Let’s dive into both cards and see what they have to offer…
How does Amex cashback lineup compare to the competition?
American Express SimplyCash Preferred Card
Amex has made the rewards for their cards simple – a flat rate on all of your spend.
The annual fee is $99 per year – with supplementary cards at no charge.
The following insurance & shopping coverages come with the card:
- Rental Car Theft and Damage
- Travel Accident ($100,000)
- Emergency Medical (up to $5,000,000)
- Lost or Stolen Baggage (up to $500)
- Flight and Baggage Delay (up to $500)
- Hotel/Motel Burglary (up to $500)
- Extended Warranty (1 year)
- Purchase Protection (90 days) – Insures your purchases against accidental damage and theft (here’s a list of all 16 types credit card insurance with explanations).
Now, keeping in mind that cash back credit cards typically don’t have the greatest insurance packages when compared to travel cards…
This is a fairly extensive list of coverages, and one of the best for a cash back card.
You’ll also get a welcome bonus of 10% cash back on gas, groceries, and restaurant purchases in the first 6 months (up to a max of $300).
You will also be joined in the American Express invites, which includes special offers and advance access to events.
While having a different way of offering cash back, the Scotiabank Momentum Visa Infinite Card is our top ranked cash back card.
So what are the differences between these two? And is there a time when the Amex card can be a better option than the MBNA?
Let’s review seven factors to see how they stack up.
1. Rewards Earned
To calculate total rewards earned, we will use our base $2,000 monthly spend for comparison.
|American Express||Scotiabank Momentum Visa Infinite|
|Spend Category||Monthly Spend Amount||Earn Rate||Annual Rewards||Earn Rate||Annual Rewards|
At our base spend these cards are evenly matched. Spend more on gas and groceries than we have here and the Scotiabank card will be better. Spend more on general purchases and the Amex card is better.
2. Annual Fee
The Scotiabank card has an annual fee of $99, same as the Amex card.
3. Redeeming Cash Back
The Amex card will give your cash back every September as a statement credit.
The Scotiabank card also only gives you your cash back once a year, in November.
4. Insurance Coverage
Here are the two cards coverage side by side:
|Amex SimplyCash Preferred||Scotiabank|
While both cards have good insurance coverage, I would give the Scotia a slight edge based on having a few higher amounts.
While much is made about acceptance of Amex cards, as an Amex cardholder myself I don’t find it is much of an issue.
Yes, there are the odd small businesses that don’t accept it, but almost all of the large chains take it with two exceptions:
- Costco (which only accepts Mastercard), and
- Loblaws group of stores (including, but not limited to Loblaws, Real Canadian Superstore, Atlantic Superstore, Independents and No Frills to name a few, but not including Shoppers Drug Mart).
Shop regularly at these two stores and the Amex card won’t be of much use to you without a backup. While you won’t be able to use the Scotiabank card at Costco, it’s 4% earnings really boost your rewards at Loblaws stores.
6. Welcome Bonus
While I would never base a card I apply for based on a welcome bonus, it can be an edge when deciding between two evenly matched cards.
In this case, the Amex has a welcome bonus worth up to $300, while the Scotiabank card will give new cardholders the first year free, a 99$ value. The Amex bonus isn’t worth the full $300 though because you’d be getting your normal 2% cash on those purchases anyway, so you have to subtract that from the total bonus value. With the 5% promo now going on, the true bonus maxes out at $180.
This is Amex’s biggest advantage.
While the Scotiabank card will require you to have either an annual personal income of $60,000 or household of $100,000 (your typical Visa Infinite requirements), the Amex card has no income restrictions for any of its cards.
While a close call (especially if you tend to use your rewards for travel), I would give the overall edge to the Scotiabank Momentum Visa Infinite, due to the higher earn rates and higher acceptance.
However, if you’re able to quality for its high income requirement, the Amex card will be your better choice.
American Express SimplyCash Card
Don’t like paying an annual fee?
Don’t have a high monthly spend?
Looking for a 2nd card to compliment a category based card?
American Express has you covered as well. The
And because this card has no annual fee, the insurance coverage is not as robust. It does come with the following:
- Car Rental Theft and Damage
- Travel Accident ($100,000)
- Extended Warranty (1 year)
- Purchase Protection (90 days)
For a no fee cash back card, that’s still pretty decent coverage.
The welcome bonus is also pared back when compared to the preferred card. You will get 2.5% cash back on all purchases for the first 6 months, up to a maximum of $150. That’s $75 more than you’d get on that amount of spending normally.
And like the Preferred card, you will also be have access to American Express invites.
We’ll compare this card to two other no-fee cash back cards that have a flat rate of return – the
Let’s review three factors to see how they stack up.
1. Return on spend
The BMO card gives a 1% return, while the Amex and Rogers card will give a 1.25% return.
At an average monthly spend of $1,000 per month, the SimplyCash and Rogers cards are going to give you the same return. Unless you’re spending a lot in foreign currencies since the Rogers card will give you 3% back on those purchases.
2. Welcome Bonus
All three cards have different ways of earning a welcome bonus. However, they all have a maximum that can be earned:
- Amex has a total bonus of $150.
- BMO CashBack offers 4% back on all purchases for the first 4 months, up to a total of $125.
- Rogers has a welcome bonus of $25.
Doing a little math, with Amex you’re getting a $75 increase in overall cash because of the bonus. And with BMO, it’s $94. Rogers is straightforward, you get $25, no math required.
The Amex SimplyCash card is the only one that has the car rental and travel accident insurance, in addition to purchase protection and extended warranty.
The BMO CashBack card offers purchase protection (90 days) and extended warranty (1 year), while the Fido Mastercard has no insurance coverage at all.
At a monthly spend on $1,000 per month, we have…
On a strict spending return, the Rogers and Amex cards are the winner. But if you combine all 3 factors together, the SimplyCash Card is the winner…
Unless you plan to use it regularly at Costco or Loblaws stores, in which case the Rogers Mastercard would likely be the better option of the three.
However, if you want a big bank behind your card along with great acceptance, then the BMO CashBack is still a contender.
For me, American Express clearly has a great line of cash back credit cards.
The SimplyCash Preferred card is a terrific all around high-end cash back card. And the SimplyCash card is great on its own – but also pairs well with a category card (as they typically give 1% on non-category purchases) giving you a little increase in your annual rewards.
Whether you’re looking for a premium card or something more basic, Amex has you covered.