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5 Best Rewards Debit Cards in Canada for 2023

The best rewards debit cards can replace your credit card and save you on interest costs while earning decent rewards.

As per this study, most Canadians are not aware that 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 getting into debt, a debit card can help, and you really don’t have to forego all those juicy credit card rewards.

Read on to learn about the best debit card rewards available in Canada.

What is a Rewards Debit Card?

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.

Best Rewards Debit Cards in Canada

For debit card rewards in Canada, you can consider the following:

  • KOHO Prepaid Mastercard
  • EQ Bank Card
  • 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 bill payments; Up to 5% cashback at select partners; Earn interest on your balance*.

Welcome offer: Get a $20 bonus when you load and make your first purchase (use promo code CASHBACK during sign-up).

Interest rate fee: 0%

Annual fee: $0

The KOHO Prepaid Mastercard is a free reloadable prepaid card that functions like a debit card. If you are looking for an unlimited cash back debit card, the KOHO card works well.

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.

It also comes with a mobile app that tracks your cash back and doubles up as a budgeting tool.

Rewards: Earn 1.00% cash back on groceries and bill payments and up to 5% cash back at select partners.

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.

If you set up a direct deposit to your account, you also earn interest on your balance (currently 0.50% to 2.00%).

Bonus: Get a $20 cash bonus when you sign up, use the referral code CASHBACK, and make your first purchase within 30 days of registration.

You can learn more about how KOHO works.

EQ Bank Card

EQ Bank Card

Rewards: Earn 0.50% cash back on all purchases and 2.50% 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

Recently 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 2.50% interest is earned on your entire balance.

Monthly fee: $0

How it works: To get a free EQ Bank Mastercard, simply open a free EQ Bank Savings Plus 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.

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 opened an Air Miles Chequing Account. You can redeem Air Miles for travel, merchandise, gift cards, etc.

Related:

Best Credit Offers in February 2023

Earn up to 5% cash back at over 10,000 retail locations ($25 Bonus)

Get a $25 bonus when you are approved for the Card.

No annual account fees.

Earn up to 5% unlimited cash back at 10,000+ participating stores.

Guaranteed instant approval credit card.

Get up to 5% cashback and grow your savings ($20 bonus)

Best free prepaid reloadable Mastercard plus a $20 welcome bonus.

Free budgeting app with automatic savings features.

Increase your credit score with optional credit building add-on.

Earn up to 2.00% interest on your entire balance.*

Get one of the no-fee cash back credit cards in Canada ($150 bonus)

Earn 2% unlimited cash back in up to 3 spending categories.

Get a $150 welcome bonus after spending $1,000 in the first two months.

1.95% low-rate balance transfer, airport lounge access, and insurance benefits.

No annual fees to use the card and cashback is paid out monthly.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch is passionate about helping others win with their finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, CBC News, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, and many other personal finance publications. You can learn more about him on the About Page.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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  • 15% cashback on $1,000 spent in first 2 months ($150 value).*
  • Earn 2% unlimited cashback in 2 categories and 0.50% back on everything else.
  • No annual fees!
*Limited time offer. Terms and conditions apply.
Best No Annual Fee Cash Back Credit Card
Best No Annual Fee Cash Back Card
Get 15% cashback on up to $1,000 spent in first 2 months ($150 value).* No annual fees!
*Limited time offer. Terms and conditions apply.