Canada’s Best Credit Cards for 5x Rewards

Lately, we’ve seen the introduction of a number of bank cards in Canada that provide 5 factors per greenback spent on groceries and eating places. For a lot of sectors of the inhabitants, starting from college students to households, these classes make up a big portion of month-to-month spending, and rewards can stack up in a short time.

Nevertheless, not all bank cards are created equal. Relying in your objectives, the constraints of every factors program, and different advantages for cardholders, you’re more likely to discover some 5x playing cards extra interesting than others.

Right here’s a generalized rating of Canada’s greatest 5x bank cards for groceries and eating, taking into account that the proper selection for it’s possible you’ll be situational. All of those playing cards have mid-tier perks and annual charges within the vary of $120–155, so let’s break down the options that set them aside.

1. American Specific Cobalt Card

First up on this record is the American Express Cobalt Card. It’s obtained loads of press since its debut in 2017 as one in all Canada’s greatest bank cards, and for good purpose.

The 5x multiplier applies to purchases made at grocery shops and eating places. The latter contains something categorised as “eating” – bars, meals supply companies, takeout, and many others.

Even for those who don’t are likely to dine out or frequent your native watering holes, many grocery shops settle for American Specific. And remember the fact that groceries aren’t the one objects offered at grocery shops – for instance, you should purchase many family merchandise and present playing cards at a grocery retailer, incomes 5x rewards.

You’ll earn American Express Membership Rewards with the Cobalt card, which is arguably Canada’s greatest transferrable rewards program. There are a selection of nice loyalty applications which you can entry, together with Aeroplan, British Airways Avios, Air France/KLM Flying Blue, and extra.

These applications provide you with entry to accomplice redemptions in every of the three main airline alliances, and incomes 5 factors per greenback spent can quick observe your solution to many aspirational experiences. If you happen to’ve had your eye on a flight in ANA First Class, Lufthansa First Class, Qatar Airways Qsuites, Air France business class, or different world-leading merchandise, the Cobalt card will help to get you there.

We value MR points at 2.2 cents per level, which signifies that you’re basically getting an unprecedented 11% return in your spending at grocery shops, eating places, and bars with the American Specific Cobalt Card.

Worst case state of affairs, you possibly can all the time redeem factors for assertion credit score in opposition to any journey expense, for 1 cent per level. That places the flooring worth of MR factors on the ceiling of the factors applications of the opposite playing cards on this record, as we’ll quickly see.

Other than nice switch companions, you’ll even have entry to the profitable Amex Offers that ceaselessly can be found to cardholders. Amex Provides add much more worth to your card by supplying you with a press release credit score or further factors on eligible purchases, which might generally be price tons of of {dollars}.

The cardboard additionally has a month-to-month payment of $12.99. This month-to-month billing construction is considerably novel, and it actually helps with cashflow and taking the sting out of paying bank card charges – in reality, it’s possible you’ll barely even discover it!

If this card hasn’t but crossed your thoughts, make sure to make some room for it in your pockets. You received’t remorse it.

2. Scotiabank Gold American Specific Card

Subsequent up is the Scotiabank Gold American Express Card, which has been getting much more consideration not too long ago with the demise of Air Miles and the emergence of Scene+ in its place.

Just like the Cobalt card, you’ll earn 5 factors per greenback spent in any respect grocery shops; nonetheless, you’ll get an additional level per greenback spent at Empire-affiliated grocery shops, for a complete of 6 factors per greenback spent.

The supercharged 6x incomes price is out there at many various shops that fall beneath the Empire model, together with Sobeys, IGA, Safeway, Thrifty Meals, FreshCo, and more. With stable protection throughout Canada, it shouldn’t be too tough to discover a retailer close by.

The Scotiabank Gold American Specific Card comes with a better class spending cap than the Cobalt card, at $50,000 per yr versus $30,000, earlier than you cease incomes bonus factors at an accelerated price. Certain, that’s some huge cash to spend over the course of the yr, however it opens the doorways for an unimaginable 5–6% return on a big swath of your family bills.

You’ll additionally earn 5 factors per greenback spent on eating, meals supply, and leisure, which incorporates films, theatres, and ticket businesses. The latter class is a throwback to Scene+’s origins, however this system has been shortly establishing itself as one of many extra engaging fixed-value factors applications in Canada.

Scene+ factors are price a hard and fast worth of 1 cent per level when redeemed in opposition to journey purchases, purchases made at an Empire-affiliated grocery retailer, or some leisure purchases.

Probably the most engaging characteristic of Scene+ is which you can redeem your factors in opposition to any journey buy made on the bank card. Having a stash of Scene+ factors may be very useful for offsetting the price of bills which can be in any other case arduous to redeem factors for, akin to impartial lodges, automotive leases, cruises, and so forth.

