SimplyCash Preferred Card from American Express review

How the SimplyCash Preferred earns

Groceries and gas in Canada earn 4% cash back, and everything else earns 2%. The grocery rate applies until you’ve earned $1,200 in grocery cash back in a year, which takes about $30,000 of grocery spending, and then drops to 2%.

For example, a household spending $600 a month on groceries and $200 on gas earns $32 a month at 4%. Another $1,500 a month on other purchases earns $30 at 2%. That’s $62 a month, or $744 a year, and $624.12 after the $119.88 annual cost.

The 2% rate on everything else is what sets this card apart. Large one-off expenses, such as furniture, home repairs or annual insurance premiums, still earn 2% when the merchant accepts American Express.

The welcome offer

New cardholders can earn up to $200 cash back: a 10% rate applies to your first $2,000 in purchases in the first 3 months.

Spending about $667 a month over those 3 months gets you the full amount. The example household above, at $2,300 a month, would reach the $2,000 mark within the first month.

How you receive cash back

Cash back is credited once a year rather than monthly, so you’ll wait for your rewards. That suits people who like a single annual payout, but it isn’t ideal if you’d rather see a credit on every statement.

Additional cards are free, which lets a household put more of its shared spending on one account and earn on all of it.

Fees, interest and the fine print

The fee is billed as $9.99 a month, which adds up to $119.88 a year. Quebec residents pay $119 a year instead.

Foreign currency purchases carry a 2.5% fee, so $1,000 spent abroad costs about $25 while earning $20 back at 2%, a net cost of about $5. Purchases and cash advances are both charged 21.99% interest. Paying the full balance each month avoids purchase interest.

Insurance coverage

For a cash back card, the coverage is broad, including travel medical for trips of up to 15 days for travellers under 65. Read the certificate for limits and exclusions before you rely on it.

• Travel emergency medical up to $5,000,000 (15 days, under age 65)
• Travel accident insurance $100,000
• Flight delay, baggage delay and lost or stolen baggage ($500 each)
• Rental car theft and damage (vehicles up to $85,000, rentals up to 48 days)
• Hotel and motel burglary $500
• Mobile device insurance $1,000
• Purchase protection (90 days) and extended warranty (1 extra year)

Who it suits, and who should look elsewhere

The card suits households that want strong cash back on everything without juggling categories, especially those with high grocery and gas bills or big purchases that still earn 2%.

If you need a card that works everywhere, keep a Visa or Mastercard as a backup for merchants that don’t accept American Express. If you’d rather get rewards monthly, the annual payout may be frustrating, and travellers 65 or older won’t get the travel medical coverage.

How it compares

The CIBC Dividend Visa Infinite Card costs $120 a year and also earns 4% on groceries, gas and EV charging, with 2% on dining, transportation, recurring payments and CIBC by Expedia travel, but only 1% on other purchases. It runs on Visa, which is accepted more widely.

For no annual fee, the SimplyCash Card from American Express earns up to 2% on groceries with a welcome offer of up to $100 cash back. You earn less, but there’s nothing to pay.

Before you apply

The recommended credit score is 690 or higher, but American Express makes the final decision based on your full credit profile. Confirm the welcome offer and current terms on the American Express website before you apply.