While points-maximizers often prioritize collecting rewards in the form of points or miles, collecting cash back offers something rewards programs can’t: simplicity and unmatched flexibility.
Opting for a cash-back credit card that earns a consistent 2%, either on all purchases or in a number of valuable categories, simplifies your earning process even further. Plus, you can pair it with a category-specific card for optimal rewards across all your spending. For instance, you can use the flat-rate card for everyday purchases and the category-specific card for expenses like groceries, gas, or dining out—ensuring you earn optimal rewards on every transaction.
Overall, opting for a cash-back credit card that has a simple 2% earn rate is excellent strategy for maximizing your rewards while minimizing complexity. With that in mind, we’ve ranked the best 2% credit cards in Canada.
Methodology
When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With 2% 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.
Best 2% Cash Back Credit Cards in Canada for March 2024
SimplyCash® Preferred Card from American Express
This card is the only one in Canada that offers a 2% base rate—and more. You’ll get 2% cash back on all eligible purchases and 4% on groceries and gas, two major spending categories.
Rewards: 4% cash back on groceries (up to $1,200 in cash back per year) and gas, 2% cash back on all purchases with no limit.
Welcome Offer: Earn $10 cash back each time you spend $300 in a monthly billing period in the first 10 months (up to $400 in statement credits).
Annual Fee: $119.88 (monthly payment of $9.99)
Other Benefits and Drawbacks: In addition to offering a steady flat-rate cash back, this card boasts the highest cash-back welcome bonus available for any cash-back card in Canada, allowing you to earn up to $400. That said, American Express still isn’t as widely accepted as Visa and Mastercard.
SimplyCash® Card from American Express
This card earns 2% cash back in two major categories: groceries and gas. It also earns a slightly above-average rate of 1.25% everywhere else.
Rewards: Earns 2% cash back on groceries (up to a limit of $15,000 per year) and 2% back on gas. You’ll earn 1.25% cash back on all other spending.
Welcome Offer: Earn up to $100 in statement credit in your first 10 months. You’ll get a $10 statement credit each month in which you spend $300 on the card.
Annual Fee: $0
Other Benefits and Drawbacks: This card earns cash back with its 2% rewards on groceries and gas, along with a reliable base rate of 1.25%. However, because of Amex’s narrower acceptance compared to Visa and Mastercard, you may lose out on potential earnings depending on where you shop.
Tangerine Money-Back Mastercard
This card is unique in that it earns 2% cash back in three spending categories of your choosing, so you can tailor your rewards to your spending habits.
Rewards: Earns 2% cash back in two spending categories of your choosing (10 choices) and earns 0.5% on everything else.
Welcome Offer: Welcome bonus of 10% cash back on up to $1,000 in purchases in your first two months ($100 value) when you apply by April 30, 2024.
Annual Fee: $0
Other Benefits and Drawbacks: With this card, you have the flexibility to select your preferred categories, including common ones like groceries or gas, and niche ones like home renovations and furniture. However, it lacks significant perks aside from its cash-back potential and some consumer protections.
Tangerine World Mastercard
This card earns 2% in up to two shopping categories, but 1% on everything else.
Rewards: Earn 2% cash back on three spending categories of your choice: groceries, furniture, restaurants, hotels, gas, recurring bill payments, drug stores, home improvement, entertainment, public transportation or parking. All other categories earn 0.5% cash back.
Welcome Offer: Earn 10% cash back ($100 value) on up to $1,000 in purchases made within the first two months of owning the card when you apply by April 30, 2024.
Annual Fee: $0
Other Benefits and Drawbacks: This card offers great flexibility as you can choose your own categories. Plus, it has some decent perks, like DragonPass and rental car insurance. However, it does have pretty high income requirements for a no-annual-fee card.
Scotiabank Momentum Visa
This card is pretty basic, earning 2% cash back on gas, groceries, drugstore purchases and recurring bill payments.
Rewards: 2% cash back on gas, groceries, drugstore purchases and recurring bill payments (up to $25,000 of spending, 1% cash back in these purchase categories after that). 1% cash back on everything else.
Welcome Offer: None
Annual Fee: $39
Other Benefits and Drawbacks: This card earns cash back in a few key frequent spending categories for most people and has a good balance transfer offer. Otherwise, it’s pretty bare for a card that still charges an annual fee, even if it’s a low one.
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