CIBC launched a new rewards credit card today called the CIBC Adapta Mastercard. This is the first card* in Canada that automatically adjusts the highest accelerated earn rate to the cardholder’s top 3 spend categories on a monthly basis. The Adapta name is an adaptation of the card’s adaptability in this regard and looks to help people who don’t want to run with multiple cards to maximize earning across different categories.
* May 5 Update: Turns out the CIBC Adapta Mastercard is not the first automatically adaptive rewards card in Canada. Learn more here
This is similar but not so similar to the current Tangerine Mastercards with which cardholders can select their higher earn rate categories and the long gone Choice cards from American Express which allowed you to select specific retailers to earn higher rates with.
There is also a World Mastercard version for higher income earners that provides the standard World/World Elite Mastercard benefits and more.
Annual Fees
The CIBC Adapta Mastercard is a no annual fee card.
The minimum income for this card $15,000 household and then $50,000 individual/$80,000 household for the World version.
Welcome bonus
The CIBC Adapta Mastercard offers up to 6,000 bonus Adapta points for new cardholders. The bonus is awarded as follows:
- Receive a Welcome Bonus of 3,000 Adapta Points after your first purchase (up to $25 value)
- Get 3,000 Adapta Points when you spend $1,000 in the first 4 monthly statement periods (up to $25 value)
Earning points with the CIBC Adapta Mastercard
CIBC Adapta Mastercard cardholders will earn 1.5 points for every $1 spent in their top three of 12 dynamic spend categories, and 1 point for every $1 spent on all other purchases each month.
These are the categories:
- Grocery and drug stores
- Pet stores
- Dining and drinks
- Gas and EV
- Transit and parking
- Entertainment
- E-games and subscriptions
- Home improvement
- Electronics
- Clothing
- Health and beauty
- Hotels and motels
Redeeming points with the CIBC Adapta Mastercard
1,500 points for $10 puts the point value at 0.67 cents per point. Multiply that by the 1 to 1.5 cents earned and you have 0.67% to a 1% return on spending
In general that’s a pretty weak offering – you can easily just get yourself a no fee 1% cash back or points rewards card to earn 1% back on all your spending and not have to worry about three categories where you might earn 1% with this card and 0.67% everywhere else.
And compared to the Tangerine cards, the base cash back rate on the Adapta is better at 0.67% vs. 0.5% but then the Tangerine’s 2 to 3 category choices will earn you double at 2% cash back versus the 1% on the Adapta card.
For the CIBC financial products, the 1,200 points for $10 puts the point value at 0.83 cents per point. Multiply that by the 1 to 1.5 cents earned and you have 0.83% to a 1.25% return on spending. That’s not bad for a no fee card.
Benefits & Insurance
The only benefit that comes with the card is a decent one and that is roadside assistance membership offered by Dominion Automobile Association. Services include battery boosting, gas delivery, towing and more. ($50 value)
It also provides Purchase Protection and Extended Warranty insurance coverage.
Wrapping it up
CIBC has launched a new card into the market called the CIBC Adapta Mastercard that will automatically adapt you top points earning to the three categories you use the most. This is a cool idea but in the end it is more of marketing gimmick as the earn to burn ratio is pretty average when compared to the majority of no fee cards in Canada and sub-par compared to the best no fee cards.
Click here to learn more about the CIBC Adapta Mastercard.