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

The American Express Cobalt Card earns 5 Membership Rewards points per dollar on groceries and dining, but it is not accepted at Costco—a major limitation for households that do the majority of their grocery shopping at the warehouse. Its monthly fee of $12.99 ($155.88 per year) also requires a minimum spending volume to be profitable. An alternative is useful if you want a Mastercard or Visa card for Costco, or simply to avoid the monthly format and the less widespread Amex network.

Which alternative offers the best grocery rates in Canada?

The Scotiabank Gold American Express Card is the closest competitor: 6 Scene+ points per dollar at Sobeys group stores (IGA, Foodland) and 5 points per dollar at other grocers, restaurants, and food delivery services, up to $50,000 per year. With a value of about 1¢ per point, the return is 5% to 6%, comparable to the Cobalt. The annual fee is $120, paid in a single installment rather than monthly, and the insurance coverage is solid.

Which alternative to the Cobalt works at Costco?

Two Mastercards stand out: the MBNA Rewards World Elite Mastercard and the National Bank World Elite Mastercard. The MBNA gives 5 points per dollar (about 5% return) on groceries, restaurants, digital media, and utilities, and the NBC gives 5 points per dollar on groceries and dining up to $2,500 per month. Since they are Mastercards, they are accepted at all Costcos. However, Costco purchases themselves earn the base rate of 1 point per dollar.

How do MBNA and Scene+ points compare to American Express Membership Rewards points?

MBNA and Scene+ points have a fixed value of about 1¢ each, regardless of the redemption method (statement credit, travel, gift cards). American Express Membership Rewards points obtained with the Cobalt are worth more when transferred: 1.4¢ toward Aeroplan in North American economy class, 2¢+ in transcontinental, and 3-4¢ in business class to Europe. For simple rewards, MBNA and Scene+ are more predictable. To maximize value—especially in business class—Amex Membership Rewards points remain superior.