5 Best Cashback Cards in Canada: Maximize Your Spending Rewards

Cashback credit cards are a popular choice among Canadians for their simplicity and ability to reward everyday purchases.

These cards allow you to earn a percentage of your spending back in the form of cash, which can be redeemed as statement credits, direct deposits, or gift cards.

With so many options available, finding the right cashback card that fits your lifestyle and spending habits can be a challenge.

In this article, we’ll take a detailed look at the 5 best cashback cards in Canada, exploring their benefits, rewards structure, fees, and how to get the most value from them.

Why Choose a Cashback Card?

Cashback cards are an attractive option for people who want to earn rewards without having to navigate complex points systems. Here’s why cashback cards are a great choice:

• Simplicity: No need to worry about converting points or finding the best redemption options. With cashback cards, your rewards are straightforward.
• Flexibility: Cashback can be used for anything, including paying off your credit card balance, making purchases, or depositing into a savings account.
• Earn on Everyday Purchases: Many cards offer higher cashback rates on common spending categories like groceries, gas, and dining.

Now, let’s explore the top cashback cards available to Canadians.

1. Scotiabank Momentum Visa Infinite Card

The Scotiabank Momentum Visa Infinite card is one of the top cashback credit cards in Canada for families and individuals who spend a lot on recurring bills, groceries, and transportation.

Key Benefits:

• 4% cashback on groceries and recurring bills.
• 2% cashback on gas and daily transit purchases.
• 1% cashback on all other purchases.
• Comprehensive insurance coverage including travel insurance and purchase protection.

Annual Fee:

• $120, which is waived for the first year.

Why It Stands Out:

The 4% cashback on groceries and recurring bills is one of the highest cashback rates in Canada for these categories.

If you spend heavily on these everyday essentials, this card will allow you to maximize your cashback earnings. The added benefits, such as travel insurance and purchase protection, make it ideal for those who also want to use their card for travel.

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2. Tangerine Money-Back Credit Card

The Tangerine Money-Back Credit Card offers excellent customization and no annual fee, making it a solid option for those who prefer flexibility in their cashback categories.

Key Benefits:

• 2% cashback on up to three spending categories of your choice (e.g., groceries, gas, dining).
• 0.5% cashback on all other purchases.
• No annual fee.

Why It Stands Out:

The ability to choose up to three cashback categories sets this card apart from many others. If your spending habits shift over time, you can adjust your categories to continue maximizing your rewards.

With no annual fee, the Tangerine Money-Back Credit Card is an excellent entry-level option for those seeking flexible rewards.

3. CIBC Dividend® Visa Infinite Card

The CIBC Dividend Visa Infinite Card is another strong contender for cashback rewards, offering excellent returns on groceries and gas.

Key Benefits:

• 4% cashback on groceries and gas.
• 2% cashback on dining, daily transit, and recurring payments.
• 1% cashback on all other purchases.
• Free roadside assistance and insurance coverage.

Annual Fee:

• $120, waived for the first year.

Why It Stands Out:

This card is ideal for families and commuters who spend significantly on groceries and gas. The 4% cashback on these essential categories allows you to quickly accumulate rewards.

Additionally, the insurance coverage and added perks, such as roadside assistance, make this a well-rounded card for those looking for extra benefits beyond cashback.

4. SimplyCash™ Preferred Card from American Express

For those seeking higher cashback rewards on all purchases, the SimplyCash Preferred Card from American Express offers an impressive flat-rate cashback on every transaction.

Key Benefits:

• 2% cashback on all purchases, with no limit on how much you can earn.
• Up to 10% cashback in the first four months (up to $400 in cashback).
• Comprehensive insurance including travel, car rental, and purchase protection.

Annual Fee:

• $119.88.

Why It Stands Out:

The 2% flat cashback on all purchases is a great option for those who don’t want to keep track of different spending categories.

You earn consistently high cashback on every transaction, making it ideal for those with varied spending habits.

The first-year welcome offer of 10% cashback for the first four months can provide a significant boost to your rewards.

5. Rogers World Elite Mastercard

The Rogers World Elite Mastercard is a unique cashback card, especially beneficial for frequent travelers who make purchases in foreign currencies.

Key Benefits:

• 1.5% cashback on all purchases in Canada.
• 3% cashback on all purchases made in foreign currencies.
• No annual fee.

Why It Stands Out:

If you frequently shop online from international retailers or travel abroad, the 3% cashback on foreign purchases can save you a significant amount.

With no annual fee and a strong cashback rate on foreign transactions, the Rogers World Elite Mastercard is a standout option for globetrotters. However, it does require a personal income of at least $80,000 to qualify.

How to Choose the Right Cashback Card

When selecting the best cashback card for your needs, consider the following factors:

1. Spending Habits

Look at where you spend the most. If you frequently spend on groceries, a card with high cashback on grocery purchases, like the Scotiabank Momentum Visa Infinite, will offer more value.

If you have varied spending, a flat-rate card like the SimplyCash Preferred may suit you better.

2. Fees and Income Requirements

Annual fees can eat into your cashback earnings, so make sure the rewards outweigh the costs. Some cards, such as the Rogers World Elite Mastercard, offer premium cashback without an annual fee.

Additionally, premium cards often have income requirements, so ensure you meet the eligibility criteria.

3. Perks and Benefits

While cashback is a major consideration, don’t overlook additional perks like travel insurance, purchase protection, and roadside assistance. Cards such as the CIBC Dividend Visa Infinite offer extra value with these benefits.

Conclusion

Cashback credit cards are a fantastic way to get rewarded for your everyday spending.

Whether you prioritize high cashback rates on groceries, flat-rate rewards on all purchases, or maximizing foreign currency transactions, there’s a cashback card in Canada to fit your lifestyle.

The key is to choose a card that aligns with your spending habits and financial goals to maximize your rewards without incurring unnecessary fees.

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