Best Cash Back Credit Cards in Canada for 2025

Cash back is the simplest reward a credit card can offer. If you want a cash back card in Canada, you have lots of options. These cards give you back a percentage of what you spend on different purchases. The key is finding one that matches how you shop. Here's our list of the best cash back credit cards in Canada.

Compare the best cash back credit cards

1. KOHO Essential Plan

• 1% cash back on groceries, eating and drinking, and transportation

• 2.5% interest on your entire balance

• Instant e-Transfers

• Unlimited transactions

• Up to 6.5% extra cash back at select merchants

• Up to $100K of your money is CDIC protected**

• Check your credit score for free

• $0 monthly fee*

*You can get the Essential Plan for free in one of two ways:

Set up direct deposit

Have your paycheque or government benefits deposited directly to your KOHO account. We process payments as soon as they arrive.

OR

Deposit $1,000+ monthly

Add at least $1,000 to your KOHO account each month. This can be through e-transfers or transfers from other accounts.

**When you opt in to Earn Interest, your funds are placed in trust with one or more CDIC member institutions. Funds held in trust by CDIC member institutions are eligible for CDIC protection of up to $100,000 per beneficiary, per member institution, if the member institution were to fail. For more info on CDIC coverage please check out this link. KOHO Accounts not earning interest are not eligible for CDIC protection.

2. Scotia Momentum Visa Infinite Card

Annual fee: $120

Interest rates: 20.99% / 22.99%

Rewards rate: 1% - 4%

This card offers 4% cash back in two major spending categories. You can earn up to $1,000 a year (on $25,000 in purchases) before the rate drops to 1%.

Cash back is only paid once a year in November, either as a statement credit or deposited to your Scotiabank account.

3. BMO CashBack World Elite Mastercard

Annual fee: $120

Interest rates: 20.99% / 23.99%

Rewards rate: 1% - 5%

You get solid cash back on everyday purchases. Get 5% on groceries, 4% on transit, 3% on gas, 2% on recurring bills, and 1% on everything else.

The spending caps are easy to reach, but you'll still earn 1% after hitting your monthly limits.

4. SimplyCash Preferred Card from American Express

Annual fee: $119.88

Interest rates: 21.99% / 21.99%

Rewards rate: 2% - 4%

Earn 10% cash back on purchases for your first 3 months (up to $2,000). Plus get a $50 credit when you make a purchase in month 13. That's up to $250 extra in your first 13 months.

Get 4% cash back on gas and grocery purchases in Canada (up to $1,200 yearly) and 2% on everything else.

You can also access special events and offers with Amex Experiences.

5. BMO CashBack Mastercard

Annual fee: $0

Interest rates: 20.99% / 22.99%

Rewards rate: 0.5% - 3%

Get 5% cash back in your first three months. After that, earn 3% on groceries, 1% on bill payments and 0.5% on everything else.This card gives you the highest no-fee cash back rate on groceries in Canada.

You'll also get:

• 0.99% interest on balance transfers for 9 months (2% transfer fee)

• Cash back you can redeem anytime through direct deposit, statement credit or to your BMO InvestorLine account

• Purchase protection

• Car rental discounts

What are cash back credit cards?

These cards are simple: you make purchases and get back a percentage of what you spend in cash.

Advantages

• Easy to understand and use

• Often come with good welcome bonuses

• You can use rewards to pay your card balance

• High earn rates on everyday purchases can add up quickly

Disadvantages

• You might not spend much in the high-earning categories

• Rewards can build slowly if your monthly spending is low

• Welcome offers usually require you to spend a certain amount

• You need to pay your bill in full to really benefit

Cash back or rewards points?

It depends on what you value more - straightforward cash or flexible points for things like travel.

Learn more about cash back on credit cards.

Tips for using a cash back credit card

Keep an eye on welcome offers

Card providers often update their sign up bonuses. Look for deals with higher cash back rates and waived annual fees. These can save you money without costing anything for the first year. Some people even "churn" cards - they sign up, use the welcome offer, then close the account before paying an annual fee. This is risky but can work if you're careful.

Make major purchases in the first three months

Welcome offers usually require you to spend a certain amount within three months. Plan big purchases for this period. For example, if your new card offers 12% cash back on all purchases (if you spend $2000), buying that new appliance or furniture could save you $240.

Purchase gift cards

If your card gives high cash back on groceries and gas, buy gift cards at these locations. You'll get cash back on the purchase, then use the gift cards at restaurants, movie theaters, and stores - basically extending your cash back to other categories.

Keep more than one card

Many people use different cards for different spending. You might have one card for groceries and gas, another for restaurants and entertainment, and a third with no foreign transaction fees for travel. Using the right card for each purchase means more cash back.

Cash back credit cards: pros and cons

Pros

• Higher rates for everyday purchases like gas and groceries

• Easier to understand than points-based systems

• Can use rewards to pay your credit card bill

• Welcome bonuses can give big savings

Cons

• Cards with annual fees may not be worth it if you don't spend much

• Interest charges can wipe out rewards if you don't pay in full

• Some welcome offers require spending amounts that might be hard to reach

Is a cash back card right for you?

Cash back cards work best if you pay your balance in full each month and spend regularly in high-earning categories. Before choosing a card, look at your monthly budget to see where you spend most. If you buy a lot of groceries and gas, find a card with high rates in these areas. For travel lovers, a points card might be better.

The best approach? Be strategic. Use welcome offers to your advantage, pick cards that match your spending habits, and always pay on time to avoid interest charges that eat into your rewards. Cash back cards aren't magic money-makers, but they can put real dollars back in your pocket when used wisely.