Best Cash Back Credit Cards In Canada For July 2024

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With cash back, the scoring model used takes into account factors such as, but not limited to, cash back rates and categories, fees, welcome bonuses, and other rewards and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

An enticing cash back card for social butterflies and urbanites, this card offers generous cash back rates on bar, restaurant and coffee shop purchases.

Rewards: Cardholders get 4% cash back at bars, coffee shops and restaurants up to $5,000 annually, after that 0.5% unlimited, 1.5% on eligible gas, groceries, and drugstore purchases, as well as pre-authorized payments up to $15,000 per year, after that 0.5% unlimited and 0.5% cash back on everything else†.

Welcome Offer: Get 10% cashback in your first 4 months on restaurants, food delivery and bar purchases (up to $500 spend)†. Also, when you sign up, you’ll get a $250 PRESTO voucher.

Annual Fee: $0

Other Benefits and Drawbacks: While the cash-back rewards at restaurants, coffee shops and bars are stellar, there’s a huge drop-off in cash-back rate for any other purchase, with only 1.5% cash back for everyday staples like gas, groceries and drugstore purchases. It’s quite the reversal when these everyday purchase categories are usually the marquee players of most cash back cards. However, if you live in a big city and don’t drive or cook at home often, this could be a great card for you. However, if you’re looking for insurance coverage, look elsewhere because this card only comes with extended warranty and purchase protection plans. It’s only the high rate of cash back in its featured purchase categories that has it just making this list.
†Terms and conditions apply. This offer is not available for residents of Quebec.

This card earns you up to 15% cash back on the first purchase from a Neo retail partner, then an average of 5% cash back at Neo partner locations.

Rewards: Collect an average of 5% cash back when shopping at Neo partner locations and an extra 0.5% cash back when you meet a minimum spending requirement (until you reach $50 in earnings).

Welcome Offer: Earn up to 15% cash back on the first purchase from a Neo retail partner.

Annual Fee:  $0

Other Benefits and Drawbacks: With this card, you can choose one or multiple rewards packages for boosted cash back and app subscriptions, but it doesn’t come with any basic insurance or other benefits.

Related: Neo Credit Review

Neo Secured Credit is a no-annual-fee card that earns competitive returns while rebuilding credit.

Rewards: Earn up to 5% cash back at retail partners and 0.5% on all other purchases.

Welcome Offer: $25 customer sign-up bonus

Annual Fee: $0

Other Benefits and Drawbacks: Few secured cards earn rewards, let alone guarantee 0.5% cash back on top of a 5% average earn rate. Members even get a top-up when cash back falls below 0.5% ($50 monthly limit). There are no annual fees and only a $50 security deposit, which is much lower than most comparable cards that require $300 or more. Adding insurance and Equifax reports would give this card an edge against the competition.

This is the no nonsense and no limit card on this list because you don’t have to worry about what rate of cash back you’re getting for what purchase category. Instead, you get one rate of cash back, all the time and forever, on every single purchase with no spending cap. If you don’t want to have to think about anything and just get your cash back, this is the card you should get.

Rewards: 4% cash back on groceries (up to $1,200 in cash back per year) and gas, 2% cash back on all purchases with no limit.

Welcome Offer: Earn a $40 statement credit for each monthly billing period in which $750 is spent on purchases, for a total rewards value of $400 in the first 10 months.

Annual Fee: $119.88 (monthly payment of $9.99)

Other Benefits and Drawbacks: Along with a consistent rate of flat-rate cash back, this card also carries the highest cash back welcome offer for any cash back card in Canada in terms of what can be earned.

This card is the reigning champion for 2024 on a lot of other “Best of” lists out there. However, from an annual cash back earning perspective, it’s a little limited. Despite this, it’s still a pretty rewarding card with some truly steep cash back rates in certain purchase categories—notably, groceries (at least, at the beginning of each month for families and potentially the whole month for single individuals).

Rewards: 5% cash back on eligible grocery purchases to a maximum of $500 per statement. Eligible ground transportation purchases get 4% cash back on the first $300 per billing cycle. Gas and electric vehicle charging purchases on the first $300 per billing cycle get 3% cash back. You’ll also get 2% cash back on recurring bill payments, like a subscription or gym membership, on the first $500 each billing cycle. Finally, all other purchases get 1% cash back with no limit.

Welcome Offer: Earn up to 10% cash back for the first three months on qualified purchases (up to $2,600).

