Yahoo Finance The best cash-back credit cards with no fees, ranked
(AP Photo/Martin Meissner, File)
Forget travel points and other rewards, many consumers simply want to get cash back from their credit cards.
With that in mind, HowToSaveMoney.ca has released its rankings of the best options available in Canada with no annual fee.
The personal finance website analyzed 31 credit cards, with Tangerine’s money-back credit card finishing on top.
Here’s a look at the top five:
Tangerine Money-Back credit card
Stephen Weyman, founder of HowToSaveMoney.ca, told Yahoo Finance Canada in an email that this offering from the direct bank is currently the best choice for Canadian consumers because it offers the highest rewards and is flexible. Users get a cash back rate of one per cent by default, but can select two spending categories where they get two per cent, if it is being redeemed on the card (this jumps to three categories if the destination is a Tangerine Savings account).
Cardholders can also change the categories if their spending habits change, said Weyman. Additionally, he noted that there are no caps, tiers or limits on the amount of cash that customers can collect.
However, this top spot comes with a disclaimer, as the card’s overall rate is set to drop down to 0.5 per cent on April 29.
“(This) will drop it out of the top three,” said Weyman.
“It will still remain a strong card nonetheless.”
American Express’ SimplyCash card
Ready to step into the top spot is the SimplyCash card from American Express, which Weyman said earned an “A+ for simplicity.”
The card offers a rate of 1.25 per cent cash back to customers with no strings attached. For the first six months, cardholders also get five per cent back on gas and grocery purchases up to $250.
However, Weyman said the card does have some downsides, as some stores don’t accept Amex and the cash back earned can only be redeemed once a year as a statement credit.
HSBC Premier World MasterCard
This offering from HSBC ranks highly because, unlike many no fee cash-back cards, it has a “strong” insurance plan, said Weyman.
The credit card has 12 types of coverage, from trip cancellation and delay, emergency medical and baggage delay or loss.
Meanwhile, it offers a standard one per cent cash back, with that rate jumping to 1.5 per cent on gas, groceries and purchases at the drugstore.
Another perk for travellers is that there’s a two per cent cash back rate on transactions made in a foreign currency.
However, there is one major strike against it, according to Weyman. The card requires users to be an HSBC customer with at least $100,000 in assets.
MBNA Rewards MasterCard
If you’re looking for a card that is “well-rounded” with no strings attached, Weyman said this is the card for you.
The MBNA Rewards MasterCard has flat one per cent cash-back rate with no caps, limits and “unlimited flexibility” in terms of how and when it is redeemed.
“That means cheque, direct deposit, statement credit, travel, merchandise, donation — you name it,” said Weyman.
It also has seven types of insurance coverage.
“A solid choice for those who want a little of everything,” added Weyman.
President’s Choice Financial World Elite MasterCard
Rounding out the top five is the Financial World Elite MasterCard from President’s Choice.
While Weyman noted that this isn’t technically a cash-back card, he said users can end up getting one per cent off all their purchases back as free groceries. That rate climbs to three per cent on money spent at stores affiliated with PC Plus, such as Superstore, Shoppers Drug Mart, PC Travel and PC Mobile.
Cardholders also get three cents per litre worth of points if they buy gas at Esso stations.
“In short, it’s a great card for those who frequent those bonus stores often,” said Weyman.
This is also the only offering from World Elite with no annual fee, which means users get access to perks such as heavily discounted concierge service. It also includes travel emergency medical and car rental insurance.
