The best rewards debit cards can replace your credit card and save you on interest costs while earning decent rewards.
According to this study, most Canadians don’t know they can earn rewards while spending cash from their chequing accounts.
Although credit cards give you access to a line of credit so you can spend money you don’t have, they also come with expensive interest rates… usually 20% or more.
If you want to avoid debt, a debit card can help, and you don’t have to forego all those juicy credit card rewards.
Read on to learn about the best debit card rewards available in Canada.
Best Rewards Debit Cards in Canada
For debit card rewards in Canada, you can consider the following:
- KOHO Prepaid Mastercard
- EQ Bank Card
- Neo Money Mastercard
- Scene+ ScotiaCard Debit Card
- RBC Debit Card
- BMO Debit Card
- PC Money Account Card
KOHO Prepaid Mastercard
KOHO Prepaid Mastercard
Rewards: Earn 1% cash back on groceries and transportation, up to 5% unlimited cash back at partner stores in Canada. Get 5% interest on your entire balance. Users also get access to a free budgeting app, 0% APR cash advances and free credit score checks.
Welcome offer: $20 sign up bonus after first purchase (use CASHBACK promo code during sign-up)
Interest rate fee: N/A
Annual fee: $0*
The KOHO Prepaid Mastercard is a reloadable prepaid card that functions like a debit card. Cardholders can add funds using Interac e-Transfer or by setting up a direct deposit.
Since the card is issued under license by Mastercard, you can use it to make payments at millions of locations worldwide.
Rewards: Earn 1.00% unlimited cash back on groceries, restaurants, gas and other transportation expenses, and up to 5% cash back at partner retailers.
Monthly fee: $0*
How it works: Simply pay with your KOHO card when purchasing online or in-store. The card also includes unlimited free Interac e-Transfers, so you can use it for money transfers. Cash back is tracked automatically and credited to your account.
In addition to earning cashback, KOHO users earn 5% interest on their balance. Deposits on the platform are covered by CDIC insurance against firm insolvency (up to $100,000 per insured category, per depositor).
Bonus: Get a $20 cash bonus when you sign up using our CASHBACK referral code and complete your first purchase. You can learn more about how KOHO works.
EQ Bank Card
EQ Bank Card
Rewards: Earn 0.50% cash back on all purchases and up to 4.00% savings interest on your entire balance.
Perks: Free ATM transactions in Canada, no foreign currency transaction fees abroad, and unlimited transactions.
Interest rate fee: 0%
Annual fee: $0
Launched in 2023, the EQ Bank Card offers several benefits and perks, including no monthly or annual fees, unlimited transactions online and in-store, free ATM withdrawals anywhere in Canada, Mastercard Zero Liability, and access to a versatile mobile app. It is one of the best rewards debit cards in Canada.
You can use the EQ Bank Mastercard at millions of locations worldwide, and when you make payments in foreign currency abroad, the foreign currency transaction fee is waived.
Rewards: Earn 0.50% unlimited cash back on all purchases and earn up to 3.00% interest on your savings balance.
Monthly fee: $0
How it works: To get a free EQ Bank Mastercard, open a free EQ Bank Personal Account online, fund it with any amount, and order a card in a few clicks.
When you get your card, activate it and use it for payments like a credit card. Cash back earned is paid out monthly. To fund your card, transfer funds from your savings to the card. You can fund your savings account using any linked Canadian bank account or Interac e-Transfer.
Your deposits are protected by the Canada Deposit Insurance Corporation by up to $100,000 per insured category, per depositor.
Learn more about the EQ Bank Card.
Neo Money Card
Neo Money card
Rewards: Earn up to 3% cash back at Neo partners.
Welcome offer: n/a
Interest rate fee: 0%
Annual fee: $0 (no monthly fees)
Neo Financial is the latest fintech to offer a prepaid card that works like a debit card to its customers. Their prepaid Mastercard comes with unique benefits and is linked to the Neo Money account, a hybrid bank account with chequing and savings features.
