Cash back cards remain one of the simplest ways to get rewarded for everyday spending. But not all cash back cards are created equal. The most lucrative options earn up to 4% to 5% on essential spending categories like groceries, gas, bills, restaurants, and more.
However, it’s difficult to navigate the best options for your wallet, given the complex rewards structures, varying annual fees, and generous signup bonuses. You won’t need to worry because we’ve analyzed the top options in Canada across annual fees, interest rates, insurance perks, and reward potentials.
Whether you want a straightforward no-fee card for basic rewards or a premium card with luxury perks, you’ll find your perfect match here. The right cash back card could net you hundreds of dollars per year in rewards on your existing spending.
Top 7 Cash Back Credit Cards in Canada
| Card | Fee | Earn Rate | Cash Back Welcome Bonus |
| Neo Mastercard® | $0 | 0%-5% cashback | N/A |
| CIBC Dividend® Visa Infinite Card | $120 annually | 1-4% | $300 cash back |
| BMO CashBack® World Elite® Mastercard® | $120 annually | 1-5% | 10% in the first 3 months |
| TD Cash Back Visa Infinite Card | $139 annually | 1-3% | 10% on the first $3,500 for the first 3 months |
| SimplyCash® Preferred Card from American Express | N/A | 2-4% | Up to 10% cash back in first 3 months (up to $200 value) |
| Tangerine Money-Back | $0 annually | 0.5-2% | 10% back on the first $1,000 during first 2 months ($100 maximum) |
| BMO CashBack® Mastercard® | $0 annually | 0.5-3% | 5% cash back in the first 3 months |
Neo Mastercard®
Neo Mastercard® is an everyday card with no monthly fee unless you upgrade your account to Premium. It is a great option for a wide variety of consumers and offers good cash back rates. Cardholders can earn up to 4% cashback on all gas and groceries and up to 1% on everything else. You can also earn up to 5% with select Neo partners.
Key Features
Annual Fee: $0
Purchase Rate: 19.99% to 29.99% (19.99% – 24.99% QC residents)
Cash Advance Rate: 22.99% to 31.99% (22.99% – 25.99% QC residents)
Card Earn Rate:
- 1% – 4% on gas and groceries
- 5% additional average cashback at one of Neo’s partners
Spending Caps:
- Up to $6,000/year on gas
- Up to $6,000/year on groceries
- Up to $20,000/year on everything else
Welcome Bonus: N/A
Eligibility: No income requirements. Credit checks are also not required (except for Quebec) but Neo retains the right to reject your application if you don’t meet their requirements. Consumers can opt for Neo Secured Credit if they don’t meet the eligibility requirements.
Extra Features: Neo offers digital insights and a spending tracker. It also has a virtual card for immediate usage. Users can also add these flexible rewards subscriptions called Neo Perks for extra cash back and other perks such as travel insurance.
CIBC Dividend® Visa Infinite Card
The CIBC Dividend Visa Infinite Card has market-leading earn rates in many useful categories, such as gas, groceries, and dining. The card also includes comprehensive insurance, covering mobile devices, emergency medical, rental car, and more. The fee is lower than other premium options, and the first year is waived if you add up to three authorized users.
Key Features
Annual Fee: $120
Purchase Rate: 20.99%
Cash Advance Rate: 22.99%
Card Earn Rate:
- 4% cash back on gas, groceries, and EV charging
- 2% cash back on recurring bills, dining and transportation
- 1% unlimited cash back on all other purchases
Spending Caps:
- $20,000 annually on gas, groceries, EV charging, recurring bills, and transportation.
- Or $80,000 in overall card purchases
- Drops to 1% afterward
Welcome Bonus: $300 cash back
Eligibility: Minimum personal income of $60,000 or household income of $100,000
Features: Premium insurance benefits, mobile wallet integration, gas discounts.
BMO CashBack® World Elite® Mastercard®
The BMO CashBack World Elite Mastercard offers a strong welcome bonus, a best-in-Canada earn rate on groceries and premium perks. It’s a great option to earn rewards quickly in popular spending categories. The card offers paid airport lounge access, and the first year’s annual fee is waived.
One downside is the low spending caps on higher earn rate categories. After exceeding $300 to $500 in monthly spending, your enhanced earn rates drop to 1%.
