In the Ring: American Express Cobalt Credit Card vs. Scotiabank Gold American Express Card

• Access one of Canada’s top rewards credit cards for only $12.99 a month.
• Get 11 types of insurance coverage and pay no foreign transaction fees with the Scotiabank^®* Gold American Express^® Card.
• The American Express Cobalt^TM Credit Card is one of the most accessible lifestyle cards, requiring only a fair credit score — yet, providing top-tier perks, benefits, and value.

Facing off, we have the American Express Cobalt^TM Credit Card and the Scotiabank^®* Gold American Express^® Card, two of Canada’s top rewards cards. Both offer flexible rewards programs and an excellent return on everyday spending. Cardholders can choose from seemingly endless redemption options, including travel and statement credits, and earn rewards quickly on essential purchases like groceries and daily transit.

These lifestyle cards are similar in many ways, particularly in several accelerated earning categories and perks, like travel insurance and shopping coverage. As a result, it can be tough to choose the best card.

We put the American Express Cobalt^TM Credit Card and the Scotiabank^®* Gold American Express^® Card “in the ring” to battle for the top spot in your wallet, breaking down the minor details to bring you the card with the best overall value — spoiler, it’s not only monetary.

Click on the categories, like “Annual fee” or “Earn rates,” to jump down to a specific section.

*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.

Annual fee

Winner: American Express Cobalt^TM Credit Card

While an annual fee waiver can be beneficial in the first year, one card features a unique perk that lasts far longer. The American Express Cobalt^TM Credit Card charges a budget-friendly fee of $12.99 per month for membership instead of $155.88 annually. While both cards end up costing the same amount, the American Express Cobalt^TM Credit Card comes across as more accessible to Canadians from different financial circumstances.

It also offers free additional cards, meaning cardholders can earn rewards faster with an authorized user at no extra cost.

Jump back to the top.

Welcome bonus

Winner: Scotiabank^®* Gold American Express^® Card

For both offers, the cardholder has an entire year to qualify for the full welcome bonus.

However, the Scotiabank^®* Gold American Express^® Card will credit the 30,000 Scotia Rewards points to the account within two to three business days after the cardholder spends at least $1,000 in qualifying purchases. The additional 20,000 Scotia Rewards points are credited after the cardholder spends at least $7,500 in the first year. According to our Best of Finance methodology, it would take the average Canadian just under four months to achieve the bonus — far quicker than the American Express Cobalt^TM Credit Card.

Not only that, but cardholders also get the luxury of meeting the spending requirements as a combined total over several months rather than meeting a monthly minimum.

Jump back to the top.

Earn rates

Winner: Scotiabank^®* Gold American Express^® Card

The American Express Cobalt^TM Credit Card offers 5X the points for every $1 spent on groceries, restaurants, coffee shops, food delivery (spending caps apply). After, earn 1X the points in these categories. This spending cap is generous, bearing in mind the average Canadian is unlikely to have such a considerable food budget.

However, the Scotiabank^®* Gold American Express^® Card ups the ante. Not only does this card offer more accelerated reward categories, but it also has a more significant spending cap. After the first $50,000 in net purchases in the first and second accelerated categories (5X the points and 3X the points), earn 1X the points for every $1 spent.

Once again, according to our Best of Finance methodology, the average Canadian would spend about half that amount on their credit card each year (roughly $24,000). Nevertheless, the Scotiabank^®* Gold American Express^® Card rewards cardholders for more merchant codes than its competitor, such as movie theatres, ticket agencies, streaming services.

Jump back to the top.

Reward redemption

Winner: American Express Cobalt^TM Credit Card

Membership Rewards^® and Scotia Rewards are two of the most flexible loyalty programs in the country. Redeem points for travel, statement credits, merchandise, donations, gift cards and experiences; the options are nearly limitless.

The Scotiabank^®* Gold American Express^® Card allows cardholders to redeem points for travel in 5,000-point increments for flights, vacation packages, and travel-related purchases up to 12 months after the transaction date. One Scotia Rewards point is equal to $0.01 toward travel. Statement credits, however, are worth far less, with the highest value around $0.008.

The American Express Cobalt^TM Credit Card lets cardholders redeem points for travel in 1,000-point increments. Only eligible purchases posted to the account within three months will display online, up to 150 most recent transactions. If a cardholder wishes to redeem points toward purchases posted to their account within the last 12 months, they can call the number on the back of their card. Redeem 1,000 Membership Rewards^® points for a $10 value, $0.01 per point — equal to Scotia Rewards points.

However, in terms of statement credits, 1,000 Membership Rewards^® points equalled $7 ($0.007 per point) before May 31, 2021. On that date, American Express announced that eligible cards could now redeem 1,000 points for a $10 statement credit, a value equal to that of travel.

Related read: American Express Membership Rewards Gets a Major Upgrade

That means the American Express Cobalt^TM Credit Card beats the Scotiabank^®* Gold American Express^® Card for statement credits and matches the travel value. But there are still two big differences that can decide the winner of this category: point conversions and travel programs.

