The Simplii Financial Cash Back Visa is a low maintenance credit card that can be a great addition to one of Simplii’s no-fee banking packages. Frankly, it’s not the best card on the market—but it gets the job done and earns you rewards that can easily add up.
With one of the highest cash-back earn rates on the Canadian market for restaurant, bar and coffee shop purchases, this card is naturally suited toward city-dwellers who enjoy the finer things—or just drink a lot of coffee. Considering the average Canadian spends $2,775 on food from restaurants per year, according to Statistics Canada, this card could earn you $111 in cash back in that category alone.
The Simplii Financial Cash Back Visa’s earning potential on other purchases is a bit more subdued, earning only 1.5% cash back on high-spend categories like gas, groceries and pre-authorized payments. There are other cards on the market, like the CIBC Dividend Visa Infinite, that earn 4% on gas and groceries, though that card has an annual fee. Even still, considering Canadians tend to spend substantially more in those areas than they do at restaurants and bars, it seems worth it to also have a card that can reward those purchases.
The spending caps on the accelerated earn rates are also a factor when considering the Simplii Cash Back Visa. The 4% rate on dining, bars and coffee shops will be downgraded to the 0.5% base rate once you surpass $5,000 in spending per year. The same goes for the 1.5% rate on gas, groceries and payments. Half a percentage point as a base rate isn’t unheard of, but plenty of other cards offer 1% as a base—with the SimplyCash® Preferred Card from American Express even giving a generous 2% base rate.
Another potential drawback to the Simplii Cash Back Visa is the way its cash back is paid out. Unlike other cards, you’ll receive your cash back at the end of the year as a statement credit, so you’re not able to cash it out whenever you want. This can either be seen as an inconvenience or, on the other hand, a nice boon to cover your holiday expenses. Plus, you’ll be able to keep easy track of exactly how much the card earned you each year.
One of the main drawbacks of this card is its insurance coverage. It only offers extended warranty and purchase security. You’ll get no travel insurance coverage, rental car insurance (or discounts) and no cell phone insurance.
So, while this card does have no annual fee, your earnings and benefits are hindered by the declared earn rate, caps on spending and what you may end up having to spend on travel coverage, since it’s not included. That said, if you prefer to make most of your purchases using a debit card, so the spending caps won’t impact you as much, or if dining, drinks and coffee are some of your main indulgences, this card could be great as a supplementary card. Besides, with no annual fee, there’s really no downside.
