As far as cash-back credit cards go, the SimplyCash Preferred Card from American Express has a welcome rate that can’t be beat: 10% cash back on eligible gas, grocery and restaurant purchases in Canada for the first six months (up to $300 cash back). Once the welcome rate ends you’ll get 2% cash back on all purchases, with no limit on the amount of cash back you can earn at that rate. The card’s annual fee is $99.
Besides being one of the best cash-back credit cards in Canada, the card offers a low 1.99% introductory interest rate on all credit card balances transferred to the card within the first six months, with no balance transfer fee charged on the transaction. Compared to the standard credit card interest rate of 19.99%, you can potentially save hundreds of dollars in interest charges.
Here’s an example, assuming the same same balance and monthly payment:
|Balance||Interest rate||Monthly payment||
Time to pay off full balance
|Total interest paid|
|Example Card X||$2,000||19.99%||$350||7 months||$119.31|
|SimplyCash Preferred from American Express||$2,000||1.99%||$350||6 months||$11.26|
Whereas many cards have spending categories and tiers (for example, 2% cash back on gas and groceries and 1% back on everything else), the SimplyCash Preferred is a straightforward card with a decent overall return. Another advantage this card has is that it comes with comprehensive travel insurance coverage you would usually only get with a travel rewards credit card, including travel emergency medical and accident, flight delay, baggage loss, car rental collision/loss damage waiver.
With the strongest welcome cash back rate currently on the market and a competitive 2% earn rate after that, plus the low balance transfer offer, this card delivers a one-two punch on value.
If you’re looking for a card with no annual fee, there’s also the SimplyCash Card from American Express.
- Best Cash-Back Credit Cards in Canada for 2017
- Best Balance Transfer Credit Cards in Canada for 2017
- Credit Card Battle: Tangerine Money-Back vs. SimplyCash from American Express