Our strategies to easily earn cash back

There are hundreds of different credit cards on the market to earn cash back rewards for everyday savings.

However, how do you maximize cash back with a small amount of spending? This article explains a strategy for optimizing purchases in the right categories for each credit card (restaurants, grocery stores, gasoline, AIR MILES partners, etc.):

the least number of credit card applications
the cheapest way possible
the minimum expenditure required

Cash back – The credit card welcome bonus strategy

When you start to venture into the world of credit card rewards, you quickly realize that the most lucrative strategy is to apply for credit cards in order to earn welcome bonuses.

For beginners, we recommend starting with one or two credit cards, then spacing out applications by at least 6 to 9 months. Then, once you’re more comfortable with credit card management, you can increase the number of credit card applications and space them out over time.

First round of credit cards

The credit cards suggested in the first round of the strategy provide rewards points primarily for travelers. However, these points are indirectly a form of cash back, depending on how you look at the strategy.

Here is the valuation obtained after the welcome bonuses following the three subscriptions:

Credit card	Bonus	Minimum expenses	Rewards	Annual Fees	Final value
TD First Class Travel^® Visa Infinite* Card	135,000 TD Reward Points	$5,000	10,000 Points	Annual fee reimbursed in 1st year	$725
RBC Avion Visa Infinite Card	35,000 Points Avion Rewards	N/A	N/A	$120	$560
American Express Cobalt^{^®} Card	15,000 Membership Rewards points	$9,000 spread over the 1st year	45,000 Membership Rewards points	$155.88	$600
TOTAL	185,000 Points	$14,000	55,000 Points	$275.88	$1,885

This strategy accumulates $1,610 in net worth ($1,885 – $275) on $14,000 in expenses, for a return of 11.5%.

Our credit card selection
Credit card	Annual fee	Welcome offer
SponsoredTD First Class Travel^® Visa Infinite* Card Apply NowCompare	Annual feeFirst Year Annual Fee Rebate$139 $0First Year Annual Fee Rebate	Welcome offerAfter $7,500 in 6 months Up to 160,000 points After $7,500 in 6 months	Apply NowCompare
American Express Cobalt^® Card Apply NowCompare	Annual fee$191.88	Welcome offerGet 1,250 points after $750 in purchases per month for 12 months Up to 15,000 points Get 1,250 points after $750 in purchases per month for 12 months	Apply NowCompare
FeaturedRBC Avion Visa Infinite Card Apply NowCompare	Annual fee$120	Welcome offerAfter $5,000 in 6 months Up to 70,000 pointsEnds Nov 25, 2026 After $5,000 in 6 months	Apply NowCompare

Second round of credit cards

In this second part of the strategy, the suggested credit cards give welcome rewards and cash back bonuses directly:

Credit card	Bonus	Minimum expenses	Rewards	Annual Fees	Final value
CIBC Dividend^{^®} Visa Infinite* Card	$250	$2,500 over 4 months	N/A	Annual fee reimbursed in 1st year	$250
BMO AIR MILES^{^®†} World Elite^{^®} Mastercard^{^®}	3,000 AIR MILES ($310)	$3,000 over 3 months	750 miles ($78)	Annual fee reimbursed in 1st year	$393
Tangerine Money-Back Credit Card	$100	$1,000 over 2 months	N/A	No annual fee	$100
TOTAL	$660	$6,500	$78	$0	$738

This strategy yields $738 in net worth on $6,500 in expenses, a return of 11.4%.

Our credit card selection
Credit card	Annual fee	Welcome offer
CIBC Dividend^® Visa Infinite* Card Apply NowCompare	Annual feeFirst Year Annual Fee Rebate$120 $0First Year Annual Fee Rebate	Welcome offerAfter $2,000 in 4 months Up to $250 cash back After $2,000 in 4 months	Apply NowCompare
Tangerine Money-Back Credit Card Apply NowCompare	Annual fee$0	Welcome offerAfter $1,000 in 2 months Up to $100 cash backEnds Nov 30, 2026 After $1,000 in 2 months	Apply NowCompare

Assessment of the welcome bonus strategy

So, with these two rounds of credit cards, an individual’s annual spending of $20,500 could generate $2,348 in cash back. That’s a return of 11.5%.