Annual Fee: $120

Other Benefits and Drawbacks: Though the BMO CashBack® World Elite®* Mastercard®* has the highest cash-back rate in Canada on groceries at 5% and an almost as high rate on ground transportation and electric vehicle charging at 4%. Problem is, both categories are hard-capped at a pretty low dollar amount each month: $500 on groceries and $300 on ground transportation and electric vehicle charging. This is the only reason it’s not higher on this list, as the annual cash back earnings are more limited than higher cards. Meanwhile, you also get $2 million in emergency travel medical insurance for eight days of a trip if you’re under 65.

Not only does this card give you a high 4% cash-back rate on groceries and recurring bills—along with 10% cash back in the first three months on a $2,000 spend—but you’re also getting 11 types of insurance (and one optional type), including the exceedingly rare mobile device insurance.

Rewards: Get 4% cash back for every $1 you spend on grocery store purchases, recurring bill payments, and subscription purchases. Earn 2% for every $1 you spend on gas purchases and daily transit purchases (including Uber). Plus, 1% cash back on all other purchases with no cash-back limit.

Welcome Offer: 10% cash back in the first 3 months up to $2,000 in total purchases.

Annual Fee: $120

Other Benefits and Drawbacks: From an insurance benefits perspective, this card has the most insurance options on this list. It may have a $120 annual fee, but you’re getting tons of value for that from $1,000 of mobile device insurance to $1 million of emergency travel medical coverage for a whopping 15 days. The only major drawbacks are the high income requirements of $60,000 in annual personal income and $10,000 in annual household income.

This card gives you the most in annual earnings from cash back in Canada, even with the annual fee, at $537.50. With the annual fee waived in the first year, your annual cash back earnings top out at $657.50—that’s a lot of cash back.

Rewards: Earn 4% cash back on grocery and gas purchases and 2% cash back on dining, transportation and recurring bills or payments. However, there is a cap: Up to $20,000 in annual gas and grocery purchases or up to $80,000 in annual net credit card purchases (whichever comes first). In addition, get 1% cash back on all other purchases with no limit.

Welcome Offer: 10% cash back on $2,000 in net purchases over the first four statements in the first year.

Annual Fee: $120

Other Benefits and Drawbacks: The CIBC Dividend Visa Infinite Card doles out a huge amount of cash back every year, including a $200 welcome bonus and 8 types of insurance. That being said, there’s still the matter of the $120 annual fee, which cuts into the cash back you got in the first year, and you have to pay to play, thanks to the high income requirements of $60,000 in personal or $100,000 in household annual income needed to qualify.

Not many cards are high-earning, have excellent perks and give cash back, but this card is a notable exception.

Rewards: Earn 3% cash back on groceries and gas, as well as on recurring bill payments. Dining, entertainment, travel and online purchases all earn just 1% cash back.

Welcome Offer: Earn up to $500 in value†, including 10% in Cash Back Dollars in the first 3 months on Bonus Eligible Purchases up to a total spend of $3,500†.
Conditions apply. Account must be approved by January 6, 2025. Not available for residents of Quebec.

Annual Fee: $139 (Get a first-year annual fee rebate; account must be approved by January 6, 2025)

Other Benefits and Drawbacks: In addition to cash back, this card offers a number of insurance plans, including $2 million in emergency travel medical insurance for a maximum of 10 days and rental car insurance covering the value of vehicles up to $65,000 MSRP. The only drawbacks to speak of are the higher $139 annual fee and the income requirements, which are $60,000 annual personal income or $100,000 annual household income.

The BMO CashBack® Mastercard®* is an ideal choice for individuals who spend less than $500 on groceries and recurring bills every month.

Rewards: 3% cash back on groceries, 1% on monthly bills and 0.5% on other eligible purchases.

Welcome Offer: Earn up to 5% cash back for the first three months on up to $2,500 in qualified spend

Annual Fee: $0

Other Benefits and Drawbacks: This card offers a pretty high earn rate on groceries—a major spending category. It also has a competitive balance transfer offer. That said, it has low spending caps and has little to offer in the way of other perks.

Collect up to 2% cash back on groceries and unlimited 1% cash back on everything else.

Rewards: Earn 2% cash back on every $100 you spend at grocery stores, up to a maximum reward of $120 per year or $6.000 in annual spend. After that spend threshold is crossed, get 1% cash back per $100 spent on in-store grocery purchases with no spending limit. Also, earn an unlimited 0.5% cash back on all purchases other than those at the grocery store, including recurring bill payments, until a maximum of $6,000 net purchases is made for a maximum reward of $30 per year., After the $6,000 limit is reached on all purchases outside of groceries, earn an unlimited 1% on all non-grocery purchases after that.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: Get  purchase security, extended warranty protection and special discounts and offers at Petro-Canada, Rexall and DoorDash for no annual fee. However, the low earn rates on this card and restrictive $6,000 spending limits on those rates ensure you won’t be earning a lucrative cash back return with this card.

