American Express Cobalt® Card vs Neo Mastercard®: Which one is better?
American Express Cobalt® Card
5
Neo Mastercard®
2.7
Finly Rebate
N/A
Finly Rebate
Rewards Breakdown
Annual Rewards
$1,096
American Express Membership Rewards
First Year Bonus
$315
American Express Membership Rewards
Annual Fee
$155.8
First Year Value
$1,255.2
$940.2 in years after
Based on $2,000/mo average spending. Calculate your rewards.
Rewards Breakdown
Annual Rewards
$183.73
First Year Bonus
$0
Annual Fee
$0
First Year Value
$183.73
Based on $2,000/mo average spending. Calculate your rewards.
Insurance Included*
Lost or Stolen Baggage
$500
Baggage Delay
$500.svg)
Car Rental Damage & Theft
yes
Travel Accident
$250,000
Mobile Device Insurance
$1,000
Extended Warranty
Up to 1 year
Purchase Protection
90 days
Hotel Burglary Insurance
$500
Emergency Out of province Medical
15 daysFlight Delay
$500
Insurance Included
Balance Protection
optional add on
Extra Benefits*
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Travel Credit
Book two or more consecutive nights at participating properties through The Hotel Collection with American Express Travel to receive a $100 credit for amenities or a complimentary room upgrade, if available.
Amex Experiences™
Access Front Of The Line® Amex Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with Amex Experiences™
Extra Benefits
Neo Premium ($4.99/month)
Neo Travel Benefits ($4.99/month)
Neo Food Cashback boost ($1.99/month)
Neo Mind and Body Perks ($9.99/month)
Interest Rates*
Purchase:
21.99%1
Cash Advance:
21.99%1
Interest Rates
Purchase:
19.99% - 29.99% (for Quebec 19.99% - 24.99%)
Cash Advance:
22.99% - 31.99% (for Quebec 22.99% - 25.99%)
Annual Fee*
$155.8
Annual Fee
$0
Income Required*
Min Personal Income:
N/A
Min Household Income:
N/A
Income Required
Min Personal Income:
N/A
Min Household Income:
N/A
Welcome Bonus*
Earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in purchases on your Card in the first Year
Welcome Bonus
N/A
Rewards Rate*
- 5x points per $1 spent on eligible eats and drinks in Canada, including groceries and food delivery (up to 12,500 points per month)
- 3x points per $1 spent on eligible streaming subscriptions in Canada
- 2x points per $1 spent on eligible gas, transit & ride share in Canada
- 1x point per $1 spent on all other purchases
Rewards Rate
- 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.
Loyalty Program*
Loyalty Program
N/A
Point Redemption Options*
Most Optimal
Transfer to Airline Partners
2.1¢ / point
Fixed Point Travel Program
1.66¢ / point
Transfer to Hotel Partners
1.66¢ / point
Statement Credits (Cash)
1¢ / point
Gift Cards
0.765¢ / point
Amazon.ca
0.7¢ / point
Merchandise
0.63¢ / point
Point Redemption Options
Not Applicable
Is this card worth it?
This card was voted the Best Credit Card in Canada by FinlyWealth. The rewards earned on this card for a person with average spending exceed those of other credit cards in Canada by a huge margin! In addition, this card has a good benefits coverage, a flexible points redemption program (1:1 transfer to Aeroplan® or Avios), making it the best candidate to become the main credit card for the majority of people.
Is this card worth 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
- Points can be transferred to Air Canada Aeroplan® at a 1:1 ratio, making this card a solid Aeroplan® points earner as an alternative to Aeroplan® branded credit cards
- Generous welcome bonus of up to 15,000 points
- 4+ different ways of redeeming your points for great value
- 10 different types of insurance, including travel
- Often referred to as the Best Credit Card in Canada
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
- Less acceptance of American Express at different merchants across Canada
- Not all types of travel insurance are covered, especially trip cancellation and interruption insurance
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.
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American Express Cobalt® Card vs Neo Mastercard®: When to go for one over the other
Annual Fees and Requirements
The American Express Cobalt® Card and the Neo Credit Card differ significantly in terms of annual fees and eligibility requirements. The Cobalt® Card has an annual fee, which may be justified by the extensive rewards and benefits it offers. On the other hand, the Neo Credit Card has no annual fee, making it more accessible for those who prefer a no-cost option. Both cards have no specific income requirements, which makes them approachable for a wide range of applicants.
Rewards Comparison
When comparing rewards, the American Express Cobalt® Card stands out with its high points rate on categories like dining, groceries, and travel, offering significant value for those who spend heavily in these areas. It also includes a generous welcome bonus. In contrast, the Neo Credit Card offers cashback primarily through its network of partners, with varying rates depending on where you shop. While the potential cashback can be competitive at certain merchants, overall, the Neo card provides less value compared to the Cobalt® Card's broader rewards structure.
Reward Redemption Options
The American Express Cobalt Card provides multiple redemption options, including point transfers to airline and hotel partners, statement credits, and more, offering flexibility in maximizing rewards. The Neo Credit Card’s cashback is more straightforward and flexible, as it is given directly in cash and can be used anywhere, making it more versatile for everyday spending.
Benefits and Insurance
The American Express Cobalt® Card offers a comprehensive suite of benefits, including various travel insurances, purchase protection, and extended warranties, making it a well-rounded choice for frequent travelers and shoppers. The Neo Credit Card, while unique in its ability to purchase specific perks on a monthly basis, lacks built-in insurance and protection benefits, making it less attractive for those seeking extensive coverage.
Conclusion
For most users, the American Express Cobalt® Card is the superior choice due to its robust rewards, extensive benefits, and insurance coverage. It’s ideal for those who spend heavily on dining, groceries, and travel, and who can justify the annual fee with the rewards earned. However, the Neo Credit Card may appeal to individuals who prefer a no-fee option and shop frequently at Neo partner stores, where they can maximize their cashback.
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