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2023's Best Cash Back Credit Cards for Canadians

Earn guaranteed cash back when you make everyday purchases with a cash back rewards credit card.

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Select your annual fees

What is a cash back credit card?

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.

Best Credit Cards for 2023: Best Cash Back Credit Card

  First year value* Credit score required Winner  
$745 Excellent BMO CashBack World Elite* Mastercard*
$409 Fair Tangerine World 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.

Best Overall Cash Back Credit Card

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 110 credit cards using more than 100 data points over several weeks.

  First year value* Credit score required Top features  
$745 Excellent Great cash back rates and welcome bonus. Includes great travel perks such as travel insurance and airport lounge access.
$782 Excellent Great introductory cash back rates. Includes comprehensive travel insurance as well as mobile device insurance.
$940 Good Earn 4% cash back on gas and groceries and 2% cash back on all other purchases.

Winner: BMO CashBack World Elite* Mastercard*

The BMO CashBack World Elite* Mastercard* allows you to earn 5% cash back on groceries, 4% cash back on transit, and 3% cash back on gas. The cash back rewards and welcome bonus can potentially net you $745, according to our Best of Finance methodology.

Additional benefits include complimentary roadside assistance, discounts at select car rental companies, as well as travel and medical insurance.

The estimated dollar amount of benefits you’ll accumulate based on your monthly spending and rewards preference
+ Welcome bonus
$150
+ Annual rewards
$594
- Annual fee (First Year Waived)
$0
Total first year value
$744
BMO CashBack World Elite* Mastercard*

card image
Welcome bonus
$150
BMO Cash Back Rewards
Annual rewards
$594
BMO Cash Back Rewards
Annual fees:
$120 (First Year Waived)
Interest rates:
20.99% on purchases • 23.99% on cash advances
2023 Winner – Best Overall Cash Back Credit Card
Strong cash back reward rates in a variety of categories 
Details at a glance Collapse details
Welcome bonus
$150
Annual rewards
$594
The estimated dollar amount of benefits you’ll accumulate based on your monthly spending and rewards preference
+ Welcome bonus
$150
+ Annual rewards
$594
- Annual fee (First Year Waived)
$0
Total first year value
$744
Annual fees:
$120 (First Year Waived)
Interest rates:
20.99% on purchases
23.99 on cash advances
2023 Winner – Best Overall Cash Back Credit Card
Strong cash back reward rates in a variety of categories 
Details at a glance Collapse details

Annual fee

$120

Limited time offer/bonus

  • Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year*.

Offer expiry date: NA - Ongoing offer.

Rewards

With this card, you can earn the following:

  • 5% cash back earn spent on groceries
  • 4% cash back earn spent on transit
  • 3% cash back earn spent on gas
  • 2% cash back earn spent on bills
  • 1% cash back earn spent on other eligible purchases

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 + Welcome bonus = $594 + $151 = $745
Annual fee = $120 (waived the first year)
Total earned over a 12-month period (rewards minus annual fee) = $745

You can redeem your points for:

  • Redeem your rewards annually as a statement credit.
  • Have your rewards deposited into your BMO InvestorLine account.
  • Deposit your rewards into your BMO chequing or savings account.

Benefits

  • Complimentary Lounge Key Mastercard Airport Experiences membership
  • Complimentary roadside assistance
  • Access over 1 million Wi-Fi hotspots around the world - all at no added cost, and no added fees or roaming charges
  • Access to 24/7 Concierge Service
  • Up to 25% off at National Car Rental and Alamo Rent a Car locations worldwide
  • Unlock Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada

Insurance

  • Purchase protection - 180 days
  • Extended warranty - 2 Year
  • Travel accident - $500,000
  • Emergency medical term - 8 days
  • Trip interruption - $2,000
  • Flight delay - $200
  • Baggage delay - $750
  • Lost or stolen baggage - $500
  • Hotel burglary - $750
  • Rental car theft
  • Rental car accidents - $200,000

Runners-up: Best Overall Cash Back Credit Card

CIBC Dividend® Visa Infinite* Card

Apply for the CIBC Dividend® Visa Infinite* Card to earn 4% when you buy groceries and gas.

With all the rewards for new cardmembers, you could have an extra $882 in your wallet within the first 12 months of owning the card, or $582 during a regular year, according to our Best of Finance methodology.

