The American Express Membership Rewards program offers the best value and has the most flexible redemption options. It may not be the easiest to use, though, and for many people, convenience can be worth the small sacrifice.
If you’re overwhelmed when it comes to credit card rewards, take a step back and look at the reward programs themselves. Comparing programs from top Canadian banks and studying the earn rates, redemption values, and other details can help you decide which program – and credit card – is right for you.
This article compares programs, including the best cards for each program, to help you make your decision.
Key Takeaways
- Guaranteed reward options give a fixed return for each reward point, while flexible rewards have varying value depending on redemption factors.
- Not all reward programs offer the same redemption offers or the same value.
- Some programs offer a mix of flexible and guaranteed rewards, which puts you fully in control of redemption value.
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What are guaranteed reward credit cards and what are the benefits?
Guaranteed rewards credit cards are designed to make things easy, so users don't have to track variable credit card redemption options. Instead, they have a guaranteed value for each point, so you know the value of your rewards won’t change.
With guaranteed value rewards, users don't have to sacrifice flexibility. In fact, these programs still give you a handful of choices for redemption.
Guaranteed reward value
Guaranteed reward value means each point is worth a set amount – typically 1 cent, though this varies by program. No matter what you use your points for, you can expect to get roughly consistent value.
You can book any travel you like without worrying about getting the most out of your points. Some programs let you book with any travel provider, while others require you to use their specific site.
You can use your points to help pay for the whole thing, or just a portion of your travel purchase. It doesn't get much simpler than that. Keep in mind, though, that your points may or may not cover the taxes and fees – be sure to read your program’s terms and conditions.
Some programs will even allow you to transfer points to airline or hotel programs or use fixed-point flight charts.
Flexible reward choices
There are other redemption options beyond travel, including merchandise and gift cards. With flexible reward choices, the value of your rewards can vary, but they’re still easy to use.
If you’re using a guaranteed rewards card offered by a bank, you’ll also have the option to use your points for cash:
- Statement credits
- Direct deposits
- Investment credits
- Credit towards a card’s annual fee
Comparing rewards programs
Here's our side-by-side comparison of the RBC, TD, Scotiabank, CIBC, BMO, and Amex rewards programs:
| Program | Maximum point value (in cents per point) | Redemption options | Best credit card | Average rate of return |
|---|---|---|---|---|
| American Express Membership Rewards | 2 CPP | * Transfer points to partners * Fixed points travel program * Flexible points travel program * Cash * Gift cards * Merchandise | American Express Cobalt® Card | 4.5% |
| BMO Rewards | 0.67 CPP | * Pay with points * Financial rewards * Redeem at retailers * Gift cards * Merchandise | BMO eclipse Visa Infinite* Card | 1.59% |
| CIBC Aventura Rewards | 1.96 CPP | * Travel * Shopping with points * Charity * Financial products * Merchandise * Gift cards * Paying with points | CIBC Aventura® Visa Infinite* Card | 2.66% |
| RBC Avion Rewards | 2.33 CPP | * Avion travel * Transfer to partners * Charity * Merchandise * Gift cards * RBC financial products * Pay with points | RBC Avion Visa Infinite | 2.36% |
| Scene+ | 1 CPP | * In-store and online discounts * Travel * Gift cards * Points for credit | Scotiabank Gold American Express® Card | 2.45% |
| TD Rewards | 0.5 CPP | * Expedia For TD travel * Travel * Amazon.ca * TD catalogue: gift cards, merchandise, eGift cards * Cash back * Starbucks Stars | TD First Class Travel® Visa Infinite* Card | 1.94% |
Amex Membership Rewards
Amex Membership Rewards is one of the leading programs for flexible rewards. It's the only one where you can redeem points for any travel charged to the card, from any provider, with no loss in value and no requirement to pay the full amount in points.
Each Amex point is worth 1 cent when redeemed this way, but there are a few other ways to use your points, such as transferring to airline and hotel partners.
