This year seems to be the year of the cash back cards! Another cash back card has been introduced to the market. We recently saw the not-so-impressive:
Below are the highlights of this card:
- $99 annual fee (first year fee waived)
- $30 annual fee for supplementary cardholders
- Earn 4% cash back on gas and grocery store purchases (on the first $25,000 in purchases, then 1% for all other purchases)
- Earn 2% pharmacy purchases and utility bill payments (on the first $25,000 in purchases, then 1% for all other purchases)
- Earn 1% cash back on all other purchases
- Require either $60,000 annual personal income or $100,000 annual household income
Unlike the RBC and TD cards, Meridian actually waives the first year annual fee, so at the very least, this is worthwhile to give it a try. Note that it is a limited time offer without a specific end date. The official wording is as follows:
- First year free is a limited time offer and is activated after the first transaction. Annual fee will appear on initial statement and a credit will be applied on the second statement following the transaction. Meridian reserves the right to modify or withdraw this offer at any time without prior notice.
I would only use this card on the multiplier bonus categories. I would not use this credit card if I am only going to earn 1% cash back on my purchase. So to maximize the earning ratio return, you would need to spend the full $25,000, which would look as follows:
- $25,000 x 4% = $1,000
- $25,000 x 2% = $500
This results in a total $1,500 in cash back. If you subtract the $99 annual fee (assuming you kept the card beyond the first year), that would result in a net of $1,401 ($1,500 – $99).
In comparison, if you had the Tangerine Money-Back Credit Card and earned 2% cash back on 3 categories, let’s say you spent the same $50,000, that would earn you $1,000 ($5,000 x 2%) in cash back. Seeing as it is a no annual fee card, it would return you less than the $1,401 with the Meridian card.
The cash back has some flexibility where you can exchange for:
- Account Credit
- Event Tickets
- Gift Cards
Seeing a the first year annual fee is waived, if you prefer cash back, then I would definitely at least give this card a try a for a year. Let’s give the smaller companies some market share to put some pressure on the other companies!