SimplyCash Card from American Express review

How SimplyCash earns cash back

The SimplyCash Card from American Express pays 2% cash back at Canadian gas stations and grocery stores, and 1.25% on everything else. The grocery rate applies until you’ve earned $300 in grocery cash back in a year, which takes about $15,000 of grocery spending. After that, groceries earn 1.25%.

Here’s an example. A household spending $600 a month on groceries, $200 on gas and $1,200 on everything else would earn $16 a month from gas and groceries and $15 from the rest. That’s $31 a month, or $372 a year, with no fee to subtract. Its $7,200 of yearly grocery spending stays well under the cap.

Why the base rate matters

Many no-fee cash back cards pay a high rate in a few categories and only 0.5% on everything else. SimplyCash takes a different approach: its 1.25% base rate means purchases outside gas and groceries still earn a reasonable return.

In the example above, the $1,200 of other spending earns $15 a month at 1.25%. At 0.5%, the same spending would earn $6, so the higher base rate adds $108 a year for that household.

The welcome offer

New cardholders can earn up to $100 cash back on their first $2,000 of purchases in the first three months. That’s about $667 a month, a target the example household above would reach without changing its habits. Check the American Express website for how the bonus is calculated.

Because the offer covers only your first three months, it can help to apply ahead of a stretch of regular spending or a planned large purchase, so the $2,000 comes naturally rather than through spending you didn’t need.

Perks, fees and interest

Additional cards are free, and cardholders get access to Amex Experiences and Amex Offers. There’s no annual fee and no categories to activate.

Purchases in a foreign currency carry a 2.5% foreign transaction fee, so $1,000 spent abroad adds about $25, twice what you’d earn back at 1.25%. Purchases and cash advances are both charged 21.99% interest. Paying the full balance by the due date avoids purchase interest.

Insurance coverage

For a no-fee card, SimplyCash includes travel accident cover alongside purchase protection. Read the insurance certificate for limits, eligibility and exclusions.

• Travel accident insurance up to $100,000
• Purchase protection (90 days)
• Extended warranty (1 extra year)

Who it suits, and who should look elsewhere

SimplyCash suits people who want one no-fee card that earns well across all their spending, not just in a few categories. It’s a strong everyday card if most of the places you shop accept American Express.

It’s a weaker choice if you shop at merchants that don’t take American Express, or if you spend heavily abroad. Very large grocery spenders will also reach the $300 cap, after which groceries earn the base rate.

It also works well alongside a backup Visa or Mastercard: use SimplyCash wherever American Express is accepted, and the second card everywhere else.

How it compares

The SimplyCash Preferred Card from American Express costs $119.88 a year and pays 4% on groceries, with a welcome offer of up to $200 cash back. It’s worth the upgrade if your grocery spending is high enough that the extra 2% outweighs the fee.

The Wealthsimple Credit Card is a Visa with no annual fee and no foreign transaction fee, paying 1% on everything. It earns less at home but costs nothing extra abroad, and Visa is more widely accepted.

Before you apply

The recommended credit score is 660 or higher, and American Express makes the final decision based on your full credit profile. Confirm the current welcome offer and earn rates on the American Express website before you apply.