CIBC Dividend Visa Card review

How the Dividend Visa earns cash back

Groceries earn 2% cash back. Gas and EV charging, transportation, dining and recurring payments earn 1%, and everything else earns 0.5%. CIBC sets no limit on the total cash back you can earn, though it’s worth checking the terms for any spending limits on the bonus categories.

As an example, a household spending $600 a month on groceries earns $12 a month from that category. Add $150 of gas, $100 of transportation, $200 of dining and $100 of recurring payments at 1%, which earns $5.50, plus $400 of other spending at 0.5%, which earns $2. That’s $19.50 a month, or $234 a year.

Redeeming cash back and other perks

Cash back can be redeemed any time once you have at least $10, so you don’t have to wait for a yearly payout. Up to three additional cards are free, which lets a household pool its spending on one account. Redeeming a little at a time also means you aren’t left with an unused balance if you later switch cards.

With Journie Rewards you can save up to 10 cents a litre on gas, and linking the card gets you a free Skip+ membership, which adds value if you order food delivery through Skip.

Fees, interest and the fine print

There’s no annual fee, so the example household’s $234 a year in cash back is a straight gain with nothing to subtract. Foreign currency purchases carry a 2.5% fee, about $25 per $1,000 spent, which is more than the 2% you’d earn even in the grocery category.

Purchases are charged 21.99% interest and cash advances 22.99%. Interest at those rates would quickly outweigh a 2% return, so the card works best when you pay the full balance every month.

Insurance coverage

Coverage is limited to purchases, with no travel insurance listed. Check the certificate for what’s covered and for how long.

• Purchase security and extended protection

Who it suits, and who should look elsewhere

The Dividend Visa suits people whose biggest expense is groceries, who want a no-fee card and like being able to redeem cash back whenever they choose. It also works as a no-cost second card for groceries alongside a travel card, and its flexible redemption suits people who prefer to see cash back credited regularly rather than saving toward a large reward.

If you spend a lot, a card with an annual fee and higher grocery rates may earn enough extra to cover its cost. Travellers should also look for a card with travel insurance and a lower foreign transaction fee.

How it compares

The CIBC Dividend Visa Infinite Card is the upgrade, with a $120 annual fee, up to 4% cash back on groceries and a welcome offer of up to $350 cash back. On groceries alone, its extra 2 percentage points cover the $120 fee once you spend $6,000 a year, or $500 a month. For the example household spending $600 a month on groceries, 4% would earn $288 a year on groceries versus $144 here, a $144 difference that more than covers the fee, provided the 4% rate applies to all of that spending.

Among no-fee cards, the BMO CashBack Mastercard earns up to 3% on groceries and offers up to $125 cash back for new cardholders. If groceries are your main expense, it’s worth comparing directly with the Dividend Visa.

Before you apply

The recommended credit score is 660 or higher, and CIBC makes the final decision based on your full credit profile. Earn rates and perks can change, so confirm the current terms on CIBC’s website before you apply.