Looking to get one of the best cash back credit cards in Canada to save some money and join millions of other Canadians? Then this post is for you.
Recurring bill payments, travel expenses, groceries purchases, gas and other everyday purchases can add up to consume a significant part of your monthly income in Canada. The good news is that you can offset a portion of these everyday expenses by using a cashback credit card.
But as our needs vary, so do the cash back credit cards that are available. Fortunately, there are different categories of cash back credit cards in Canada ranging from no-fee, low-interest, travel, and students to business credit cards.
And with the number of cash back credit cards available to Canadians, choosing the perfect one for your needs can be difficult and time-consuming.
To make the process simpler, this article covers some of the best cash back credit cards in Canada across different categories to help you choose the one that best suits your needs and situation.
Let’s get started!
Overview of the Best Cash Back Credit Cards in Canada
The following is a quick overview of the current best cash back credit cards in Canada covering their annual fees and welcome offers.
| Card | Annual Fee | Welcome Offer |
|---|---|---|
| Neo Financial Standard Credit Card | $0 | Up to 15% cashback |
| Tangerine Money-Back Credit Card | $0 | 10% cashback & 1.95% introductory balance transfer interest |
| HSBC +Rewards Mastercard | $25 (waived for the first year) | Up to 35,000 points |
| KOHO Prepaid Card | $0 | $20 |
| WestJet RBC World Elite Mastercard | $119 | Up to 450 welcome WestJet dollars |
| Rogers World Elite Mastercard | $0 | $25 |
| CIBC Dividend Visa Infinite Card | $120 | First-year annual fee rebate |
| SimplyCash Preferred Card from American Express | $119.88 | Up to $400 in statement credit |
| Students – BMO CashBack Mastercard | $0 | Up to 5% cash back |
| Scotiabank L’earn Visa Card | $0 | N/A |
| BMO CashBack Business Mastercard | $0 | Up to 10% cash back |
| TD Business Cash Back Visa Card | $0 | N/A |
Best No-Fee Cash Back Credit Cards in Canada
To start with, let’s explore some of the best cash back credit cards in Canada with no annual fees.
1. Neo Financial Credit Card
- Annual fee: $0
- Annual interest: 19.99% on purchases & 26.99% on cash advances
- Welcome offer: 15% cashback
- Income eligibility: N/A
Neo Financial Credit Card is a leading no-fee cash back credit card in Canada that’s popular for obvious reasons.
Despite having no annual fee, this card offers one of the most competitive promotional cash backs in Canada that is up to 15% cashback on your first purchases at partner locations.
Afterwards, you will earn an average of 5% cashback at partner stores with the card. Every other purchase with the card will earn you 0.5% cashback.
Learn more: Neo Financial Credit Card Review
2. Tangerine Money-Back Credit Card
- Annual fee: $0
- Annual interest: 19.95% on purchases & cash advances
- Welcome offer: 10% cashback & 1.95% introductory balance transfer interest
- Income eligibility: $12,000 average personal annual income
The Tangerine Money-Back Credit Card is another top no-fee cash back credit card in Canada that distinguishes itself from its peers with competitive promotional offers for new cardholders.
Currently, the card welcomes new users with 10% cash back on up to $1,000 purchases during their initial 2 months of membership.
In addition, new users also enjoy a competitive 1.95% introductory balance transfer interest for up to 6 months.
After the promo, the card offers 2% on up to three purchase categories and charges 19.95 balance transfer interest.
Learn more:
- Tangerine Money-Back Card Review
- Tangerine Credit Card Promotions
- Best No-Fee Credit Cards in Canada
Best Low-Interest Cash Back Credit Cards in Canada
Next, we’re going to cover some of the top low-interest cash back credit cards in Canada:
3. HSBC +Rewards Mastercard
- Annual fee: $25 (waived for the first year)
- Annual interest: 11.9% on purchases, cash advances & balance transfers
- Welcome offer: Up to 35,000 points
- Income eligibility: N/A
The HSBC +Rewards Mastercard is one of the low-interest cash back credit cards in Canada that reward you with redeemable points for purchases.