The Scotiabank Gold American Specific Card usually comes with an annual payment waiver for the primary yr. There’s no higher solution to take a look at drive a souped-up bank card for a yr than free of charge! You can even get the $120 payment waived on an ongoing foundation in case you have a premium chequing account with Scotiabank.

Moreover, this card has no foreign exchange fees, which may be priceless for those who take the cardboard overseas. When you’ll save the usual 2.5% overseas transaction payment charged on most different playing cards, remember that the 5x class multiplier solely applies to purchases in Canadian {dollars}. Besides, that is nonetheless one more distinctive perk that provides to the cardboard’s versatility.

Lastly, as an American Specific product, you even have entry to the precious Amex Offers. If you happen to occur to have various supplementary playing cards in your account, the worth can actually add up shortly.

If you happen to’re in search of a solution to earn factors that aren’t tied to any particular program or airline, look no additional than the Scotiabank Gold American Specific Card.

3. Nationwide Financial institution World Elite Mastercard

The primary non-American Specific card on this record is the National Bank World Elite Mastercard.

The Nationwide Financial institution World Elite Mastercard has created a number of buzz these days, providing all-time high welcome bonuses in 2023. Actually, it’s been giving many different top-end Mastercard merchandise a run for his or her cash with aggressive welcome gives, distinctive options, and a 5x incomes price at grocery shops and eating places.

What units this bank card aside from the opposite playing cards on this record is its industry-leading journey insurance coverage, together with coverage for award tickets. 

So long as you pay for the taxes and fees in your award reserving with the Nationwide Financial institution World Elite Mastercard, you’ll get pleasure from its huge insurance coverage, together with for journey cancellation/interruption, flight delays, delayed and lost baggage, journey accidents, automotive leases, and extra.

Moreover, just by being an energetic cardholder, you’ll get pleasure from very beneficiant protection for out-of-province medical and hospital insurance coverage:

• As much as $5,000,000 per individual for as much as 60 days for cardholders aged 54 and youthful
• As much as $5,000,000 per individual for as much as 30 days for cardholders aged 54–64
• As much as $5,000,000 per individual for as much as 15 days for cardholders aged 65–75

The length of protection is what units the Nationwide Financial institution World Elite Mastercard aside from its opponents, because the {industry} normal is simply 15 days. Solely a choose few bank cards present any medical emergency insurance coverage for cardholders over the age of 65, so for those who’re in your golden years and nonetheless need to journey, think about including this card to your portfolio.

The Nationwide Financial institution World Elite Mastercard additionally comes with a $150 annual travel credit, which resets every year on January 1. You should utilize the credit score for airport parking charges, baggage charges, seat choice charges, airport lounge entry, and ticket upgrades, which basically offsets the cardboard’s $150 annual payment after the primary yr’s payment waiver.

The record-high welcome bonus is providing as much as 70,000 À la carte Rewards, which is Nationwide Financial institution’s proprietary loyalty program. 

When redeemed by means of the Nationwide Financial institution journey portal, you possibly can rating 1 cent per level price of worth. This can be a weaker choice than MR or Scene+, because you’re tied to what’s accessible and costs by means of the portal, however it could nonetheless be fairly priceless for those who discover what you’re in search of within the portal.

You’ve got the choice to redeem À la carte Rewards in opposition to any journey buy charged to the cardboard, however you’ll internet a decrease worth of 0.83–0.91 cents per level, relying on what number of factors you redeem.

For what it’s price, Mastercard additionally has wider acceptance than American Specific, which might be an essential issue in case your spending is tied to particular retailers and distributors, akin to Mastercard-only Loblaws manufacturers.

This card is best for you for those who worth nice insurance coverage at a low price, and aren’t as involved about parlaying factors into aspirational journey alternatives.

4. MBNA Rewards World Elite Mastercard

The second non-American Specific card on this record is the MBNA Rewards World Elite Mastercard.

One of many primary attracts of this card is that the 5x class multiplier has a wider vary than different playing cards. You’ll get the usual 5 factors per greenback spent on groceries and at eating places, however you’ll additionally earn 5 factors per greenback spent on digital media, family utilities, and membership subscriptions.

What’s extra, this card provides you a $50,000 annual spending cap per class, which is unbelievable information for anybody who has a major quantity of spend in every of the above classes.

One other fascinating characteristic of this bank card is that you just’ll get a birthday bonus of 10% of the factors earned on the cardboard within the earlier yr, as much as 15,000 MBNA Rewards factors. So long as you possibly can handle to earn 150,000 factors over the course of 12 months, you’ll be maximizing this profit yr after yr.

