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

	American Express Cobalt Card Canada’s Top Travel Rewards Credit Card for four years running is now the number one cash back card in Canada! Thanks to American Express changing the Use Points for Purchases rate from 1,000 points for $7 to 1,000 points for $10. This means the card earns a healthy 1%, 2% and 5% on spending. Even with paying the monthly fee on this card its cash back earning beats the other cards on the list that offer their first year free! In the first year it’s welcome bonus of 30,000 points is worth $300 in cash back alone. There is a reason why we call this card ‘The Destroyer’ Recommended reading: The best credit card in Canada doesn’t just beat the competition – it destroys them now Cash back earnings (see below for more details) Year 1: $440 to $1,480+ Each year after that: $140 to $1,180+ Cash Back Access (Liquidity): Anytime your reward balance reaches 1,000 points ($10)
2nd	CIBC Dividend® Visa Infinite* Card With a first year annual fee rebate and 10% back on all spending up to $2,000 plus a strong 4% return on groceries and gas – two categories almost all Canadians spend the most money makes this card a high earner. Plus you will benefit from a high cap on earn categories ($20K), no limit to the cash back you can earn, and strong insurance benefits! Cash back earnings (see below for more details) Year 1: $376 to $1,208+ Each year after that: $100 to $930+ Cash Back Access (Liquidity): Anytime your reward balance reaches $25
3rd	Meridian Visa Infinite* Cash Back Card This card issued by Meridian Credit Union also has a first year annual fee waiver saving you $99. It’s earn rate of 4% for groceries and gas, 2% on pharmacies and utility bills coupled with being able to access your cash back monthly make this a very strong cash back card Cash back earnings (see below for more details) Year 1: $200 to $1,100+ Each year after that: $101 to $1,001+ Cash Back Access (Liquidity): Monthly
4th	SimplyCash Preferred Card from American Express Who doesn’t want 10% back on all spending in the first fourth months (up to $400 in rewards) and then 2% on all spending after that along with a strong insurance package? The SimplyCash Preferred Card from American Express is the best card if you make a lot of purchases at locations that don’t have accelerators on other cards. Cash back earnings (see below for more details) Year 1: $421 to $1,221+ Each year after that: $101 to $901+ Cash Back Access (Liquidity): Once per year
5th	Scotia Momentum® VISA* Infinite card A veteran card in the Canadian market, the Scotia Momentum Visa Infinite card has always been one of the better cash back cards and even the best a few years ago. It’s strong earn rate of 4% on grocery and recurring bill payments along with a 10% welcome bonus and the first year annual fee being waived makes this card one of the top 5 in Canada. Cash back earnings (see below for more details) Year 1: $372 to $1,232+ Each year after that: $95 to $955+ Cash Back Access (Liquidity): Once per year

 

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

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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
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