10 Best Cashback Credit Cards in Canada for February 2023 | WOWA.approx (2023)

CIBC Cashback Credit Card

The CIBC Cashback Credit Card is an excellent choice for a hassle-free rewards scheme. You can redeem your CIBC Cashback Credit in $25 increments at any time. CIBC offers a wide range of cashback credit cards, from premium to free cards. Additionally, CIBC is Costco's new credit card partner. ForLearn more about CIBC, you can visit our linked site.

RBC cashback credit card

RBC offers a premium credit card with free cashback. You can redeem your cashback rewards starting at $20. RBC is the only major bank to offer a flat rate card, which means that each category earns the same cashback rate. Notably, RBC has partnered with DoorDash to offer a free DashPass subscription that offers free deliveries. We also publish a guide onRBC mortgage rates.

TD Cash Back Credit Card

TD offers two cashback redemption options. Initially, with redemptions over $25, you can redeem whenever you want. However, there is also the option to redeem every January with no minimum requirement.

TD offers two types of cards. Premium Visa infinite includes a comprehensiveinsurance set. This card gives you travel assistance and various types of travel health insurance. Plus, you can link your card to your Starbucks membership to earn 50% more stars at participating locations.TD interest ratesare comparable to other credit cards.

BMO Cashback Credit Card

BMO's Cashback World Elite offers the highest grocery cashback rate in Canada. At 5%, it's a great card for parents or anyone who likes to cook. This is also one of the few cashback cards that offers free airport lounge access.

BMOit also has one of the most flexible redemption programs. You have the option to redeem your cashback anytime with a minimum of $1. Additionally, you can set up automatic deposits starting as low as $25. Your automatic deposits can be forwarded to a bank statement, BMO bank account or investment account .

Scotiabank cashback credit card

Scotiabankis the only major Canadian bank to offer an intermediate cashback credit card. This card costs just $39 per year and offers 2% cashback on many categories. Categories include gas stations, groceries, recurring bills, and 1% off everything else.

More considerations

While you should primarily consider the repayment rate for your main spending categories, some additional benefits can help you decide on the best card. This includes welcome bonuses, cashback restrictions, annual fees and much more. This section provides more information to strengthen your decision making.

Cash back welcome bonus

It's also worth comparing cashback cards based on their welcome bonuses. These are typically three-month periods where your repayment rates increase by a certain amount. For example, Simplii Cashback Visa offers 10% cashback on purchases at restaurants, bars and cafes. The promotion is valid for four months and up to $500 in spending. Below are the best May 31, 2022 cashback welcome bonuses:

Reimbursement Limits

Most cashback credit cards in Canada have no cap on the cashback you can earn. However, some may limit how much money you can earn in certain categories. For example, the Simplii Financial Cash Back Visa offers 4% cashback on restaurant purchases of up to $5,000. Your response rate drops if you spend more than $5,000 in that category each year.

Any amount above this threshold will receive a refund fee of 0.5% in this scenario. In general, cards with a higher win rate tend to limit the amount of cashback you can get after spending a certain amount.

annual fees

Most credit card companies offer both free and premium cashback cards. While premium cashback cards can cost anywhere from $39 to $120 a year, there are some outliers. In general, the more you pay for a card, the more benefits you can expect. First, paid cards offer a higher average cashback rate. You can refer to the chart below to see this.

Average cash-back rate after annual expenses

In addition to the quantitative benefits, they can offer access to lounges, exclusive events, etc. However, it's up to you to decide whether these benefits are ultimately worth the cost.

redemption frequency

The other thing you need to understand is how to get your refund. Each card has different mechanisms. While most cards automatically deduct the refund from your credit statement each month, this is not always the case. For example, the Brim Cashback card requires you to "redeem" cashback on qualifying purchases. Simplii Cashback Visa, on the other hand, collects the cashback and applies it to your bill every December.

interest rates

Canada cashback card interest rates vary, but are generally lower than travel reward cards. For example, the Scotiabank Momentum Visa Infinite has an annual interest rate of 19.99%, while the CIBC Costco® Mastercard has a slightly lower interest rate of just 19.75%.

This is because travel rewards cards come with a lot of features. To cover part of the cost, banks charge higher interest rates for train tickets.

However, credit card interest rates are often significantly higher than credit card interest rates.mortgage rates in canada. Currently a5 year fixed mortgage rateis about 4%. When it comes to credit products, credit cards have some of the highest interest rates. That's why it's important to pay your bill in full and keep a low balance each month.

network acceptance

Another consideration is your credit card network. There are three main credit networks – Mastercard, Visa and American Express. Depending on where you choose to spend your card, they may only accept certain networks. For example, American Express is not widely accepted outside of North America and the UK. Likewise, Canadian Costcos only accept Mastercard, while American locations only accept Visa.

Cashback vs travel credit cards

Cashback credit cards are ideal if you:

• Don't travel often
• Prefer a simpler redemption process
• Do you want a lower annual fee?

DespiteThe best travel credit cardsdeserve a bigger return, they have a learning curve. To get the best return on your points, you need to know the best ways to redeem them. For example, travel points are more valuable when redeemed for travel-related purchases rather than gift cards. If you don't travel often, you won't get the best value for your points.

Additionally, there may be blackout periods and fluctuating scores. In comparison, cashback credit cards allow you to understand the value of your points and redeem them quickly.

Next, most travel credit cards have a personal income requirement of $60,000 or a family income requirement of $100,000. If you don't reach that limit, you're limited to a handful of tickets. Interestingly, American Express credit cards have no income requirements, so you may still qualify for one.

Finally, travel credit cards have a high annual fee to pay all benefits. The best Canada cashback credit cards have annual fees ranging from $0 to $120. The best travel rewards credit cards, on the other hand, have annual fees in excess of $200. offer perks like lounge access and travel insurance, you won't benefit much from the higher cost unless you're a frequent traveler.

the end result

There is no best cash back credit card in Canada. The best cashback credit card depends on how you spend. You can use our interactive chart at the top of this article to find the card that maximizes your current spending habits. Also, it's best to consider welcome bonuses and redemption frequency.

Common questions