Despite the competitive 11.9% annual interest on purchases, cash advances & balance transfers, the card still manages to offer up to 35,000 points as a welcome offer.
To earn this competitive offer, all you need is to apply for the card online (via this link) and you will earn 5,000 points.
The remaining 30,000 points will be awarded when you make a minimum of $2,000 purchases within your initial 6 months of membership to earn 30,000 points.
Besides the competitive promo, the card also offers 2 points on every $1 purchase on entertainment and dining and 1 point for every other $1 purchase. You can redeem your points for gift cards, travel and financial rewards.
Even though the card charges a $25 annual fee, the fee is waived in the first year for the primary card holder.
4. KOHO Prepaid Card
- Annual fee: $0
- Annual interest: None
- Welcome offer: $20
- Income eligibility: N/A
As the name implies, the KOHO Prepaid Card is not a credit card. It’s a no-fee prepaid cash back card with no annual fee.
Unlike the above cashback credit cards, the KOHO Prepaid Card welcomes you with a $20 cash bonus when you apply using our referral link.
Instead of charging you annual interest on purchase, the card rewards you with 0.5% - 4% interest on your KOHO account balance. One of the major drawbacks of the card is that it has a relatively low cash back rate as it offers only 0.5% on all purchases.
As a prepaid card that operates with only the funds you deposited in your account, KOHO Prepaid doesn’t report your transactions to the credit bureaus. However, KOHO fills the gap with the KOHO credit builder program that charges $7-$10 per month.
Learn more: KOHO Prepaid Card Review
Best Lifestyle and Travel Cash Back Credit Cards in Canada
If you’re looking for a cash back credit card to save costs on lifestyle and travel expenses, there are multiple options to choose from in Canada. Let’s take a detailed look at some of the best options below.
5. WestJet RBC World Elite Mastercard
- Annual fee: $119
- Annual interest: 19.99% on purchases & 22.99% on cash advances
- Welcome offer: Up to 450 welcome WestJet dollars
- Income eligibility: $80,000 average personal annual income or $150,000 average household annual income
The WestJet RBC World Elite Mastercard is a tailored cash back credit card for lifestyle and travel in Canada.
Even though the card has a $119 annual fee, it makes up for it with competitive promotions of up to $450 welcome WestJet dollars.
Besides that, the card rewards you with 2% back in WestJet dollars when you spend on WestJet Vacations packages or flights. Every other purchase will earn you 1.5% back in WestJet dollars.
In addition, you can reduce the cost of your trip fare with the card’s annual World Elite round-trip companion voucher.
6. Rogers World Elite Mastercard
- Annual fee: $0
- Annual interest: 19.99% on purchases & 22.99% on cash advances
- Welcome offer: $25
- Income eligibility: $80,000 average personal annual income or $150,000 average household annual income
Unlike WestJet RBC World Elite Mastercard, the Rogers World Elite Mastercard is a no-fee cash back credit card for lifestyle and travel expenses.
When you make your initial purchase with the card within three months of membership, you will get a $25 welcome bonus.
Following that, you will earn 3% unlimited cash back on every US dollar purchase and 1.5% cash back on every other purchase.
Moreover, the Rogers World Elite Mastercard comes with comprehensive insurance coverage ranging from:
- Extended Warranty and Purchase Protection
- Rental Car Collision/Damage
- Out-of-Province/Out-of-Country Emergency Medical
- Trip Interruption
- Trip Cancellation
The major drawback of this card is that it requires you to spend at least $15,000 annually in addition to its high minimum income requirement.
Best Canadian Cash Back Credit Cards For Groceries and Everyday Purchases
This category explores some of the best cash back credit cards in Canada for groceries and everyday purchases.
7. CIBC Dividend Visa Infinite Card
- Annual fee: $120 (waived in the first year)
- Annual interest: 20.99% on purchases & 22.99% on cash advances
- Welcome offer: First-year fee rebate
- Income eligibility: $60,000 average personal annual income or $100,000 average household annual income
The CIBC Dividend Visa Infinite Card is one of the best cash back credit cards in Canada offered by a big bank.