Take a look:
- Transfer to 6 airline partners
- Transfer to 2 hotel partners
- Redeem with the Fixed Points Travel Program
- Gift cards and prepaid credit cards
- Merchandise
BMO Rewards
The BMO Rewards Program might not have as many travel-related redemption options, but you’ll still have plenty of easy redemption opportunities. In addition to redeeming points for Apple merchandise, you can choose financial rewards like deposits into savings or InvestorLine accounts.
Of course, you have the standard gift card and merchandise options, but if you want to use your BMO Reward points for travel, you only have one option: you need to book travel through BMO Rewards and use your points to help pay for the purchase.
Cashing in 150 points will give you $1 off your travel, with a value of 0.67 CPP.
CIBC Aventura Rewards
The CIBC Aventura Rewards Program offers a mix of fixed and flexible rewards, including redeeming points for shopping, selecting gift cards, or donating points to charity.
You’ll also have the option of using your Aventura points as investment contributions, credit towards your mortgage, or even to pay down personal loans. If you prefer, you can apply your points toward your credit card balance, effectively paying for almost anything with your rewards.
If you’re specifically interested in travel rewards, you’ll have to book with Aventura Airline Rewards or Flexible Travel Rewards since booking with another provider isn’t allowed.
RBC Avion Rewards
The RBC Avion Rewards Program operates similarly to CIBC Rewards. You can use your points to redeem for travel booked through RBC Avion Air Travel, Avion Premium, and Avion Select.
With the rewards program, you can easily transfer Avion points to 4 partnering airline rewards programs. However, if you don’t travel much, you can donate your points to charity for 1 CPP value or cash them in for merchandise or gift cards.
RBC also lets you put your points toward RBC financial products like education funds, investments, mortgages, savings, and more. You can even apply your points as a statement credit on your credit card or transfer their value using Interac.
Scene+
The Scene+ program, operated by both Scotiabank and Cineplex, allows you to redeem points for travel from either Scene's partnership with Expedia or any travel provider, for a value of 1 CPP.
However, if you're booking travel through a site other than Expedia, you'll need to use a Scene+ credit card.
Otherwise, you can redeem your points for gift cards at popular retailers or get discounts at places like Cineplex, Playdium, Rec Room, Home Hardware, and popular restaurants and grocers.
Don’t forget that Scene+ is managed in part by Scotiabank, so you can choose to deposit your Scene+ points into a Scotiabank chequing account or apply them to your credit card’s balance.
TD Rewards
Finally, the TD Rewards program has a value of 0.5 CPP when redeeming for travel through Expedia For TD. Although that’s your highest-value reward option, you can also redeem points for any travel booked through the card with TD Easy rewards, but for a lower value of 0.4 CPP – a 20% reduction in value.
If you prefer not to use your reward points for travel, TD allows you to cash them in for Amazon purchases, gift cards, merchandise, or statement credits.
Unique to the programs on our list, you can also convert your points to Starbucks Stars and maximize your coffee shop rewards.
Program details to compare
Let’s dig a little deeper into how these rewards programs stack up against each other.
Point value
The numbers aren't consistent across programs – some points are worth the standard 1 CPP (which is what cash back points are worth), while others are worth slightly less. Others might even net you over 2 CPP, depending on how you redeem the points.
To help you determine the point value for each rewards program, play around with this calculator:
| Redemption Option | Point Value | Total Value |
|---|---|---|
| Cineplex theatres | 1 cent | $10 |
| Recipe Unlimited Restaurants | 1 cent | $10 |
| Any travel from Expedia Scene+ | 1 cent | $10 |
| Sobeys stores | 1 cent | $10 |
| Any travel (Scene+ credit and debit cardholders only) | 1 cent | $10 |
| Home Hardware | 1 cent | $10 |
| Statement credits | 0.8 cents | $8 |
| Apple & Best Buy Merchandise | 0.77 cents | $8 |
| Gift Cards | 0.74 cents | $7 |
Average rate of return
The point values don't tell the whole story. Just because the point value might be lower doesn't mean there's less value, as an issuer can simply increase the amount of points they earn. That’s why it’s useful to pay attention to the average rate of return, which is how much you can expect to earn back in rewards.
