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With high inflation rates in Canada, you may be looking for creative ways to save money. And while a cash back credit card can be an easy way to put money back in your pocket from spending on essentials like groceries and gas, most cash back cards worth swiping come with a substantial annual fee. Enter: the Tangerine Money Back Mastercard. We like the generous welcome offer, solid earn rate and a few other perks. So, is the Tangerine Money Back Mastercard the best no-fee cash-back card for Canadians? We break down the online bank’s offerings and see how it stacks up against its competitors.
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Tangerine Money-Back credit card quick facts
Tangerine Money-Back*
- Annual fee: $0
-
Interest rates: purchases 19.95%, cash advances 19.95%, balance transfers 19.95%
- Rewards: 2% cash back in up to three spending categories of your choice; 0.5% on all other purchases
- Welcome offer: Earn 10% cash back (up to $100) when you spend $1,000 on everyday purchases within the first 2 months of having the card. Must apply before March 31, 2022..
- Balance transfers: This card also offers a promotional interest rate on balance transfers, allowing you to pay 1.95% on that transferred balance for 6 months (and 19.95% on any unpaid balances after 6 months) with a 1% fee on the amount transferred.
- Annual income requirement: $12,000
- Best feature: The ability to choose your own bonus categories means you can customize the credit card to suit your spending habits and maximize your rewards
- Who it’s good for: Credit cardholders who aren’t interested in collecting points or pay an annual fee and prefer cash rewards; anyone who wants to supplement credit card rewards with a second card to maximize earnings; cardholders who might not qualify for premium cards with higher income requirements
- Accolades: Tangerine ranked first in the J.D. Power 2021 Canada Credit Card Satisfaction Study, for the third year in a row. The Tangerine credit card was also named best no fee cash back card in MoneySense’s Best Credit Card rankings
Get more details about the Tangerine Money-Back card*
What does the Tangerine card offer?
It offers cardholders an above-average 2% cash back rate in two out of 10 spending categories. When you open a Tangerine savings account, and have your cash back earnings deposited into it, you earn yourself a third category to earn 2% cash back in, too. For context, most other no-fee rewards credit cards either earn fewer rewards per $1 spent or offer less bonus categories. And there’s even more…
Flexible categories
What really sets the Tangerine Money-Back Mastercard apart from the rest is that it’s the only credit card in Canada that lets you pick your own bonus categories. You can align these with your spending and use this feature to maximize your rewards. (Speaking of inflation, gas and groceries could be savvy categories to earn cash back on.) With other cards, you may have a higher earn rate, but it could be for a category you barely use.
Plus, the categories you choose aren’t set in stone. You can also switch up your cash back categories (via the app) every month if you want to.
A competitive welcome offer
The card’s welcome offer allows you to earn 10% cash back on up to $1,000 worth of purchases (so, $100). It’s almost like a reverse annual fee. You’re paid you to use the card—if you plan to spend that much in the first month anyway.
No spending cap on cash back
The cash back you earn from your customized categories is deposited in your account on a monthly basis. What’s more? There’s no limit to the cash back you can earn, which many comparable cash back cards do have limits on.
Low interest on balance transfers
Plus, if you’re wanting to consolidate debt from another credit card, the Tangerine card offers a super low interest rate on balance transfers (1.95%), which is another reason to consider it. Simply complete the balance transfer request within 30 days of opening your account, and then move your debt over to your Tangerine card. For the following six months, your transferred balance will accumulate a low 1.95% interest. Just be sure to pay off that balance within six months, when the promotional rate ends and the regular regular 19.95% rate is applied. Note: There is a flat balance transfer fee of 1%. For example, if you transferred $1,000, the fee is $10. If you’ve got an accumulated balance on another credit card, this promotion can help you consolidate your debt and pay it down at a fraction of the interest.
How to get the most out of your Tangerine credit card categories
Aside from being a good everyday credit card option for Canadians, it’s also extremely flexible, meaning that you can swap categories every month. Swaps take effect only once per billing cycle. This is when the Tangerine card really shines. Let’s say you have a big renovation coming up. If you’ve selected the home improvement category, you’ll get 2% back on those purchases. Booking a trip? Travellers will do well with the hotel-motel option. Those looking to buy new furniture stand to earn back a healthy percentage. (However, changes won’t come into effect immediately, so plan ahead.)
The 10 Tangerine categories offer a lot of variety:
- Groceries
- Gas
- Restaurants
- Furniture
- Hotel-motel
- Recurring bills
- Drug store
- Home improvement
- Entertainment
- Parking/public transit
With a bit of planning and selecting the right categories for you, you can stow away some extra money with cash rewards.
There’s also another way to maximize your credit card rewards: Try pairing the Tangerine card with a second credit card to get the most cash back possible on every purchase.
For example, say you chose gas, restaurants and groceries as your three 2% cash back categories on your Tangerine card, but you want to buy a new couch. If you use another credit card for that sofa purchase, such as the SimplyCash American Express card* which has a cash back rate of 1.25%, it beats Tangerine’s earn rate of 0.5% for the “other purchases” category.
The Tangerine Money-Back’s side perks
No fee credit cards like the Tangerine Money-Back Mastercard don’t tend to offer much in the way of perks. You get basic credit card insurance, like purchase protection and extended warranty, but that’s pretty much it. However, if you earn a personal annual income of $60,000 or more (or household income of at least $100,000), you could qualify for the higher-tier Tangerine World Mastercard. The Tangerine World Mastercard is virtually identical to the Tangerine Money-Back credit card, offering the same in cash back rewards while also charging no annual fee. However, it includes some additional perks.
