Earn 9% Cash Back with TD

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.

9 Comments

  1. “unbelievable offer right now”
    “Even though when we break it down, the 9% cash back offer is not super impressive”

    I want my click back.

    1. To me, “unbelievable” also means “unthinkable or unimaginable” which does not necessarily mean good or bad offer.

      Anyway, I took out the word to avoid confusion.

    2. @ attila

      This site is BY FAR the BEST resource for points and credit products in Canada, and it’s FREE!!!

      Matthew took the time to break this product down for you historically (showed past promotion), mathematically, and give context to the current marketplace of Cash Bach cards.

      Tripping him up on semantics is the action of a PERSNICKETY TWIT.

      1. I don’t know if I would say Matthew provided the historical and mathematical break down. You can pretty much find the same thing in the post I put up on Rewards Canada hours before this one….

  2. So basically it’s a 1% Cash Back card with 3% on gas, grocery, and recurring bill payments and $120 annual fee, notwithstanding the promotion.

    While the 9% is a sexy number to look at, there is a little more value with some of the cards on Matthew’s recent list (depending on your spending habits) once you add it all up. The $120 annual fee is the widow maker on this card.

    http://pointshogger.boardingarea.com/top-cash-back-credit-card-offers-february-2018/

    All that said, it’s tough to beat the SPG AMEX 20,000 pts offer as an introductory offer (we’re talking overall intro promo talk here):

    I just came back from a three-day stint at a W Hotel in a sunny part of the US yesterday. I used cash and points offer where it was 6,000 pts per night and $110 US cash and points offer (the room was USD $450 a night normally). Instead of paying USD $1,400 (hospitality tax etc. quickly add up) for the stay, my bill was USD $375:

    $1,400 – $375 = $1,025 (hotel savings)
    $1.025 – $100 (AMEX annual fee converted to USD) =$925 (this is USD)
    $925 USD x 1.3 exchange rate = $1,202 CAD!!!!

    The $195 that Matthew calculated for the TD card looks pretty week compared to my $1,202 CAD points win this week. If fancy/bougie hotel stays are part of your annual budget, SPG AMEX is the best cards going!

    1. That’s a great breakdown Christopher.

      Also, you put it better than I did. The 9% is a sexy number to look at. It has never been seen before. So it was more highlighting that. And then breaking down the value of it.

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