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Best No Annual Fee MasterCard Canada
Abid Salahi
Author9 min read
I think I speak for all of us when I say credit cards have evolved from an optional accessory to an essential tool. If used correctly, they can save you a ton of money each year.
Among the big three—Visa, American Express, and MasterCard—MasterCard is the one more widely accepted in Canada. In this post, we will look at the best no-annual-fee Mastercard credit cards in Canada and also discuss a few reasons you should choose this credit card network instead of American Express and Visa.
At the end of this post, you will have a clear picture of the best credit card choice for you, so let's get right into it!
Best No Annual Fee MasterCard Based on Different Criteria
1. Best overall no-fee Mastercard credit card if you are a Rogers Customer
The Rogers Mastercard is not only one of the best no-fee credit cards in Canada, but it is also one of the best cards among all the other credit cards, both paid and free!
I currently have or may soon have an eligible Rogers, Fido or Shaw service as the primary or level 1 authorized user
Rogers Red Mastercard®
4.4
Finly Rating
Welcome Bonus
Up to $60 cash back ($90 if redeemed for Rogers, Fido or Shaw purchases)
I currently have or may soon have an eligible Rogers, Fido or Shaw service as the primary or level 1 authorized user
Annual Fee
$0
Interest Rates
19.99% / 22.99%
Why we like it
Why we like it
This card is one of our top-ranked options in terms of rewards, especially if you are a Rogers, Fido, or Shaw customer. With those services, you can effectively get a 3% cashback rate, which is a higher rate than almost any other card offers, even those with annual fees! If you have a high income of $80K or a household income of $150K, you can apply for the World Elite version of this card, which comes with additional insurance and benefits like a lounge pass.
Pros & Cons
Pros & Cons
Pros
- Voted as the Best Cash Back Card in Canada for Rogers, Fido and Shaw Customers by FinlyWealth.
- There is no annual fee, a notable perk for a card with such high reward multipliers. Most cards with slightly lower reward rates typically have annual fees.
- Offers the flexibility to redeem cash towards Rogers, Shaw, or Fido services, potentially increasing the value of your earned rewards.
- The roam-like benefit is a benefit unique only to this card.
- It is accepted at nearly all locations as it's a Mastercard.
Cons
- No real insurance coverage (only balance protection), not even purchase protection or extended warranty which are pretty standard benefits for almost all credit cards.
- Low rewards multiplier if you don't have an eligible Rogers, Shaw, or Fido service.
Product Details
Product Details
Rewards
- 2% cashback on all purchases if you have 1 qualifying Rogers, Fido or Shaw service as the account owner
- 2% cashback on all U.S dollar purchases and 1% on all other eligible purchases if you do not have a qualifying Rogers, Fido or Shaw service
- 1.5x redemption bonus on your earned cash back value when used on Rogers, Fido and Shaw purchases – that’s a 3% cash back value
Insurance
Coverage
Balance Protection
Minimum payments
Benefits
Details
No Cost roaming
5 days
Eligibility
Credit Score
Very GoodAnnual Income
N/A
The only catch for this card is that the rewards you earn on this card depend on whether you have a qualifying Rogers, Fido or Shaw service.
If you don't have a qualifying service, then the reward rate is 1% for overall purchases. But if you do, then you can earn 2% on all your everyday purchases and redeem them with a 1.5x redemption bonus equal to a 3% cashback value! That's almost double the cashback value of the other cards we are going to discuss below!
Because of this simple fact, the Rogers Mastercard makes it to the top spots of many different reward categories, such as the best card for recurring bill payments and subscription purchases, etc.
2. Best no fee Mastercard for restaurant, gas and grocery purchases
If you decide not to use the Rogers credit card, then the MBNA Reward Platinum Plus Mastercard is one of the other good choices. This card provides 2 points on restaurant, grocery, digital media, membership, and household utility purchases (Up to 20000 points yearly, 1 point after) and 1 point on all other eligible purchases.
