Every wallet needs a default credit card to use when in doubt, ideally one with strong benefits and valuable point earning for an acceptable annual fee. In Canada many of us have banked with one of the big banks for years and make our credit card decisions along the lines of "do I want cash back or travel?" and then look at the various tiers within the category we want, strongly considering what the best card is that we can get for free with our current bank account. This approach makes sense, and led me to hold the TD First Class Travel Visa Infinite (what a mouthful!) for years. It's a good card in many respects and could be the right one for you - but I must admit, not fully considering my options and using this card by default is one of my biggest financial regrets as it was far from the best choice for me. Ironically, if you want First Class Travel, you probably shouldn't use the TD First Class Travel Card.
In this article I'm going to talk about the strengths and weaknesses of the popular TD Travel Visas including the TD Platinum Travel, First Class Travel (FCT) card and the related business card from TD to help you learn if it might make sense to switch. While this article uses the TD cards as specific examples, the concept applies more broadly to many of the big bank's self branded travel cards such as the CIBC Aventura cards. Referrals and disclaimers at the bottom.
Fixed vs. Variable Value Travel Programs
Before we dive into the specifics of the TD Travel program, it is helpful to consider that there are several different "types" of travel rewards programs out there that can broadly be categorized into groups.
The first are "fixed value" programs where there is a set conversion rate between points and cash value. TD Travel is one such program where the points are worth exactly 0.5 cents per point (cpp) when used through their Expedia for TD portal, 0.4 cpp when redeemed against other travel, 0.33 when used at amazon, and 0.25 when redeemed for statement credits. Other similar programs include the CIBC Aventura program and the Scotia Scene+ program. These programs are ideal for people who can't be flexible in when they travel as they will provide consistent value for your points, and allow you to redeem them effectively for flights, hotels, car rentals and more. This consistency is also one of their biggest downfalls when contrasted to variable value travel programs.
In contrast, variable value travel programs are ones where the points can be redeemed at widely different values. The most popular in Canada being Aeroplan, where points can be worth anywhere from 1cpp to well over 4cpp. The strength of this sort of program is that it gives the motivated traveller a second avenue to maximize your rewards - you can double, triple, or quadruple their value in addition to trying to earn the most points.
Redeeming
As mentioned above, the highest value for TD Travel points is when redeemed through Expedia for TD, this gives a fixed 25% more for your points versus redeeming them against other travel (0.5cpp instead of 0.4cpp). Expedia for TD works similarly to the regular Expedia website allowing you to search for flights, hotels, car rentals, and packages therein.
As a third party booking agency there are some notable downsides however. One of these is the challenge that arrives if you ever have any issues with your bookings. During Covid I had to make multiple changes to flights booked through Expedia for TD and it added a whole other layer of complexity. I couldn't just get my refunds or credits directly though the airlines, instead I had to call Expedia who then called the airlines - two layers of holding. To make matters worse, airlines that were offering full refunds from their bookings were only offering restricted credits with fees and penalties through Expedia. Covid rebookings aren't the only issue either, a coworker of mine told me of their challenges dealing with Expedia while in Europe trying to rebook their flights back to Canada.
Another downside is that booking through Expedia means that you wont get the same sorts of loyalty recognition, points, and upgrades as you would booking with hotels directly such as the Marriott Bonvoy program.
This contrasts starkly with variable value programs such as Aeroplan. For example look at these two different nonstop flights from Toronto to Lisbon via Aeroplan
The first one is on an Air Canada flight and you can get an economy ticket for 69.3k points plus $74 in taxes and fees. The second is on Portugal's TAP airlines, an aeroplan partner, and shows a business class seat for 60k points plus $113 in taxes and fees. The Air Canada flight has business seats for 183.9k points, the difference in value here is staggering! That same TAP flight normally sells for over $2500 in business, so the points are worth 4cpp here.
It's worth noting that in general some of the highest point values with these systems are cross ocean business class flights, so it really incentivizes you to elevate your travel experience. The same points that might get you $400 off an economy flight in Canada might get you $1200 off a business flight to Europe. In contrast, if you had $400 in TD Travel points, it has the same value regardless of the flight type, so you'd be far less likely to ever get that business class pod experience.
The ability to maximize point value at redemption, and the disproportionate value when used for elevated travel are the reasons why I made the switch. But it isn't for everyone, the flexibility to work with any company based on the trip, and consistent value of the points can make it an appealing low effort card.
