Points vs cash back: what Canadian credit cards really pay once you redeem (2026 study)

How we ran the numbers

We started from the typical monthly budget in our rewards calculator, built from Statistics Canada’s Survey of Household Spending: $700 on groceries, $250 on dining, $300 on recurring bills, $100 at the pharmacy, $300 on fuel, $150 on transit, $200 on entertainment, $200 on travel and $400 on everything else. That’s $2,600 a month, or $31,200 a year.

For each card we applied its published earn rates, including spending caps, then subtracted the annual fee. Welcome offers, insurance and perks such as lounge access are left out, so the result is what a card pays year after year on rewards alone.

Then we valued the rewards two ways. Without booking travel means the top fixed rate for cash, a statement credit, an investment deposit or store credit. At the top published rate means the highest fixed rate the program publishes, which is usually travel booked through the bank. Cash back cards pay the same either way.

What each card returns at typical spending

These are the ten cards that return the most at the top published rate, next to what the same card returns if you never book travel.

The MBNA Rewards World Elite Mastercard leads because it earns 5 points per $1 on groceries, restaurants, digital media, and memberships and household utilities, up to $50,000 a year in each, and its points are worth 1¢ on travel. Cash them out instead, at 120 points per $1, and it still returns $720.

The Scotiabank Gold American Express Card is the steadiest. Scene+ points are worth 1¢ on travel and at Sobeys-family grocery stores, so it returns $852 either way. The catch is the Points for Credit statement credit, where 150 points buy $1 and the same year falls to $528.

Cash back cards fill most of the list. The SimplyCash Preferred pays 4% on groceries and gas and 2% on everything else, for $744 with no redemption choices to get wrong.

Where your redemption choice costs the most

The gap between the two columns is the price of convenience. It’s widest on programs that pay much less for anything other than travel.

TD is the starkest case. The TD First Class Travel Visa Infinite Card returns $497 a year if you book through Expedia For TD, where 200 points buy $1. Use the same points to pay off everyday purchases, at 400 points per $1, and it returns $179. That’s $318 a year for the same spending.

RBC Avion and BMO Rewards follow the same pattern. The RBC Avion Visa Infinite returns $198 on travel and $64 through Avion Rewards Pay. The BMO eclipse Visa Infinite Card returns $536 on travel purchases and $372 on anything else. At National Bank, paying the card balance with points drops the World Elite to $196, while an RRSP, TFSA or FHSA contribution keeps it at $570.

RBC ION and ION+ points are worth about 0.58¢ either way, because ION accounts get a lower travel rate than other Avion cards. That puts the RBC ION+ Visa at $397 a year, a solid return for a $48 fee but well behind the cards above.

Points with no fixed value

Aeroplan, Marriott Bonvoy and partner airline miles don’t publish a fixed value, so they can’t be ranked on the same footing. At our estimate of 1.5¢ per Aeroplan point, the CIBC Aeroplan Visa Infinite Card and the TD Aeroplan Visa Infinite Card return $419 a year each. Neither has a fixed cash option.

Those figures can swing either way. A flight at a low points price can beat 1.5¢, and a poor redemption can fall below 1¢. American Express Membership Rewards points can also move to Aeroplan at 1,000 to 1,000; check which partners your card allows on our points transfer map.

Premium cards lean on perks. Among cards with fees of $399 or more, the Scotiabank Platinum American Express Card returns $297 a year on rewards alone at typical spending, and the BMO eclipse Visa Infinite Privilege Card $105. The rest return $58 or less, so lounge access, travel credits and insurance have to cover the fee.

Which card fits how you redeem

• If you’ll never book travel through a bank, choose a card that pays full value without it: a cash back card such as the SimplyCash Preferred, the Scotiabank Gold American Express Card if you shop at Sobeys-family stores, or the American Express Cobalt Card at 1¢ a point on statement credits.
• If you book travel and will use the bank’s own travel service, MBNA Rewards and National Bank À la carte pay 1¢ a point, and the MBNA Rewards World Elite Mastercard returns the most in our data.
• If you hold TD Rewards points, redeem them on Expedia For TD. Paying off purchases with them halves their value.
• If a card’s value rests on a flight chart or transfer partners, compare it with a plain 2% cash back card before you commit.

Your spending won’t match our budget exactly. The rewards calculator runs the same maths on your own numbers, and the points value calculator shows what a balance is worth by redemption.