MBNA Rewards Platinum Plus Mastercard®
3.4
Finly Rating
Welcome Bonus
Up to 90000 points ($900 value)
Annual Fee
$0
Interest Rates
19.99% / 24.99%
Why we like it
Why we like it
The MBNA Rewards Platinum Plus MasterCard is a solid no-annual-fee card choice with high returns on restaurant and grocery purchases, which are the most common spending categories for most people. Additionally, it offers one of the highest signup bonuses for a no-annual-fee card. However, there are two main considerations before choosing this card. If you are open to a card with an annual fee, many other cards offer better rewards. Furthermore, the points earned need to be used for travel to fully benefit from this card; otherwise, if you are not planning to use the points for travel, you are better off with a cashback or another type of card.
Pros & Cons
Pros & Cons
Pros
- One of the best no-annual-fee credit cards in Canada, both in terms of rewards and signup bonus.
- Both restaurants and groceries, two of the most commonly spent categories, earn decent rewards.
- Great annual birthday bonus with up to $100 in value.
Cons
- Points must be used for travel otherwise the points won't have much value
- There are better alternative cards both for cashback and paid cards that have higher reward rates
Product Details
Product Details
Rewards
- 2 points on restaurant, grocery, digital media, membership, and household utility purchases (Maximum 20000 yearly)
- 1 point for everything else
Insurance
Coverage
Mobile Device Insurance
$1000
Purchase Protection
Up to 90 days
Extended Warranty
Up to a year
Benefits
Details
Annual Birthday Bonus
10% of the Points earned the 12 months prior to the primary cardholder's birthday month (up to a max 10,000 bonus points per year)
Car Rental Discount
10% off base rate of Avis Rent A Car and Budget Rent A Car in Canada and US and 5% internationally
Eligibility
Credit Score
GoodAnnual Income
N/A
What gives this card an edge over the other credit cards is its annual birthday bonus points, which earns 10% of the points earned the last 12 months prior to the cardholder's birthday month. This allows this card to get ahead of the others based on their reward rate.
Because this card earns you MBNA - Platinum rewards points, what you decide to redeem your points for is very important. You will get the best value for your points if you redeem your points for travel, gift cards and merchandise at almost $0.01 value per point, but not a very good redemption rate if you go for statement credit. So if you plan to redeem the points for cash, you will be better off with another card.
This card also has one of the best welcome bonuses among the no-fee Mastercard credit cards, with up to 20K point signup bonus, valued at $200 if redeemed for the correct redemption categories. Also, this credit card has $1000 mobile device insurance in addition to normal Purchase protection and Extended warranty insurance, which is a bonus.
3. Best no fee Mastercard for restaurant purchases if you are a Costco Member
If you are a Costco member, then you are eligible to apply for the Costco Mastercard. One common misconception about this card is that it's only great for Costco purchases and not any other purchases.
But it's actually the other way around!
CIBC Costco Mastercard
2.8
Finly Rating
Welcome Bonus
N/A
Annual Fee
$0
Interest Rates
20.75% / 22.49%
Why we like it
Why we like it
The CIBC Costco Mastercard offers one of the highest cashback rates on restaurant purchases in Canada, making it an excellent choice for optimizing rewards in this specific category, especially since it has no annual fees. If you use Costco Gas or shop on Costco Online, there is a decent cashback rate as well. However, for other categories, the cashback rate is average. Notably, you will be better off using other credit cards for warehouse Costco purchases, as you will only earn 1% cashback. If you are looking for no annual fee credit cards only, this is a good card to go for.
Pros & Cons
Pros & Cons
Pros
- Decent reward rate for a no annual fee credit card
- One of the highest cashback rates for restaurant purchases in Canada
- Has Mobile insurance
Cons
- Doesn't come with a lot of benefits
- Doesn't earn much on Costco Warehouse purchases!
Product Details
Product Details
Rewards
- 3% cash back on Restaurants and Costco Gas
- 2% cash back on Costco.ca purchases (Max $160 yearly)
- 2% cash back on Gas (Max $100 yearly)
- 1% on everything else
Insurance
Coverage
Mobile Device Insurance
$1000Purchase Protection
Up to 90 daysExtended Warranty
Up to a year
Eligibility
Credit Score
GoodAnnual Income
$15,000 personal
The Costco Mastercard earns 2% on Costco purchases only if they are made from their site, Costco.ca! So, when you purchase something in-store from Costco, you don't earn anything extra compared to other eligible purchases you do!
