When you hear the term “rewards credit card”, points, free flights and hotel stays typically come to mind. But there is another category of rewards that don’t get as much attention: cash back rewards.
A cash back credit card gives you a cash rebate, usually a percentage of the overall amount you spend using the credit card. You can claim your rebate in the form of a credit on your monthly statement, a deposit to your bank account, or a cheque that you’ll receive in the mail.
Depending on the cash back credit card you choose and your spending patterns, cash back rewards can be a great way to help save for a goal or to pay for purchases. Just make sure to pay your balance in full at the end of every month. Otherwise, you’ll be charged interest on your purchases that may outweigh any rewards you earn.
One of the best cash back credit cards in 2015 is the Scotia Momentum Visa Infinite card. Let’s take a look at the features of this card and the cash back rewards you could earn if you use it for your daily spending.
The Scotia Momentum Visa Infinite has an annual fee of $99. The interest rate on this credit card is 19.99% for purchases and 21.99% on cash advances and balance transfers. To qualify for this credit card, you need to have an individual income of $60,000 or a household income of $100,000.
When you sign up for this credit card, you’ll get a great perk right away:
- $99 annual fee waived for the first year (available for accounts opened by October 31, 2016)
The Scotia Momentum Visa Infinite card gives you a host of extra perks beyond cash back rewards. When you use this credit card you’ll have access to:
- The Visa Infinite complimentary concierge service (available 24/7)
- Exclusive access to the Visa Infinite Luxury Hotel Collection
- Exclusive dining experiences available at some of the most prestigious restaurants in Canada through the Visa Infinite Dining Series
Travel insurance benefits
The Scotiabank Momentum Visa Infinite also entitles you to a variety of travel-related benefits like:
- Flight delay insurance
- Delayed and lost baggage insurance
- Travel emergency medical insurance
- Car rental collision/loss damage insurance
- Trip interruption insurance
Cash back rewards
Last but not least, this credit card has a robust cash back rewards program. When you use this credit card, you’ll earn:
- 4% cash back for every dollar you spend on gas and groceries up to $25,000 annually (for every dollar you spend above $25,000, you’ll earn 1% cash back)
- 2% cash back per dollar spent at drug stores and recurring bill payments up to $25,000 annually (above that, you’ll earn 1% cash back)
- 1% cash back on everything else
So what’s the dollar value of the cash back rewards you’ll earn with this credit card? We can calculate your potential rewards using the following spending profile:
|Item||Monthly spending||Yearly spending||Cash back earned|
|Groceries||$500||$6,000||$6,000 x 4% = $240|
|Gas||$500||$6,000||$6,000 x 4% = $240|
|Pharmacy||$200||$2,400||$2,400 x 2% = $48|
|Recurring bills||$300||$3,600||$3,600 x 2% = $72|
|Everything else||$500||$6,000||$6,000 x 1% = $60|
Here’s what your annual return will look like:
|Cash back earned||Signup bonus||Statement credit||Annual fee||Total|
As you can see, the Scotia Momentum Visa Infinite is a valuable cash back credit card. If you spend $24,000 annually, you could earn $686 in rewards in the first year, and $561 annually after that. Of course, your rewards will be different depending on your individual spending habits. As long as you pay off your credit card at the end of every month, this is a great way to reward yourself for responsible spending!
To find out exactly how much you could earn with the Scotia Momentum Visa Infinite card, use the points calculator to complete your personalized spending profile.