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[ANALYSIS] TD Cash Back Visa Infinite Card

TD has introduced a new cash back credit card. This is very exciting news actually. But before I get too excited, let’s break down the benefits and features of this credit card. Below are the highlights:

TD Cash Back Visa Infinite Card

  • $120 annual fee
  • $50 annual fee for supplementary cardholders
  • Earn 6% cash back on gas, grocery and recurring bill payments (for the first 3 months or first $3,500 in spending)
  • Earn 3% cash back on gas, grocery and recurring bill payments thereafter (on first $15,000 in annual spending per category, including the 3 month bonus promotion)
  • Earn 1% cash back on all other purchases

Breakdown

I am not a fan of the annual fee; however, let’s find out if the multiplier bonuses make it worthwhile.

When earning the 6% cash back on $3,500, you receive a maximum of $210 cash back (6% x $3,500). With 3% bonus, you earn a maximum of $1,245 cash back ($41,500 x 3%). If you subtract the annual fee, you will receive a net of $1,135 cash back ($1,255 – $120) on the first year of having this credit card, due to the extra 6% bonus.

However, in the subsequent years, you will earn $1,350 cash back (3% x $45,000 – $120) of multiplier bonus.

Comparison

If you compare to the Tangerine Money-Back Credit Card where you can earn 2% cash back on 3 categories of your choice, with no annual fee, after spending $45,000, you would earn $900 in cash back.

But if you compared similar cards from Scotiabank and CIBC (which earn 4%), then you will see that the TD card is not that great.

Scotia Momentum Visa Infinite Card

  • $99 annual fee (first year fee waived if you apply before July 31, 2017)
  • $30 annual fee for a supplementary cardholder
  • Earn 4% cash back for every $1 spent on gas and grocery purchases
  • Earn 2% cash back for every $1 spent on drug store purchases and recurring bill payments
  • Earn 1% cash back for every $1 spent on all other purchases

Earn 4% on the first $25,000 annually on gas and groceries, as well as earn 2% on $25,000 of drug store purchases and recurring bill payments.

CIBC Dividend Visa Infinite Card

  • $99 annual fee (first year fee waived if you apply before June 30, 2017)
  • $30 annual fee for a supplementary cardholder (maximum 3 cards)
  • Earn 4% cash back on all purchases (in the first 6 months, up to $5,000 in spending) (if you apply before June 30, 2017)
  • Earn 4% cash back on gas and grocery purchases
  • Earn 2% cash back on Tim Hortons and TELUS purchases
  • Earn 1% cash back on all other purchases

The 4% and 2% bonuses are on the first $80,000 in net annual card purchases (meaning all card purchases by all cardholders, at any type of merchant) or $20,000 on gas, grocery, TELUS or Tim Hortons purchases.

Conclusion

The 6% offered by TD is a nice advertising campaign, but when you break it down, it is not very lucrative. Having the first year annual fee waived is more value back to the new cardholder.

I would have rather that TD team up with another airline or hotel program. It really looks like the cash back war is on!

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Pointshogger aims to provide analysis and updates on earning loyalty reward points and maximizing the value of your points. We hope to inspire our readers to experience the joy of travel and make the most out of what they've already got!

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