This card is great because it earns 3% on restaurant purchases, which is the main reason you might decide to get it. My biggest monthly expense, besides rent and my car, is the cost of going to restaurants, so if you are similar to me, it's worth optimizing for this category.
The big downside of this card is that it doesn't offer the best cashback in other categories. With a base cashback rate of 1% on most purchases, this card is not for you if you don't go to restaurants that much! It also has the basic Extended Warranty, purchase protection, and mobile insurance.
4. Best no fee Mastercard for flexible benefits
One of the main issues of no fee credit cards is that they don't come with many different benefits and insurance (especially travel insurance). This is something solved by Neo Financial. They offer the Neo Credit Card, which has the unique capability of perks that can be bought for a month for a very low fee and then cancelled when they are no longer needed.
Neo Mastercard®
2.7
Finly Rating
Welcome Bonus
N/A
Annual Fee
$0
Interest Rates
19.99% - 29.99% (for Quebec 19.99% - 24.99%) / 22.99% - 31.99% (for Quebec 22.99% - 25.99%)
Why we like it
Why we like it
The Neo Credit Card is special because it earns rewards based on whether the merchant is a partner or not. Most of the time, the cashback earned at these partners is the highest possible compared to all other credit cards. However, we don't recommend using this card as your main credit card and suggest using it only at partner merchants. This is because the rewards at non-partner merchants are very small, and most merchants are not partnered with Neo.
Pros & Cons
Pros & Cons
Pros
- High cash back on grocery and gas if you're willing to hold at least $5k in a Neo everyday account
- Unique cashback program which earns cashback based on partner instead of purchase category.
- Massive cashback at some partners that any other credit card couldn't beat.
- Unique benefit system where perks could be bought with a monthly fee and cancelled after use.
Cons
- Base Cash back is very low when you do not hold any money in a Neo everyday account
- No built-in purchase protection and extended warranty benefit.
Product Details
Product Details
Rewards
- 1% cash back on grocery purchases up to $6,000 spending per year (1.5% cash back with $1k in a Neo everyday account, 2% cash back with $3k in a Neo everyday account, 3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to 0.5% cash back after hitting spend cap
- 2% cash back on gas purchases up to $12,000 spending per year (1.5% cash back with $1k in a Neo everyday account, 2% cash back with $3k in a Neo everyday account, 3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to 0.5% cash back after hitting spend cap
- 0% cash back on all other purchases with $0 in a Neo everyday account, however you get 0.5% cash back with $1-3k in a Neo everyday account, and 1% cash back with $5k+ in a Neo everyday account - drops to 0% cash back again after spending $20,000 in this "other" category
- +5% earned on average at Neo Partners.
Note: our reward calculations use the assumption that you hold $1k in a Neo everyday account to earn 1.5% on grocery and gas, and 0.5% on everything else. Your true reward estimates may be lower or higher depending on the amount of money held in a Neo everyday account.
In addition, the extra cashback rate from transactions made at Neo partners has been estimated at 0.7% in the calculator.
Insurance
Coverage
Balance Protection
optional add on
Benefits
Details
Neo Premium ($4.99/month)
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Neo Travel Benefits ($4.99/month)
Neo Food Cashback boost ($1.99/month)
Neo Mind and Body Perks ($9.99/month)
Eligibility
Credit Score
GoodAnnual Income
N/A
In summary, you have the option to buy perks that increase your cashback rate on certain spending categories, the option to buy travel perks for $4.99/month that gives access to Priority pass for lounge access, delay insurance, emergency medical, trip cancellation and car rental protection insurance and more.
They also have Mind and body perks that give access to free classes at some partners like Oxygen Yoga and Fitness, FinOn Pro, and Headspace Plus. In addition, there is a Mobile & Personal Protection insurance that gives you access to Damage and theft protection for your mobile, $1 million dollar coverage for fraud and identity theft, and a password management tool.
5. Best no fee Mastercard for free Roadside assistance benefit
Roadside assistance is one of the unique benefits that not many credit cards offer and it is useful when you get stranded on the road. Given it's a very expensive benefit to offer on a credit card, there aren't that many cards, even paid ones, that offer it.
However, the Triangle World Elite Mastercard is the only free card in Canada that offers this benefit.
The big catch is that it's hard to qualify for because it requires an excellent credit score and a Personal income of $80K/year or a household income of $150K/year.
