I have been asked by a few people and reminded by a few to provide a comparison of two very good credit cards in Canada, the American Express Gold Rewards Card and the Scotibank Gold American Express Card. Well I have finally got around to it and spent a lot of time determining how to articulate the comparison of the two cards without writing a novel. I am writing this piece with the intent that the reader has at least some knowledge of how travel rewards work and how credit card reward programs work. You don’t have to be an expert but if you are new to the travel rewards game some of this may not make sense to you.
Annual Fees / Sign Up Bonus
In the straight line comparison below the Scotiabank Amex looks to be better but the American Express Gold Card has its annual fee waived in the first year, so technically speaking, the Amex Gold Rewards Card saves you money on annual fees in the first year. Once in the second year the cards equal out seeing that the Scotiabank Amex’s sign up bonus is worth $50 more than the Gold Rewards Card. However if you add in one supplementary card for either card the cost of ownership nod goes to the Gold Rewards Card since the first card is free but is eroded if you add more than one.
Interest Rate:
Seeing as the American Express Gold Rewards Card is a charge card where the balance needs to be paid off every month, the interest rate is a lot higher if you miss paying your full balance. The Scotiabank card it the winner here if you carry a balance.
Now onto the primary factors people get travel rewards cards, the rewards and the benefits.
Point Earning & Redemption
The first thing to look at when comparing these two cards in the point earning and subsequently the redemption side (as the two go hand in hand) is how do you want to be rewarded?
For flights do you want to travel in business class or first class or want to convert points into airline and/or hotel programs?
If the answer is Yes, then the only choice is the American Express Gold Rewards Card. Out of the two cards it is the only one that offers a transfer option to frequent flyer and guest programs. This is by far the best way you can get yourself into a first class or business class seat. The two options to look at are Aeroplan and British Airways Executive Club. Both of thest programs have 1:1 transfers from Membership Rewards which means with the card’s category spend bonuses you can actually earn 2 Aeroplan Miles or 2 Avios for each dollar spent. No other card in Canada can offer this on a broad range of spending. Add to this occasional transfer bonuses to each program means you can rack up the Aeroplan Miles/Avios even faster. It is well known in the industry that the best redemptions are the ones for first class or business class. Depending on what tickets you redeem for and what you spent to achieve the miles for the redemption you could possibily see return of over 10%! To keep this piece from being a novel please email me or comment below if you want more details on return calculations.
If you don’t want premium class flights but want to redeem for economy class flights, hotels, vacation packages, etc. then a few more questions need to be asked as to what card may be right for you. Since both cards have the same redemption ratio of 100 points = $1 in credit and both have the travel anywhere option where you can book travel how you want, when you want, we don’t have to look at the redemption side for this portion.The first question is how will you earn points and because of category spend bonuses each card has certain advantages:
How much do you spend on your credit card each year? If you spend more than $10,000 a month on your card chances are you will hit the $50,000 category bonus limit on the Scotiabank American Express Gold Card and you may be better off with the American Express Gold Rewards Card since there is no cap on the category bonuses. However if you spend less than $10,000 a month than the two cards have a heated battle:Grocery Stores & Gas StationsIf the majority of your spending on your card is in the Grocery Store and/or Gas Station categories where both cards have bonuses, the Scotiabank American Express Gold Card is clearly the winner with its 4x points versus the GRC’s 2x points. Dining & EntertainmentThe Scotiabank American Express comes out on top once again as this category also earns 4x points versus the GRC’s 1 point per dollar.TravelIn this category, only the American Express Gold Rewards Card offers a bonus, 2x points on all travel purchases worldwide (not just within Canada like all the other category bonuses from both cards) while the Scotiabank American Express Gold Card only earns 1 points per dollar.
Benefits
The last factor to look at when comparing these cards are the benefits that come with the cards. This section is easy as the Scotiabank American Express Gold Card takes the cake on virtually all the benefits compared. It provides longer out of province medical coverage, has trip cancellation, offer price protection and covers the $99 annual fee of Priorty Pass Business Class lounge membership (you still have to pay the entry fee each time you use a lounge).