While the card charges a $120 annual fee, the fee is waived for the first year of membership for the primary card holder and three authorized users.
Interestingly, you can continue to enjoy the annual fee rebate if you open the CIBC Smart Plus chequing account.
That said, the CIBC Dividend Visa Infinite Card offers competitive cashback on the following purchases:
- Groceries and gas purchases: 4% cash back
- Recurring payments, dining and transportation: 2% cash back
- Every other purchase: 1% cash back
Finally, the card also offers comprehensive insurance coverage, such as:
- Mobile Device Insurance
- Purchase Security & Extended Protection Insurance
- Car Rental Collision/Loss Damage Insurance
- $500,000 Common Carrier Accident Insurance
- Emergency Travel Medical Insurance (Out-of-Province)
8. SimplyCash Preferred Card from American Express
- Annual fee: $119.88
- Annual interest: 20.99% on purchases & 21.99% on cash advances
- Welcome offer: Up to $400 in statement credit
- Income eligibility: N/A
The SimplyCash Preferred Card from American Express standouts from the crowd with its competitive promotional cash back and standard cash back on purchases.
With this card, you will get up to $400 in statement credit if have a make a minimum net purchases of $750 by the last day of each monthly billing period in the initial 10 months of cardholding.
This card offers 4% cash back on gas and groceries and 2% cash back on every other purchases.
What I also like about this card is that it has no income requirement and offers comprehensive insurance, such as:
- Flight Delay Insurance
- Emergency Medical Insurance (Out-of-Province/Country)
- Car Rental Theft and Damage Insurance
- Baggage Delay Insurance
- $100,000 Travel Accident Insurance
Related: 12 Best Grocery Coupon Apps in Canada
Best Student Cash Back Credit Cards in Canada
Whether you’re a student or are looking to get your child a tailored credit card, it’s worthwhile to check out the following student cash back credit cards in Canada.
9. Students – BMO CashBack Mastercard
- Annual fee: $0
- Annual interest: 20.99% on purchases & 22.99% on cash advances
- Welcome offer: Up to 5% cash back
- Income eligibility: N/A
As an award-winning card, the Students – BMO CashBack Mastercard is a no-fee credit card with competitive cash back.
The card rewards new users with up to 5% cash back within their initial three months of membership. After that, cardholders will earn the following cash back:
- 3% cash back on grocery purchases
- 1% cash back on recurring bill payments
- 0.5% cash back on every other purchase
With extended warranty and purchase protection, Zero Liability, and a host of discounts, you or your child will be fully covered with this card.
10. Scotiabank L’earn Visa Card
- Annual fee: $0
- Annual interest: 19.99% on purchases & 22.99% on cash advances
- Welcome offer: N/A
- Income eligibility: N/A
The Scotiabank L’earn Visa Card is another student cash back credit card that’s worth considering.
With no annual fee, the card rewards new users with 1% back on all purchases. In addition, it gives you access to an exclusive 20% discount on car rentals.
However, the Scotiabank L’earn Visa Card has a low reward structure compared to the Students – BMO CashBack Mastercard.
Best Business Cash Back Credit Cards in Canada
Businesses are not left out when it comes to cash back credit cards in Canada. If you’re a business owner or looking to open one, below are some of the best business cash back credit cards to consider.
11. BMO CashBack Business Mastercard
- Annual fee: $0
- Annual interest: 19.99% on purchases & 22.99% interest on advances
- Welcome offer: Up to 10% cash back
- Income eligibility: N/A
The BMO CashBack Business Mastercard is a popular no-fee business cash back credit card in Canada that is unique for various reasons.
As a way of saying welcome, the card offers you up to 10% cash back on internet bills, cellphone, gas and office supply purchases throughout your first three months of membership.
After that, you’re going to earn the following cash back per purchase:
- 1.75% cash back on Shell or pump purchases
- 1.5% cash back on gas, internet bills, cellphone office supply purchases
- 0.75% on every other purchase
Moreso, the card gives you access to add 22 authorized users, get 1%-25 rebates at eligible purchases, a Zero Liability and protection and extended warranty protection.
