How to Pick the Best Cash Back Credit Card in Canada

A cash back credit card is a credit card that lets you earn a small percentage of your spending back in cash. The amount you’ll earn back varies from card to card, with the best cash back credit card in Canada allowing you to earn a bundle back on your everyday purchases.

The best cash back cards are a good option for anyone who wants to earn back some money on their spending but isn’t interested in earning points for free flights or other rewards.

With the best cash back credit card, you can redeem your cash bonus as either a deposit into your chequing account or a credit on your statement. It’s that easy – just more money in your pocket.

Overview of Best Cash Back Credit Cards for 2021

How Much Cash Back Will I Earn?

It depends on the credit card. Some credit cards have a cap on the total amount that you can earn, but others (like the Tangerine Money-Back Mastercard) have no limit on the amount of cash back you can earn on your everyday purchases.

The dollar value of the cash back you’ll earn can vary dramatically depending on your unique spending habits and the earning scheme of the credit card.

Most cash back credit cards give a different percentage in cash back depending on how your purchase is categorized. For example, a cash back credit card may pay 4% cash back on grocery spending, but only 1% cash back on gas.

For this reason, it’s important to analyze your spending habits and choose a credit card that is right for you. For example, if you have a long commute and you spend $1,000 per month on gas and groceries, choose a credit card that gives a competitive cash back rate on that spending.

If you choose wisely, charge your everyday purchases to your credit card and pay off your balance every month. It’s a simple but savvy strategy that allows you to easily earn hundreds of dollars per year in cash back.

Best Cash Back Card For Flexibility

The last thing you want in a cash back credit card is one that comes with a lot of rigid rules and restrictions. There’s value to getting a card tailored to your unique spending habits, but also allows you to change up the earning scheme whenever necessary.

The best cash back credit cards will also have flexibility when it comes to redemption and will make the payout process easy.

Winner: Tangerine Money-Back Credit Card

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The Tangerine Money-Back Credit Card is a winner for its flexibility and simplicity.

There’s no annual fee or no complicated rules or limits: cash back is earned automatically and paid monthly either to your credit card balance or redeemed into your savings account.

Here’s how it works: choose two money-back categories to earn 2% cashback, plus get a third 2% category when you have your Money-Back Rewards deposited into your Tangerine Savings account. For all other purchases charged to your card, you’ll earn 0.5% cash back. Also awesome: there’s no limit on the amount of Money-Back Rewards you can earn on your everyday purchases (conditions apply).

Another bonus: apply for the Tangerine Money-Back Credit Card by November 30, 2021 and earn an extra 15% back (up to $150) when you spend up to $1,000 in everyday purchases within your first 2 months.

The Details:

• Annual Fee:$0
• Minimum Income Eligibility: $12,000
• Credit Score Required: Good to Excellent
• Additional Benefits: Automatic, monthly reimbursement to your credit card balance or savings account; unlimited cash back
• Interest on Purchases: 19.95% | Interest on Cash Advances: 19.95%
• Welcome offer: Apply for the Tangerine Money-Back Credit Card by November 30, 2021 and earn an extra 15% back (up to $150) when you spend up to $1,000 in everyday purchases within your first 2 months.

Best Cash Back Card for Gas & Grocery Purchases

Canadian households spend on average $2,000 annually to gas up their vehicles. If you use your vehicle frequently, get a credit card that’ll give you some hefty cash back on your fuel purchases.

Winner: CIBC Dividend Visa Infinite* Card

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If you’re headed to the pump or eligible grocery store, make sure the CIBC Dividend® Visa Infinite* Card is tucked into your wallet. This card offers a generous 4% cash back on eligible gas and grocery purchases, plus 2% cash back on eligible transportation, dining purchases, and recurring payments and 1% cash back on everything else.^† Plus, there’s no limit on the total cash back you can earn.^†

As a welcome offer, new cardholders get a first-year annual fee rebate^† and 10% cash back for the first 4 statements on total purchases of up to $2,000^†. This card with car rental insurance, travel insurance (including travel medical), and exclusive luxury hotel and travel benefits offered through the Visa Infinite program.