Typically, users earn a percentage of their spending back as a reward in the form of cash back. Some cards offer a flat rate (for example, 2% cash back on all purchases) and others offer different cash-back rates based on spending categories and a flat rate for all other purchases (For example, 3% on groceries and gas and 1% back on all other spending).

What is a Cash-Back Credit Card?

Cash-back credit cards allow you to earn a percentage of money back on all your purchases.

How You Get Cash Back with a Credit Card

In order to get cash back from a credit card, you need to first earn the cash back and then redeem it. The process typically operates this way:

Earning Process

Depending on your card’s cash back offer, you’ll earn cash back at either a flat rate (the same percentage earned across all eligible spending) or at different rates per purchase category (in addition to a low base rate for spending outside of those categories).

Redemption Process

Cash-back credit cards vary in their redemption process. Many cash back cards allow you to redeem your cash back either as a statement credit on your credit card or by depositing it into a chequing or savings account.

The redemption process varies depending on the credit card. Some cards only allow you to redeem cash back once per year, typically on your January statement. Other cards allow you to redeem cash back at any time, but only once you’ve accumulated enough of it (such as $5, $10 or $20 denominations). Some cards allow you to redeem any cash-back amount at any time.

Pros: Why a Cash-Back Card May Be Worth It

The main reason a cash-back card may be worth it is flexibility and transparency. Unlike rewards programs, which can often only be redeemed for certain items, cash can be used anywhere. Plus, points value can vary and you know exactly what you are earning with cash back and its value, as you earn it.

Cons: Why a Cash-Back Card Might Not Be Worth It

That said, there are rewards cards that could offer you more value than cash back, if you do the math and use your rewards strategically. Therefore, between cash back and rewards credit cards, it really comes down to personal preference.

Flat Rate

A flat-rate cash-back card offers the same amount of cash back across all spending, regardless of the purchase category.

Bonus Categories

A bonus category cash-back card offers a flat rate as well–typically offering an increased amount of cash back when you spend in certain categories.

Flexible Bonus Cash-Back Cards

Select cards allow cardholders to choose their own bonus categories, based on their spending habits. Rather than offering more cash back in predetermined purchase categories, cardholders get to choose their own purchase categories for cash back.

Common Cash-Back Bonus Categories in Canada

In Canada, common categories for bonus cash back are: Groceries, gas, transportation (often including ride shares, taxis and public transportation), dining, entertainment, recurring bill payments, airlines and hotels.

How Cash-Back Bonus Categories Work

Often, cash-back bonus categories have a spending limit per year or billing cycle, after which you’ll earn the card’s lower base rate on spending in those categories. For instance, a card may offer 4% cash back on groceries (the bonus purchase category)  up to a limit of $500 per monthly billing cycle. Afterward, the cardholder will earn 1% in the same bonus purchase category (the base rate).

Cash back is awarded on every purchase with a cash back credit card. However, usually certain purchase categories, like groceries, transit and travel carry higher earn rates that give you a higher percentage of cash back on purchases in those categories, rather than just the base rate you receive for all other purchases.

The base rates of cash-back credit cards are usually 0.5%, 1%, and in rare cases, 2%. Most cash-back credit cards also have spending caps, which means you only get the higher cash-back earn rate, in certain purchase categories, up to a certain amount you spend in those categories. Past that threshold, or spending cap, your cash back earn rate reverts to the lower base earn rate, you would get on all purchases, in that previously more lucrative spending category.

Although much more common in the U.S., there is one cash-back card in Canada that allows you to pick the spending categories where you receive the highest available earn rate. The Tangerine Money-Back Card allows you to pick two purchase categories that give you 2% cash back on those types of purchases and allows you to pick a third category at 2% if you have a savings account with Tangerine Bank. All other purchases get 0.50% cash back.

Redeeming cash-back rewards usually happens through your credit card dashboard on online banking or through your credit card issuer’s mobile app. If you can redeem at any time, you can likely click redeem on either of these portals and the cash-back is either instantly applied to your statement or deposited into a savings account. In some cases, all cash-back earned is applied once a year to your monthly statement or sent as a cheque on or around your account anniversary.

When is it a good time to redeem my cash back?

January is usually a good time to redeem cash back, as you can recoup any extra spending from the holidays. However, if we’re being honest, the best time to redeem cash back is when you need it.

