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You’ve heard the buzz about this no-fee cash back card, but is it worth the hype? And how does it stack up against the competition?
With high inflation rates in Canada, you may be looking for creative ways to save money. And while a cash back credit card can be an easy way to put money back in your pocket from spending on essentials like groceries and gas, most cash back cards worth swiping come with a substantial annual fee. Enter: the Tangerine Money Back Mastercard. We like the generous welcome offer, solid earn rate and a few other perks. So, is the Tangerine Money Back Mastercard the best no-fee cash-back card for Canadians? We break down the online bank’s offerings and see how it stacks up against its competitors.
Annual fee: $0
Welcome offer: Earn an extra 10% cash back during the first two months (up to $100 in cash back).
Card details
| Interest rates | 20.95% on purchases, 22.95% on cash advances and 22.95% on balance transfers |
| Income required | Personal or household income of $12,000 |
| Credit score | 660 or higher |
It offers cardholders an above-average 2% cash back rate in two out of 10 spending categories. When you open a Tangerine savings account, and have your cash back earnings deposited into it, you earn yourself a third category to earn 2% cash back in, too. For context, most other no-fee rewards credit cards either earn fewer rewards per $1 spent or offer less bonus categories. And there’s even more…
What really sets the Tangerine Money-Back Mastercard apart from the rest is that it’s the only credit card in Canada that lets you pick your own bonus categories. You can align these with your spending and use this feature to maximize your rewards. (Speaking of inflation, gas and groceries could be savvy categories to earn cash back on.) With other cards, you may have a higher earn rate, but it could be for a category you barely use.
Plus, the categories you choose aren’t set in stone. You can also switch up your cash back categories (via the app) every month if you want to.
The card’s welcome offer allows you to earn an extra 10% back on up to $1,000 in everyday purchases within the first 2 months. It’s almost like a reverse annual fee. You’re paid you to use the card—if you plan to spend that much in the first two months anyway.
The cash back you earn from your customized categories is deposited in your account on a monthly basis. What’s more? There’s no limit to the cash back you can earn, which many comparable cash back cards do have limits on.
Plus, if you’re wanting to consolidate debt from another credit card, the Tangerine card offers a super low interest rate on balance transfers (1.95%), which is another reason to consider it. Simply complete the balance transfer request within 30 days of opening your account, and then move your debt over to your Tangerine card. For the following six months, your transferred balance will accumulate a low 1.95% interest. Just be sure to pay off that balance within six months, when the promotional rate ends and the regular regular 19.95% rate is applied. Note: There is a flat balance transfer fee of 1%. For example, if you transferred $1,000, the fee is $10. If you’ve got an accumulated balance on another credit card, this promotion can help you consolidate your debt and pay it down at a fraction of the interest.
Aside from being a good everyday credit card option for Canadians, it’s also extremely flexible, meaning that you can swap categories every month. Swaps take effect only once per billing cycle. This is when the Tangerine card really shines. Let’s say you have a big renovation coming up. If you’ve selected the home improvement category, you’ll get 2% back on those purchases. Booking a trip? Travellers will do well with the hotel-motel option. Those looking to buy new furniture stand to earn back a healthy percentage. (However, changes won’t come into effect immediately, so plan ahead.)
The 10 Tangerine categories offer a lot of variety:
With a bit of planning and selecting the right categories for you, you can stow away some extra money with cash rewards.
There’s also another way to maximize your credit card rewards: Try pairing the Tangerine card with a second credit card to get the most cash back possible on every purchase.
For example, say you chose gas, restaurants and groceries as your three 2% cash back categories on your Tangerine card, but you want to buy a new couch. If you use another credit card for that sofa purchase, such as the SimplyCash Card from American Express card* which has a cash back rate of 1.25%, it beats Tangerine’s earn rate of 0.5% for the “other purchases” category.
No-fee credit cards like the Tangerine Money-Back Mastercard don’t tend to offer much in the way of perks. You get basic credit card insurance, like purchase protection and extended warranty, but that’s pretty much it. However, if you earn a personal annual income of $60,000 or more (or household income of at least $100,000), you could qualify for the higher-tier Tangerine World Mastercard. The Tangerine World Mastercard is virtually identical to the Tangerine Money-Back credit card, offering the same in cash back rewards while also charging no annual fee. However, it includes some additional perks.
