While credit cards offer a line of credit and the potential for significant rewards, they also come with the risk of accumulating debt due to high-interest rates. Debit cards, on the other hand, deduct funds directly from your chequing account, helping you stay within budget. But what if you could enjoy the benefits of a debit card while still earning rewards on your everyday purchases?
The good news is that there are a number of excellent rewards debit cards available in Canada. These cards allow you to make purchases using your chequing account balance and earn cash back, points, or other rewards on your spending.
In this article, we’ll explore seven of the best rewards debit cards in Canada for 2024, covering a variety of features and benefits to suit different spending habits.
1. KOHO Prepaid Mastercard: High Cash Back on Essentials
- Rewards:
- 1.00% unlimited cash back on groceries, restaurants, gas, and other transportation expenses.
- Up to 5% cash back at partner retailers.
- Monthly Fee: $0
- Best For Those who want unlimited cash back on everyday essentials and bonus rewards at partner stores.
The KOHO Prepaid Mastercard is a reloadable prepaid card that functions like a debit card. You can add funds using Interac e-Transfer or by setting up a direct deposit.
The card offers a straightforward rewards structure with a competitive 1% unlimited cash back on groceries, restaurants, gas, and transportation. Additionally, you can earn up to 5% cash back at select partner retailers, making it a good choice for those who frequent specific stores.
Bonus Features:
- Free Interac e-Transfers
- 5% interest on your KOHO balance (up to $10,000)
- CDIC insurance coverage on deposits (up to $100,000)
- $20 cash bonus when you sign up using a referral code and complete your first purchase
2. EQ Bank Card: No Fees, Cash Back, and Savings Interest
- Rewards:
- 0.50% unlimited cash back on all purchases.
- Up to 3.00% interest on your savings balance.
- Monthly Fee: $0
- Best For: Value-conscious consumers who prioritize low fees and want to earn cash back while also growing their savings.
Launched in 2023, the EQ Bank Card is a compelling option for those seeking a no-frills rewards debit card with additional account benefits. There’s no monthly fee, you’ll earn unlimited 0.50% cash back on all purchases, and your linked savings account can grow with an interest rate of up to 3.00%. The card offers foreign transaction fee waivers and works with Mastercard for global acceptance.
Bonus Features:
- Free unlimited transactions online and in-store
- Free ATM withdrawals anywhere in Canada
- Mastercard Zero Liability protection
- CDIC insurance coverage on deposits (up to $100,000)
3. Neo Money Card: High Cash Back Potential and Exclusive Offers
- Rewards:
- Up to 5% cash back on purchases at thousands of partner stores.
- Up to 15% initial cash back on purchases at select partner stores.
- Monthly Fee: $0 (premium account with extra perks available)
- Best For Shoppers who want high cash back potential at partner stores and access to exclusive deals.
Neo Financial’s prepaid Neo Money Card caters to those who value high cash-back potential at partner stores. You can earn up to 5% cash back at a wide range of partner retailers, with some offering introductory rates as high as 15%. The Neo Money account, which the card links to, functions as a hybrid chequing and savings account, allowing you to earn interest on your balance.
Bonus Features:
- Free Interac e-transfers and bill payments
- Neo Financial app to track spending and offers
- CDIC insurance coverage on deposits (up to specified limits)
- $20 cash bonus when you sign up and deposit $50+
4. Scene+ ScotiaCard Debit Card: Earn Scene+ Points for Entertainment and More
- Rewards:
- 1 Scene+ point per $1 spent on everyday purchases.
- 1 Scene+ point per $1 spent at Cineplex.
- Monthly Fee: Varies with eligible Scotiabank chequing account (from $0 to $30.95)
- Best For: Scotiabank customers and movie enthusiasts who want to earn Scene+ points for entertainment and other rewards.
- Requirements: An eligible Scotiabank chequing account, such as:
- Scotiabank Ultimate Package
- Scotiabank Preferred Package
- Student Banking Advantage Plan
- How it Works: If you’re a Scotiabank customer with an eligible chequing account, you can use the Scene+ ScotiaCard Debit Card to earn Scene+ points on your everyday purchases. You’ll earn 1 point per $1 spent, with an additional point for every $1 spent at Cineplex theatres. Scene+ points are versatile and can be redeemed for various rewards, including:
- Travel
- Gift cards
- Movie tickets
- Restaurant purchases
- Merchandise
Bonus Feature: For a limited time, you may be eligible for a cash bonus of up to $300 when you open an Ultimate Chequing or Preferred Chequing account.
5. PC Money Account Card: Earn PC Optimum Points for Grocery Shoppers
- Rewards:
- 10 PC Optimum points per $1 spent on all purchases (up to 25 points/$1 at Shoppers Drug Mart).
- Monthly Fee: $0
- Best For: Frequent shoppers at Loblaw grocery stores and those who participate in the PC Optimum loyalty program.
The PC Money Account Card, offered by PC Financial Bank, is a free chequing account alternative that integrates seamlessly with the PC Optimum loyalty program. There’s no monthly fee, and you’ll earn a generous 10 PC Optimum points for every $1 spent using the card. This rate increases to 25 points per $1 at Shoppers Drug Mart locations, making it a great choice for those who frequent both stores.
How it Works: The PC Money Account Card functions similarly to a debit card but cannot be used for cheque writing or cheque deposits. You can use it for everyday transactions online and in-store, and it comes with unlimited free Interac e-Transfers. For regular Loblaw grocery shoppers, this card offers significant value in the form of PC Optimum points, which can be redeemed for:
- Free groceries
- Merchandise discounts
- Travel rewards
Bonus Feature: Consider pairing the PC Money Account Card with a PC Financial credit card to maximize your PC Optimum points earning potential.
6. RBC Debit Card with Petro-Points Link: Earn Rewards at Petro-Canada
- Rewards:
- Save 3 cents per liter on gas at Petro-Canada.
- Earn 20% more Petro-Points.
- Earn RBC Rewards points (with a linked RBC credit card).
- Monthly Fee: Varies with your RBC Chequing Account (from $4 to $30).
- Best For RBC customers who frequently gas up at Petro-Canada stations and want to maximize their rewards at those locations.
The RBC debit card, when linked to your Petro-Points card through RBC Online Banking or the mobile app, offers rewards specifically for Petro-Canada customers. You’ll save 3 cents per liter on gas purchases, and earn 20% more Petro-Points, and if you have a linked RBC credit card, you’ll also earn RBC Rewards points.
How it Works: By linking your RBC debit card to your Petro-Points card, you can unlock these exclusive benefits at Petro-Canada. Petro-Points can be redeemed for various rewards, including:
- Gas discounts
- Gift cards
- Travel
- Merchandise
7. BMO Debit Card with Air Miles Account: Earn Air Miles for Travel and More
- Rewards:
- Earn 1 Air Mile for every $30 spent using the card.
- Monthly Fee: $16.95
- Best For: Frequent travelers and those who actively participate in the Air Miles reward program.
The BMO Debit Card, offered with a BMO Air Miles Chequing Account, allows you to earn Air Miles on your everyday debit card purchases. While there’s a monthly account fee of $16.95, frequent travelers may find value in earning Air Miles, which can be redeemed for:
- Flights
- Hotel stays
- Car rentals
- Merchandise
- Gift cards