MBNA Rewards Mastercards have been completely revamped, and the information here no longer applies. You can see what the updated cards have to offer here.
Once again, much of the Canadian credit card world is left feeling frustrated and on the hunt for a new credit card.
The well-loved MBNA Rewards program, which was one of the most flexible programs on the market, and the two credit cards that earn these rewards are all going through some changes in the coming months.
If you have one of these cards or were considering getting one, keep reading because we have all the details on these changes here …
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MBNA Rewards redemption options
Currently, MBNA Rewards can be redeemed in a number of different ways:
- travel,
- cash,
- merchandise, and
- gift cards.
One of the most notable things about these points is that you’d get the same redemption value whether you were redeeming for travel or for cash.
100 points = $1 of travel or cash
However, MBNA has announced that starting February 1, 2019, the redemption value for cash is decreasing.
120 points = $1 of cash for MBNA World Elite Mastercard holders
and
200 points = $1 of cash for MBNA Mastercard holders
The good news is that the redemption rate for travel is staying the same. That means if you normally use your points to travel, you shouldn’t notice any difference. If not, you could always start doing that now to preserve the 2% return on spending you’ve likely become accustomed to.
Related: 3 National Bank Travel Mastercards Reviewed & Compared
MBNA Rewards World Elite Mastercard
For a while now, according to our Genius Rating, the
×4 Award winner 
GC: $125 + $25
4x Award winner
$150 GC Boost + Up to 30,000 bonus points + birthday bonus worth up to 15k points.*
That, unfortunately, is about to change.
Change 1: The annual fee
On September 1, 2018, the annual fee will increase from $89 to $120.
If nothing else was changing, I’m sure this would be an adjustment most of us could stomach.
But with the change in redemption points as well, it’s enough to have many people shopping around for a new card if what they want most are cash rewards.
Change 2: The cash redemption minimum
One really nice thing about the MBNA Rewards World Elite Mastercard is that you can enjoy your cash back rewards more than once a year (unlike many credit cards).
Once you had accumulated 5,000 points, MBNA would allow you to redeem these points for $50 cash back.
Now, however, you need to wait until you earn at least 6,000 points to enjoy your rewards.
Change 3: The balance transfer interest rate
Starting September 6, 2018, the standard interest rate on balance transfers will increase from 21.99% to 22.99%.
This should not have any effect on any low introductory balance transfer rates, and while this change isn’t going to affect everyone (because not everyone does balance transfers), it is still important to note.
| Coming Changes | Current | New | Effective Date |
|---|---|---|---|
| Annual Fee | $89 | $120 | September 1, 2018 |
| Standard Balance Transfer Rate | 21.99% | 22.99% | September 6, 2018 |
| Cash rewards redemption rates | 100 points = $1 | 120 points = $1 | February 1, 2019 |
| Minimum cash redemption amount | 5,000 points | 6,000 points | February 1, 2019 |
MBNA Rewards Mastercard
As well as the devaluation when redeeming for cash rewards,
Change 1: The cash redemption minimum
There are not many no fee cards on the market that will allow you to get your cash back more than once a year, and although the MBNA Rewards Mastercard will not hold your cash hostage for a whole year, the minimum required before redeeming your rewards has gone up.
Cardholders used to be able to redeem for cash rewards when they had accumulated 5,000 points. Now, however, you need double that – 10,000 points minimum.
Change 2: The balance transfer interest rate
The standard balance transfer interest rate will be changing just like the World Elite version – from 21.99% to 22.99%.
Change 3: The earn rate
This change is actually for the better.
With the MBNA Rewards Mastercard, there was a standard 1 point for every $1 spent on all purchases.
Starting February 1, 2019, however, there will be a multiplier on gas, grocery and restaurant purchases.
2 points for every $1 spent on gas, groceries and restaurant purchases up to $5,000 spent annually.