Annual fee

$120 (rebated the first year)

Limited time offer/bonus

  • 10% Cash back earn on all purchases for the first 4 months (up to $200).
  • Annual Fee rebated for the first year.

Offer expiry date: Ongoing offer

Rewards

  • 4% on Groceries and Gas categories.
  • 2% Cash back on eligible transportation, dining purchases and recurring bill payments.
  • 1% Cash back on all other purchases

SimplyCash® Preferred Card from American Express

The SimplyCash® Preferred Card from American Express offers a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your Card. This could add up to $400 in statement credits in the first 10 months.

Cardholders can also access travel and shopping coverage and exclusive offers through American Express® Experiences like presale tickets and curated events.

According to our Best of Finance methodology, the average Canadian could earn around $940 in rewards in the first year.

Annual fee

$119.88 ($9.99 per month)

Limited time offer/bonus

  • In your first 10 months as a new SimplyCash® Preferred Card from American Express Cardmember, you can earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your Card. This could add up to $400 in statement credits in the first 10 months

Offer expiry date: N/A subject to change without notice

Rewards

  • Earn 4% on gas and grocery purchases.
  • Earn 2% cash back on all purchases.

Best No-Fee Cash Back Credit Card

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  
$409 Fair Earn 2% cash back in up to three categories of your choice.
$383 Good Earn 3% cash back on your first $500 spent on groceries.
$468 Good Earn 2% cash back on gas and grocery purchases.

Winner: Tangerine World Mastercard®

The Tangerine World Mastercard® offers cardholders the unique ability to set their own accelerated earning categories to maximize rewards. Cardholders can earn 2% cash back in up to three Money-Back Categories of their choice, with options including groceries, gas, furniture, home improvements and even parking. Cardholders can choose the spending categories that reward them the most and tailor them to keep up with ever-changing circumstances.

This card also features mobile device insurance and basic travel perks.

According to our Best of Finance methodology, the average Canadian would earn around $409 cash back in the first year.

The estimated dollar amount of benefits you’ll accumulate based on your monthly spending and rewards preference
+ Cash bonus
$125
+ Welcome bonus
$100
+ Annual rewards
$309
- Annual fee
$0
Total first year value
$534
Tangerine World Mastercard®

card image
Welcome bonus
$100
Money-Back Rewards
Annual rewards
$309
Money-Back Rewards
Annual fees:
$0
Interest rates:
19.95% on purchases • 19.95% on cash advances
Get a $125 Cash Bonus from RATESDOTCA (Offer ends December 15, 2023)
2023 Winner – Best No-Fee Cash Back Credit Card
Details at a glance Collapse details
Welcome bonus
$100
Annual rewards
$309
The estimated dollar amount of benefits you’ll accumulate based on your monthly spending and rewards preference
+ Cash bonus
$125
+ Welcome bonus
$100
+ Annual rewards
$309
- Annual fee
$0
Total first year value
$534
Annual fees:
$0
Interest rates:
19.95% on purchases
19.95 on cash advances
Get a $125 Cash Bonus from RATESDOTCA (Offer ends December 15, 2023)
2023 Winner – Best No-Fee Cash Back Credit Card
Details at a glance Collapse details

Annual fee

$0

Limited time offer

  • Get a 1.95% promotional interest rate on balance transfers made within 30 days of opening the account for six months. A 1% balance transfer fee does apply.
  • Earn 10% cash back for the first two months on up to $1,000 in total purchases. That is up to $100 cash back.

Offer expiry date: October 31, 2023

Rewards

Earn 2% cash back in up to three categories of your choice. Start with two Money-Back Rewards Categories and earn a third when depositing your rewards into a Tangerine Savings Account. Get 0.50% unlimited cash back on everything else.

Tangerine Money-Back Categories:

  • Grocery
  • Furniture
  • Restaurants
  • Hotel-motel
  • Gas
  • Recurring bill payments
  • Home improvement
  • Entertainment
  • Public transportation and parking

Change up your categories to match your spending style and maximize your rewards.

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 = $309*
Tangerine special offer = $100
Annual fee = $0
Total earned over the first year (rewards and offers minus annual fee) = $409

*Assumes the cardholder deposits their rewards into a Tangerine Savings Account, earning the third category. The categories selected were groceries, recurring bill payments, and gas.

Ways you can redeem your points:

  • Apply cash back as a monthly statement credit.
  • Deposit cash back into a Tangerine Savings Account each month.