Key Features
Annual Fee: $120 (First year free)
Purchase Rate: 20.99%
Advance Rate: 23.99%
Card Earn Rate:
- 5% cash back on groceries
- 4% cash back on transit, ride sharing, taxis
- 3% cash back on gas and EV charging
- 2% cash back on recurring bills
- 1% unlimited cash back on all other purchases
Spending Caps
- $500 monthly for groceries
- $300 monthly for transit, ride sharing, taxis
- $300 monthly for gas, and EV charging
- $500 monthly for recurring bills
- 1% afterward
Welcome Bonus: Up to 10% cash back in the first 3 months
Eligibility: Minimum personal income of $80,000 or household income of $150,000
Extra Features: Complimentary concierge service, emergency medical insurance, car rental discounts, event discounts, paid airport lounge access ($32 USD per visit), and minimum $1 redemptions.
TD Cash Back Visa Infinite Card
The TD Cash Back Visa Infinite is a great option for those looking to earn cash back on their everyday purchases. The card offers the strongest welcome bonus out of all the cards, with the potential to earn up to $350. However, the card is more expensive than other premium cards and does not have the first-year fee waived.
Key Features
Annual Fee: $139
Purchase Rate: 20.99%
Advance Rate: 22.99%
Card Earn Rate:
- 3% cash back on groceries, recurring bills and gas
- 1% cash back on all other purchases
Spending Caps:
- $15,000 annually on each of gas, groceries, and recurring bills
- 1% afterward
Welcome Bonus: 10% cash back on up to $3,500 in the first 3 months
Eligibility: Minimum personal income of $60,000 or household income of $100,000
Extra Features: Emergency road service, premium insurance benefits, 50% more stars at Starbucks, and concierge services.
SimplyCash® Preferred Card from American Express
The SimplyCash Preferred Card from American Express offers strong cash back on various categories. It also has a generous welcome bonus, although staggered across ten months. Unlike some other options, Amex only pays cash back in September, so you have to wait until then to be paid out.
Key Features
Annual Fee: $0
Purchase Rate: 21.99%
Cash Advance Rate: 21.99%
Card Earn Rate:
- 4% cash back on gas and groceries
- 2% cash back on all other purchases
Spending Caps
- $30,000 annually overall for gas and groceries
- 2% afterward
Welcome Bonus: 10% cash back in the first 3 months (up to a $200 value)
Eligibility: No income requirements
Extra Features: Extended warranty and purchase protection, travel insurance and mobile device insurance.
Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card offers a choice of up to three categories to earn 2% cash back. The categories can be changed to align with big purchases. Otherwise, all other purchases earn 0.5%. With no annual fee and the ability to pick your bonus categories, this card makes it easy to align rewards with your spending. The solid welcome offer provides even more value for new cardholders.
Key Features
Annual Fee: $0
Purchase Rate: 20.95%
Cash Advance Rate: 22.95%
Card Earn Rate:
- 2% cash back on up to 3 selectable categories
- 0.5% cash back on other purchases
Spending Caps
- None
Welcome Bonus: 10% cash back on all purchases for the first 2 months, up to $100 in total rewards
Eligibility: $12,000 income
Extra Features: Balance transfer offer (1.95% interest for first 6 months), automatic earning, limited insurance coverage.
BMO CashBack® Mastercard®
The BMO CashBack Mastercard stands out for its high 3% earn rate on groceries – the best grocery earn rate among no annual fee cards in Canada. Strong insurance coverage and a solid welcome bonus add more value to the card. This card is a great option as a first credit card.
Key Features
Annual Fee: $0
Purchase Rate: 20.99%
Cash Advance Rate: 22.99%
Card Earn Rate:
- 3% cash back on groceries
- 1% cash back on recurring bills
- 0.5% cash back on other purchases
Spending Caps
- $500 monthly for groceries
- $500 monthly for Recurring Bill Payments
- 0.5% afterward
Welcome Bonus: 5% cash back within the first 3 months, a 0.99% promotional rate on Balance Transfers for 9 months (2% fee to balance amounts transferred)
Eligibility: No income requirements, credit score +660
Extra Features: Extended warranty and purchase protection, car rental discounts, event discounts, balance transfer promotion.
Looking for the best credit card options?
How Do Cash Back Credit Cards Work?
