Best Cash Back Credit Cards With No Annual Fee In Canada For January 2025

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With no-annual-fee cash back, the scoring model used takes into account factors such as, but not limited to, cash-back rates and categories, fees, welcome bonuses, and other rewards and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

Rogers Red World Elite® Mastercard®

It offers 3% for purchases made in American dollars.

Rewards: Earn unlimited 2% cash back (exclusively for eligible Rogers, Fido or Shaw customers) on non-U.S. dollar purchases, otherwise earn 1.5% unlimited cash back. Earn unlimited 3% cash back on U.S. dollar purchases.

Welcome Offer: N/A

Annual Fee: $0

Other Benefits and Drawbacks: With this card, you get access to over 1,300 airport lounges worldwide, extended warranty and purchase protection on select items, rental car collision/damage insurance, out-of-province/country emergency medical care and trip Interruption and cancellation insurance. A drawback: To qualify, your annual personal income must be over $80,000, or your household income over $150,000.

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SimplyCash® Card from American Express

This American Express card is the only Canadian card offering 1.25% cash back on everything—and 2% on groceries and gas, up to a limit of $300 per year.

Rewards: Get 2% cash back on gas and groceries up to $300 cash back annually, and 1.25% cash back for everything else with no limit.

Welcome Offer: Earn 5% cash back on all purchases (up to $2,000 in purchases) in the first 3 months, which translates to up to $100 in bonus cash back.

Annual Fee: $0

Other Benefits and Drawbacks: The card’s benefits include $100,000 travel accident insurance, automatic extended warranty on select purchases made with the card, 24/7 customer service, a fraud protection guarantee and emergency card replacement. One drawback is that American Express still isn’t as widely accepted as Visa and Mastercard.

Related: SimplyCash® Card from American Express Review

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CIBC Costco Mastercard®

This card earns you 3% cash back at restaurants and Costco gas stations, 2% at other gas stations and when you shop at Costco.ca and 1% everywhere else.

Rewards: Earn 3% cash back when you dine out at selected restaurants and fill-up at Costco gas stations on the first $5,000 net annual card purchases. You’ll earn 2% at other gas stations and Costco.ca until you hit $8,000 in purchases when it will revert back to the base rate of 1% on all other purchases.

Welcome Offer: None

Annual Fee: $0 (requires a Costco membership)

Other Benefits and Drawbacks: This card offers up to $1,000 in repair or replacement coverage for your phone for up to two years, as well as purchase security and extended warranty insurance for some new items purchased with your card.

Related: CIBC Costco Mastercard Review

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Triangle World Elite Mastercard

This card gives you 4% back in Canadian Tire (CT) Money on select items at a range of retailers beyond CT, five to seven cents  per  litre in CT Money on fuel, and 3% back in CT Money when you buy groceries.

Rewards: Earn 4% cash back in CT Money on select items at retailers including Canadian Tire, Sport Chek, Mark’s and Party City. Also, earn five to seven cents when you pump gas, 3% at grocery stores on the first $12,000 you spend per year (excluding Costco and Walmart) and 1% in CT Money everywhere else.

Welcome Offer: None.

Annual Fee: $0

Other Benefits and Drawbacks: With this card, you get roadside assistance, purchase security, extended warranty and rental car insurance. But the cash-back earnings are in CT Money, making this only a card for those who frequent the home improvement store.

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Neo Mastercard®

This card offers competitive cash-back earn rates at partner stores with a tiered offering and no annual fee.

Rewards: Earn up to 4% cash back at gas and grocery and up to 1% everywhere else

Welcome Offer: Earn up to 15% cashback on first-time purchases

Annual Fee:  $0

Other Benefits and Drawbacks: With this card, you can choose one or multiple rewards packages for boosted cash back and app subscriptions, but it doesn’t come with any basic insurance or other benefits.

Related: Neo Mastercard® Review

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Tangerine Money-Back Credit Card

This card offers unlimited 2% cash back in two or three purchase categories of your choice and 0.50% cash back on all eligible everyday purchases.

Rewards: Get unlimited 2% cash back in up to three categories of your choice (like groceries, gas, and entertainment) and 0.50% cash back on all everyday purchases. Plus, get extra rewards when your earnings are deposited into your Tangerine Savings Account.

