Welcome bonus
$100
Money-Back Rewards
Annual rewards
$309
Money-Back Rewards
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With the sheer volume of choices available to credit card users, trying to settle on one specific card is a tough decision. You'll be tempted to get a card with rewards, air miles, cash back or various other perks offered by credit card companies.
As you start comparing credit cards, you'll notice that many of the rewards credit cards come with annual fees, and some of these may cost you over $100 yearly. If one intends to use a credit card often, the rewards collected will often justify the fee. What if you want to use the credit card occasionally or carry it just for emergencies?
In such cases, a no annual fee credit card will make sense. As you continue to shop for the best credit card for your needs, you'll likely notice no annual fee credit cards sometimes do offer some incentives and also have competitive interest rates. It is possible to get a credit card that combines some good features such as cash back rewards without paying an annual fee.
However, be aware that some no annual fee credit cards may just waive the fee for a limited amount of time. For example, there are credit card companies that will offer you a no annual fee for a year and charge you fees after that time is up. You may also find your fee is waived annually due to a special promotion or discount offer.
It is also important to check for a suitable rate of interest. You don't necessarily want to save on the annual fee only to be charged a higher interest rate. You'll have to decide if the interest rate combined with the savings on the annual fee makes financial sense for your spending habits.
By carefully examining the terms and conditions of these no annual fee cards, and comparing them to alternatives, credit card shoppers will be able to make the right choice.
| First year value* | Credit score required | Winner | ||
|---|---|---|---|---|
| $409 | Fair | Tangerine World Mastercard® | ||
| $545 | Good | MBNA Rewards Platinum Plus® 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.
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. | ||
|
Runner up |
$383 | Good | Earn 3% cash back on your first $500 spent on groceries. | |
| $468 | Good | Earn 2% cash back on gas and grocery purchases. |
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.
Annual fee
$0
Limited time offer
Offer expiry date: July 5, 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:
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:
Insurance
Benefits
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
Sign-up bonus expiry date: July 31, 2023
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
Access the top travel rewards programs with these no-fee cards. While this batch of cards have slightly lower earn rates than their counterparts with a fee, they still provide excellent value and great perks.
Plus, these cards can slide into your wallet as a primary or secondary credit card, and you don’t have to worry about another annual expense. You can use the card as often or sparingly as you like without having to justify its worth.
We compared the top no-fee travel credit cards using our Best of Finance methodology and ranked the cards that provided the highest value while also considering additional complimentary travel perks and benefits.
| First year value* | Credit score required | Top features | ||
|---|---|---|---|---|
| $545 | Good | Enjoy the flexible MBNA Rewards program and a generous welcome bonus. Enjoy basic travel insurance. | ||
|
Runner up |
$504 | Good | Earn Scotia Scene+ points and redeem them for travel, gift cards and much more. Enjoy exclusive Amex perks. | |
|
Runner up |
$348 | Good | Fuel and food delivery perks and flexible Avion rewards points. |
The MBNA Rewards Platinum Plus® Mastercard® offers cardholders four points for every $1 spent on eligible grocery, restaurant, digital media, membership, and household utility purchases for the first 90 days, up to $10,000 in each category. After, earn two points for every $1 spent in these categories ($10,000 annual cap in each category) and one point for every $1 spent on all other purchases.
This card also features $1,000,000 travel accident insurance, unexpected return home insurance and car rental accident insurance.
According to our Best of Finance methodology, the average Canadian would earn around $545 in rewards in the first year.
Annual fee
$0
Welcome bonus
5,000 bonus points†† after you make $500 or more in eligible purchases within the first 90 days (about 3 months) of your account opening. Plus, 5,000 bonus points†† once enrolled for paperless e-statements within the first 90 days (about 3 months) of account opening
And 4 points†† for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days (until $10,000 is spent annually in the applicable category)
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Rewards
2x points for every $1 spent on:
1x point for every $1 spent on all 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 = $340 + $205 = $545
Annual fee= $0
Total earned over the first year (rewards minus annual fee) = $545
Benefits
Insurance coverage
The Scotiabank®* American Express® Card is a no annual fee travel credit card that allows you to rack up Scotia Scene+ points for flexible redemption offers and enjoy exclusive Amex perks such as, Amex Invites and reserved tickets access. Not to mention you’ll also get access to Scotia’s exclusive travel agency.
According to our Best of Finance methodology, the average Canadian would earn around $504 in rewards in the first year.
Annual fee
$0
Limited time offer/bonus
Earn up to 12,000 bonus Scotia Scene+ points within your first year (that's up to $120 towards travel).
Offer expiry date: April 30, 2023
Rewards
The RBC® ION Visa, one of RBC’s newer credit card offerings, lets cardholders earn more Avion points when they spend on groceries, gas, and daily public transit. Novel point-earning categories include EV charging expenditures.
According to our Best of Finance methodology, the average Canadian would earn around $348 in rewards in the first year.
Annual fee $0
Rewards
*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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