If you’re an MBNA Rewards Mastercard cardholder, this change could definitely make you consider keeping this card, especially if:
- you tend to redeem your points for travel, and…
- you spend approximately $5,000 a year in any of the 3 categories mentioned above.
| Coming Changes | Current | New | Effective Date |
|---|---|---|---|
| Standard Balance Transfer Rate | 21.99% | 22.99% | September 6, 2018 |
| Cash rewards redemption rates | 100 points = $1 | 200 points = $1 | February 1, 2019 |
| Minimum cash redemption amount | 5,000 points | 10,000 points | February 1, 2019 |
| Earn rate on gas, groceries and restaurants | 1 point per $1 spent | 2 points per $1 spent up to $5,000 spent annually | February 1, 2019 |
Is the MBNA Rewards World Elite still worth it?
That being said, is the
Without a doubt, the answer is yes.
For a flexible rewards card, a flat return rate of 2% for any type of travel purchase still can’t be beat. And while the annual fee has increased, it’s still on par with other premium travel and cash back cards.
Although it’s been devalued from a cash back perspective, it still provides a solid return of 1.67%.
And if you’re a Costco shopper, it’s still a great option if you want to earn flexible, guaranteed return travel rewards.
The exit plan
Any time a credit card you love changes for the worse, it’s never fun.
MBNA has given cardholders a pretty good run to help us decide if these cards are still worth it or if we want to get another one.
But our guess is many people are going to try to send MBNA a message by canceling their card.
And it seems like MBNA might agree since they are giving people an option to pull their points out before the cash redemption value changes.
From September 1, 2018, to January 31, 2019, MBNA will be temporarily lowering the minimum points needed to redeem for cash rewards from 5,000 to 1,000. So if you’re under the 5,000 point minimum, but want to “get out,” there is your window.
We’ve already had a few people reach out to us to ask what we think the best cash back credit card will be when the MBNA devaluation goes through.
So, if you want to earn cash back, and don’t think the card is worth keeping, here are a few options to consider.
| Credit Card | Welcome Bonus | Earn Rate | Annual Fee | Apply Now |
|---|---|---|---|---|
| MBNA Rewards World Elite | Up to 30,000 points (terms) | 1.67% when points are redeemed for cash back | $120 | Apply Now |
| Brim World Elite Mastercard | Up to $500 after first purchases with Brim retail partners (terms) | 2% on the first $25,000 in annual spend | $199, first year free | Apply Now |
| Scotiabank Momentum Visa Infinite | 10% cash back for the first 3 months (terms) | Up to 4% | $120, first year free | Apply Now |
| American Express SimplyCash Preferred Card | 10% cash back for the first 4 months (terms) | 2% | $99 | Apply Now |
| BMO CashBack World Elite Mastercard | 10% cash back for the first 3 months (terms) | Up to 5% | $120, first year free | Apply Now |
For us, there are 4 real contenders.
To continue earning 2% cash back on every purchase, you’ll want to consider the
It also has a stunning 15 types of insurance, no foreign transaction fees, and the chance to earn bonus rewards when shopping with Brim’s 150+ retail partners. It has a high annual fee of $199, but right now you’ll get the first year free.
GC: $20
With an annual fee of $120, 4% cash back on recurring bills and groceries, 2% cash back on gas and daily transit, 1% cash back on everything else, plus, a pretty great insurance package for a cash back card, we feel like the Scotia Momentum Visa Infinite could be replacing the MBNA Rewards World Elite Mastercard in many people’s wallets.
However, if you don’t feel like your spending falls into the above Scotia Momentum Visa Infinite categories, the SimplyCash Preferred Card from American Express could be an even better option for you. With an annual fee of $99, this card will give 10% back on all your purchases for the first 4 months (up to $400 cash back) and then 2% on every purchase after that. Plus, this Amex has a great insurance package and no minimum income requirement.
GC: $150
It doesn’t beat the MBNA Rewards World Elite Mastercard for a high flat rate, but the
Let us know how you feel
There you have it…
The changes that are coming for the MBNA Rewards plan and Mastercards.
How do you feel about these changes?
Are you planning on shopping around for another credit card? Or do you still feel like one of the MBNA Rewards Mastercards is still right for you?
Let us know in the comments below.
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