TD Canada Trust is offering an unprecedented 9% cash back. Below are the highlights of the TD Cash Back Visa Infinite Card.
- $120 annual fee
- $50 annual fee for supplementary cardholders
- Earn 9% cash back on gas, grocery and recurring bill payments (for the first 3 months or first $3,500 in spending if you apply before June 3, 2018)
- 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
The maximum 9% cash back bonus that you can earn is $315 ($3,500 x 9%). Without a first year annual fee waived, you would need to earn enough cash back to cover the fee.
The promotion before this one was a 6% cash back in the first 3 months and first year fee waived. At 6%, you would have earn $210 (6% x $3,500). If you subject $315 – $210, you only get $105. So based on this calculation, the first year fee waiver promotion with 6% is better than this 9% offer.
Still, if you happen to earn the full 9% cash back and may the annual fee, you are still ahead by $195 ($315 – $120).
Note that you can redeem your cash back at any time, so long as you have at least $25 banked. Otherwise, you will receive the cash back once a year (in January), regardless of the amount.
Even though when we break it down, the 9% cash back offer is not super impressive, it still sounds very attractive to market a 9% cash back on a credit card. I am happy to see TD make such an unconventional move to gain some attention, which should lead to some increased competition in the market.