Perks of the Tangerine World Mastercard include:
- Damage and theft protection for your car rental for up to 31 consecutive days
- Access to Boingo Mastercard WiFi hotspots (there are 1 million hotspots worldwide)
- Mobile device insurance for new cell phones, smartphones or tablets bought on your card (covers up to $1000 if the device is lost, damaged, stolen or has mechanical failure)
- A complimentary membership with Mastercard Airport Experiences Provided by Loungekey
How much can you earn with the Tangerine Money-Back Card?
The amount you can earn with the Tangerine Money-Back card varies, depending on your spending habits. To give you some idea of the earning potential, we chose three common bonus categories—groceries, recurring bills and dining—while assuming a monthly budget of $2,000 is spent on the following:
| Spending category | Earn rate | Monthly spend | Annual reward |
|---|---|---|---|
| Groceries | 2% | $500 | $120 |
| Recurring bills | 2% | $200 | $48 |
| Dining | 2% | $300 | $72 |
| Everything else | 0.5% | $1,000 | $60 |
| Total | $2,000 | $300 |
Based on this scenario, you’d earn $300 in cash back annually, which is a nice bonus especially since the card carries no annual fee.
The Tangerine unique rewards structure gives you the ability to choose your own bonus categories, which makes it ideal for pairing with another credit card to maximize your rewards as part of a two-card strategy. For example, you can net higher returns by using the Tangerine Money-Back in tandem with the SimplyCash from American Express*. The latter also has no annual fee but earns a flat 1.25% on everything you buy. With this strategy, you’d use the Tangerine card for purchases in accelerated categories and the SimplyCash from American Express for everything else in order to collect more cash back.
| Spending category | Credit card and earn rate | Monthly spend | Annual reward |
|---|---|---|---|
| Groceries | Tangerine Money-Back 2% | $500 | $120 |
| Recurring bills | Tangerine Money-Back 2% | $200 | $48 |
| Dining | Tangerine Money-Back 2% | $300 | $72 |
| Everything else | SimplyCash from American Express 1.25% | $1,000 | $150 |
| Total | $2,000 | $390 |
By simply using these cards together, you can bump up your annual earnings by $90—all without any annual fees.
Are there any drawbacks to the Tangerine Money-Back credit card?
The regular cash back rate on the Tangerine card is only 0.5%, which is better than nothing but it’s not going to make headlines. Also, there’s not much on offer by way of extras with this card (for instance, it lacks travel insurance benefits) though the standard purchase protection and extended warranty apply.
What about the competition?
Truth be told, there aren’t many products that compare to the Tangerine Money-Back card since no other card lets you pick your own bonus categories. We even named it “the best card for cash back” in our Canada’s best no-fee credit cards 2022 rankings. However, these four cards deserve consideration, too.
Simplii Financial Cash Back Visa Card
Though less flexible than the Tangerine card, this credit card from Simplii offers a huge 4% back on purchases at restaurants, coffee shops and bars up to $5,000 annually, and 1.5% back on gas, groceries, drug store purchases and pre-authorized payments up to $15,000 per year. Once a cardholder reaches those limits, they earn at the default 0.5%. For those who dine out frequently, this can be an excellent choice.
- Welcome offer:
You’ll get 10% cash back at restaurants, coffee shops and bars up to a $500 spend for your first 4 months. Must apply and be approved before April 30th, 2022.
- Interest rates: purchases 19.99%, cash advances 22.99%
SimplyCash from American Express*
SimplyCash from American Express offers a flat and competitive cash back rate of 1.25% on all purchases, which will appeal to anyone looking to earn simply without a strategy for spending categories. American Express adds a boost with $100,000 in travel accident insurance and access to virtual events and special offers with American Express Experiences.
- Welcome offer: Get a welcome bonus of 4% cash back in the first 6 months (up to $200 cash back)
- Interest rates: purchases 19.99%, cash advances 21.99%
Rogers World Elite Mastercard
Applicants for this World Elite Mastercard need to have an income of at least $80,000 annually as an individual, or $150,000 per household. But for those who qualify, the rewards are considerable. All spends in U.S. currency receive 3% back, and there’s a standard rate of 1.5% on all other purchases. (Not that other foreign currencies are subject to the usual foreign transaction fees, usually 2.5%, but only receive the standard 1.5% cash back.) Additionally, cardholders are covered with a range of travel, car rental and purchase insurance and enjoy airport lounge access and other perks from Mastercard Airport Experiences.
- Welcome offer: n/a
- Interest rates: purchases 19.99%, cash advances 22.99%
How can I tell if the Tangerine card is the best option for me?
We’ve outlined this card’s valuable perks and earnings. These questions will help you determine the best product for your situation. Here are some questions to help you figure that out.
- Are you hands-on when it comes to managing your finances? Are you comfortable setting and changing your spending categories? With its high 2% rate and flexible spending categories, Tangerine offers a great deal for those willing spend strategically.
- Do you spend a significant amount on restaurants, coffee shops and bars? At 4% back on these purchases, the cash back credit card from Simplii cannot be beat. Keep in mind, though, the Simplii Financial Cash Back Visa Card will only give you 4% on your initial $5,000 in purchases, after which it defaults to 0.5%.
- Do you want a good regular cash back rate with a few extras? Loyal Rogers customers should consider its Platinum Mastercard for solid savings. Those wanting to carry an Amex (or looking for travel accident insurance) should check out SimplyCash from American Express.
- Do you cross-border shop and/or travel frequently? Are you a high earner? The Rogers World Elite Mastercard provides plenty of opportunity for healthy rebates to folks in these categories, but note that the regular rate is 1.5%—that’s 0.5% less than the Tangerine card (in select spending categories).
What does the * mean?
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