Scotia Momentum Visa card review

How the Momentum Visa earns cash back

Four everyday categories earn 2% cash back: groceries, gas stations, recurring bill payments and drugstores. Everything else earns 1%. Because all four bonus categories pay the same rate, there’s no need to remember which purchase earns what.

As an example, a household spending $600 a month on groceries, $200 on gas, $150 on recurring bills and $50 at the drugstore earns $20 a month in those categories. Another $500 of other spending at 1% adds $5, for $25 a month, or $300 a year. After the $49 fee, that’s $251 a year.

Does the fee pay for itself?

At 2%, the $49 fee equals the cash back on $2,450 of category spending, or about $204 a month. In the example budget, $1,000 a month in the 2% categories earns $240 a year, nearly five times the fee, before counting the 1% on everything else.

The calculation gets tighter only if your spending is light. A single person spending $300 a month on groceries and gas would earn $72 a year in those categories, still enough to cover the fee but with less left over.

Balance transfer offer

The Momentum Visa has been offered with a 0.99% introductory interest rate on balance transfers for the first nine months. If you’re carrying a balance on another card, that can cut interest costs while you pay it down.

Check Scotiabank’s current terms for the transfer fee and the rate that applies after nine months before moving a balance, and aim to clear it within the introductory period.

Fees, interest and the fine print

The annual fee is $49. 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 bonus categories. Over a year, the example household nets $251 after the fee, so the cost is small for anyone who spends steadily in the bonus categories.

Purchases are charged 20.99% interest and cash advances 22.99%. Interest at those rates would quickly cancel out your cash back, so pay the full statement balance by the due date.

Who it suits, and who should look elsewhere

The Momentum Visa suits households that put most of their spending on groceries, gas, drugstore purchases and bills, and want a simple percentage-based card with a low fee. Recurring payments set up on the card earn the same 2% as groceries, so moving regular bills onto it is an easy way to raise your return.

If you spend little each month, a no-fee card may leave you better off. And if you spend heavily on groceries, a higher-fee card with 4% on groceries may earn more.

How it compares

The Scotia Momentum No-Fee Visa Card has no annual fee and earns up to 1% on groceries, with 5% cash back on all purchases for the first 3 months. On groceries alone, the Momentum Visa’s extra 1% covers its $49 fee once you spend $4,900 a year, or about $408 a month. For a household spending $600 a month on groceries, that extra 1% is worth $72 a year, more than the fee.

The Scotia Momentum Visa Infinite+ Card costs $120 a year and earns up to 4% on groceries, with 15% cash back in the first 3 months, up to $300. Heavy grocery spenders should compare the two.

Before you apply

The recommended credit score is 690 or higher, and Scotiabank makes the final decision based on your full credit profile. Confirm the current annual fee, earn rates and any introductory offers on Scotiabank’s website before you apply.