Welcome Offer: Receive an extra 10% cash back on up to $1,000 worth of everyday purchases made in the first two months of owning the card. Terms Apply.

Annual Fee: $0

Other Benefits and Drawbacks: While this card is unique, in that it allows you to choose your cash back categories, it does not offer any additional perks like travel insurance.

Related: Tangerine Money-Back Card Review

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Tangerine World Mastercard

Like the above card, this one offers unlimited 2% cash back in two or three categories of your choice and 0.50% cash back on all everyday purchases with a few Mastercard network benefits thrown in.

Rewards: Get unlimited 2% cash back in up to three categories of your choice (like groceries, gas and entertainment) and 0.50% cash back on eligible everyday purchases. Plus, get extra rewards when your cash-back earnings are deposited into your Tangerine Savings Account.

Welcome Offer: Be rewarded with an extra 10% cash back on up to $1,000 worth of everyday purchases made in the first two months of owning the card. Terms Apply.

Annual Fee:  $0

Other Benefits and Drawbacks: Unlike Tangerine’s Money-Back Card, this one offers rewards when travelling outside Canada, access to select airport lounges for a fee and special offers for on-demand and subscription services. However, to apply, your annual personal income must be $80,000 or $150,000 per household.

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RBC Cash Back Mastercard

Collect up to 2% cash back on groceries and unlimited 1% cash back on everything else.

Rewards: Earn 2% cash back on every $100 you spend at grocery stores, up to a maximum reward of $120 per year or $6.000 in annual spend. After that spend threshold is crossed, get 1% cash back per $100 spent on in-store grocery purchases with no spending limit. Also earn an unlimited 0.5% cash back on all purchases other than those at the grocery store, including recurring bill payments, until a maximum of $6,000 net purchases is made for a maximum reward of $30 per year., After the $6,000 limit is reached on all purchases outside of groceries, earn an unlimited 1% on all non-grocery purchases after that.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: Get  purchase security, extended warranty protection and special discounts and offers at Petro-Canada, Rexall and DoorDash for no annual fee. However, the low earn rates on this card and restrictive $6,000 spending limits on those rates ensure you won’t be earning a lucrative cash back return with this card.

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Simplii Financial™ Cash Back Visa* Card

This card earns a whopping 4% cash back at restaurants, bars and cafes—making it a great card for any foodie to have in their wallet.

Rewards: Earn 4% cash back at bars, coffee shops and restaurants up to $5,000 annually, after that 0.5% unlimited, 1.5% on eligible gas, groceries, and drugstore purchases, as well as pre-authorized payments up to $15,000 per year, after that 0.5% unlimited and 0.5% cash back on everything else†.

Welcome Offer: Earn up to 10% cash back† for your first 3 months up to $1,000 eligible spend.

Annual Fee: $0

Other Benefits and Drawbacks: Get purchase security and extended protection insurance with this card, but you can only cash in cash back at the end of the year, when it’s automatically applied to your December statement. †Terms and conditions apply. This offer is not available for residents of Quebec.

Related: Simplii Financial Cash Back Visa Review

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BMO CashBack® Mastercard®*

The BMO CashBack® Mastercard®* is an ideal choice for individuals who spend less than $500 on groceries and recurring bills every month.

Rewards: 3% cash back on groceries, 1% on monthly bills and 0.5% on other eligible purchases.

Welcome Offer: Earn up to 5% cash back for the first three months on up to $2,500 in qualified spend

Annual Fee: $0

Other Benefits and Drawbacks: This card offers a pretty high earn rate on groceries—a major spending category. It also has a competitive balance transfer offer. That said, it has low spending caps and has little to offer in the way of other perks.

Some credit cards offer cash-back rewards, meaning cardholders can receive a small percentage of their purchases back in cash. For instance, if your card offers 4% cash back on groceries, and you spend $100 at the grocery store, you’d receive $4 in cash back. The cards act as a way to help you to “save” a little on everyday spending, while helping to pay off your credit card bill or fund your bank account (depending on how you redeem it).