The Details:

• Annual Fee: $120 (first-year annual fee rebate)^† 
• Annual Interest on Purchases: 20.99%^†
• Annual Interest on Balance Transfers:  22.99%^† (21.99% QC only)
• Annual Interest on Cash Advances:  22.99%^† (21.99% QC only)
• Income Eligibility: $60,000 individual or $100,000 household ^†
• Credit Score Required: Good
• Welcome Offer: Get 10% cash back (up to $200)^† Plus, a first-year annual fee rebate!†

Additional Benefits: Earn cash back on every dollar you spend, includes insurance coverage and shopping protection^†

^†Conditions apply

^{Quebec Residents – Learn More about this CIBC product here}

^{Résidents du Québec : Pour en savoir plus sur ce produit CIBC, suivez ce lien}

Best Cash Back Card For Easy Redemption

If you can’t cash out easily, what’s the point of having a cash back credit card? When choosing a winner, we looked for a card that balanced a great cash back rate with a simple redemption process that included regular payouts.

Winner: TD Cash Back Visa Infinite* Card

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If you’re looking to maximize the payout for gas, groceries, and regular bills, the TD Cash Back Visa Infinite* Card is a great option.

It offers 3% in Cash Back Dollars on eligible grocery and gas purchases and on regularly recurring bill payments set up on your account. For everything else, you get 1% cash back. What’s also great is that there’s no expiry on Cash Back Dollars.

As a sign-up bonus for New Cardholders, there’s a limited-time welcome offer: Earn 6% Cash Back on all Purchases for the first 3 months^† up to a total spend of $2,000. Plus, first year no Annual Fee for the Primary and Additional Cardholders^†. Conditions apply. Must apply by December 5, 2021.

A big perk of this credit card is that you don’t have to wait for a yearly or monthly statement to redeem your earnings. Instead, you can redeem your Cash Back Dollars at any time, applying a credit to your card’s balance whenever you like. You’re the boss!

The Details:

• Annual Fee: $120 (Annual fee rebate for first year)^†
• Minimum Income Eligibility: $60,000 personal or $100,000 household income
• Credit Score Required: Good to Excellent
• Welcome Offer: Earn 6% Cash Back on all card purchases for the first 3 months^† (up to a total spend of $2,000). Must apply by December 5, 2021
• Additional Benefits: Earn up to 3% cash back on eligible everyday purchases; includes travel insurance and Emergency Road Services with the Deluxe TD Auto Club Membership
• Interest on Purchases: 20.99% | Interest on Cash Advances: 22.99%

This offer is not available for residents of Quebec. For Quebec residents, please click here.

^†_{Terms and conditions apply.}

Best Cash Back Card for Shopping Purchases

For everyday purchases, you’ll want a card with an excellent overall cash back earn rate. Whether you’re stocking up on household supplies at Costco or making online purchases at The Bay, one card stands out for giving a decent amount of cash back on whatever you’re buying.

Winner: The BMO CashBack® World Elite®* Mastercard®*

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With the BMO CashBack® World Elite®* Mastercard®*, you can earn 1% cash back on all card purchases* – with no caps or category limits. Plus, this card comes with a phenomenal promo right now: new cardholders get up to 10% cash back in the first 3 months (up to $2,600 in total purchases) and the $120 annual fee waived in the first year*. That’s up to $380 that you can put towards your next splurge.

Even better, redemption is easy: cash back can be deposited into your BMO chequing or savings account, applied as a statement credit, or deposited into your BMO InvestorLine account. You get to choose!

The Details:

• Annual Fee: $120 (first-year annual fee rebate)
• Minimum Income Eligibility: $80,000 individual or $150,000 household
• Credit Score Required: Excellent
• Additional Benefits: Travel insurance, complimentary membership in Mastercard Airport Experiences provided by LoungeKey*, shopping protection
• Interest on Purchases: 20.99% | Interest on Cash Advances: 22.99% (21.99% for Quebec residents)

Best Cash Back Card For Grocery Spending

The average family of four in Canada spending roughly $12,157 per year on food expenditures — that’s a heck of a lot. Why not put the cost to work for you and earn points on your grocery purchases? Look for a credit card that offers a high points-earning potential for grocery spends,

Winner: Scotia Momentum® Visa Infinite* Card

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The Scotia Momentum® Visa Infinite* Card has one of the most generous cash back programs available in Canada and is ideal for anyone who spends significant amounts of money on groceries. With this card, you’ll earn a whopping 4% for every $1 you spend on grocery store purchases and recurring bill payments.

Plus, there’s no annual fee in the first year, including on supplementary cards. The Scotia Momentum® Visa Infinite* Card also offers mobile device and comprehensive travel insurance — big perks that make this card worth considering.

