Is This The Best Cash Back Credit Card In Canada?

When shopping for the best cashback credit card in Canada, you’re not lacking in options. Today, we’ll take a detailed look at one popular premium cashback credit card: the Scotia Momentum® VISA Infinite* card.

Introductory Offer (Jan 02, 2020 – April 30th, 2020): Earn 10% cashback on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, pay no annual fee in the first year, including on supplementary cards. That’s a welcome offer value of $350*!

How Does A Cash Back Credit Card Work?

The Scotia Momentum Visa Infinite Card is a cash back credit card, meaning it returns a percentage of the money that you spend on qualifying purchases.

The cash back credit card that best suits you will be the one that returns an amount greater than what you spend on the yearly fees.

Fast Facts About This Cash Back Credit Card

The Scotia Momentum Visa Infinite Card offers a healthy 4% rewards on recurring bills and groceries. Gas station and transit purchases earn 2% cashback while all other eligible day-to-day purchases earn 1% cashback.

These are very healthy rewards but do they make this cashback credit card the best in Canada?

Partially — but the card’s real magic lies in its other benefits, which include:

• 24/7 complimentary concierge services
• Access to the Visa Infinite Dining and Music Series
• Wine Country Wonders Package
• Privileges at Luxury Hotels
• A full suite of insurance policies, including:
  • Insurance for new mobile devices
  • Trip interruption, delay or cancellation insurance
  • Travel medical insurance
  • Lost luggage insurance
  • Rental car collision/theft insurance
  • Extended warranty on purchases

These benefits make this card perhaps the best cash back credit card in Canada for people who travel and enjoy nights out on the town frequently.

As an added incentive, Scotiabank is currently waiving the first year’s annual fee.

Other financial details to make note of with this card include:

• 20.99% interest rate on purchases
• 22.99% interest rate on cash advances
• Minimum credit limit of $5,000
• Supplementary cards available for $50 each annually

What Are The Requirements?

This is a premium cash back credit card, meaning it naturally comes with some more stringent requirements. Applicants must have either a minimum personal income of $60,000 per annum, a household income of $100,000 or assets of at least $250,000.

These requirements make the Scotia Momentum Visa Infinite Card available to most middle class people with a stable financial foundation.

There are still provisions built in to allow those in more uncertain situations access to this card, however. Namely, Scotiabank offers Scotia Credit Card Protection, which pays off your balance (up to a maximum of $50,000) in the event of an unexpected loss of income.

How Does It Compare to Other Cash Back Credit Cards in Canada?

In terms of cash back rewards, the Scotia Momentum Visa Infinite Card is very competitive. As far as cash back rewards go, it is at the higher end; most cards top out at 4%, with most hovering around 2%.

Additionally, Scotiabank’s waiving of the first year’s fee positions this card quite well for those unsure if their first year’s rewards and benefits will warrant the $120 fee. Many other cards that offer an introductory bonus do so in the form of an extra 1% reward, which may not mean much for people in the aforementioned situation.

The Bottom Line

The Scotia Momentum Visa Infinite Card is one of the best cash back credit cards in Canada for those with a middle-class income and frequent travel or entertainment needs. Between the relatively high cash back percentage of 4% and the extensive travel insurance perks, this card should more than pay for itself in the right customer’s wallet.

Frequently Asked Questions About Cash Back Credit Cards

What credit card gives the most cash back?

With a top cash back percentage of 4%, the Scotia Momentum Visa Infinite Card is one of the most advantageous. Occasionally, you’ll find other cards that offer as high as 5% cash back as an introductory incentive. Scotiabank instead goes the route of waiving the first year’s annual fee of $120, which may offer greater savings for some people than an additional 1% cash back.

Which is better — cash back or reward points?

Rewards can be useful, but cash back is usually back easier to redeem and keep track of since rewards points do not usually translate neatly into dollars.

Is cash back or miles better?

Experts typically agree that airline cards offer good value in the short term but poor value over the long haul. Cash back cards, by comparison, are great in both the short term and long term. You also need to consider expiry; with cash back cards, money is applied directly to your bank account or credit card balance. Points and travel miles can expire.

What is the point of cash back?

The point of cash back is that you effectively receive a discount on all purchases equivalent to what your cash back reward rate is. With the Scotia Momentum Visa Infinite Card, for example, you receive a de-facto 4% discount on purchases eligible for that rate. It’s like a never-expiring coupon in your wallet that you don’t even have to think about!

Are cash back cards worth it?

As with most things financial, there’s no one easy answer. If you never really use your credit card, a cash back card probably won’t be worth it to you. If, on the other hand, you make frequent purchases in the eligible categories, a cash back card will be more than worth it. Just make sure you don’t fall into the trap of excusing unnecessary purchases because you know you’ll get a certain percentage of it back. Just use the card as you normally would and reap the rewards.