Typically, cardholders can redeem their cash back earnings for a cash deposit in their bank account or a credit towards their monthly bill.In some instances, you can only redeem cash back once per year and it’s applied to your credit card statement automatically. Often, if you redeem as you go, you’ll have to earn a certain amount of cash back to redeem (like a $25 minimum) but some cash-back cards allow you to redeem smaller amounts.

Typically, cash back credit cards have a base earn rate—usually 0.5% to 1%—that applies across all eligible purchases.Often, they’ll allow you to earn more cash back—typically 1% to 4—in select purchase categories, like gas, groceries, restaurants or recurring bills. Some cards have a cap on how much of your spending is eligible. For example, you may get 2% cash back on gas transactions when you spend $500 or less filling up your tank each month, but after that, you’ll only earn the 1% base rate on gas purchases.

How Does Cash Back on a Credit Card Work?

Every time you use your cash back credit card, you earn back a percentage of your spending in cash, which accumulates in your cardholder account. You can typically see how much you’ve accumulated on your online bank account or mobile banking app. Some purchases you make will earn you a higher percentage of cash back rewards than others, depending on the card you have. It’s worth noting that your card may require you to accumulate a minimum amount of cash back before cashing in on the rewards. Once eligible to collect, you can get your rewards deposited into your bank account or credited towards your next monthly bill. You may also be able to get the cash back on a gift card.

Learn more: How Does Cash Back Work?

What Does No Annual Fee on a Cash Back Credit Card Mean?

Some credit cards charge you an annual fee, which could be as low as $25 or over $500. With a no-annual-fee cash-back card, that fee doesn’t exist—but there may be other fees to consider. Foreign transaction fees, interest charges, balance transfer fees, and cash advance fees are all common with credit cards. Read your card agreement carefully to learn the details about fees so you can avoid those fees when possible.

Why Do Some Cash Back Credit Cards Have an Annual Fee?

Cash back credit cards that have an annual fee typically offer higher rewards rates, more attractive welcome bonuses, and/or other perks. Before selecting a card with an annual fee, carefully evaluate if its extra benefits justify the additional cost. If they don’t, there are many cash-back credit cards that don’t come with an annual fee that also offer fair rewards and perks.

Not every cash-back credit card with no annual fee is perfect for everyone. Since each card offers different perks based on purchasing habits, you’ll need to consider your lifestyle and find the credit card that best complements it.

Forbes Advisor simply highlights the key facts about each credit card to make it easier for you to compare them and find the best one for you. It’s up to you to do the math and consider which one makes the most sense based on your spending history and plans. Here’s what you should consider:

• Fees: Do you often do balance transfers? Make purchases outside of Canada? You may want to consider a card with low balance transfer and FX fees.
• Annual percentage rate (APR): Will you be paying off your credit card in full every month? Credit card interest rates are often higher than other loans. The best card for you may be one with a low interest introductory APR offer.
• Earn rate: Do you drive a lot? Like to dine out? Consider yourself a frequent flyer? Choose a card that’ll give you the greatest percentage back in those areas.
• Bonus categories: If a card offers 5% on rotating categories (meaning you can swap out the categories from which you get a large percentage of cash back) but you don’t want to keep track of them, it’s probably not the card for you.
• Redemption and rewards: Is it easy to redeem your cash back? Is there a minimum or maximum redemption amount? Make sure you can get your rewards in the way that is ideal for you.
• Other perks: Does the card offer other perks you could benefit from? Some offer rental car insurance, built-in travel insurance, extended warranties and more that could help save you money.

Once you’ve read through all of the card details, found out how much you spend in different categories, and considered the bonus features that could be beneficial to you, you’re better equipped to make a well-informed decision.

Applying for a cash-back credit card with no annual fee is the same as applying for any other credit card. Once you find one that is right for you and you’re eligible for (meaning, your credit score and income requirements align), you can visit a bank to apply in-person or sign up by yourself online. No matter the option you choose, you’ll be asked to provide personal information, including your Social Insurance Number and financial details. Once finished, you could get approved instantly or you may have to wait for your application to be reviewed manually. Once approved, you’ll receive your card in a few days or weeks.

The information for the CIBC Costco Mastercard® has been collected independently by Forbes Advisor. The card details on this page have not been reviewed or provided by the card issuer.