Once upon a time, PC Financial provided full-fledged low-fee banking services that included chequing/savings accounts, lines of credits, and credit cards. While some may think that Loblaws did this on their own, these banking services were provided through a partnership with CIBC and branded as PC Financial.
Unfortunately, in 2017, the two companies decided to part ways with Loblaws retaining the PC Plus and Mastercard clients and with all other banking services moving to CIBC’s rebranded Simplii Financial.
With Loblaws upping their game with the no-fee PC Financial World Elite Mastercard, it was only a time before Simplii launched their own no-fee cash back credit card. If you’ve been following MDJ for a while, you’ll know that the PCF World Elite Mastercard is highly recommended if you are a regular Loblaws/Shoppers Drug Mart customer.
The PCF World Elite Mastercard offers 3% cash back (PC Optimum Program) when shopping at Loblaws group of stores (Loblaws, Dominion in NL, Real Canadian Super Store, No Frills, PC Mobile, and Shoppers Drug Mart) and you can redeem $10 or more towards products in their group of stores. Combined with the PC Optimum weekly offers (how to maximize the PC optimum program), it’s one of the best loyalty programs available. If you don’t already have this card, sign up through Rate Supermarket where you get a $100 gift card in addition to the 20,000 PC point sign up bonus.
Ok, enough about PC Financial, let’s talk more about Simplii Financial. There has been rumour over the past several months of a new Simplii Financial no fee credit card that would have attractive cash back options. Logging into our Simplii Financial bank account (automatically transferred over from our PC Financial accounts), we discovered that this card has finally arrived!
Let’s get down to the good stuff.
The Cash Back
Cashback cards typically come with a combination of lower cash back for general purchases and higher cashback for specific categories. Simplii Financial’s strategy is to offer attractively higher cash back for select line items. In particular, they are betting their client demographic will appreciate a free card that offers big cash back for dining out.
Here are the particulars:
- 4% on eligible restaurant, bar, coffee shop, and takeout purchases, up to $5,000 per year.
- 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year.
- 0.5% on all other credit card purchases with no limit on how much you can earn.
The insurances offered is pretty basic but typical for a free card these days. The insurances include:
- Purchase Security and Extended Protection Insurance
Costco shoppers will need to look elsewhere as Costco does not accept Visa. Even if they did, the 0.5% cash back for general purchases is pretty low and can be beaten with other cash back credit cards. In addition, the 0.5% cash back tier on all other purchases will almost guarantee that you’ll need a secondary card in your wallet.
While there are very few one-size-fits-all credit cards on the market, the Simplii Financial Visa pairs well with others no-fee cards. The Simplii Financial Visa pairs really well with the popular Tangerine Money-Back MasterCard. You can use the Simplii card for: restaurants/take-out (4%); gas/groceries/drug stores (1.5%); and pre-authorized payments (1.5%). Then pick 3 of the following for 2% cash back from the Tangerine card: entertainment; furniture; home improvement; hotels; public transportation and parking.
Or, you could just stick with your existing credit card setup, and get the Simplii card specifically for the 4% cash back when eating out. I have a future post coming that includes the ultimate credit cash back combinations (spoiler alert: it involves the new Rogers credit card).
Here is my list of the best free cash back credit cards in Canada.
What are your thoughts on the new Simplii Financial no-fee credit card?
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