The Details:

• Annual Fee: $120 (First-year annual fee waived)
• Minimum Income Eligibility: Minimum annual income of $60,000 or a minimum household income of $100,000 or a minimum assets under management of $250,000
• Credit Score Required: Excellent
• Welcome Offer: No annual fee in the first year, including on supplementary cards. Terms and conditions apply.
• Earn Rate: 4% cash back on recurring bills and grocery purchases, 2% on gas and transit purchases, and 1% on everything else.
• Additional Benefits: Comprehensive travel insurance, mobile device insurance coverage, luxury hotel privileges, complimentary concierge services 24/7
• Interest on Purchases: 20.99% | Interest on Cash Advances: 22.99%

Best Cash Back Card with No Annual Fee and a Welcome Bonus

Finding a cash back credit card that offers both a generous welcome bonus and no annual fee is a rarity indeed. But we scoured the market and found one that’s a clear winner.

Winner: BMO CashBack® Mastercard®*

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If you’re looking for a no-fee card with a hefty welcome bonus, the BMO CashBack® Mastercard®* may be for you. It offers a generous sign-up bonus of 5% cash back in your first 3 months on purchases (conditions apply).

Plus, you can redeem the cash any way you want: deposit it into your BMO chequing or savings accounts, put it into your Investorline account, or apply the credit to your monthly statement.

After the promo period ends, you’ll get 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases!* If you’re making big purchases on this card, the pay off is plenty.

Other perks include up to 25% off rentals at participating National Car Rental and Alamo Rent A Car locations, purchase protection and extended warranty on most items bought with your card, and a 1.99% introductory interest rate on Balance Transfers for 9 months (with a 1% transfer fee). Did we mention that there is no annual fee for this credit card?

The Details:

• Annual Fee: $0
• Income Eligibility: $15,000
• Credit Score Required: Good to Excellent
• Welcome Offer: 5% cash back bonus for first 3 months on purchases and 1.99% introductory interest rate on balance transfers for 9 months (with a 1% transfer fee)
• Additional Benefits: Up to 25% off rentals at participating National Car Rental and Alamo Rent A Car locations, purchase protection and extended warranty
• Interest on Purchases: 19.99% | Interest on Cash Advances: 22.99% (21.99% for Quebec residents)

Best Cash Back Card With Generous Base Earn Rate

A cash back credit card with a hefty base earn rate is good to have in your wallet. That way, if you hit the card’s cap or you’re buying something that doesn’t fall into a cash back category (like groceries and gas), you can still get a decent return on your spending.

Winner: SimplyCash™ Preferred Card from American Express

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With the SimplyCash™ Preferred Card from American Express, you earn 2% cash back on all card purchases, with no limit to how much you can earn. So if you charge $2,000/month onto this card, it would fetch you $480 in cash back annually. Add in the welcome offer of 10% cash back on all eligible card purchases for the first 4 months of card membership (up to $400 cash back), and you’re really getting a return on your spending.

You can also cash in on the American Express Refer-A-Friend program. For every approved referral, you could earn a bonus of $100 that will be added to your cash back balance, up to a maximum of $1,500 cash back.

This card also comes with travel insurance, shopping coverage (e.g. purchase protection) and exclusive American Express Invites®. Overall, the $99 annual fee offers excellent value when you consider all the included perks.

The Details:

• Annual Fee: $99
• Minimum Income Eligibility: N/A
• Credit Score Required: Good to Excellent
• Welcome Offer: 10% cash back on purchases for the first 4 months (up to $400 in cash back)
• Additional Perks: Travel insurance, shopping coverage, exclusive entertainment access
• Purchase APR: 19.99% | Cash Advance APR: 21.99%

Best Cash Back Card for Businesses

If you’re using your credit card for business expenses, why not reap the reward of cash back on your spending? Looking at what’s available, we found a winner that has no annual fee and an excellent cash back rate.

Winner: BMO CashBack^® Business Mastercard^®*

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The BMO CashBack® Business Mastercard®* is an excellent business credit card that allows you to earn cash back on every dollar that you spend. Specifically, you’ll earn 1.5% cash back on eligible gas station, office supplies purchases, and on recurring cell phone/internet billings charged to the card, as well as 1.75% cash back at participating Shell locations. Everything else charged to the card earns 0.75% in cash back. As a welcome bonus, new cardholders also earn 10% cash back on gas, office supplies and cell phone/internet bills for the first 3 months. This card also has no annual fee, so why wouldn’t you add it to your wallet?

The Details:

• Annual Fee: $0
• Income Eligibility: N/A
• Credit Score Required: N/A
• Welcome Offer: Earn 10% cash back on gas, office supplies, and cell phone/internet bills for the first 3 months.
• Additional Benefits: Earn cash back on every dollar you spend, purchase protection and extended warranty
• Interest on Purchases: 19.99% | Interest on Cash Advances: 22.99%

Best Cash Back Card for Travel Perks

If you love getting cash back on your credit card purchases, but also want to reap travel benefits, you’ll need a card that offers a little something extra. We found a card that puts money back in your pocket and has some great travel perks.

