Welcome to Rewards Canada's fifth annual Top Cash back Credit Card rankings!
June 2021 Update
We have crowned a new champion for the Top Cash Back Credit Card in Canada! While technically not known as a cash back card the top card's cash back component places it ahead of even the best of the best cash back cards in Canada! That card that now sits atop the throne is none other than the American Express Cobalt Card. This card has been Canada's Top Travel Rewards Credit Card since 2018 and now thanks to American Express adjusting the redemption rate for using points towards any purchases on the card (not just travel) to 1,000 points = $10 the Cobalt Card jumps ahead in the cash back market now as well. The card itself earns 1 to 5 points per dollar spent which translates to a 1% to 5% cash back return when utilzing Use Points for Purchases. Based on our calculations the card earns more cash back per year than any other cards (utilizing our spend breakdown, as listed below) which makes it the number one cash back card in Canada.
There was almost one other shake up in the cash back market this year. The BMO CashBack® World Elite®* MasterCard®* was revamped and it also provides a 1% to 5% return like the Cobalt card but its monthly spending caps for the category bonuses kept it from jumping into the list. It was close - in fact in the first year for low spending ($10,000) it earns the most cash back ($441.30) and remains quite competitive at the $30,000 level but after that it drops and then in year 2 and beyond it's numbers put the card at seventh place.
The addition of the Cobalt card to the list meant the relatively new Desjardins Cash Back World Elite Mastercard was knocked off the list - not that it is a bad card, in fact it is excellent excellent as well. Overall there isn't much difference in the top 6 cards at all so don't discount this other card if they make sense for you!
The Rankings
The list of the best cards has once again shifted this year and while the rankings rely heavily on the actual cash back earned, the best card for you may not be the best card on this list. Some key aspects to take into consideration when choosing a cash back credit card are:
- Where do I use my credit card the most? Groceries, Gas, Travel, Restaurants? We have a set percentage breakdown for our rankings of 30% to groceries, 10% to gas, 5% to dining and so forth. This breakdown may be different for you so it may affect which card you go for.
- How often do I want to access my cash back? When you get your cash back will depend on the card you have. Some cards only give your cash back once per year while others are monthly and some are even better allowing you to cash out when you hit a small minimum reward balance
- What insurance and/or other benefits do I require? Cash back cards in Canada vary widely with insurance benefits from very little on no fee cash back cards to a full suite of benefits on the Visa Infinite and World Elite Mastercard cards.
- Be sure to take everything into consideration. The amount of cash back earned on the top 5 cards (and even others just outside the list) is very close. A card that earns $50 more in a year but only cashes out in November may not be better than one that allows you to cash out more frequently as it frees up cash for you to use right away.
- If you are fine with getting your cash back once per year consider a card like the Scotia Momentum Visa Infinite Card. Want quicker access to cash back consider the American Express Cobalt Card, CIBC, or Meridian cards. Don't make a lot of purchases on gas and groceries or other accelerator categories offered by some of the cards? Consider the American Express SimplyCash Preferred for its flat 2% earn rate.
While Rewards Canada takes into account all the aspects of the cards most Canadians apply for and use cash back cards for the cash back and all other features and benefits are secondary to that. Hence our rankings weigh heavily on the cash back earned. You can see our breakdown of the cash back earned below the rankings and card details.
Remember that our rankings are dynamic and not set in stone for one year as of the release date like our previous rankings. This list will be updated as required when welcome offers, card offerings and/or benefits change. Therefore cards can and will shift on this list.
To see all the cards we considered and to learn about all the rewards and benefits on all the cards visit Rewards Canada's Cash Back Credit Card Comparison Chart. You'll also want to visit our Ultimate Cash Back Credit Card Portfolio or Ultimate No Fee Cash Back Credit Card Portfolio to see what we think are the best combination of cards for your wallet.
Recommended Listening: Rewards Canada Podcast Episode 68: Clash of the Credit Cards - The Ten Percenters
We compared over 40 cash back card options for Canadians for the best of the best and from those comparisons these are our picks for the Top Cash Back Credit Cards in Canada:
Canada's Top Cash Back Credit Cards for 2021
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Spend and Earn Comparison for the top five cards:
| Card | Annual Card Spend | Year 1 Cash Earnings* | Year 2 and beyond annual earnings* |
|---|---|---|---|
| American Express Cobalt Card | $10,000 | $440 | $140 |
| $30,000 | $960 | $660 | |
| $50,000 | $1480 | $1180 | |
| CIBC Dividend® Visa Infinite* Card | $10,000 | $376 | $100 |
| $30,000 | $816 | $540 | |
| $50,000 | $1208 | $930 | |
| Meridian Visa Infinite* Cash Back Card | $10,000 | $200 | $101 |
| $30,000 | $660 | $561 | |
| $50,000 | $1100 | $1001 | |
| SimplyCash Preferred Card from American Express | $10,000 | $421 | $101 |
| $30,000 | $821 | $501 | |
| $50,000 | $1221 | $901 | |
| Scotia Momentum® VISA* Infinite card | $10,000 | $372 | $95 |
| $30,000 | $802 | $525 | |
| $50,000 | $1232 | $955 |
Spending assumption broken down as follows:
- 30% Groceries
- 5% Dining
- 10% Gas
- 10% Travel
- 5% recurring bills
- 40% other (Meridian is 35% + 5% for pharmacies)
* Cash earnings include any welcome bonus and subtraction of annual fees.
Card details
Care to comment on what we chose as the best cash back rewards credit cards? Want to voice your opinion on the good and the bad of all the cash back Credit Cards in Canada. Share you views and experiences in the comment section below or on Facebook and Twitter for Canada's Top Cash Back Credit Cards 2021!
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