Earning
Redemption is only part of the picture, we also need to consider how we get these points in the first place. Using a bank specific travel program such as TD travel, CIBC Aventura or others, typically means that you have only one way to earn points - using their cards. This has the appeal of simplicity, just use that card for everything and the points will accumulate over time, but it also means that there is less ability to maximize your point earnings. In the below comparisons I use a value of 0.5cpp (the expedia redemption value) to convert their point multipliers into cash equivalent effective returns (ER) for travel.
TD Platinum Travel Visa
$89 Annual fee (AF) waived in first year and for many account types
Sign up bonuses
15k TD pts with first purchase ($75 ER)
35k TD pts with $1000 spend in first 90d ($175 ER)
Earn Rates
1.5 points per dollar (1.5x) base earn rate (0.75% ER)
3x on recurring bill payments (1.5% ER)
4.5x on groceries and restaurants (2.25% ER)
6x on Expedia for TD (3%ER)
TD First Class Travel Visa Infinite (FCT)
$139 AF waived for first year and for certain account holders
Sign up bonuses
20k TD pts with first purchase ($100 ER)
55k TD pts with $5000 spend in first 180d ($225 ER)
Annual bonuses
Birthday bonus of 10% of points earned to a max of 10k points (max $50 ER)
Annual travel credit of $100 for expedia
Earn Rates
2x base earn rate (1% ER)
4x on recurring bill payments (2% ER)
6x on groceries and restaurants (3% ER)
8x on Expedia for TD (4%ER)
Between these two cards, even if you do not receive an ongoing annual fee waiver, the effective earning rates are 0.25 to 1% higher for the FCT in every category - based on Equifax data for average annual credit card spending in Canada most people will be better off with the FCT. Even ignoring spending, if you are able make use of the $100 annual expedia credit you will easily offset the extra $50 annual fee. To put these card earning rates in context, here are the same tiers of Aeroplan cards from TD. I used a 2cpp (a fair Aeroplan point value) to convert their point multipliers into cash equivalent effective returns (ER) for travel.
TD Aeroplan Visa Platinum
$89 Annual fee (AF) waived for the first year, and ongoing for certain account holders
Sign up bonuses
Welcome bonus of 10k AP points ($200 ER)
10K when you spend $1000 in 90 days ($200 ER)
Earn rate
1 point per $1.50 spent ie. ~0.67x base (1.33% ER)
1x on grocery, gas, and travel booked specifically with Air Canada (2% ER)
TD Aeroplan Visa Infinite (AP VI)
$139 AF waived for certain account holders
Sign up bonus
Welcom bonus of 10k AP points ($200 ER)
15K when you spend $7500 in 180 days ($300 ER)
Anniversary bonus of 15k when you spend $12k in 12 months ($75 ER)
Earn rate
1x base (2% ER)
1.5x on gas, grocery, and travel booked specifically with Air Canada (3% ER)
You'll see that while the TD FCT earns 2 points per dollar base, because their points are only worth 0.5 cents, it is actually a far worse earning than the TD AP VI earning 1 point per dollar worth 2 cents each. There is also a far more premium TD Aeroplan VIP card for high spenders looking for maximum rewards and benefits that I discuss in my dedicated Aeroplan Card article.
Programs like Aeroplan and to a lesser extent Avion can combine with points earned from Amex allowing you to take advantage of higher earning rates on different cards for different uses, such as the incredibly powerful Cobalt card. I used a 2cpp (a fair Amex point value) to convert it's point multipliers into cash equivalent effective returns (ER) for travel.
Amex Cobalt
12.99 monthly fee ($155.88 per year)
Sign up bonus
1250 Amex MR points per month you spend $750 on the card ($300 ER)
Earn rate
1x base (2% ER)
2x on transit (buses, uber etc) and gas (4% ER)
3x on streaming services (6% ER)
5x on grocery, restaurant, delivery, bars (10% ER)
The ability to combine these points with an Aeroplan Visa form the foundation of my favourite 2 card travel strategy.
Furthermore, Aeroplan specifically can benefit from massive point bonuses through use of the Aeroplan eStore. I've earned as much as 17 points a dollar this way (34% ER at a 2cpp) - bank travel rewards programs can't even come close to that.
