When it comes to managing your finances, cashback credit cards are a simple and effective way to save money on everyday purchases. In Canada, many credit card providers offer cashback rebates on categories like groceries, dining, and fuel, making it easy for you to earn rewards while spending. But with so many options, which cards stand out? Let’s dive into the best cashback credit cards in Canada and how to choose the right one for your needs.
What Are Cashback Credit Cards?
Cashback credit cards reward you for using your card by giving you a percentage of your spending back in cash. Your earnings depend on the card and the categories you spend in, such as groceries or gas. For example, a card might offer 2% cashback on groceries and 1% on everything else.
These rebates are often credited to your account as a statement credit, deposited into your bank account, or even used to purchase gift cards.
Why Choose a Cashback Credit Card?
Here are a few reasons why Canadians love cashback cards:
- Simple Rewards: No points to redeem or programs to understand. You get cash, plain and simple.
- Flexible Usage: Spend your cashback however you want—save, reinvest, or use it to pay down your balance.
- Savings on Everyday Expenses: Cashback rebates are perfect for offsetting costs like groceries, fuel, or utility bills.
Best Cashback Credit Cards in Canada
1. Tangerine Money-Back Credit Card
- Why It’s Great:
This card offers 2% cashback on up to three spending categories, such as groceries, gas, or dining. All other purchases earn 0.5%. - Key Features:
- No annual fee.
- Flexibility to choose categories.
- Easy cashback deposit into your Tangerine savings account.
- Who It’s Best For:
Anyone who wants a no-fee card with flexible cashback options.
2. Scotia Momentum Visa Infinite Card
- Why It’s Great:
This premium card offers 4% cashback on groceries and recurring bill payments, 2% on gas and transit, and 1% on all other purchases. - Key Features:
- $120 annual fee (often waived for the first year).
- Comprehensive travel and purchase insurance.
- High earning potential on essentials.
- Who It’s Best For:
Those who spend a lot on groceries and want added perks like insurance coverage.
3. CIBC Dividend Visa Infinite Card
- Why It’s Great:
Get 4% cashback on groceries and gas, 2% on dining and transit, and 1% on everything else. It also includes mobile device insurance. - Key Features:
- $120 annual fee (can be waived if you bank with CIBC).
- Generous rebates for high-spending categories.
- Premium insurance coverage.
- Who It’s Best For:
Frequent travelers and families who spend heavily on groceries and gas.
4. Simplii Financial Cash Back Visa Card
- Why It’s Great:
Earn 4% cashback on restaurants and bars, 1.5% on gas, groceries, and drugstores, and 0.5% on everything else. - Key Features:
- No annual fee.
- Excellent for dining out and everyday purchases.
- Cashback applied directly to your balance.
- Who It’s Best For:
Young professionals and students who frequently eat out.
5. Rogers World Elite Mastercard
- Why It’s Great:
Offers 1.5% cashback on all purchases and 3% on purchases made in U.S. dollars. - Key Features:
- No annual fee.
- Great for travelers or online shoppers who frequently buy in USD.
- Comprehensive travel insurance.
- Who It’s Best For:
Frequent travelers or those who shop with U.S. retailers.
How to Choose the Best Cashback Credit Card
Here are some tips to find the perfect card:
1. Assess Your Spending Habits
Look at where you spend the most—on groceries, dining, gas, or travel—and choose a card that maximizes cashback rebates in those categories.
2. Consider Annual Fees
Some cards charge annual fees but offer higher cashback rates and added perks. Make sure the rewards outweigh the cost.
3. Check Additional Benefits
Beyond cashback, some cards include travel insurance, purchase protection, or subscription discounts.
4. Pay Off Your Balance
Cashback cards typically have higher interest rates. Pay your balance in full each month to make the most of your rebates.
Final Thoughts
Cashback credit cards are a fantastic way to save money while spending on essentials. From no-fee cards like the Tangerine Money-Back Credit Card to premium options like the Scotia Momentum Visa Infinite, there’s a card for everyone. Evaluate your spending habits and choose a card that fits your lifestyle to maximize your cashback rebates.
