2024’s Best Cash Back Credit Cards in Canada: Maximize Your Everyday Spending

Cash back credit cards remain one of the most popular options for Canadians seeking to maximize everyday spending rewards. These cards provide cash rewards for purchases in different categories, from groceries and gas to dining and travel, and they’re ideal for anyone looking to make the most of their money on common expenses. In this comprehensive guide, we’ll break down the top cash back credit cards in Canada for 2024, highlight lucrative rewards categories, and discuss the features, benefits, and potential drawbacks of each card.

1. Understanding Cash Back Credit Cards: How Do They Work?

Cash back credit cards offer a percentage of money back on eligible purchases. The amount typically varies depending on the spending category, and some cards even offer bonus rewards or welcome offers for new members. Many cash back cards in Canada offer “tiered” rewards, with higher percentages on categories like groceries or gas and a base rate for all other purchases. Others offer flat-rate rewards across all spending categories, making them simpler to use for those who want consistent cash back without tracking multiple categories.

2. Key Considerations When Choosing a Cash Back Credit Card

Before selecting the best cash back card for your needs, consider these factors:

• Annual Fees: Some cash back cards come with annual fees, which may be offset by higher rewards rates. Be sure to calculate if the rewards you’ll earn justify the fee.

• Rewards Categories: Evaluate which categories you spend the most on. Cards with elevated rewards for groceries, gas, dining, and travel may suit your lifestyle better.

• Redemption Options: Some cards offer flexible redemption options, like statement credits, direct deposit, or even merchandise.

• Introductory Offers: Many cards provide a welcome bonus or promotional rate for the first few months, which can provide a significant initial cash back boost.

3. Top Cash Back Credit Cards in Canada for 2024

Here’s a breakdown of Canada’s best cash back credit cards for 2024, highlighting the cards with top rates in key categories and additional perks.

3.1. Scotiabank Momentum Visa Infinite

Best For: High grocery and gas rewards

The Scotiabank Momentum Visa Infinite offers excellent cash back on everyday essentials. With elevated rewards on groceries, gas, recurring bills, and a strong base rate, it’s one of the top choices for families and individuals with substantial everyday expenses.

• Annual Fee: $120 (waived for the first year)

• Welcome Bonus: Up to 10% cash back on all purchases for the first three months (up to $2,000 in spending)

• Cash Back Structure:

  • 4% on groceries and recurring bills

  • 2% on gas and daily transit

  • 1% on all other purchases

• Other Benefits:

  • Comprehensive travel insurance

  • Purchase protection and extended warranty

• Drawbacks: The annual fee may be high for those with lower spending.

3.2. Tangerine Money-Back Credit Card

Best For: Customizable cash back categories with no annual fee

The Tangerine Money-Back Credit Card allows users to choose their preferred cash back categories, making it a versatile option for people whose spending habits vary. Plus, the lack of an annual fee makes this card attractive to budget-conscious individuals.

• Annual Fee: None

• Welcome Bonus: Up to 15% cash back on up to $1,000 in purchases within the first two months

• Cash Back Structure:

  • 2% cash back on up to three chosen categories (e.g., groceries, gas, entertainment, dining, recurring bills)

  • 0.5% on all other purchases

• Other Benefits:

  • Customizable categories to match spending habits

  • No annual fee, ideal for budget-conscious users

• Drawbacks: Lower cash back rates for non-selected categories.

3.3. BMO CashBack World Elite Mastercard

Best For: Highest cash back rate on groceries

This card is a great fit for families who spend significantly on groceries, offering the highest cash back rate in this category. The BMO CashBack World Elite Mastercard also provides other perks, including a substantial welcome offer.

• Annual Fee: $120 (waived for the first year)

• Welcome Bonus: 10% cash back on all purchases for the first three months (up to $2,600 in spending)

• Cash Back Structure:

  • 5% on groceries

  • 4% on transit, including public transport and taxis

  • 3% on gas

  • 2% on recurring bill payments

  • 1% on all other purchases

• Other Benefits:

  • Complimentary membership to Mastercard Travel Pass by DragonPass

  • Comprehensive travel insurance package

• Drawbacks: High grocery cash back rate is capped, so it may not be ideal for very high grocery spenders.

