Why look for an alternative to the American Express Cobalt Card?

The American Express Cobalt Card is one of the strongest grocery and dining cards in Canada (5x Membership Rewards on those categories), but it has two limitations: it isn't accepted at Costco and the $12.99 monthly fee adds up to $155.88 a year. Households who shop primarily at Costco, who want a single card with no monthly fee, or who can't access American Express at their preferred merchants typically need a Mastercard or Visa alternative — usually the MBNA Rewards World Elite or the National Bank World Elite — to cover their spending.

Which Cobalt alternative is best for grocery and restaurant spending in Canada?

The Scotiabank Gold American Express Card is the closest match. It earns 6 Scene+ points per dollar at Sobeys-group stores and 5 points per dollar at any other grocery store, restaurant or food delivery service, up to $50,000 a year combined. Scene+ points are worth roughly 1 cent each toward travel or grocery redemptions, so the effective return is 5-6%. The annual fee is $120, and it includes solid travel insurance and a discount on car rentals — a near-equivalent to the Cobalt without the monthly billing.

Which Cobalt alternative works at Costco in Canada?

Two Mastercard options on the alternatives list work at Costco: the MBNA Rewards World Elite Mastercard and the National Bank World Elite Mastercard. The MBNA earns 5 points per dollar (about 5% return) on groceries, dining, digital media and household utilities, while the National Bank earns 5 points per dollar on dining and groceries. Both run through the Mastercard network, so they're accepted at Costco warehouses and gas bars. Costco purchases earn the base 1 point per dollar — not the 5x category bonus.

How does redeeming MBNA Rewards points compare to American Express Membership Rewards?

MBNA Rewards points are worth a flat 1 cent each, regardless of how you redeem (cash back, statement credit, travel, gift cards). American Express Membership Rewards points earned on the Cobalt are worth more on travel transfers — typically 1.4 to 2 cents per point when transferred to Aeroplan, British Airways Avios or Marriott Bonvoy. MBNA is simpler but caps the upside; Membership Rewards take more effort but unlock better redemption value, especially for premium-cabin flights and sweet-spot Aeroplan awards.

Caroline Tremblay

Caroline, a loyalty program specialist, helps families maximize their points to travel more frequently and affordably. With expertise in Disney, AIR MILES, and Costco, she travels the world with her partner and two children through rewards. Passionate about the latest in loyalty programs, Caroline shares tips to help you earn more points and turn your travel dreams into reality.

All posts by Caroline Tremblay