If you have been a Simplii Financial Bank client for a while, then you know that they previously operated as PC Financial before re-branding as Simplii Financial, the direct banking arm of CIBC, on November 1, 2017. Since then, a couple changes have occurred with the bank and they recently introduced their first ever credit card – the Simplii Financial Cash Back Visa Card.
As an ardent user of the no-fee PC Financial World Elite Mastercard, I was interested in seeing what Simplii’s new Visa card had to offer, and if it was comparable or better than the 3% cash back offer I get on the PC Financial MC when I shop at the Real Canadian Superstore (or the Loblaws chain of stores in general). When combined with the PC Optimum program, the total cash back value from this card rises to 4%!
So, how does the new Simplii Visa stack up against other popular no-fee cash back cards in Canada? Read on to find out!
Simplii Financial Cash Back Visa Benefits and Features
1. No Annual Fee: There is no annual fee and this includes your primary card and up to three additional cards for authorized users.
2. Cash Back Rewards: For a no-annual fee card, it has some compelling cash back offers including:
⇒ 4% on your restaurant spending up to $5,000 per year.
⇒ 1.5% on gas, groceries, drugstore purchases, and pre-authorized payments up to $15,000 per year.
⇒ 0.5% on all other purchases with no limit on how much you can earn.
As a welcome gift, they are also offering up to 10% cash back on your first $500 spend at restaurants and bars. This implies an additional $30 in cash back on top of the regular 4% offer for this spending category.
3. Purchase Security and Extended Warranty: You get free purchase security insurance of up to 90 days from the date of purchase, and extended warranty that doubles the manufacturer’s warranty by up to 1 year.
4. Easy Qualification: The annual household income threshold requirement to qualify for this card is very low at $15,000.
Some cons of this card that should be taken into consideration:
It is only available to existing Simplii clients which means you will need to have an active Simplii account e.g. their no-fee chequing account or high-interest savings account. Simplii’s online-only banking is great since they charge no monthly fees. However, this requirement can be a hassle if you don’t need a new bank account.
Cash back accumulates through the year and is reflected in your account as a one-time credit on your December statement. This is a bummer and unlike the cash back you earn on the no-fee Tangerine Money Back Credit Card, which is paid out on a monthly basis.
The card is not available to residents of Quebec.
⇒ BONUS: Sign up for the PC Financial Mastercard and receive a $100 Gift Card
Is The Simplii Financial Visa For You?
The cash back offered by the Simplii Financial Visa is not bad for a no-fee card. For example, if every month you spend $400 on restaurants, $700 on groceries, gas, and bill payments; and $100 on your other purchases, your total annual cash back would be $324, or $354 (including the 10% welcome offer). This is not bad at all!
Personally, we rarely eat out, so this card is not for me as I would not be able to take advantage of the 4% cash back on restaurants. For our occasional dining out, the Tangerine Money Back Credit card is a better option.
However, if you dine out a lot, the Simplii Visa is attractive, as it pays you up to $475 per year on this spending category alone i.e. $5,000 x 4%. For restaurant/bar/coffee and takeout spending exceeding the $5,000 cap, you earn 0.5% in cash back.
While the 1.5% offer on groceries is good, the PC Financial Mastercard does better, paying you up to 4% cash back on your grocery spending at Loblaw stores, including their popular Superstores!
That being said, if you are in the market for a cash back card that has no annual fee, the Simplii Financial Cash Back Visa card is definitely worth checking out.
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Simplii Financial Cash Back Visa Review
The Simplii Financial Cash Back Visa Card is Simplii’s first credit card offering. This review highlights its cash back offers and benefits as well as the downsides associated with the card.