Insurance

  • Rental car collision and loss damage
  • Mobile device insurance
  • Purchase protection
  • Extended warranty

Benefits

  • Stay connected with Boingo Wi-Fi for Mastercard®*, and access over one million Wi-Fi hotspots worldwide.
  • Access a complimentary membership to Mastercard® Airport Experiences Provided by LoungeKey for exclusive deals and offers at over 400 airports.
  • Take advantage of free supplementary cards for authorized users and earn more as a family.

Runners-up: Best No-Fee Cash Back Credit Card

BMO CashBack® Mastercard®*

The BMO CashBack Mastercard®* offers members 5% cash back for the first three months*. After that, earn 3% back on grocery purchases, 1% back on recurring bill payments, and 0.5% back on everything else you buy. Earn even faster by adding additional cardholders for free.

According to our Best of Finance methodology, the average Canadian will have $383 within the first year.

Annual fee

$0

Limited time offer/bonus

  • New cardmembers can get 5% cash back for the first three months. You will earn the regular 3% cash back rate on grocery purchases, up to $500 per billing cycle, with a bonus rate of an additional 2% back on your first $500 spend over the first three months. You will also receive the regular earn rate of 1% cash back on recurring bill payments up to $500 per billing cycle, with a bonus rate of an additional 4% cash back on your first $500 spend over the first three months. For all other purchases, you will receive the regular earn rate of 0.5% cash back, with a bonus of an additional 4.5% back on your first $1,500 spend over the first three months.

Sign-up bonus expiry date: N/A - subject to change without notice

Rewards

  • Get 3% cash back on grocery purchases, up to $500 in total purchases per month.
  • Get 1% cash back on recurring bill payments, up to $500 spent per billing cycle.
  • Get 0.5% unlimited cash back on all other purchases.

SimplyCash® Card from American Express

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

  • In your first 10 months as a new SimplyCash® Card from American Express Cardmember, you can earn a $10 statement credit for each monthly billing period in which you spend $300 in purchases on your Card. This could add up to $100 in statement credits in the first 10 months.

Offer expiry date: N/A - subject to change without notice

Rewards

  • Earn 2% cash back on gas and groceries, with no limit to how much cash back you can earn.

What are the different types of cashback credit cards available?

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.

Cash back credit cards rewards structure

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:

  • Bonus cash back: Bonus cash back credit cards are the most popular cashback credit cards. They offer cash back bonuses on purchases that fall under certain categories such as groceries, gas, entertainment and bill payments. Typically, the cash back rate on purchases in these categories is much higher than the flat rate you might earn on other cards. This specialization makes bonus cash back cards excellent choices for individuals who know they spend predominantly in these everyday categories.

    For example, the TD Cash Back Visa Infinite offers 3% back on gas, groceries and recurring bills, but only 1% on everything else. The Tangerine Money Back Card has no annual fee and offers 2% in up to three spending categories of your choice.
  • Flat-rate cash back: A flat-rate cash back credit card offers you a fixed cash back rate on every purchase. For example, an earn rate of 1.25% cash back on everything you buy. Cash back is usually applied as a statement credit every month or once per year on a specific date. It can also be deposited directly into a chequing or savings account. This is a good option for you if most of your purchases don’t tend to be focused around certain categories, such as groceries or if you aren’t sure of your monthly purchases.
  • Flexible bonus cash back: A flexible bonus cash back credit card is customizable. It allows you to choose your cash back bonus category, helping you align your rewards with your spending habits. Your bonus categories can be just about anything – from groceries, hotels and entertainment to public parking.

    A card like BMO’s Cashback World Elite Mastercard offers up to 5% cash back on purchases, free roadside assistance, 13 types of insurance and 10% cash back for the first three months, up to $2,600 in spend. But this type of card has a high-income threshold – between $80,000 personal or $150,000 household – and has low monthly spending caps on bonus categories.
  • Category cash back: This type of card rewards the user for shopping in specific spending categories, like gas or groceries, at an accelerated rate. For example, 4% cash back for some purchases and 1% back on everything else. Shoppers who routinely purchase items in privileged categories can maximize their rewards with a category card.

Frequently asked questions about cash back credit cards

Got more questions about cash back credit cards? We got you covered.

What are the benefits of a cash back rewards credit card?

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.

How does a cash back credit card work?

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.

How can I redeem my cash back rewards?

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.

Which is better – an annual fee cash back credit card or a no-fee cash back credit card?

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.

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