Cash back – The long-term strategy

For a variety of reasons, many people prefer the strategy of arming themselves with a good wallet that has one cash-back credit card, to be kept for the long term with little annual fee to pay.

Credit cards with the highest cashback rates and good insurance often come at a price. Since the changes made to the American Express Cobalt^® Card, it has become one of the best cash-back credit cards in Canada.

Second, as a strategy, I recommend that you seek out credit cards to cover expenses where American Express is not accepted, or categories that aren’t boosted.

Long-term credit card portfolio

Card	Purchase category	Cash back	Welcome Bonus	Annual fee
American Express Cobalt^{^®} Card	Groceries Various gift cards Gas* Walmart Amazon* Furnishings* Restaurants Food delivery Travel	5%	15,000 Membership Rewards points (or $150)	$155,88
Tangerine Money-Back Credit Card	Recurring bill payments Drugstores Hotels and Motels Home Improvement Restaurants	2%	$100	No annual fee

Card

Purchase category

Cash back

Welcome Bonus

Annual fee

American Express Cobalt^{^®} Card

Groceries
Various gift cards
Gas*
Walmart
Amazon*
Furnishings*
Restaurants
Food delivery
Travel

15,000 Membership Rewards points
(or $150)

$155,88

Tangerine Money-Back Credit Card

Recurring bill payments
Drugstores
Hotels and Motels
Home Improvement
Restaurants

$100

No annual fee

* Gift cards for these stores can be purchased in grocery or convenience stores for 5% cash back.

Our credit card selection
Credit card	Annual fee	Welcome offer
Tangerine Money-Back Credit Card Apply NowCompare	Annual fee$0	Welcome offerAfter $1,000 in 2 months Up to $100 cash backEnds Nov 30, 2026 After $1,000 in 2 months	Apply NowCompare
American Express Cobalt^® Card Apply NowCompare	Annual fee$191.88	Welcome offerGet 1,250 points after $750 in purchases per month for 12 months Up to 15,000 points Get 1,250 points after $750 in purchases per month for 12 months	Apply NowCompare
ExclusiveNational Bank World Elite^® Mastercard^® Apply NowCompare	Annual feeFirst Year Annual Fee Rebate$150 $0First Year Annual Fee Rebate	Welcome offer$150 annual fee rebated First Year Annual Fee RebateEnds Nov 4, 2026 $150 annual fee rebated	Apply NowCompare

Illustrated example of the strategy

Here are some numbers to illustrate the return of this strategy:

Card	Category	Annual expenses	Earned Rewards
American Express Cobalt^{^®} Card	Grocery (American Express accepted)	$1,500	$75
American Express Cobalt^{^®} Card	Gasoline	$1,000	$50
American Express Cobalt^{^®} Card	Restaurants (American Express accepted)	$500	$25
American Express Cobalt^{^®} Card	Uber Eats	$700	$35
American Express Cobalt^{^®} Card	Tim Hortons, Starbucks	$500	$25
Gift card strategy	Walmart	$500	$25
Gift card strategy	Amazon	$1,000	$50
Gift card strategy	SAQ	$500	$25
Gift card strategy	Netflix	$300	$15
Gift card strategy	Cinéma	$500	$25
Gift card strategy	Books and cultures	$500	$25
Tangerine Discount Credit Card	Pharmacy	$300	$6
Gift card strategy	Furnishings (IKEA, Wayfair, etc.)	$400	$20
Gift card strategy	Minor renovation and maintenance	$300	$15
Gift card strategy	Clothing	$1,000	$50
American Express Cobalt^{^®} Card	Miscellaneous	$2,500	$25
	TOTAL	$12,000	$491

With this portfolio, annual expenses of $12,000 can generate $335.12 in cash back once the annual fee is subtracted ($491 – $155.88), or 2.79%. This strategy yields a significantly lower return when welcome bonuses are removed from the equation. However, an average of 2.79% cash back is still excellent.

Gift card strategy

When you have few credit cards, the best strategy is to make sure you go out and optimize each category of purchase to get the most optimal cash back possible. The gift card strategy is therefore essential to master when it comes to cash back.

