TD Cash Back Visa Card review

How the TD Cash Back Visa earns

Groceries, gas and EV charging, public transit, recurring bill payments, and streaming, digital gaming and media all earn 1% cash back. All other purchases earn 0.5%. Because the same 1% applies across all five bonus categories, there’s no need to think about which purchase earns what; the trade-off is that none of them earns more than 1%.

As an example, $600 a month on groceries, $150 on gas, $100 on transit, $200 in recurring bills and $30 on streaming earns $10.80 a month. Add $500 of other spending at 0.5%, which earns $2.50, and the total is $13.30 a month, or $159.60 a year.

Redeeming cash back and perks

Cash back can be redeemed at any time toward your balance, and it doesn’t expire, so there’s no pressure to spend it or lose it. That flexibility suits people who use the card lightly and build up cash back slowly.

Perks include free additional cardholders, at least 10% off Avis and Budget car rentals in Canada and the US, TD Payment Plans for purchases of $100 or more, and a free 3-month Uber One trial for eligible cardholders. If you rent cars a few times a year, the rental discount adds up quickly: at least 10% off a $500 rental saves at least $50.

Fees, interest and the fine print

There’s no annual fee, so the example budget’s $159.60 a year is a straight gain. Foreign currency purchases carry a 2.5% fee, about $25 per $1,000 spent, which outweighs the 1% you’d earn. Keeping the card open as a backup also costs nothing, even in years when you barely use it.

Purchases are charged 21.99% interest and cash advances 22.99%. TD Payment Plans let you split purchases of $100 or more into instalments; read the plan terms before using one. Paying your full balance each month avoids purchase interest.

Insurance coverage

Coverage is limited to purchases, with no travel insurance. Read the certificate for coverage periods and limits.

• Purchase security and extended warranty protection

Who it suits, and who should look elsewhere

The TD Cash Back Visa suits TD customers who want a simple card for modest spending, or a backup card with no fee and no income requirement. Free additional cards also make it a simple way to give a family member a card without adding a fee.

If you spend a few hundred dollars a month on groceries, other no-fee cards in CreditLab’s catalog earn up to 2% or 3% in that category, so it’s worth comparing before you settle on this one.

How it compares

The CIBC Dividend Visa Card has no annual fee and earns up to 2% on groceries. A household spending $600 a month on groceries would earn $144 a year on groceries with that card, compared with $72 here. For lighter spenders the gap is smaller: at $200 a month on groceries, the difference between 1% and 2% is $24 a year.

If you want to stay with TD and spend more, the TD Cash Back Visa Infinite Card costs $139 a year, earns up to 3% on groceries and offers up to $489 cash back. At 3%, $600 a month on groceries would earn $216 a year, $144 more than this card, which more than covers the fee if all of it qualifies.

Before you apply

The recommended credit score is 660 or higher, and TD makes the final decision based on your full credit profile. Confirm the current rates and perks on TD’s website before you apply.