You can use the Neo Money Card for purchases online and in-person, plus it supports unlimited bill payments and e-Transfers.
Rewards: Earn up to 3% cash back on purchases at thousands of partner stores.
Monthly fee: $0 (you can also subscribe to a $5 monthly fee premium account for extra perks).
How it works: Open a Neo Money account here and fund it using Interac e-Transfer. If you deposit $50 or more in the new account using our referral link, you receive a bonus.
Spend using the card when making purchases and cash back is automatically added to your account. On the Neo Financial app, you can track which stores offer high cash back rates in your area. It also features several discounts and exclusive offers.
Deposits in your Neo Money account are eligible for CDIC deposit guarantee, up to the specified limits.
Here’s a detailed Neo Money Card guide.
Scene+ ScotiaCard Debit Card
Scotiabank’s Visa Debit Card offers rewards on your purchases when you have an eligible chequing account:
Rewards: Earn 1 Scene+ point per $1 spent on everyday purchases and 1 Scene+ point per $1 spent at Cineplex.
Monthly fee: Varies with chequing account (from $0 to $30.95).
How it works: Open an eligible Scotiabank chequing account and use your Scene+ ScotiaCard Debit Card to pay for purchases.
You can redeem Scene+ points for travel, gift cards, movie tickets, restaurant purchases, merchandise, and more.
This card is one of a few Visa Debit rewards cards in Canada.
Bonus: For a limited time, you could get up to $300 cash when you open an Ultimate chequing or Preferred Chequing account.
PC Money Account Card
PC Money Account is a free spending account that works like a regular chequing account, except you can’t write or deposit cheques. It is offered by PC Financial Bank and ties in nicely with Loblaws PC Optimum loyalty program.
Rewards: Earn 10 PC Optimum points per $1 spent on all purchases (up to 25 points/$1 at Shoppers Drug Mart).
Monthly fee: $0
How it works: The PC Money Account can be used for everyday transactions you conduct online and in-store. It has no minimum balance requirement, and you can also send unlimited free Interac e-Transfers. Along with a spending account, you get a Mastercard for easy payments wherever Mastercard debit and credit cards are accepted.
If you regularly shop at Loblaw grocery stores, the PC Money Card works well as a cash back debit card for free groceries. For even more PC Optimum points, you can also get a PC Financial credit card.
RBC Debit Card
You can save on gas and earn RBC Rewards points when you use your RBC debit card and link it with your Petro-Points Card.
Rewards: Save 3 cents per litre at Petro-Canada, earn 20% more Petro-Points, and RBC Rewards points.
Monthly fee: Varies with your RBC Chequing Account (from $4 to $30).
How it works: If you are enrolled in RBC Online Banking or use the RBC Mobile app, you can link your RBC Card to your Petro-Points card.
When you buy gas at a Petro-Canada location, you earn 20% extra Petro-Points. If you pay with an eligible linked RBC credit card, you earn 20% more RBC Rewards points.
You can redeem these rewards points for gas, gift cards, travel, and small to big-ticket items from several brands.
BMO Debit Card
If you have a BMO Air Miles Chequing Account, you earn Air Miles rewards when you spend using your BMO Debit Card.
Rewards: Get 1 Air Mile for every $30 spent using your card.
Monthly fee: $16.95
How it works: Simply use the debit card issued to you when you open an Air Miles Chequing Account. You can redeem Air Miles for travel, merchandise, gift cards, etc.
How Rewards Debit Cards Work
A rewards debit card is tied to your chequing account.
When you use it to make payments, funds are drawn directly from your chequing account balance.
Unlike the standard bank debit card, a rewards debit card will pay you cash back when you make eligible purchases or payments.
Prepaid cash back cards can also be considered as rewards debit cards since they only allow you to spend funds you have loaded on them.
Related:
A great help – thank you!