3.4. Rogers World Elite Mastercard

Best For: Flat-rate cash back and foreign currency spending

With a strong flat-rate cash back on foreign transactions, this card is excellent for those who frequently shop online with international retailers or travel abroad. The Rogers World Elite Mastercard also offers unlimited cash back, making it ideal for high spenders.

• Annual Fee: None

• Welcome Bonus: Up to $25 cash back in the first month

• Cash Back Structure:

  • 3% on U.S. dollar purchases

  • 1.5% on all other purchases

• Other Benefits:

  • No annual fee

  • Travel insurance coverage

  • Purchase protection and extended warranty

• Drawbacks: Requires a high minimum

• income to qualify, so it may not be accessible for everyone.

3.5. CIBC Dividend® Visa Infinite

Best For: Broad cash back categories and dining rewards

CIBC’s Dividend Visa Infinite card offers a range of elevated cash back rewards across several spending categories, including groceries and dining. It’s a versatile option for individuals or families with varied expenses.

• Annual Fee: $120 (first year free)

• Welcome Bonus: Up to 10% cash back on all purchases for the first four months (up to $2,500 in spending)

• Cash Back Structure:

  • 4% on groceries and gas

  • 2% on dining, transportation, and recurring bills

  • 1% on all other purchases

• Other Benefits:

  • Robust travel insurance coverage

  • Purchase protection and extended warranty

• Drawbacks: Cash back cap on grocery and gas spending means high spenders may reach their limit quickly.

4. Key Cash Back Categories and Their Top-Performing Cards

To maximize cash back rewards, focusing on the categories where you spend most frequently is essential. Here’s a quick overview of some of the top cash back categories and the best-performing cards for each.

• Groceries: The BMO CashBack World Elite Mastercard is unbeatable for groceries with its 5% cash back rate.

• Gas: Both the Scotiabank Momentum Visa Infinite and CIBC Dividend Visa Infinite offer high rewards on gas, making them ideal for drivers.

• Dining: The CIBC Dividend Visa Infinite stands out with 2% cash back on dining, a competitive rate for restaurant-goers.

• Transit: The BMO CashBack World Elite Mastercard provides 4% back on transit, including public transportation, ideal for urban commuters.

• Foreign Currency: The Rogers World Elite Mastercard provides 3% cash back on foreign currency transactions, beneficial for those shopping with U.S.-based retailers or traveling internationally.

5. How to Maximize Your Cash Back Rewards

• Combine Cards: Use multiple cash back cards with different rewards structures. For instance, you could use one card for groceries and another for gas and dining, maximizing each card’s unique categories.

• Watch for Welcome Offers: Many cash back cards offer generous introductory bonuses, which can significantly increase your cash back during the first few months.

• Utilize Cash Back Portals: Some credit card providers partner with cash back portals where you can earn additional rewards by shopping online through their links.

6. Are Cash Back Cards Right for You?

Cash back credit cards can be an excellent choice for maximizing everyday spending rewards. However, they may not be the best fit for everyone. If you’re someone who carries a balance from month to month, the high-interest rates typically associated with cash back cards could outweigh the benefits. In such cases, consider focusing on a low-interest card or paying off balances in full to maximize your rewards without incurring interest charges.

7. Conclusion

In 2024, Canadians have an excellent selection of cash back credit cards, each offering unique perks tailored to different lifestyles. Whether you’re looking to save on groceries, gas, or travel, there’s a card to meet your needs. Consider your spending habits, lifestyle, and preferences when selecting the best cash back credit card for you, and be sure to stay on top of welcome offers, cash back categories, and annual fees to truly maximize your rewards.

Cash back cards are not only a way to earn on everyday spending but also a smart financial tool that, when used responsibly, can offer meaningful savings over time. Choose wisely, stay informed, and make the most out of your cash back rewards in 2024!