Cash-back bonus categories are those purchase categories that give you extra cash back beyond the standard rate that can be earned for all other purchases. For example, if the standard rate is 1% cash back, then the bonus rate is actually the additional cash back percentage on top of that. So if you get 5% cash-back on groceries for example, the bonus rate is 4% and the base rate is 1%. Of course, the base rate comes into play on all other purchases or when the spending limit for the bonus rate is reached and the purchase category  switches to the base rate on all other purchases. It should be noted that base rates in Canada on cash-back credit cards range from 0.5% to 2%.

Common Rewards Bonus Categories

In Canada, you will generally see an accelerated earn rate on the following purchase categories:

• Grocery. Purchases at places like Loblaws, Metro and Sobeys, but often big warehouse stores like Costco and Walmart or Walmart Supercentres don’t count.
• Gas. Anywhere you fill up your car and sometimes you can link another rewards card, such as Journie Rewards, at select gas stations for an additional discount per litre.
• Restaurants, beverages and dining. This often also includes purchases from delivery services like Uber Eats, Skip the Dishes and Door Dash.
• Streaming services. This is for the monthly subscription cost of a standalone service like Netflix or Disney Plus. You typically can’t get the accelerated earn rate for this category if the subscription is bundled with cable or another third-party.
• Transit or transportation. This includes public transportation as well as taxis, limos and rideshares like Uber and Lyft.
• Travel expenses. Typically anything related to travel expenses counts towards the bonus earn rate, including hotel stays, flights, tours, train tickets and more.
• Pharmacy or drug store purchases. These are any eligible purchase at a pharmacy or drug store.
• Recurring bill payments. Recurring bill payments are those which recur most often on a monthly or annual basis like your cable, utilities, phone and more
• Entertainment. This usually counts as movie tickets, concert tickets or any other live event.

Not all cash back is redeemed equally.

When you can redeem the cash back you have received through your spending depends on the issuer of your credit card. Some issuers allow you to redeem cash back on a monthly basis, while others only allow you to redeem cash back annually on your account anniversary. Below are the cash-back redemption rules for many popular cash-back credit card issuers:

• American Express – Cash back is applied as a credit to your account annually and will appear on the statement issued in September of each year. The cash-back calculation resets annually.
• BMO – There’s option of choosing a one-time or recurring redemption, as well as depositing your cash back into your BMO chequing, savings or InvestorLine accounts. Cardholders can redeem anytime starting at a dollar or they can set up a recurring redemption starting at $25.
• CIBC – Redeem cash back anytime through CIBC Online and Mobile Banking once the cash-back balance reaches $25. Cardholders can call CIBC directly to redeem or wait to get your cash back as an annual credit on their January statement.
• Coast Capital Savings – Cardholders can order a cash-back redemption deposit online at the Collabria Rewards Program website to the account from Coast Capital Savings.
• Desjardins – Once $25 in cash back has been earned, a credit is automatically applied to the account. If the cardholder transfers to a Desjardins Cash Back Visa or Desjardins Cash Back Mastercard from a card with the BONUSDOLLARS rewards program,
  the BONUSDOLLARS balance will be transferred at a 1:1 ratio. A credit of $25 will be automatically applied for every 25 BONUSDOLLARS. Once the cash back has been deposited to the cardholder’s credit card account, the cardholder can ask to receive it as a cheque instead. They must make this request within 60 days of the automatic credit.
• National Bank – With the Mycredit credit card or Edition Cashback Mastercard credit card your cash back is automatically applied to your credit card balance each month. With the Allure Mastercard credit card? your cashback is automatically applied to your credit card balance once a year in January at a rate of $10 per 1,000 points. With the ECHO Cashback Mastercard credit card cash in your cashback through your online bank once you’ve accumulated at least $10.
• RBC – Once your cash back balance is $25 or more, you can have the full amount credited to your account any time by calling 1-800 ROYAL 1-2 or you can simply wait and have it automatically credited to your account in January.
• Scotiabank – Your reward accumulates each month, beginning each year with your December statement, and is awarded at the end of each 12 month period as a credit on your November statement.
• Simplii Financial – Your cash back is accumulated each month, beginning with your January statement (or when you first open your credit card account) and ending with your December statement. All accumulated cash back is automatically redeemed on the last day of your December statement, resulting in your cash-back balance being reset to zero, and applied as an annual credit on the primary cardholder’s January statement or, in limited circumstances, at such other time as may be permitted by Simplii.
• TD Bank – You can also view your cash-back dollars balance and redeem right from EasyWeb and the TD app. Once you have at least $25 worth of cash-back dollars, you can redeem them at any time to pay down your account balance or set up your redemption preference to do this annually each January with no minimum required.
• VanCity – Get a dollar in cash for every 100 points redeemed through the VanCity Rewards portal when you log into your VanCity account. Use it to pay for purchases, pay down your balance, grow your savings or put into an investment account that you hold with VanCity.

