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2024's Best No-Fee Credit Cards for Canadians

Find the best credit cards with no annual fee.

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What is a no-fee credit card?

In Canada, the variety of credit card options can be dizzying at times. Some have points, benefits, offer travel, insurance, you name it.

However, some cards come with fees, and some don’t, which leads us to the following question:

What is a no-fee credit card?

Simply put, it’s a credit card without a yearly fee. Aside from that, it operates the same way as cards with fees. It used to be that no-fee cards didn’t really come with any rewards the way other cards do. But that has changed as competition has grown and consumer demands have changed. Many no-fee cards do offer rewards (sometimes at a lower value than cards with fees).

Fees associated with no-fee cards

Despite carrying the ‘no-fee’ moniker, these cards may still have fees associated with them, including:

  • Interest: All credit cards charge interest on late payments. The promise of any credit card is that the financial institution issuing the card will loan you the money in advance on the promise of re-payment. If that payment comes late, you are charged interest on the loan. No-fee credit cards can’t escape this reality.
  • Foreign transaction fees: If you are traveling, for example, most credit cards charge a foreign transaction fee of 2.5% whenever you make a purchase that’s not in Canadian dollars. 
  • Over-limit fees: These are charged whenever the balance of your card goes above a certain threshold, regardless of whether the increased amount was due to a purchase, interest charge, late fee or any other fee. You can opt out of the over-limit feature to ensure you won’t incur a fee. However, if you go over the limit after having opted out, your card will be declined.
  • Cash advance fees: These charges occur on your credit card when you tap into your line of credit for extra cash. The fee can be in the form of a flat charge or a percentage of the advance amount.
  • Inactive account fees: There may be times you want to take a break from using your credit or reduce your spending. Some financial institutions may charge you an inactive account fee if you don't use your credit card for a long time. The financial institution may even close your account if your card is inactive for a year.

The Best of Finance Winners for 2024: Best No-Fee Credit Cards

  First year value* Credit score required Winner  
$409 Fair Tangerine World Mastercard®
$645 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.

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
[[gift]]Get a $125 CashSurge from RATESDOTCA
2024 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
[[gift]]Get a $125 CashSurge from RATESDOTCA
2024 Winner – Best No-Fee Cash Back Credit Card
Details at a glance Collapse details

Annual fee

$0

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 0.5% unlimited cash back on everything else. You can also earn an extra 10% back* (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.* (Apply by January 31, 2024).

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.

Best No-Fee Travel Credit Card

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* Annual fee Top features  
$645 $0 Earn 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)
$527 $0 Earn 1 Aventra point for every $1 spend on gas, EV charging, groceries and drugstore purchases
$459 $0 Earn 2 points for each $1 spend on a wide variety of categories

Winner: MBNA Rewards Platinum Plus® Mastercard®

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.

The estimated dollar amount of benefits you’ll accumulate based on your monthly spending and rewards preference
+ Cash bonus
$100
+ Welcome bonus
$205
+ Annual rewards
$340
- Annual fee
$0
Total first year value
$645
MBNA Rewards Platinum Plus® Mastercard®

card image
Welcome bonus
$205
MBNA Rewards points
Annual rewards
$340
MBNA Rewards points
Annual fees:
$0
Interest rates:
19.99% on purchases • 24.99% on cash advances
Get a $100 Cash Bonus from RATESDOTCA (Offer ends March 29, 2024)
2024 Winner - Best No-Fee Travel Credit Card
Details at a glance Collapse details
Welcome bonus
$205
Annual rewards
$340
The estimated dollar amount of benefits you’ll accumulate based on your monthly spending and rewards preference
+ Cash bonus
$100
+ Welcome bonus
$205
+ Annual rewards
$340
- Annual fee
$0
Total first year value
$645
Annual fees:
$0
Interest rates:
19.99% on purchases
24.99 on cash advances
Get a $100 Cash Bonus from RATESDOTCA (Offer ends March 29, 2024)
2024 Winner - Best No-Fee Travel Credit Card
Details at a glance Collapse details

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:

  • Groceries
  • Restaurants
  • Memberships and digital media
  • Household utilities

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

  • Annual Birthday Bonus Points equal to 10% of the total number of Points earned in the 12 months before the month of your birthday (maximum 10,000 Points)
  • Discounts at Avis Rent A Car and Budget Rent A Car locations

Insurance coverage

  • Mobile device insurance - $1,000
  • Travel accident - $1,000,000
  • Purchase protection - 90 days (about 3 months)
  • Extended warranty - 1 Year

Runners-up: Best No-Fee Travel Credit Card

CIBC Aventura Visa Card

The CIBC Aventura Visa offers good value for globe-trotters who want to maximize travel rewards and minimize fees. The Aventura points you earn with this no-fee travel card never expire, there are no blackout periods, and you can choose from hundreds of airlines. Flights start from as low as 10,000 points (short-haul flights in Canada and the U.S.)  Earn double the points when you spend on eligible grocery stores, gas stations, and electric charging stations up to a spend of $6,000.