When we reviewed the cards with the highest rates of return, we found they were enrolled in the Amex Rewards and Scene+ programs.
Redemption options
Across all redemption options, travel offers the best value for your rewards. But if you prefer not to travel, or if it's not in your immediate future, having more redemption options increases the value of your points and makes them easier to use.
The CIBC Aventura Rewards program leads the way with 8 redemption options, including 3 for travel.
Which bank has the easiest rewards?
If you’re mainly redeeming for travel, then the easiest rewards program to use is the American Express Membership Rewards program. It's the only program that lets you redeem for any travel from any provider, with no restrictions. It also offers flight schedules and multiple airline and hotel partners, which helps increase the value of your points.
Plus, Amex Rewards has a credit card that offers one of the best returns for any type of travel, the American Express Cobalt Card.
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9x Award winner We can’t overlook the Scene+ program for its easy-to-use rewards. Sure, you can redeem points for travel, but it’s a great program for everyday value. Rack up points and cash them in for discounts at Cineplex, your next Home Hardware run, or your weekly grocery haul at Sobeys or IGA.
It’s top credit card, the Scotiabank Gold American Express Card, has one of the highest rates of return of any rewards card on our list.
Easy rewards vs cash back rewards
With everything said, why should you choose flexible rewards over cash back rewards? After all, the cash back you accumulate can be used for anything you like, including travel.
The first reason is the total return. Generally, these cards offer a better return on your spend. Our top rated cash back card, the MBNA Rewards World Elite Mastercard, offers a return of roughly 2.86% on a typical monthly spend of $2,000.
Meanwhile, the American Express Cobalt Card offers an average return rate of 2.86%, thanks to smart redemption options like the Fixed Points Travel Program.
Plus, these cards almost always come with better welcome bonuses and travel insurance.
As long as you travel at least once per year, a travel card will save you more money than a cash back card will.
Is a guaranteed return worth a lower reward value?
On the other hand, is a guaranteed return worth losing out on rewards when compared to other programs, like Aeroplan?
This is really up to you. You can get great value for your spending with these programs, better than a flexible rewards card, but getting those high-value rewards takes work and flexibility on your end.
You also have to remember there's a "taxes and fees" bill to pay for your flight redemptions, plus the value of your rewards can vary greatly.
Compare this to a flexible rewards program where you can book any seat, at any time, and all for the same value. And you can generally use any amount of points to pay for your purchase as well. You don't have to worry about saving up your points or worry about whether you'll have enough.
FAQ
What are the best credit card rewards?
The best credit card rewards program is American Express Membership Rewards, thanks to its incredible flexibility and long list of partners available for transferring points. No matter which program you use, redeeming points for travel usually offers the most bang for your buck.
What's the best rewards credit card in Canada?
The best rewards credit card is easily the American Express Cobalt Card. This card boasts an incredible rate of return, a generous insurance package, and a high earn rate on everyday spending categories. Users earn American Express Membership Rewards, which are very valuable and have multiple redemption options.
How do points work in a credit card?
With a rewards credit card, every purchase earns you points. Different cards offer different earning rates depending on the spending category, so you may earn more points in some categories than others. Once you've built up points, you can redeem them for rewards.
What's the easiest way to earn credit card points?
The easiest way to earn credit card points is to choose a card with high earn rates in the categories you spend the most in, then use it for as many purchases as possible. You can also boost your points balance quickly by taking advantage of welcome bonus offers.
How can I figure out what my points are worth?
We have several points calculators you can use, including one for Avion Rewards, BMO Rewards, and Scene+ points. Just enter the reward program and number of points you have to see which redemption options have the highest value (and which redemption option to avoid).
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