The last time I posted about top cash back credit cards in Canada, I picked the MBNA Smart Cash Card credit card that returns 1.0% on all purchases, 3% on gas/groceries, and a comprehensive insurance package and $0 in annual fees.

As I typically only promote credit cards with no annual fee, there is a fee based card that has a significantly larger return that pays for itself if you spend at least $6667 every year. This card is called the Capital One Cash World Mastercard (link).

The Cash Back Details

  • 1.5% cash back on all net purchases.
  • 20% cash back bonus annually.
  • $100 bonus on first purchase
  • No maximum rebate
  • Cash back can be redeemed as you please

Comprehensive Insurance Benefits

  • Price Protection – Find a lower price on a purchased item with this card within 60 days, and get up to $100 of the difference.
  • Purchase Assurance – 120 days insurance in case of theft or damage.
  • Extended Warranty – Doubles warranty up to 2 yr.
  • Car Rental Collision and Damage Waiver.
  • Trip Cancellation
  • Trip Interruption
  • Flight Delay
  • Baggage Delay/Loss
  • $500,000 Common Carrier Travel Accident Insurance.

How Do I Apply?

You can apply online(link).

Conclusions

If you spend $15,000 on this card per year, you will receive a rebate of $150 ($120 annual fee accounted for) which is equivalent to a 1% card. However, the rewards grow significantly as you cross the $15,000 threshold.

Combined with the “World” insurance benefits this card is a great choice for the bigger spenders (>$15k/yr).


The AMEX was my old pick, but this card has been discontinued..

Since then though, I have discovered a new cash back credit card that I believe beats out the rest and it’s also from American Express. It’s called the American Express Gold Cash Back Card and it returns 2% on purchases over $5000 for the year.

The Details

According to this thread on RedFlagDeals, here are the details on the American Express Gold card.

  • 0.5% cash back on the first $2,500 in purchases.
  • 1.0% cash back on the next $2,500 in purchases.
  • 2.0% cash back on any amount over $5,000.
  • No Maximum Rebate!
  • Purchase Protection – 90 days insurance in case of theft or damage.
  • Extended Warranty – Doubles warranty up to 1 yr.
  • No Annual Fee

This card used to be an “invite only” card, but apparently now it’s available to the general public with no annual fee. The only requirement being that you make at least $30,000 in annual income.

How do you apply?

Apparently, the only way to apply for this card is via telephone: 1-800-268-2639.

Conclusions

I think I will be applying for this card in the near future for my Costco purchases. Even though the SPG credit card has a special place in my heart/wallet, this card is a very close second.

56 Comments

  1. FrugalTrader on September 20, 2009 at 11:12 am

    The “#1” footnote at the bottom refers to the CIBC platinum card and NOT the capital one card (look at the table just above the footnote). The Cap one card referred in this post has no limit on the rewards.

    I confirmed this with their customer support.

  2. Alex. on September 20, 2009 at 1:12 pm

    I wonder if I use such a cash back credit card to pay insurances- will they pay you back the 2%, too?

    • FrugalTrader on September 20, 2009 at 2:39 pm

      Alex, as far as I know, rewards are earned on all purchases minus returns. If you are lucky enough to have your insurance accept credit card as a payment, then go for it!

  3. Sherlock on December 3, 2009 at 6:26 am

    just one more month to receive ~$1900 credits rebate from my AMEX gold cash back… a few large purchases racked up a total spending of around $110,000 for the past 11 months…

  4. Jordan on December 23, 2009 at 5:40 am

    Hello,

    I know that this is an old review but I noticed on the Capital One website that the annual fee for this card is now $99. Just thought I’d provide an update.

  5. FrugalTrader on December 23, 2009 at 9:59 am

    Jordan (and other readers), thanks for the heads up. I will make the changes shortly.

  6. findcards on September 15, 2010 at 10:39 pm

    card at $99 is different.
    1% up to $15,000
    2% from $15,000 to $100,000
    1.5% over $100,000

  7. Tom on January 21, 2011 at 2:33 pm

    Well looks like the AMEX gold 2% NO FEE party is over. I got a notice that effective Jan1, 2011 there is now a $99 fee. Have to do some math now.

  8. smayer97 on January 22, 2011 at 7:42 am

    oops…
    Scotiabank card link:
    http://www.scotiabank.com/cda/content/0,,CID13391_LIDen,00.html

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