Triangle World Elite Mastercard
3.5
Finly Rating
Welcome Bonus
N/A
Annual Fee
$0
Interest Rates
21.99% / 22.99%
Why we like it
Why we like it
This card is the only one with no annual fee that provides a roadside assistance benefit, which can be a lifesaver for people who travel on the road a lot. The main reason to apply for this card is to have free access to this benefit, given that the rewards are not great in most categories (except for Canadian Tire and grocery purchases).
Pros & Cons
Pros & Cons
Pros
- The only credit card in Canada that offers the highly valuable benefit of roadside assistance!
Cons
- This card has a very low acceptance rate based on prior user applications.
It's not a great option to have as your primary credit card, either in terms of rewards or benefits. However, it's a good card to complement your other credit cards.
Product Details
Product Details
Rewards
- 4% back in CanadianTire dollars on almost everything at Canadian Tire, Sport Chek, Mark’s, L’Équipeur, Party City, Pro Hockey Life, Atmosphere, Sports Rousseau, Hockey Experts, L’Entrepôt du Hockey, and participating Sports Experts stores
- 3% back in CanadianTire dollars on Groceries (Max 360) Except Costco and Walmart
- 1% back in CanadianTire on all other purchases
Insurance
Coverage
Purchase Protection
Up to 90 days.svg)
Car Rental Damage & Theft
31 days
Benefits
Details
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Gas Discount
Save 7¢/L on premium fuel and 5¢/L on all other fuel types at Gas+ and Petro-Canada locations on gas.svg)
Concierge Services
Roadside Assistance
Roadside Assistance Gold Plan: With the Triangle World Elite Mastercard Roadside Assistance Gold Plan, you get towing distance of up to 250 km per service call to the destination of your choice (within Canada or the US)
Eligibility
Credit Score
ExcellentAnnual Income
$80,000 personal or $150,000 household
If you make some purchases in stores that the Triangle reward program is part of, such as Canadian Tire, Sport Chek, Mark's, etc, then you can earn 3%-4% in Canadian Dollar rewards. If you don't, then the base reward rate is 1%, which is also pretty good. However, if you are only maximizing rewards and don't care as much about the roadside assistance benefit, then the previously mentioned cards are probably a better fit for you.
Honourable Mentions for Best No Annual Fee MasterCard
1. Best no-fee Mastercard for Loblaw's affiliate grocery store purchases
If you are a person who frequently buys from Loblaw's affiliate stores, then the PC World Elite Mastercard is a good card to consider.
PC World Elite Mastercard
3.1
Finly Rating
Welcome Bonus
100,000 PC points ($100 value)
Annual Fee
$0
Interest Rates
21.99% / 22.97%
Why we like it
Why we like it
This is a great card to have in your arsenal if you frequently shop at Shoppers Drug Mart®, Loblaw's owned chains, and ESSO and Mobil gas stations, as you will earn significant rewards in these categories. The additional benefits, such as out-of-province medical insurance, car rental damage insurance, and concierge service, are impressive and typically only come with cards that have annual fees; however, you can access these benefits for free with this card. We do not recommend using this as your primary credit card but as a supplement to another primary card, especially because there are no fees. This is because the rewards on purchases outside the mentioned shops are very average, and many other cards offer much more substantial rewards for general use.
Pros & Cons
Pros & Cons
Pros
- Out-of-province medical insurance, concierge service, and car rental damage insurance—benefits that are usually included with cards that have fees—are included with this card.
- Decent rewards on purchases at Shoppers Drug Mart®, Loblaw's owned chains, and ESSO and Mobil gas stations.
Cons
- Many other high-spend categories don't earn as many rewards. Shopping at any other grocery chains, gas stations, or pharmacies will only give the base reward rate, and restaurant purchases and purchases in other categories don't earn much either.