The American Express Cobalt^TM Credit Card allows members to convert points to partner loyalty programs like Aeroplan and Marriott Bonvoy^TM, whereas Scotia Rewards only offers conversion to SCENE points. Not all programs provide a one-to-one point conversion, although this feature is still beneficial for travellers.

Lastly, cardholders can access the Fixed Points Travel Program with the American Express Cobalt^TM Credit Card. Redeem a fixed number of points to cover a maximum base ticket price on return flights. In some instances, customers can redeem points for double the usual travel value, that’s $0.02 per point, for select routes. With that said, the American Express Cobalt^TM Credit Card is the clear winner here.

Jump back to the top.

Perks

Winner: Scotiabank^®* Gold American Express^® Card

There is also a clear winner in this category. Since the Scotiabank^®* Gold American Express^® Card is co-branded, it features the best of both worlds — travel perks through the Scotia Rewards Travel Service and exclusive access to curated events and special offers via American Express Invites^®.

The American Express Cobalt^TM Credit Card provides exclusive offers through both the Cobalt perks program and American Express^® Experiences; however, it doesn’t quite stand up next to concierge services and no foreign transaction fees. The extra perks on the Scotiabank^®* Gold American Express^® Card can save cardholders valuable time and money.

Jump back to the top.

Insurance coverage

Winner: Scotiabank^®* Gold American Express^® Card

*Insurance coverage is subject to change. Refer to your insurance certificate or contact your credit card issuer for full terms and conditions.

In terms of shopping coverage, both cards are dead even, offering 90 days of purchase protection and a one-year extended warranty on eligible purchases. The Scotiabank^®* Gold American Express^® Card pulls ahead in travel insurance, providing two extra coverages — trip cancellation insurance and trip interruption insurance — as well as double the travel accident benefits, baggage delay, lost or stolen baggage, and hotel burglary insurance. Plus, cardholders get 10 more days of emergency medical coverage.

Jump back to the top.

Recommended credit score

Winner: American Express Cobalt^TM Credit Card

The American Express Cobalt^TM Credit Card only requires a fair credit score to be eligible, which is almost unheard of for a top-tier rewards credit card. While the Scotiabank^®* Gold American Express^® Card only requires a good credit score, the American Express Cobalt^TM Credit Card is more accessible, once again.

Jump back to the top.

Interest rates

Winner: Scotiabank^®* Gold American Express^® Card

At first glance, the American Express Cobalt^TM Credit Card looks to have a fractionally lower interest rate for cash advances; however, it does not offer a balance transfer feature. Therefore, the Scotiabank^®* Gold American Express^® Card takes this category.

Jump back to the top.

Income requirements

Winner: American Express Cobalt^TM Credit Card

With no income requirements, the American Express Cobalt^TM Credit Card wins this one. It is as simple as that. However, the Scotiabank^®* Gold American Express^® Card only requires a minimum personal income of $12,000, far less than any World Elite Mastercard or similar cards with robust travel insurance coverage.

Jump back to the top.

First-year value

Winner: American Express Cobalt^TM Credit Card

*Based on the RATESDOTCA Best of Finance methodology.

If a cardholder were to spend an average of $2,000 a month on their credit card, spread across several everyday spending categories like groceries and gas, their rewards would look something like this:

According to our Best of Finance methodology, the average Canadian would earn a whopping $1,361 using the American Express Cobalt^TM Credit Card in the first year. While the Scotiabank^®* Gold American Express^® Card also offers a healthy first-year value at $1,024, it provides significantly fewer annual rewards in the following years than its competitor when there is no welcome bonus.

Jump back to the top.

Which credit card should you choose?

It is no surprise that the American Express Cobalt^TM Credit Card and the Scotiabank^®* Gold American Express^® Card exit the ring with five wins each. Both cards feature flexible rewards and top-of-the-line perks and benefits. But it is not a draw by any means.

The average Canadian should find our winning card to be not only obtainable but also rewarding. Coming in first is the American Express Cobalt^TM Credit Card, offering a substantial first-year value of $1,361 and significant annual rewards. Get travel insurance and endless redemption options for a budget-friendly fee of $12.99 a month. This lifestyle card earns quickly and offers excellent value.

But don’t count the Scotiabank^®* Gold American Express^® Card out. Suppose you have a good credit score and the wiggle room to spend $120 annually on this card. In that case, you’ll have access to a comprehensive list of travel insurance and shopping coverage, exclusive discounts and offers, and travel enhancements like no foreign transaction fees.

This card is an outstanding travel companion and provides ample savings year-over-year.

Jump back to the top.

Rates, product information and reward estimates are subject to change at any time and do not constitute financial advice. This post was not sponsored. RATESDOTCA may receive a referral fee from our partners or affiliate links featured on the site; however, our editorial choices are objective and free from bias. The opinions expressed in this article are purely those of RATESDOTCA; thus, the credit card issuers and partners are not responsible for any editorials or reviews that may appear. Please visit the associated website for complete and current terms and conditions on any product or service mentioned. The information in this article is accurate as of the date of this posting, July 5, 2021. Read our full disclaimer.