If you are not redirected within 30 seconds, please click here to continue.
If you are not redirected within 30 seconds, please click here to continue.
If you are not redirected within 30 seconds, please click here to continue.
A cash back credit card is a rewards credit card that allows you to earn a small percentage (usually around 1-4%) of your purchase back in cash, helping you save money on everyday purchases. Cash back rewards can be based on a flat-rate, bonus, or flexible bonus structure. Each structure has its own benefits.
Most cash back cards allow you redeem your cash reward as either a deposit into your bank account or a statement credit that reduces how much you owe on your credit card statement. Start saving money by finding the best cash back credit card today.
| First year value* | Credit score required | Winner | ||
|---|---|---|---|---|
| $882 | Excellent | CIBC Dividend® Visa Infinite* | ||
| $480 | Excellent | Rogers Red World Elite® Mastercard® |
*The RATESDOTCA Best of Finance methodology assumes the cardholder spends an average of $2,000 a month on their card to determine the first-year value. The calculation includes all welcome bonuses and promotional offers at the time of publishing.
It’s all right there in the name. Cash back credit cards allow cardholders to earn a small percentage of each purchase back in rewards. We compared the top cash back credit cards using our Best of Finance methodology and ranked the cards that provided the highest first-year value.
To determine our winners, our team has analyzed 80 credit cards using more than 100 data points over several weeks.
| First year value* | Credit score required | Top features | ||
|---|---|---|---|---|
| $882 | Excellent (740+) | Generous cash back earns in key spending categories (4% on gas and groceries, 2% on recurring bills, transportation, and dining, 1% on everything else). Great base travel insurance. | ||
| $790 | Good (660+) | Earn 4% cash back on gas and groceries, and 2% cash back on all other purchases. | ||
| $795 | Excellent (740+) | Highest cash back earn rate on groceries in Canada at 5%. |
The CIBC Dividend® Visa Infinite* card is all about rewarding you with cash back. For the first four statements, you can earn 10% cash back on all your purchases, up to $2,000 in spending. That’s up to $200 in your pocket just for using your card. Plus, the card comes with a $250 welcome bonus, making the first year’s value go even further—up to $832 if you spend $2,000 per month.
After the initial promotion, the ongoing cash back rates keep accumulating. You’ll earn 4% on gas, EV charging, and groceries, 2% on transport, dining, and recurring bills, and 1% on all other purchases. Redeeming your cash back is simple. Once your balance hits $25, you can apply it as a statement credit whenever you want.
The fee is rebated after the first year (a savings of $120) and up to three additional cards can have their first-year fees rebated as well. Whether you're fueling up, dining out, or stocking your fridge, the CIBC Dividend® Visa Infinite* helps you maximize your cash back while keeping things flexible and rewarding. A card designed to fit your lifestyle.
Credit score requirement for approval: Excellent (740+)
Annual fee: $120 (first year rebated)
Annual fee for additional cardholders: $30
Limited time offer/bonus: Get a first-year annual fee rebate and earn a 10% cash back welcome bonus of up to $250 (first 4 statements), and a $50 cash back bonus for setting up one pre-authorized payment within the first 4 monthly statements. After that, get 4% cash back on eligible gas and grocery purchases.
Offer expiry date: Ongoing Offer
Rewards:
4% cash back on eligible:
2% cash back on eligible
Earn 1% cashback on:
Earning potential: $832 the first year, $462 in following years
Insurance:
Other perks:
The SimplyCash® Card from American Express offers 4% cash back on gas and grocery purchases. You earn 2% cash back on all other purchases.
The program is simple, and that's what makes it great. According to our Best of Finance methodology, you could potentially earn $790 in rewards annually with the SimplyCash® Card.
The card includes access to a decent travel insurance package and AMEX's well-known entertainment perks. You can earn more cash by way of Amex's friend referral bonus.
Annual fee: $120
Limited time offer/bonus: Earn a bonus of 10% cash back on all purchases for your first 3 months (up to $2,000 in purchases). Plus, earn a $50 statement credit when you make a purchase in month 13. This could add up to $250 in bonus value in your first 13 months
Offer expiry date: Ongoing Offer
Rewards: 4% cash back on eligible gas station and grocery store purchases in Canada (up to $1,200 cash back annually). 2% cash back on all purchases (after first 4 months)
The BMO CashBack World Elite* Mastercard* allows you to earn 5% cash back on groceries, 4% on transit, and 3% on gas. The cash-back rewards and welcome bonus can help you secure $745 in the first year of card ownership, according to our Best of Finance methodology.
Additional benefits include complimentary roadside assistance, discounts at select car rental companies, and travel and medical insurance.
Annual fee
$120
Limited time offer/bonus
Get up to 10% cash back in your first three months and the $120 annual fee waived in the first year*.
Offer expiry date: Ongoing offer.
Rewards
With this card, you can earn the following:
Just because a card doesn’t charge an annual fee doesn’t mean it skimps on rewards. Many no-fee credit cards offer hundreds of dollars in cash back for making everyday purchases and feature additional benefits like shopping coverage or exclusive offers.
We compared the top no-fee cash back credit cards using our Best of Finance methodology and ranked the cards that provided the highest first-year value.
| First year value* | Credit score required | Top features | ||
|---|---|---|---|---|
| $480 | Excellent | Rogers, Fido and Shaw customers can earn 2% cash back. A 3% cashback value when redeeming points on Rogers, Fido, and Shaw purchases. | ||
| $468 | Good | Earn 2% cash back on gas and grocery purchases. | ||
| $425 | Good | Up to 4% cash back on eligible restaurant, bar, and coffee shop purchases |
The Rogers Red World Elite® Mastercard® offers excellent cash back benefits, especially for Rogers, Fido, or Shaw customers. If you’re one of these customers, you can still earn up to $480 annually if you maintain a $2,000 monthly balance. You’ll earn 2% cash back on all eligible purchases, and when you use your cash back rewards to pay for Rogers, Fido, or Shaw purchases, you’ll get 1.5x more value, letting you maximize your rewards.
