American Express Cobalt® Card vs RBC ION Visa: Which one is better?

Annual Fees and Requirements

The American Express Cobalt® Card and the RBC ION Visa have a significant difference in their annual fees. The Cobalt® Card has a moderate annual fee, while the RBC ION Visa comes with no annual fee, making it more accessible to those looking for a no-cost option. Both cards do not have specific income requirements, allowing a broad range of users to apply. The fee difference could be a deciding factor depending on your budget and willingness to pay for premium benefits.

Rewards

When comparing the rewards structure, the American Express Cobalt® Card offers significantly higher potential rewards, especially in categories like dining and groceries, where it provides a high multiplier on points. It also includes a generous welcome bonus for new cardholders, which further enhances its value. The RBC ION Visa, on the other hand, offers more modest rewards and a smaller welcome bonus, making it less competitive for those seeking maximum returns on everyday spending.

Reward Redemption Options

When it comes to redeeming rewards, the American Express Cobalt Card offers more flexibility and potentially higher value. It allows you to redeem points for statement credits, travel, gift cards, merchandise, and even transfer to airline and hotel partners, providing multiple ways to maximize the value of your points. On the other hand, while the RBC ION Visa also offers various redemption options, including travel, financial products, and gift cards, its point value is generally lower, and the redemption flexibility is not as robust as the Cobalt Card. For users who prefer straightforward and high-value redemptions, the Cobalt Card's options are superior, especially since statement credits offer greater flexibility compared to other forms of redemption.

Benefits and Insurance

The American Express Cobalt® Card stands out with its comprehensive benefits and insurance coverage, including travel insurance, car rental insurance, and mobile device protection, among others. These perks are extensive compared to the RBC ION Visa, which offers only basic insurance and fewer overall benefits. Additionally, the Cobalt® Card provides unique experiences and perks, like access to American Express exclusive events, that the RBC ION Visa does not match.

Conclusion

For most users, the American Express Cobalt® Card is the superior choice due to its higher rewards, robust benefits, and comprehensive insurance coverage. It is ideal for those who spend significantly on dining and groceries and are willing to pay an annual fee for premium perks. However, if you prefer a no-fee card with basic rewards and benefits, the RBC ION Visa could be more suitable, particularly for budget-conscious individuals or those with lower spending in the higher-reward categories.