MBNA Rewards World Elite Mastercard review

How the MBNA Rewards World Elite earns

Five everyday categories earn 5 MBNA Rewards points per dollar: groceries, restaurants, digital media, memberships and household utilities. Each category has a $50,000 annual cap, after which it earns 1 point per dollar, and all other purchases earn 1 point. A $50,000 cap works out to more than $4,000 a month in a single category, so most households won’t come near it.

For example, a household spending $700 a month on groceries, $300 at restaurants, $50 on digital media and $200 on memberships and utilities puts $1,250 a month into the 5x categories. That’s 6,250 points a month, or 75,000 a year. Another $800 a month of other spending adds 9,600 points, for 84,600 points in total.

The welcome offer

New cardholders can earn up to 30,000 MBNA Rewards points: 10,000 points on approval and 20,000 more after spending $2,000 in the first 90 days.

That spending target works out to roughly $667 a month over three months, which the example household above would pass easily.

The birthday bonus and other perks

Each year, you receive a birthday bonus of 10% of the points you earned over the previous 12 months, up to 15,000 points. In the example above, 84,600 points would bring a birthday bonus of 8,460 points. You’d need to earn 150,000 points in a year to reach the 15,000-point maximum.

MBNA Rewards points are flexible, with redemptions for cash, travel and gift cards. As a Mastercard, the card also works at Costco, and cardholders get Avis and Budget car rental discounts.

Fees, interest and the fine print

The annual fee is $120. Purchases in a foreign currency carry a 2.5% fee, about $25 for every $1,000 spent abroad, which is another reason this card is better used at home than on the road.

Purchase interest is 21.99% and cash advances are charged 22.99%. Paying the full balance by the due date avoids purchase interest.

Insurance coverage

The package is broad for a $120 card, but it has gaps: travel medical is limited to travellers under 65 for trips of up to 21 days, and there’s no trip cancellation coverage. Read the certificate for full limits and exclusions.

• Travel emergency medical up to $2,000,000 (21 days, under 65)
• Trip interruption up to $2,000 per person ($25,000 per trip)
• Trip delay $500 and baggage delay $1,000 (after 4 hours)
• Travel accident insurance $1,000,000
• Rental car collision damage waiver up to 31 days (MSRP up to $65,000)
• Purchase protection (90 days, $60,000 a year) and extended warranty (1 extra year)
• Mobile device insurance up to $1,000 per claim

Who it suits, and who should look elsewhere

The card suits households that spend a lot on groceries, dining and household bills and want points they can use for cash, travel or gift cards. Being a Mastercard, it can also be used at Costco.

Frequent travellers should look at cards with stronger travel earning and coverage, since travel earns only 1 point per dollar here. Travellers 65 or older won’t get the travel medical coverage at all.

How it compares

The American Express Cobalt Card also earns 5 points per dollar on eats and food delivery but costs $191.88 a year and runs on American Express, which some merchants don’t accept. The MBNA card costs less and is a Mastercard, so acceptance is less of an issue.

For no annual fee, the MBNA Rewards Platinum Plus Mastercard earns up to 2 points per dollar on groceries and offers up to 10,000 MBNA Rewards points as a welcome offer. It earns far less but costs nothing to keep.

Before you apply

The recommended credit score is 720 or higher, but MBNA makes the final decision based on your full credit profile. Confirm the current welcome offer and insurance terms on MBNA’s website before you apply.