Winner: RBC® Cash Back Preferred World Elite Mastercard

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Earn up to 1.5% unlimited cash back on all your purchases—from peanut butter to plane tickets—with the RBC Cash Back Preferred World Elite Mastercard. There’s no cap on how much cash you can earn. This is also one of the rare credit cards you can use at Costco to earn more than the standard 0.5% cash back you usually get when you shop at the warehouse.

Handy travel perks include access to complimentary out-of-home mobile internet access at over 1 million hotspots worldwide and on select airlines with Boingo, as well as enticing cash back offers at international retailers and restaurants and access to Mastercard Priceless Cities. If you’re a frequent flyer or you just like to fly in style, you can take advantage of the membership with the Mastercard Airport Experiences by LoungeKey, which gives you access to more than 800 airport lounges worldwide.

The card also comes with a suite of insurance coverage, such as extended warranty protection that triples the manufacturer’s original Canadian warranty, premium purchase protection for 120 days, and Auto Rental Collision/Loss Damage Insurance.

The Details:

• Annual Fee: $99
• Minimum Income Eligibility: $80,000 or Household: $150,000
• Credit Score Required: Good
• Rewards: Earn up to 1.5% unlimited cash back on all your purchases
• Other Perks: Complimentary Boingo Wi-fi, airport lounge access provided by LoungeKey, Mastercard Priceless Cities, premium insurance benefits
• Purchase APR: 19.99% | Cash Advance APR: 22.99%

Best Cash Back Credit Card 2021 by Annual Earning

Offer for the TD Cash Back Visa Infinite* Card is not available for residents of Quebec. For Quebec residents, please click here.

^†_{Terms and Conditions Apply.}

How Do Cash Back Credit Cards Work?

It’s a pretty simple concept: for every purchase that you charge onto your credit card, you get a little kickback in cash — usually between 1% to 4% on every dollar that you spend. So if you have The Scotia Momentum® Visa Infinite* Card and spend $12,000 on groceries per year, you’ll get a whopping 4% cash back, which works out to that’s $480 annually or $40 a month.

It really demonstrates how that amount can really add up over time and put more money back into your pocket.

How to Maximize Your Cash Back?

Analyze your spending patterns. What are your biggest bills? If it’s groceries and gas, pick a credit card like the CIBC Dividend Visa Infinite* Card that rewards that spending.

If you’re undertaking a major home renovation, sign up for the BMO CashBack® Mastercard®* and take advantage of the generous welcome bonus of 5% cash back for 3 months. For a $15,000 renovation, that would net you $750, and you don’t even have to pay an annual fee! It’s all about being strategic in your spending, and it’s why having more than one credit card is a good idea.

When Do I Get My Cashback?

It depends on the credit card. For instance, for the Tangerine Money-Back Mastercard, cash back is earned automatically on everyday purchases and paid monthly.

For other cards, you may have to wait until the end of the year to get your rebate. The cash back is usually applied to your credit card statement, or in some cases, redeemed into your chequing or savings account.

Things to Consider When Choosing the Best Cash Back Credit Card?

To find the best cash back credit card in Canada, you’ll have to think about what’s important to you and compare the perks offered by each. Are you seeking cash for free groceries? Or would you rather have the flexibility of spending cold hard cash however you please? Regardless of which one you choose, cash back credit cards are an excellent way to capitalize on everyday purchases (like gas and groceries) that actually add up to big-ticket items over time.

By using a credit card like the Scotia Momentum® Visa Infinite* Card to earn 4% cash back on these purchases, you’ll be able to save and earn hundreds of dollars per year. Or if you’re a millennial just starting out, the Tangerine Money-Back Mastercard is also an excellent choice, especially with its no annual fee and low annual income requirement.

Unlike travel rewards credit cards, which let you redeem points that are subject to restrictions and blackout periods, a cash back credit card is the simplest, most direct way to capitalize on your everyday spending. If you are still undecided, check out our list of the best credit cards in Canada.

The Best Credit Cards by Category:

• The Best Credit Cards in Canada
• The Best Low Interest Rate Credit Cards in Canada
• The Best Balance Transfer Credit Cards in Canada
• The Best Travel Rewards Credit Cards in Canada
• The Best AIR MILES Rewards Credit Cards in Canada
• The Best Aeroplan Credit Cards in Canada

_{This post was not sponsored. The views and opinions expressed in this review are purely my own.}