According to our Best of Finance methodology, the average Canadian would earn around $527 in rewards in the first year.

Annual fee

$0

Limited time offer/bonus

  • Join and get up to $100 in value for no annual fee.

Offer expiry date: NA – Ongoing Offer

Rewards

  • 1 point (a value of $1) on key categories like gas, grocery, drugstore, and travel.

Scotiabank®* American Express® Card

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 $459 in rewards in the first year.

Annual fee

$0

Limited time offer/bonus

Earn up to 7,500 bonus Scene+ points within your first year (that’s up to $75 towards travel)1

Offer expiry date: July 1, 2024

Rewards

  • 2x points per $1 spent on eligible gas, groceries, restaurants, entertainment, transit and select streaming services
  • 1x points per $1 spent on all purchases.

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*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.

The pros and cons of a no-fee credit card

Choosing the best no-fee credit card can be a daunting task. There are many choices with different rewards and benefit programs, as well as other transactional fees associated with them. Here’s a list of pros and cons to help you navigate the no-fee credit card environment.

Pros Cons

No annual fees

Fewer rewards or benefits per spend than cards with fees

Can help you gain a credit history without extra expenses

Not too many options for travel cards or travel perks

They save you money

If you fail to pay off the balance(s) each month the benefit of the no-fee may be negated

Often come with welcome benefits

You may have to spend a minimum amount within a certain time frame after opening the card to unlock its benefits

Because there is no fee, they can act as a ‘back-up’ to other cards you might have

Higher interest rates than cards with fees

No-fee cards generally require a lower credit score than cards with fees

How to choose the best no-fee credit card

Choosing the best no-fee credit card takes a bit of time and research. Sites like RATESDOTCA offer information on the best no-fee cards and what they offer. Here are some of the things you should consider when looking at the landscape of no-fee credit cards:

  • Interest rate: All credit cards charge an interest rate for late payments. That’s how credit card companies make their money. However, because no-fee cards have the benefit of being inexpensive, they generally come with higher interest rates, which can cost you more down the road. It’s best to compare rates when making your decision.
  • Annual fee waived: Some no-fee credit cards waive their annual fees initially but may re-introduce them after one year. Alternatively, some benefits don’t kick in until the first month or after a payment has been made. Read the fine print when making your selection.
  • Rewards: Because there are no fees associated with no-fee cards, financial institutions need to find ways to make money in other areas. That’s why many no-fee credit cards’ rewards offer fewer perks or bonus rewards points than cards with fees. Find the card that meets your budgetary needs but also offers the most rewards possible.
  • Insurance: Most cards offer insurance protection of some kind – but each card is different. And some no-fee credit cards may offer less, given their budgetary constraints. Ask your credit card provider about the types of insurance they offer with their card.

Frequently asked questions about no-fee credit cards

Got more questions about no-fee credit cards? We got you covered.

No-fee credit card or visa debit card – which is better?

Each person has different financial and credit card needs. A debit card and no-fee credit card do different things for different circumstances. For example, a no-fee credit card can offer inexpensive credit, with the chance to earn rewards, and perhaps most importantly, create a credit history.

A Visa debit card does not allow you to earn rewards and does not help you build your credit. It simply allows you to make transactions with money you already have, rather than borrowing or using credit.

Who should have a no-fee credit card?

A no-fee credit card is great for people who are on a fixed income or have limited resources. The no-fee element helps them save money, while providing them with the benefits of using a credit card that can earn rewards and build a credit history.

Is it worth getting an annual fee credit card for its cash back and/or rewards?

It really depends. Each cards’ reward system is different. Some cards with cash back features can earn valuable rewards for your spending. But that might not be what you’re after. Perhaps. you are after travel or other rewards bonuses that you know make more sense to your lifestyle. Also, travel reward cards may have higher fees than cash back cards. It’s best to compare the cards on sites like RATESDOTCA and see what suits you best.

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