What’s more, many American Express online promotional offers put the American Express Cobalt^® Card annual fee into perspective. With generous American Express credits, the real return on this strategy is around 4% to 5% cash back.

Bottom Line

In short, there are several strategies for optimizing credit card purchases and maximizing cash back. The aim is to apply for as few cards as possible, pay as few fees as possible and spend as little as possible.

If you have any cash-back strategies of your own, don’t hesitate to share them with the Milesopedia Facebook community!

Compare

American Express Cobalt^® Card

American Express Amex Membership Rewards

Annual fee: $191.88
Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$255Total$255Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.: $255
Welcome offerGet 1,250 points after $750 in purchases per month for 12 months: Up to 15,000 points

The American Express Cobalt^® Card is a versatile American Express card, whether you want points for travel or cash back.

American Express Cobalt^® Card welcome offer

The welcome bonus is paid out monthly over your first 12 months. You earn 1,250 Membership Rewards points for each monthly billing period in which you charge $750 in net purchases to your card, in any category (1X, 2X, 3X or 5X). That adds up to 15,000 Membership Rewards points over the year, a welcome offer valued at $255.

Earning the full bonus means $9,000 in net purchases spread across 12 monthly billing periods. This offer rewards steady monthly spending rather than one large purchase.

You can use these points as statement credits on everyday or travel purchases, at the same rate either way: 1,000 points = $10.

You can also transfer them to Aeroplan, Avios (British Airways and Qatar Airways), Flying Blue, Marriott Bonvoy or Hilton Honors. With the full welcome bonus, that is a choice between:

15,000 Aeroplan points
15,000 Avios points
15,000 Flying Blue Miles
18,000 Marriott Bonvoy points

American Express Cobalt^® Card benefits

Here is what the card gives you, starting with the benefits cardholders use most.

5X points on eligible eats and drinks in Canada: groceries, restaurants and bars, and home food delivery. A spend cap applies.
3X points on eligible streaming subscriptions in Canada.
2X points on eligible gas, public transit and ride sharing purchases in Canada.
1 additional point on eligible hotel and car rental bookings made through American Express Travel Online.
1X point per dollar on everything else, with no category restrictions.
Points that hold the same value either way: 1,000 points = $10 as a statement credit, or a 1:1 transfer to several airline and hotel loyalty programs.
No minimum income requirement, as with every American Express Canada card.
Additional cards at no extra cost: the first and every other supplementary card is $0.
The Hotel Collection: a room upgrade when available, 12pm check-in and late check-out when available, and up to $100 USD in hotel credit on amenities charged to the room for a stay of two or more consecutive nights, booked through American Express Travel.
Front Of The Line^® presale and reserved tickets for concerts and theatre performances, plus offers and events curated for cardmembers through Amex Experiences.
A soft credit check before you apply: you can see whether you will be approved with no impact to your credit score. This applies to American Express personal card applications.

The 5X categories and where they apply

The 5X rate is the reason most people carry this card. In Canada it covers three kinds of merchants:

Groceries: Metro, IGA, Sobeys, Super C, Safeway, Whole Foods.
Restaurants and bars: sit-down meals, takeout and drinks.
Home food delivery.
Convenience stores (Couche-Tard, 7-Eleven): not part of 5X, 1 point per dollar.

The 2X rate covers gas stations such as Esso, Shell and Petro-Canada, along with public transit and ride sharing.

With the American Express Cobalt^® Card, you earn between 1 and 5 points per dollar:

Category	Points per dollar
Grocery (Metro, IGA, Sobeys, Super C, etc.)	5
Home food delivery	5
Restaurants and bars	5
Convenience stores	1
Streaming services	3
Service station	2
Transport	2
Travel	1
Other	1

That works out to a 1 to 5% return on those purchases. For example, if you spend $1,000 per month across groceries, restaurants and food delivery, you earn $50 back per month, or $600 per year from that category alone. Transfer the points to a program such as Aeroplan instead and the return can be higher.

You can also stack these categories with the hundreds of stores that offer 5x points.

American Express Cobalt^® Card insurance coverage

The card comes with a broad insurance package. The amounts below are the coverage limits; conditions, age limits and exclusions are set out in the certificate of insurance linked in the Insurance section above.