MBNA Rewards are price as much as 1 cent per level; nonetheless, with a purpose to redeem them at this price for journey purchases, you will need to undergo the MBNA Rewards journey portal.

Just like the Nationwide Financial institution World Elite Mastercard, which means the factors aren’t as versatile as MR or Scene+, which can be utilized in opposition to any journey buy. Nevertheless, for those who’re capable of finding your required itinerary by means of the portal, you’ll get probably the most worth out of this system.

If journey isn’t your factor, you possibly can nonetheless get a good return to your factors with present playing cards or money again. You may come near a worth of 1 cent per level on some present playing cards, but when money is what you’re after, then you definately’ll get a flat 0.83 cents per level.

Not like most applications, you possibly can prepare to have your factors transformed instantly into money as a deposit into your checking account or a cheque despatched by mail. Most applications require you to redeem your factors as a press release credit score, and there’s nothing extra versatile than chilly arduous money.

This card is best for you in case you have excessive spending in every of the 5x classes and aren’t in search of probably the most versatile solution to redeem your factors.

5. BMO eclipse Visa Infinite Card

Final up is the BMO eclipse Visa Infinite Card, the lone Visa product on this record. It’s price noting that the BMO eclipse Visa Infinite Privilege Card additionally technically falls within the 5x class, however in contrast to the remainder of the playing cards on this record, it instructions a premium annual payment – higher to match apples to apples right here.

Just like all different playing cards on this record, the BMO eclipse Visa Infinite Card earns 5 factors per greenback spent at grocery shops and eating places, together with bars and meals supply companies.

The 5x incomes price additionally applies to gasoline and transit, which additionally encompasses trip sharing. These classes are typically restricted to 2–3x on most different bank cards, making the BMO eclipse distinctive on this regard.

If you happen to add a supplementary cardholder to your account for $50, you’ll get pleasure from a 10% improve to your incomes charges. This boosts the 5x to five.5x on the aforementioned classes, and may be significant for those who work your manner in direction of the $50,000 class spending cap every year.

Whereas this card belongs on this record as a 5x-earning bank card, in actuality, you received’t be getting a full return in your spending. That’s as a result of BMO Rewards are price, at most, 0.67 cents per level. This leads to a 3.33% return in your spending (or 3.67% with the ten% increase), which pales compared to the 11% return you might get with the Cobalt.

Subsequently, I wouldn’t name this card a real “5x” card, because the inferior worth of BMO Rewards is deceptive, together with your very best factors redemptions coming in beneath 5%.

As a way to get the complete 0.67 cents per level worth, you need to redeem your factors by means of the BMO Rewards portal. As we noticed with the MBNA Rewards World Elite Mastercard and the Nationwide Financial institution World Elite Mastercard, this ties you to what’s accessible within the portal and is much less versatile than MR or Scene+.

You may redeem factors for journey booked any manner, however the worth of your BMO Rewards factors drops to 0.5 cents per level, so it’s greatest to keep away from this if in any respect attainable.

There’s additionally a $50 annual way of life credit score that comes as a perk, which can be utilized in opposition to any buy made to the cardboard. You may basically use this as a solution to offset the cardboard’s $120 annual payment after the primary yr, which is usually free.

The one compelling purpose to make use of this card as a each day driver is for those who spend some huge cash on gasoline and transit, because you’ll be getting a great return to your cash with the “5x” incomes price. In any other case, you’re doubtless higher off contemplating one of many different wonderful merchandise on this record.

Conclusion

One of the vital engaging options on bank cards is the coveted 5x incomes price, which is obtainable on a handful of Canadian merchandise. Some playing cards ship outsized incomes and redeeming alternatives, whereas others have supplementary options that make them shine.

As you look to spice up your incomes price, make sure to think about every card’s standout options that make it distinctive when in comparison with its opponents. If you happen to’re in search of high-value transferrable rewards, look no additional than the American Express Cobalt Card, whereas for those who’re looking for a card with extra versatile rewards, think about the Scotiabank Gold American Express Card.

Each the MBNA Rewards World Elite Mastercard and the National Bank World Elite Mastercard have distinctive advantages that might be proper in particular circumstances, however you might additionally think about them along with one of many two Amex merchandise. Nevertheless, these playing cards and the BMO eclipse Visa Infinite Card are tied to particular portals for optimum worth, which will not be probably the most engaging solution to redeem factors.

A card with a excessive class multiplier for on a regular basis spending is a must have for Canadian factors collectors, so for those who haven’t but taken benefit of elevated incomes charges, make sure to add a number of to your portfolio prior to later.