Conclusion
Based on the comparison chart below and what I believe to be the travel goals of most non-frequent travelling Canadians, the Scotia Bank Gold American Express appears to be the better of the two cards for most situations. Where it is not the better card and the American Express Gold Rewards Card stands out is primarily if you are looking to move Membership Rewards points over to a frequent flyer or guest program, if you are a big time spender in all categories or if you just spend a lot on travel and/or at drug stores. As many of you know I am holder and big proponent of the American Express Gold Rewards card and considered switching to the Scotiabank card strictly for the Dining/Entertainment category bonus when it first came out. However my rewards needs/wants have shifted from using the Membership Rewards TripFlex feature to transferring my points to Aeroplan, British Airways Executive Club and/or Starwood Preferred Guest, a benefit the Scotiabank Amex just can’t provide. So for me at this point I am planning to stay with the American Express Gold Rewards card but ultimately in the near future I am thinking that I am going to move up to The Platinum Card from American Express for all the benefits it provides while travelling.
Chart Notes: Yellow highlighting signifies a clear winner in that
category
|
Feature / Card |
American Express Gold Rewards Card |
Scotiabank Gold American Express Card |
|
/ |
Fees/Costs |
|
|
Annual Fee |
$150* |
$99 |
|
Supp. Card Fee |
$0 for first card, $50* each additional card |
Gold: $29 |
|
Interest Rate |
30% Non Revolving |
19.99% |
|
Foregn Exchange Transaction Fee |
2.5% |
2.5% |
|
Minimum Credit Limit |
No Preset Limit |
N/A |
|
/ |
Reward Miles/Points Earning |
|
|
Card |
American Express Gold Rewards Card |
Scotiabank Gold American Express Card |
|
Welcome Bonus |
15,000 Membership Rewards Points |
20,000 points |
|
Earning Ratio |
1 Point/$ |
1 Point/$ |
|
Gas Stations |
2 Points/$ |
4 Points/$* |
|
Grocery Stores |
2 Points/$ |
4 Points/$* |
|
Drug Stores |
2 Points/$ |
1 Point/$ |
|
Dining/Entertainment |
1 Point/$ |
4 Points/$* |
|
Travel |
2 Points/$ |
1 Point/$ |
|
/ |
Redemption/Exchange Options |
|
|
Card |
American Express Gold Rewards Card |
Scotiabank Gold American Express Card |
|
Miles/Points deposited to: |
Membership Rewards |
Scotia Rewards |
|
Travel Agency Redemption Value |
10,000 Points = $100 |
10,000 Points = $100 |
|
Minimum Redemption Amount |
1,000 Points |
5,000 Points |
|
Exchange Options |
1 Point = 1 Mile with Aeroplan, British Airways 1 Point = .75 Miles with Alitalia,, Cathay Pacific and Delta 1 Point = 1 Point with Hilton 1 Point = .5 Points with SPG |
N/A |
|
Redemption Centre |
Any Travel Provider or Membership Rewards |
Any Travel Provider or Scotia Rewards |
|
/ |
Benefits |
|
|
Card |
American Express Gold Rewards Card |
Scotiabank Gold American Express Card |
|
Travel Accident Insurance |
$500,000 |
up to $500,000 |
|
Flight Delay Insurance |
Yes |
Yes |
|
Delayed, Lost, Stolen, Damaged Baggage Insurance |
Yes |
Yes |
|
Trip Cancellation Insurance |
No |
Yes |
|
Trip Interuption Insurance |
Yes |
Yes |
|
Travel Medical Insurance |
15 Days |
25 Days |
|
Auto Rental/Loss Damage Insurance |
Yes |
Yes |
|
Purchase Protection |
Yes |
Yes |
|
Price Protection |
No |
Yes |
|
Extended Warranty Plan |
Yes |
Yes |
|
Business Class Lounge Access |
No |
Free membership in Priority Pass |
|
Hotel Burglary Insurance |
Yes |
Yes |
|
Travel Concierge Service |
No |
Yes |
|
Enhanced Hotel/Dining Services |
No |
Hotels |
|
Overlimit Extended Purchasing |
Yes |
No |
|
American Express Front of the Line |
Yes |
Yes |
|
Link to Apply |
||
|
Notes: |
* Annual fees waived the first year |
On the first $50,000 in those categories |