Travel insurance

Emergency medical: up to $5,000,000 for the first 15 days of a trip.
Travel accident: accidental death and dismemberment of up to $250,000 for you, your spouse and dependent children under age 23 when travelling on a common carrier (plane, train, bus or ship) and the tickets are charged to your card. Supplementary cardholders and their families are covered too.
Flight delay: up to $500 for necessary hotel, meal and sundry expenses bought within 48 hours when you are delayed or denied boarding for four hours or more and no other transportation is available. This $500 is an aggregate limit per occurrence, shared with missed connection and delayed baggage coverage.
Delayed baggage: up to $500 for essential clothing and sundries bought within four days when your outbound luggage is delayed six hours or more. This $500 is an aggregate limit per occurrence, shared with missed connection and flight delay coverage.
Lost or stolen baggage: up to $500 per occurrence for all insured persons combined, for checked or carry-on baggage and personal effects in transit, when the airline tickets are charged to your card. Within that limit, jewellery is capped at $300 per occurrence and golf clubs, including golf bags, at $250 per occurrence.
Hotel and motel burglary: up to $500 against the loss of most personal items if your hotel or motel is burglarized, when the stay is charged to your card.

Rental car insurance

Theft and damage coverage is included for a rental car with an MSRP, for its model year, of up to $85,000 excluding all taxes, for rentals of up to 48 days. To use it, decline the Loss Damage Waiver (LDW) or any similar option from the rental company and charge the full rental to your card. There is no cost for this coverage, and it replaces the daily insurance the rental company charges, usually $16 to $23 per day.

Mobile device insurance

Your device is covered for up to $1,000 per occurrence when it is charged to the card, for up to two years from the date of purchase. The payout is based on the depreciated value of the device, which falls by 2% of the purchase price for every completed month, less a 10% deductible. Theft and accidental damage coverage starts on the 91st day after purchase, because the first 90 days are covered by purchase protection.

Purchase protection and extended warranty

Eligible items charged to your card are insured against accidental physical damage or theft for 90 days from the purchase date, up to $1,000 per occurrence for all items combined. The card also extends the original manufacturer’s warranty by up to one additional year on eligible items, with indemnification limited to $10,000 per insured item and $25,000 per Cardmember per policy year for all items combined.

American Express Cobalt^® Card fees

Card fee: $15.99 per month, which equals $191.88 per year, for residents outside Quebec. Quebec residents are billed $191.88 per year.
Additional cards: $0.
Purchase interest rate: 21.99%.
Cash advance interest rate: 21.99%.
Foreign transaction fee: 2.5%.
Minimum income required: none.

Because the fee is billed monthly rather than in one annual charge, you can stop and restart the cost in step with how much you are actually using the card.

Legal

American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, we may receive compensation from American Express, which can be in the form of monetary payment.

Annual fee

Primary card$191.88

Additional card$0

Annual income required

Individual$0

Household$0

Conversion fees

2.5%

Earning rate

5xRestaurants
5xGroceries
3xStreaming
2xTransit
2xGas
1xAll spending

Value

1st Year Value$1,675

2nd Year Value$799

Transfer partners

AeroplanAirline
British Airways ClubAirline
Cathay Asia MilesAirline
Etihad GuestAirline
Flying BlueAirline
Hilton HonorsHotel
Marriott BonvoyHotel

Travel insurance

Travel medical (under 55)Up to $5,000,000 / 15 days

Travel medical (55-64)Up to $5,000,000 / 15 days

Delayed BaggageUp to $500

Lost BaggageUp to $500

Flight DelayUp to $500

Hotel BurglaryUp to $500

Travel AccidentUp to $250,000

Purchase protection

Purchase ProtectionUp to $1,000 / 90 days

Extended Warranty+1 years

Mobile DeviceUp to $1,000 / 2 years

Auto Rental Collision (primary)Up to $85,000 / 48 days

There are hundreds of different credit cards on the market to earn cash back rewards for everyday savings.

the least number of credit card applications
the cheapest way possible
the minimum expenditure required

Cash back – The credit card welcome bonus strategy

When you start to venture into the world of credit card rewards, you quickly realize that the most lucrative strategy is to apply for credit cards in order to earn welcome bonuses.