For those who frequently pay in U.S. dollars—whether it’s traveling or shopping online—the card gives you 3% cash back on U.S. purchases. Even if you’re not a customer of Rogers, Fido, or Shaw, you can still earn unlimited 1.5% cash back on eligible non-U.S. dollar purchases. These features give all cardholders rewarding ways to save on daily spending.
According to our Best of Finance methodology, the average Canadian will have $480 within the first year.
Annual fee
$0
Welcome bonus
N/A
Rewards
Rogers, Fido and Shaw customers:
If you are not a Rogers customer:
Earning potential
How does this card stack up to other rewards credit cards? We crunched the numbers using our Best of Finance methodology to see how much an average Canadian could earn over a 12-month period.
Rewards earned over a 12-month period + Cash bonus + Welcome bonus = $480 + $0 = $480
Benefits
Insurance coverage
The Simplii Financial™ Cash Back Visa* Card is a great fit for people who love dining out and want to avoid paying an annual fee. You can earn up to 4% cash back at eligible restaurants and bars, which is the card’s top earn rate. It also offers 1.5% cash back on gas, groceries, and pre-authorized payments, helping you save on everyday expenses. For any other purchases, you’ll earn 0.5% cash back. It’s a simple and rewarding way to get more value from your spending without any added costs.
Annual fee
$0
Limited time offer/bonus
Earn up to 10% cash back† for your first 3 months up to $1,000 eligible spend
Offer expiry date:
Ongoing
Rewards:
Cardholders of the SimplyCash® Card from American Express earn 1.25% on all purchases, with no limit on how much cash back you can earn. As with all Amex cards, you get solid insurance and entertainment perks.
According to our Best of Finance methodology, the average Canadian would earn around $468 cash back in the first year and $368 a year thereafter.
Annual fee
$0
Annual fee for additional cardholders: $0
Limited time offer/bonus
Offer expiry date: N/A - subject to change without notice
Rewards
Different cash back credit cards offer different perks. But generally, you can compare cash back credit cards in Canada that either have fees or don't.
The most important difference between the two is that cash back credit cards without an annual fee offer less cash back rewards than those with fees.
An example of this can be seen in some major bank credit card offerings. The Scotiabank Momentum Visa Infinite Card, for example, offers an introductory offer of up to $200, an annual fee of $120 (which is waived the first year), and a reward rate between 1% and 10%.
However, the HSBC Cash Rewards Card, without a fee, offers a lower reward rate – between 0.5% and 1.5% – and an introductory bonus of $100.
The choice is yours, but make sure you understand the nuances of rewards before deciding on which card is best for your spending needs.
Every cash back card has its own rewards structure. Here are the three different types of cash back rewards you’ll see when comparing cash back credit cards:
Got more questions about cash back credit cards? We got you covered.
Using a cash back credit card allows you to earn a percentage of your money back when you make your purchases, meaning you don’t have to change any of your spending habits to start earning credit card rewards. Cash back rewards are just as good as cash because the cash back credit is instantly applied to your credit card statement. You have the flexibility of using your cash back rewards for anything you want.
Cash back cards do have their potential cons. Like most rewards credit cards, cash back credit cards may also come with a higher annual fee averaging $100-$120, so make sure that the cash back rewards structure helps you earn the maximum rewards on your day-to-day purchases (and offsets the annual fee). Also, many cash rewards programs have an annual maximum limit, meaning your cash back rewards will be capped at a certain amount.
Cash back credit cards usually work on a percentage formula. For example, if your cash back credit card promises you 3% instant cash back on grocery purchases, and you decide to purchase $500 worth of groceries with your card, you will earn $15 back into your credit account. This means you save 3% from your total amount spent.
If the same card promises you a bonus cash back of 5% on entertainment purchases and you purchase movie tickets for $200, you’ll receive an instant cash back of $10.
When it comes to redeeming your cash back rewards, most credit card providers pay you the cash back in the form of a credit on your monthly statement. If you hold a bank account with the same credit card provider, you can also receive cash back deposits into your chequing account. The frequency of your cash back rewards payments depend on your credit card provider and the card itself. Some credit card providers allow you to redeem your cash back credit at intervals such as monthly, quarterly or annually, while others may set up an automatic redemption whenever you reach a certain balance, or even allow you to redeem whenever you choose.
Your credit card lender may also give you the option of receiving a cheque with your total cashback credit at the end of the calendar year.
It’s difficult to say which is better. If you are someone on a tight budget or a fixed income, you might appreciate the card that offers no fees but still allows you to earn some rewards on your purchases.
If, however, you are not as financially constrained and you frequent certain stores or categories of shopping, you might want to consider the cards with fees that offer greater rewards. It’s really a personal decision that can be helped by comparing cards and rewards options on sites like RATESDOTCA.
RATESDOTCA may receive compensation when you click on links to those products or services. however, our content and calculations are objective and free from bias. The opinions expressed are purely those of RATESDOTCA; thus, partners are not responsible for any editorials or reviews that may appear. For current term and conditions on any advertiser or partner’s product, please visit their website.
Stay on top of our latest offers, relevant news and tips!