12. TD Business Cash Back Visa Card
- Annual fee: $0
- Annual interest:19.99% on purchases & 22.99% on cash advances
- Welcome offer: N/A
- Income eligibility: N/A
Finally, the TD Business Cash Back Visa Card is also worth considering because it offers competitive rewards with no annual fee.
The following are the current cash back dollars you can earn on this card per purchase:
- Eligible gas and office supply purchases = 2% cash back
- Regular recurring bill payments = 2% cash back
- Every other purchases = 0.5% cash back
Besides cashback rewards, the card also gives you access to 50% additional Stars at eligible Starbucks stores and a 25% discount on business purchases.
In addition to Card Management Tool, you will also enjoy the following comprehensive insurance coverage with the card:
- Purchase Security and Extended Warranty Protection
- Travel Medical Insurance (optional)
- Trip Cancellation and Trip Interruption Insurance (optional)
RELATED:
What is a Cash Back Credit Card and How Does it Work?
A cash back credit card is a reward credit card that returns a portion of your purchases with real cash or redeemable points.
By using a cash back credit card, you can easily save costs on your everyday purchases and improve your monthly cash flow.
Like other credit cards, you need to apply for a cash back credit card from your bank or favourite card provider.
Once approved, you can start making purchases and get cash back on every eligible purchase with the card.
Pros and Cons of Cash Back Credit Cards in Canada
While each cash back credit card has its own ups and downs, the following are the common pros and cons of cash back credit cards in Canada:
Pros
- Cost-saving: You will earn guaranteed rewards on eligible purchases and save costs along the way.
- Special offers: Some cash back credit cards offer welcome bonuses and introductory interest rates that help boost your earnings for a limited time.
- Low fees: No-fee cash back credit cards help you save costs on purchases and annual fees.
Cons
- Above-average interest rates: Some cash back credit cards come with above-average interest rates compared to other cards.
- Lower perks: To lower operational costs, some cash back credit card providers restrict perks on their cards. Because of this, those cash back credit cards may not be suitable for individuals looking for luxurious credit cards.
How to Choose the Best Cash Back Credit Card in Canada
So far you have learnt about the best cash back credit cards in Canada and the benefits of using them. But how do you narrow your selection?
Whether you’re looking for a combo or single cash back credit card, consider the following factors to determine the best card for you:
- Your needs: Examine your needs and situation to know which cash back credit card category to choose from. It could be a no-fee, low-interest, student, business or business category, etc.
- Processor: You want to choose a cash back credit card that’s acceptable by most of the stores you make your regular purchases.
- Cash back rate: The cash back rate will determine how much you will save at the end of the day. As a result, the higher the cash back rate the better.
- Fees: Even if you’re going for a no-fee cash back card, you need to consider the overall fee schedule of the card before finalizing. This includes an annual fee, inactivity fee, overlimit fee, cash advance fee and so on.
- APR: The interest rate on purchases, cash advances and balance transfers should also be given major consideration.
- Insurance: If you want to limit your liabilities, consider a cash back credit card with comprehensive insurance coverage.
How to Apply for a Cash Back Credit Card in Canada
Before you can apply for a cash back credit card, you must meet certain requirements.
Since different cash back credit cards have different requirements, it’s essential to know the requirements of your preferred card before applying.
However, the common requirements of cash back credit cards in Canada center on:
- Age – (you should be at least up to 18 or 19, depending on your province or territory)
- Credit score (some cash back cards require good to excellent credit scores)
- Individual/family annual income level
- Location (not all credit card providers are available in every part of Canada)
While the application process for a cash back credit card varies from one card to another, most credit card providers in Canada require you to open an account with them before you can apply for a card.
The Bottom Line
With the inflation rate trending up fast in the country, you can’t help but explore every possible option for reducing your monthly expenses.
Evidently, cash back credit cards are some of the easiest and most effective ways of reducing monthly expenses in Canada. But should you just apply for any cash back credit card? Capital NO! That could be counterproductive!
So start by doing an assessment of your needs and situation, then choose one or more of the above best cash back credit cards in Canada.
Which are you going with? Kindly let me know your stance in the comment section.