The amount you can earn with the Tangerine Money-Back card varies, depending on your spending habits. To give you some idea of the earning potential, we chose three common bonus categories—groceries, recurring bills and dining—while assuming a monthly budget of $2,000 is spent on the following:
| Spending category | Earn rate | Monthly spend | Annual reward |
|---|---|---|---|
| Groceries | 2% | $500 | $120 |
| Recurring bills | 2% | $200 | $48 |
| Dining | 2% | $300 | $72 |
| Everything else | 0.5% | $1,000 | $60 |
| Total | $2,000 | $300 |
Based on this scenario, you’d earn $300 in cash back annually, which is a nice bonus especially since the card carries no annual fee.
The Tangerine unique rewards structure gives you the ability to choose your own bonus categories, which makes it ideal for pairing with another credit card to maximize your rewards as part of a two-card strategy. For example, you can net higher returns by using the Tangerine Money-Back in tandem with the SimplyCash Card from American Express*. The latter also has no annual fee but earns a flat 1.25% on everything you buy. With this strategy, you’d use the Tangerine card for purchases in accelerated categories and the SimplyCash from American Express for everything else in order to collect more cash back.
| Spending category | Credit card and earn rate | Monthly spend | Annual reward |
|---|---|---|---|
| Groceries | Tangerine Money-Back 2% | $500 | $120 |
| Recurring bills | Tangerine Money-Back 2% | $200 | $48 |
| Dining | Tangerine Money-Back 2% | $300 | $72 |
| Everything else | SimplyCash Card from American Express 1.25% | $1,000 | $150 |
| Total | $2,000 | $390 |
By simply using these cards together, you can bump up your annual earnings by $90—all without any annual fees.
The regular cash back rate on the Tangerine card is only 0.5%, which is better than nothing but it’s not going to make headlines. Also, there’s not much on offer by way of extras with this card (for instance, it lacks travel insurance benefits) though the standard purchase protection and extended warranty apply.
Truth be told, there aren’t many products that compare to the Tangerine Money-Back card since no other card lets you pick your own bonus categories. However, these four cards deserve consideration, too.
Though less flexible than the Tangerine card, this credit card from Simplii offers a huge 4% back on purchases at restaurants, coffee shops and bars up to $5,000 annually, and 1.5% back on gas, groceries, drug store purchases and pre-authorized payments up to $15,000 per year. Once a cardholder reaches those limits, they earn at the default 0.5%. For those who dine out frequently, this can be an excellent choice.
Annual fee: $0
Welcome offer: Earn up to 10% cash back for your first 3 months (on the first $1,000 in purchases). Terms and conditions apply. (Not available for residents of Quebec.)
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | $15,000 per year |
| Credit score | 660 or higher |
SimplyCash Card from American Express offers a competitive cash back rate of 2% on gas and groceries, plus a 1.25% base rate on all other purchases, making it one of the best cash back cards in Canada. American Express adds a boost with $100,000 in travel accident insurance and access to virtual events and special offers with American Express Experiences.
Annual fee: $0
Welcome offer: Earn a bonus 5% cash back on your first $2,000 in purchases during your first three months (up to $100 in bonus cash back).
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
We’ve outlined this card’s valuable perks and earnings. These questions will help you determine the best product for your situation. Here are some questions to help you figure that out.
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Does any credit card give more than 0.5% on Costco shopping ? I would love to get that!
The Costco MasterCard is worth mentioning. 2% on purchases at Costco as well as restaurants and I think gas. 1% on everything else
Correction. The Costco MasterCard gives you 3% back on restaurants. The card itself is free but you do have to have a costco membership.
@Suzi Skinner
Correction: You do get 2% back on Costco gas but only 1% back on store purchases at Costco.
Is this an update of the article…comments go back to Nov 2020, and Costco now has a new MasterCard provider and I’m not sure if cash back offers as the same as with previous provider.
I own a Tangerine MC and I cannot be happier. I set up to pay all my bills automatically with this card, that bring me roughly $20-25 cash back.