American Express today made a major push into the cash back credit card market with the launch of two new cards, SimplyCash and SimplyCash Preferred.
The two new rewards cards offer juicy cash back incentives that Canadians haven’t seen since MBNA slashed the benefits on its popular Smart Cash card several years ago.
New SimplyCash card from American Express
SimplyCash is a no-fee cash back card that pays 1.25% on ALL purchases with no limits or category tiers. You’ll also get 5% back at gas stations, grocery stores, and restaurants for the first six months – up to $250 cash back, or $5,000 spending during that period.
- Apply for the SimplyCash card from American Express by clicking this link.
That automatically puts the new SimplyCash card from American Express into the top of the no-fee cash back credit card conversation. You’ll earn $150 per year on $12,000 annual spend. But in the first year you can earn up to $337.50 by maxing out the bonus period. Here’s the breakdown:
- Bonus six months x $833.33 @ 5% = $250 cash back
- Bonus six months x $133.67 @ 1.25% = $12.50 cash back
- Remaining six months x $1,000 @ 1.25% = $75 cash back
- Total cash back in first year = $337.50
New SimplyCash Preferred card from American Express
SimplyCash Preferred card comes with a $79 annual fee and it pays 1.5% back on ALL purchases up to $100,000 annually (dropping to 1.25% afterwards). The difference in the bonus period is that you’ll also get 5% cash back on ALL purchases (not just grocery, gas, and restaurant) for six months, up to a maximum of $400 cash back, or $8,000 spending during the period.
To qualify, you’ll need just $15,000 in annual income, and SimplyCash Preferred cardholders can also get free supplementary cards.
- Apply for the SimplyCash Preferred card from American Express by clicking this link.
Someone who spends $24,000 per year would get $360 cash back (I’m assuming that higher spenders would pay for the annual fee card). But in the first year you could earn up to $640 by maxing out the bonus period. Here’s how that looks:
- Bonus six months x $1333.33 @ 5% = $400 cash back
- Bonus six months x $666.67 @ 1.5% = $60 cash back
- Remaining six months x $2,000 @ 1.5% = $180 cash back
- Total cash back in first year = $640
Like the Scotia Momentum Visa, cash back earned with either of the two new SimplyCash cards will be applied annually to your account as a statement credit.
Final thoughts
This is a bold move into the cash back market for American Express. It comes at a welcome time for fans of cash back rewards who’ve seen some of their favourite cards become watered-down or even discontinued altogether.
No doubt the cash back crowd will be excited with the 5% cash back bonus period – especially that it applies to any purchase (in the case of the Preferred card), and not just gas and groceries.
Related: TrueEarnings Card discontinued as Costco, Amex end partnership
Whether you prefer a no-fee rewards card or want to enhance your cash back with an annual fee card, the SimplyCash cards from American Express are definitely worth a closer look.
There are over 200 credit cards on the market today – enough to make your head spin as you try to determine which one is best. Frankly, there is no perfect credit card, so if you’re looking to maximize your credit card rewards you’ll need to find the card (or cards) that best matches your spending habits.
First, you’ll need to answer these questions:
- Do you want cash back or travel rewards?
- How much do you spend on your card each month?
- Which categories do you spend the most (grocery, gas, travel)?
- Which retailers (if any) do you frequent most often?
For most of us, the answers can vary widely. That’s why, more often than not, the best way to maximize your rewards is to carry a variety of cards and use the one that gives you the best return on your spending, depending on the purchase.
Related: A look at the worst rewards cards in Canada
I’ve had as many as five credit cards in my wallet at one time, and they’ve all played a different role in the quest to maximize my rewards.
This year, I’ll get nearly $900 in credit card rewards this from spending $3,500 per month on my cards. That’s a return of just over 2% on my spending. That doesn’t include the $150 travel credit I got as a sign-up bonus when I applied for a card earlier this year.
Once you figure out which cards are best, you’ll still need to find out where to apply. With websites like Rate Supermarket, Great Canadian Rebates, and RedFlagDeals, it literally pays to shop around.
Okay, so which cards am I talking about and where can I find them?
Here’s where to find the top rewards credit cards today:
Scotia Momentum Visa Infinite
Why get it? – This cash back credit card gives you the most back of any card on groceries and gas spending (4%), plus gives you 2% back on drug store purchases and on recurring monthly payments like your cell phone and internet bill.
Where to get it? – Get a free $100 gift card when you sign up for this card through Rate Supermarket. The $99 annual fee is also waived in the first year.
Capital One Aspire Travel World Elite MasterCard
Why get it? – This card is marketed as a travel rewards card but can actually double as a cash-back card (at a slightly reduced value). Earn 2 miles for each $1 spent and then use Capital One’s no hassle rewards to erase the travel purchases from your credit card statement.
A generous 10,000 bonus miles gets you started with up to $100 in travel (or $75 in cash back) right off the bat.
Where to get it? – Again, Great Canadian Rebates is the best place to get this card. Not only will you get the huge bonus miles from Capital One, you’ll get an extra $75 cash back from GCR when you sign up through their portal.
Amazon.ca Rewards Visa
Why get it? – One of the best-kept secrets in Canada, the Amazon Rewards Visa is one of the only cards that doesn’t charge a 2.5% fee for foreign currency conversion on purchases made outside the country.
Not only that, you’ll earn 2 points for every dollar spent online at Amazon.ca and 1 point for every dollar spent elsewhere. Every 2,000 points earned are automatically redeemed for a $20 statement credit. There’s no annual fee.
Where to get it? – Why, Amazon, of course. Sign up for the Amazon.ca Rewards Visa online and get a $20 Amazon gift certificate.
Scotiabank Gold American Express Card
Why get it? – This travel rewards card pays a whopping 4 points for every dollar spent on groceries, gas, dining, and entertainment. Its comprehensive travel insurance coverage can’t be beat, including up to 25 days of travel emergency medical.
Where to get it? – Apply for the Scotiabank Gold American Express card at Rate Supermarket and you’ll get 15,000 bonus points with your first purchase – that’s good for $150 in travel. The $99 annual fee is also waived in the first year.
American Express Gold Card
Why get it? – Arguably the top pure travel rewards card on the market, the American Express Gold card gives you 2 points for every dollar spent at gas stations, grocery stores, drug stores, and on travel. You’ll get 25,000 bonus points when you spend $500 in the first three months – that’s enough for a round-trip flight anywhere in North America.
The flexible redemption options allow you to book any travel and pay with points (including taxes and fees), or you can transfer your points 1:1 to Aeroplan or Avios.
Where to get it? – The best place to find this card is at Great Canadian Rebates because you’ll get an extra $50 cash back rebate in addition to getting the $150 annual fee waived in the first year and getting a free supplementary card ($50 value) in the first year.
Final thoughts
Once you figure out which rewards credit card best fits your lifestyle you’ll want to shop around to see if there are any extra incentives for signing up.
An extra $50 or $75 in cash back can boost your overall returns and sweeten an already sweet deal.