While bank travel programs give the absolute easiest approach for travel rewards, they lock you in to their one program and limit your ability to maximize your benefit. Don't be scared away by the complexity of programs like Aeroplan, they can be incredibly powerful even with simple strategies, and the payoff can be an incredibly memorable experience.
Etihad Business class pods.
If you want help figuring out which is best for you reach out and we can have a quick appointment to go over your credit card health.
Other Card Benefits
Redemption value and earning potential are the two biggest considerations, but credit cards also provide multiple other perks from travel insurance to free checked bags. Below is a summary of the insurance and main additional benefits, but refer to the official benefits documentation for more details. I've focused on the TD FCT and the same tier TD AP card as most people would do best at this tier provided they qualify.
TD FCT
Save 10% off lowest base rate with Avis and Budget in North America and 5% internationally
Insurance coverage
Emergency medical - $2M for 21d if under 65, 4d if 65+
Travel accident - $500k for 21d if under 65
Trip cancellation - up to $1500 per person
Trip Interruption - up to $5000 per person
Trip delay - up to $500 per person
Baggage delay/lost - up to $1000
Car rental - up to 48 days
Hotel Burglary - up to $2500
Mobile Device - up to $1000
Purchase security - 90d for stolen or damage, up to 1yr additional warranty
TD AP VI
Free checked bag on AC operated flights for you and up to 8 people travelling with you
if you get a supplemental card ($75 Annual fee) then they get this benefit even when travelling without you, along with up to 8 of their guests.
$100 credit back for Nexus card sign up/renewal once per 48 months
1000 SQM and 1 SQS (points towards frequent flyer status) with every $10k spent
Aeroplan points never expire so long as youre a card holder
Avis Preferred plus status
Insurance coverage - the same coverage as the TD FCT, and
The TD AP VI has multiple additional benefits over the TD FCT, with checked bags representing a significant value for some travellers. One of the more subtle benefits is that the travel insurance applies to flights paid for with Aeroplan points. This means that if you earn large amounts of Amex MR points and transfer them to Aeroplan, your reward flights will still have incredible travel insurance.
Business Cards
If you're a business owner, it's worth looking at the business versions of these cards. I've again converted their point multipliers into an "effective return" value by considering their typical point value.
TD Business Travel Visa
$149 AF waived for first year
Welcome bonus of 30k TD Travel points ($150 ER)
8334 TD travel points each month you spend at least $2500 a month for the first 12mo ($500 ER)
20k points for making $250 in mobile wallet purchases in 90d ($100 ER)
Earn Rates
2x base earn rate (1% ER)
6x on foreign currency purchases (3% ER)
6x on restaurants and recurring bill payments (3% ER)
9x on Expedia for TD (4.5% ER)
Insurances, and Avis/Budget discount similar to the TD FCT card
Aeroplan Visa Business
$149 Annual fee (AF)
Sign up bonus
Welcome bonus of 10k AP points ($200 ER)
45K when you spend $2500 a month for the first 12mo ($900 ER)
5k points for making $250 in mobile wallet purchases in 90d ($100 ER)
Earn rate
1x base (2% ER)
1.5x on travel, dining, shipping, internet, cable and phone (3% ER)
2x on travel booked specifically with Air Canada (4% ER)
Mapleleaf lounge guest pass for every $10k in purchases up to a max of 4 a year
1000 SQM and 1 SQS (points towards frequent flyer status) with every $5k spent (better than the personal card which earns for every $10k spent)
Insurances and checked bag, nexus credit, and other benefits similar to the TD AP VI card
Conclusion
Bank based fixed value travel rewards programs like TD Travel with the incredibly popular TD First Class Travel card can provide a reliable straightforward path to travel savings. That said, the inability to further maximize point earning and redemptions, and lack of additional card benefits really hold back the program when compared to some of the alternatives. While we specifically looked at the TD program, similar things can be said about other bank travel programs such as CIBC Aventura, although the RBC Avion program does have some benefits for those willing to put in the effort. If you're willing to put in a bit more effort to unlock real first class travel, each out for a consult, I'll help you calculate how much better off you'll be with a few simple changes and lay out a roadmap to get you on your first amazing trip.
Referrals
Check out my referral links to all of the personal TD Travel Rewards cards, or if you'd like to read more about some of the alternatives consider my article about Aeroplan Cards.
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