Interest Rates

Look for a card that has a standard interest rate or lower. 19.99% is usually what most cards offer for purchases.

Annual Fee

When it comes to a cash-back  credit card, you want to make sure the annual fee doesn’t negate any cash back rewards you earn. A no-annual-fee cash-back card is your safest option. But, if you crunch the numbers and have an idea of your typical spending, a  credit card with a yearly fee might pay off. They often come with higher earn rates for cash back and extra perks (like travel insurance) that you would end up paying for anyway if they didn’t come with a credit card.

Welcome Bonus or Intro Offer

Many cash-back credit cards have intro offers in the form of enhanced cash back for an introductory period.

• Sign-up bonus for new applicants.

As a sign-up bonus for new applicants, many cards offer a welcome bonus and/or waive the annual fee, if your card has one.

• Higher cash-back rate for a set time-period for new applicants.

Typically, these periods have time limits and a spending cap. For instance a card may offer 10% cash back for the first three months of card membership, but only up to a $3,000 spending limit, maxing out that bonus’s value at $300.

Bonus Categories

Some welcome offers will include increased rates in one of the bonus categories for a period time. For instance, 10% back on groceries for the first three months, after which you revert to the previous earn rate for groceries.

Travel Insurance

Many cash-back cards include travel insurance benefits. These can include out of province/country emergency medical coverage, common carrier insurance and a number of insurance coverages for trip cancellation or delay, lost or delayed luggage and more.

Roadside Assistance

A select few cash-back cards include roadside assistance–similar to what you can expect from a third-party provider like CAA.

Mobile Device Insurance

Many cash-back cards include mobile device insurance, protecting a device from accidental loss or damage. The device usually has to be purchased on the card in order to be eligible for coverage.

Credit Card Concierge Services

Many cash-back credit cards offer 24/7 concierge services. These services connect you with a representative who can help you with a variety of services, like booking a rental car or making a dinner reservation.

Extended Warranties

Many cash-back cards offer extended warranties for items bought with the card. They typically extend the manufacturer’s warranty for an additional year.

Purchase Protection

Purchase protection covers most new purchases made on your credit card for a period of time (usually at least 30 days from the date of purchase) from theft or damage.

Age and Residency Status

In order to apply for a cash-back credit card, you have to have reached the age of majority in your province or territory and be a resident of Canada.

Credit Score

Many cash-back cards have credit score requirements. However, there are cards aimed at those with low credit scores or little credit history, like students. If you are applying for a student credit card, you must at least show proof of income.

Personal or Household Income Requirements

Some cash-back credit cards have income requirements that usually ask for $60,000 to $80,000 in annual personal income and $100,000 to $150,000 in annual household income.

Related: Best Canadian Credit Cards

Apply for a New Credit Card Ahead of Major Expenses

If you know you’re going to be spending more than usual on a certain item, it might pay to be strategic with your cash-back credit card. For instance, if you know you’re going to be buying a new couch or laptop, choosing a card with a 10% cash-back welcome offer could help you get some money back on that big purchase.

Pay Attention to the Sign-Up Bonuses

Staying on top of sign-up bonuses for cash-back credit cards can help cut costs. Just be sure to factor in the annual fee, as this will cut into your cash-back rewards.

Carry Multiple Credit Cards

If you don’t mind managing multiple cards, it can be worth it. You can use a specific card for certain expenses (like groceries and gas) and another for other expenses (like travel) to maximize your rewards.

Buy Gift Cards in Bonus Categories

Some people  buy gift cards at a specific retailer to maximize their rewards. However, you have to check that these purchases are eligible for cash back with your credit card provider.

Add Supplementary Users

You can add supplementary users on your card, like your spouse or family members, in order to earn more rewards on their spending.

Use Cash-Back Websites

Some websites or browser plug-ins like Rakuten or Honey offer cash back on certain purchases. If these are combined with a cash-back rate from your card, you can accumulate more cash back.

Cash Back vs. Rewards: Which is Better?

It depends on the rewards value and how you plan to redeem them. Most rewards programs point values fluctuate based on how you choose to spend them.

Cash Back vs. Points: Which is Better?

If you like a straightforward approach earning rewards on your everyday spending–cash back is king. However, if you don’t mind navigating the fluctuating point values of a rewards program and know it will be more profitable for you, opt for points.

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