The best cash back credit card in Canada – Forbes Advisor Canada

Earn rewards

To maximize your earnings upfront, you skip the first annual fee and receive 10% cash back on total net purchases up to $2,000 in the first four months (up to $200 cash back ). Beyond that, pay rates drop but continue to offer competitive returns on everyday essentials. You’ll earn 4% on eligible grocery and gas purchases, 2% on transportation, meals and recurring payments, and 1% on everything else. With grocery and gasoline prices currently high due to inflationnow is the time to consider paying with a card like this.

You can save even more on fuel by linking your CIBC Dividend Infinite Card to Journie Rewards. Get 3 cents per liter when you fill up at participating Pioneer, Fas Gas, Ultramar and Chevron stations. Earn an extra 7 cents per liter for every 300 Journie Points you earn. These savings can really add up for those who spend a lot of time on the road.

While there is no limit to how much you can earn with this card, there is a cap on the 4% and 2% spend categories. These rates apply until you reach $80,000 in net annual purchases or $20,000 in groceries, gas, transportation, dining and recurring payments (whichever comes first). Then the cashback drops to 1% for the rest of the calendar year. The base rate of 1%, however, has no limit.

Even with a few cashback caveats, the earning potential outweighs the competition. Credit cards with 4% cash back usually only offer this rate for one spending category. Most credit cards offer 2% as the top tier and 0.5% as the base rate.

Redeem rewards

Cashing in CIBC Dividend Rewards Visa Infinite is simple and flexible. You can use Cash Back through CIBC Online Mobile Banking whenever you have a Cash Back balance of at least $25. A credit will be applied to your account within five days of submitting the redemption request. Any Cash Back Earnings remaining at the end of the year will be added as a credit to your January statement.

When you earn real money, flexible redemption options give you more control over your hard-earned money. Some credit cards only issue a refund once a year in the form of a statement credit. With the CIBC Dividend Visa Infinite Card, you can access your funds when you really need them.

Rewards potential

The actual value of a cash back card is based on potential annual earnings. We’ve done the math for you by calculating what the average Canadian spends each year on each CIBC Dividend Cash Back Visa Infinite category. Forbes Advisor uses data from multiple government agencies to determine both basic income and credit card spending averages in various categories.

Forbes Advisor estimates total annual credit card spending at $27,851.70. Of that amount, grocery and gas purchases total $10,896, which earns $435.84 in cash back. The $5,211 spent annually on meals and recurring bills would yield $104.22. We may add $117.44 in annual cash back for $11,744.70 in other expense categories (such as air travel, hotels, online shopping, and miscellaneous expenses) that could reasonably be attributed to a credit card.

The total cashback collected brings the potential annual earnings to $657.50. When we subtract the $120 annual fee, this card still earns a more than solid $537.50. Only a handful of credit cards come close to this level of earning power. Plus, there’s still room to earn even more cash before you hit the purchase limits.