Travel rewards credit cards got all the attention in the big Aeroplan shake-up last summer.  But now the cash back segment is getting a much-needed shot in the arm with the introduction of the new SimplyCash and SimplyCash Preferred Cards from American Express.

New SimplyCash Card from American Express

The SimplyCash Card – simply put – is the best flat no annual fee cash back credit card in Canada, offering 1.25% cash back on everything you buy.  Cardholders don’t have to navigate through earnings caps and category tiers – there’s no limit to how much cash back you can earn..

As an added bonus, new cardholders will get 5% back on groceries, gas, and restaurant purchases in Canada for the first six months – up to $250 cash back, or $5,000 spending during that period.

Other card benefits include:

  • Free supplementary cards
  • Insurance coverage, including Buyers Assurance, Purchase Protection, Travel Accident. Car Rental & Theft Damage Insurance
  • Front of the Line access to the hottest entertainment
  • 24/7 customer service

With the SimplyCash Card, you can earn $150 per year on $12,000 annual spend.  In the first year you can earn up to $337.50 by maxing out the Welcome Rate bonus period.

SimplyCash Preferred Card from American Express

For those who put a lot of purchases on their card every month, and don’t mind paying an annual fee, there’s the SimplyCash Preferred Card.

With a $79 annual fee, this card costs less than most other premium rewards credit cards on the market.  Applicants will need a minimum annual income of just $15,000 in order to qualify.

The SimplyCash Preferred Card gives you 1.5% back on everything you buy – up to $100,000 annual spend (earn 1.25% afterwards).

Like the no-fee version, SimplyCash Preferred offers a generous welcome rate of 5% back for the first six months (up to $400 cash back).  The difference is that with the Preferred Card, you’ll get 5% cash back on everything you buy, not just for grocery, gas, and restaurant purchases.

That means big-time earning potential.  Someone who spends $24,000 per year with the SimplyCash Preferred Card would get $360 cash back.  But in the first year you could earn up to $640 by maxing out the Welcome Rate bonus period.  That’s a 2.67% return on your spending!

The Value of Cash Back

While travel cards tend to offer richer rewards, the programs can often be complicated and the rewards difficult to attain.  A cash back card, on the other hand, is straightforward and easy to understand.

A recent survey conducted by American Express found that Canadians who own cash back credit cards know exactly what is important to them when evaluating one:

  • 90% value simplicity and ease of use
  • 87% feel it’s important to be able to earn cash back everywhere they spend
  • 79% look for additional benefits (i.e. fraud protection, insurance benefits etc.)
  • 77% value 24/7 customer service
  • 49% look for exclusive perks (i.e. ticket access, promotions, experiences, offers etc.)

Final thoughts

American Express hit all the right notes with the introduction of the new SimplyCash Cards.  The no-fee version offers a higher flat base rate than any other no-fee cash back credit card on the market, and the welcome rate of 5% cash back for the first six months is unheard of in the industry today.

For American Express Cardholders looking to replace the discontinued TrueEarnings Card, the no-fee SimplyCash Card is worth a look.  And if you’re a cash back rewards fan looking to get the most out of your spending, the SimplyCash Preferred Card will provide a significant boost to your earning potential.

Click here to learn more about the new SimplyCash and SimplyCash Preferred Cards.

This post was sponsored by Amex Bank of Canada.  The views and opinions expressed in this blog, however, are purely my own.


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