Cash back credit cards work by returning a percentage of your spending in redeemable cash. The percentage, known as an earn rate, varies across cards and spending categories. For example, some cards may return a flat 1% rate across all categories. Other times, a card may offer 4% on groceries and 2% on everything else. Since the earn rate varies across categories, it’s best to find a card that aligns with your spending habits. In addition, many cards impose spending limits on their lucrative categories. For example, your 4% grocery earn rate may temporarily drop to 0.5% after exceeding $500 in monthly spending.
Redeeming cash back rewards also varies across cards. Some options may automatically deposit rewards once yearly, while others provide more control. For example, American Express offers accumulated rewards as a statement credit every September. However, most institutions let you redeem cash back whenever desired. Some options require surpassing a minimum balance, such as $50.
Aside from earning and redeeming cash back rewards, some cards may have additional features that enhance their value. This can include insurance coverage, purchase protection, extended warranty, travel perks, and more. Commonly, people are interested in the welcome bonus. This offers a lucrative opportunity to earn enhanced cash back during the first few months. While these features can vary by card, they are generally reserved for premium options.
Pros And Cons of Cash Back Credit Cards
Pros
- Some cash back cards offer higher earning rates for specific categories.
- Redemptions are generally more flexible and less complicated than travel rewards.
- Welcome bonuses provide extra value.
- Rewards generally don’t expire as long as your account remains in good standing. But it’s important to check the details of your specific rewards programs.
Cons
- Higher interest rates than basic credit cards.
- Some cash back cards have minimum redemption thresholds.
- Entry-level options earn relatively low rewards.
- Some financial institutions make you wait until a certain month of the year to get your cash back dollars Amex (September) and Scotiabank (November).
How To Choose A Cash Back Credit Card
- Welcome Bonus: Premium cards generally offer an increased earn rate for the first 3-6 months. This can help you maximize value, especially on big purchases.
- Category Bonuses: Most cards have varying earn rates on different categories. Choose a card that maximizes cash back on frequent expenses, such as groceries, gas, dining out, etc.
- Annual Fee: Cash back cards range from no fee to $150+ per year. While premium cards offer more features and cash back potential, they may not appeal to everyone.
- Redemption Structure: Some options only pay rewards annually, while others have no restrictions on usage.
- Insurance & Perks: Extra benefits like rental car insurance, extended warranty, and airport lounge access can add value. Insurance and lounge access are generally reserved for premium options.
- Spending Caps: Higher-earning category rates often decrease after passing a pre-established spending cap.
How To Make The Most Out Of Your Cash Back Credit Card
To maximize your cash back earnings and ensure your credit card annual fee is worth the cost, consider the following:
Pay Close Attention To Bonus Categories
Many cash back cards offer lucrative bonus categories that can significantly boost your earnings, particularly on essential expenses like groceries. To maximize rewards, prioritize a card that aligns with your top spending categories. Otherwise, in rare cases, a card may let you customize the top-earning categories. For example, the Tangerine Moneyback Card lets cardholders select up to three categories to earn 2% cash back.
Utilize Your Card For Everyday Spending
To maximize earnings, consistently use your card for everyday purchases you would make, such as groceries, transportation, and dining out. Take advantage of the opportunity to include all your regular monthly expenses on your cash back card, including groceries, fuel, restaurant meals, transit fares, utility bills, subscriptions, and more.
Pay Your Balance In Full
To preserve your cash back rewards and prevent the eroding effect of interest charges, it’s important to always pay off your monthly balance in full. Cultivate the habit of consistently paying your statement balance in full each month. Consider setting up automatic payments for the due amount to ensure you never miss a payment deadline.
Take Advantage Of The Welcome Bonus
Many of the cash back rewards cards listed have generous welcome bonuses which can boost your earnings. This is commonly an enhanced earn rate for the first few months. After the promotion ends, your cash back earn rates will drop to their standard levels. If your card has a juicy welcome bonus, try to time that with larger purchases, such as furniture or appliances.
Remember To Redeem Your Rewards
While it’s easy to let cash back rewards accumulate, it’s crucial to actively redeem them. Don’t miss out on the perks you’ve earned; instead, redeem your cash back for statement credits or deposit it directly into your bank account.
Bottom Line
Choosing the right cash back credit card for your lifestyle is key to maximizing rewards. The best options align high bonus category earn rates with your frequent spending. Features like welcome bonuses, insurance, warranties, and flexible redemption options provide even more value.
When comparing cards, evaluate annual fees and interest rates as well. Aim for a card with reasonable fees justified by strong rewards and benefits. Always pay your balance off each month to avoid interest charges that offset cash back earned.
