Reach out for a consult
Check out all pure cashback cards here.
With its best in market 5x multiplier Amex Cobalt is a powerful point earner that can get you on flying for free 5 times faster than much of the competition - sign up here.
To see the access the best offers for different Amex card such as the Business Gold, or Platinum click here.
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You're going to need somewhere to stay after all of these free flights. The Amex Bonvoy or the Business Bonvoy card will earn you free hotel stays and can be combined with the Aeroplan eStore for some incredible double dipped rewards.
If you're on the fence, or wondering about other cards reach out to me for a free consult, and if you sign up for a card through my link, let me know and I will walk you through advanced tricks and personalized advice to help you get the maximum benefit both from earning and redeeming points - getting your travel journey going faster than you ever thought possible.
Disclaimer
This should not be taken as financial advice and details are subject to change. I have made good intentioned efforts to be accurate but ultimately consult card terms and conditions