Product Details
Product Details
Rewards
- 45 points per $1 dollar spent at Shoppers Drug Mart® stores
- 30 points per $1 dollar spent at Atlantic Superstore, Extra Foods, Fortinos, Loblaws, Maxi, Maxi & cie, no frills, Provigo, Real Canadian Superstore, SaveEasy, SuperValu, valu-mart, Your Independent Grocer, Zehrs
- 20 points per $1 spent in PC travel
- 19 points per $1 dollar spent at ESSO and Mobil (it's 30 points per liter and the assumption of average gas price of $1.6 was made)
- 10 points per $1 dollar spent for everything else
Insurance
Coverage
Emergency Out of province Medical
$1M, Up to 10 daysCar Rental Damage & Theft
Up to 31 daysPurchase Protection
90 daysExtended Warranty
Doubled up to a year
Benefits
Details
Concierge Services
Identity Theft Assistance
Eligibility
Credit Score
Very GoodAnnual Income
$80,000 personal or $150,000 household
With this card, you can earn 45 points with an effective cash back value of %4.5 on Shoppers Drugmart purchases and 30 points on grocery purchases, which has a 3% effective cash back value in places such as the Atlantic Superstore, Extra Foods, Fortinos, Loblaws, Maxi, etc. and 1.9% on participating gas stations, which are ESSO and Mobil gas purchases. The base cashback rate on this card is 1% for all other eligible purchases.
You would mainly want to use this card for the categories that earn extra points and use other cards for all other eligible purchases.
2. Best no fee MasterCard for categories not covered by other cards
Tangerine Money-Back Credit Card
4
Finly Rating
Welcome Bonus
10% Cash Back up to $100 value
I currently have or may soon have a Tangerine Savings account
Annual Fee
$0
Interest Rates
20.95% / 22.95%
Why we like it
Why we like it
While we think Tangerine isn't the best single credit card to own, it's still a valuable card to have in your arsenal for maximizing your rewards. It offers one of the highest cashback rates for pharmacy and recurring bill payments, areas where your other credit cards might not provide significant rewards. This card only requires a Fair credit score, making it an excellent choice for people who don't have a high credit score yet.
Pros & Cons
Pros & Cons
Pros
- Allows you to change the categories, and you get a 2% reward depending on how your spending is changing every 90 days.
- 2% cashback on recurring Transactions and pharmacy purchases. One of the highest cashback rates on these categories among credit cards in Canada.
- Has cashback on Furniture and Home Improvement categories. Two categories that are not covered by any other card in Canada.
- Easy credit score requirements needed for this card.
- Overall, it is a good no-annual-fee cashback credit card, especially if you have a Tangerine Savings account.
Cons
- Insurance coverage is the most basic.
- Very low cashback rate on the other categories not selected.
Product Details
Product Details
Rewards
- 2% on the choice of two categories chosen from the 10 offered by Tangerine
- 0.5% cashback on all other credit card purchases.
Insurance
Coverage
Purchase Protection
90 daysExtended Warranty
Up to a year
Eligibility
Credit Score
GoodAnnual Income
N/A
The Tangerine Money back credit card is special in the sense that it allows you to select from ten different categories—like Furniture, Home Improvements, and Drug Stores—where you can earn an enhanced 2% cashback, making it a unique offer in the realm of no fee credit cards. You can choose two categories (or three with a Tangerine Savings Account). In the other categories, you will earn 0.5%.
Even though this card does not have the highest cashback rates, it can be used to earn cashback on categories that pretty much no other credit card covers which are Furniture and Home Improvement purchases, so if you have huge purchases coming this card can be considered. (But still if you have the option to go for the Rogers Mastercard, a 3% return on all purchases beats this card).
Why MasterCard is a Preferred Choice in Canada
MasterCard's growing popularity among Canadians can be attributed to two key factors:
- Costco's partnership with MasterCard means that's the only credit card they accept. Being exclusive to MasterCard holders, Costco allows cardholders to make bulk purchases at discounted rates while earning cash back!
- Walmart transactions using a MasterCard are classified as "grocery" at Walmart Supercenters while using Visa or Amex would be considered as "other." Essentially, the strategic classification of Walmart transactions amplifies your grocery rewards, giving MasterCard users an upper hand over other card types.
How to choose the top no annual fee MasterCard credit cards in Canada
Every credit card has its own unique rewards and benefits, so there is no single card that is best at everything. Depending on your situation, you want to choose the no-fee credit card that works best for you based on your spending habits and benefit needs.
If you are looking for rewards, specifically the Rogers Master and MBNA cards are one of the most solid choices for a No annual fee Mastercard but if you are also looking to get some benefits as well the Neo card and Rogers World Elite are also great cards to consider.