New Tangerine Credit Card Best For Earning Cash Back

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If you're looking for a no-fee cash back credit card that gives you the most overall cash back, you can STOP looking - you've found it!

The just-launched Tangerine Money-Back Credit Card gives you 1% cash back on all your everyday purchases with no caps or limits. Where it really leaps ahead of the pack is the 2% cash back it gives you on up to 3 bonus spending categories of your choosing. No other card on the market offers this feature, which allows you to select categories that match the places where you spend the most money.

Are you a big foodie and spend a lot at restaurants and the grocery store? Just choose Grocery and Restaurants as 2 of your bonus categories and you'll instantly double your cash back on those purchases. Have lots of medical expenses or love Shoppers Drug Mart like I do? Select Drug Store as a bonus category and you'll be rewarded handsomely.

You can even select Recurring Bill Payments as a bonus category, meaning almost any bill that gets charged automatically to your card on a monthly basis will earn double the money.

Being free to choose the categories you want is much better than being pigeon holed into the typical gas and grocery bonuses that you get with other no fee cash back cards - if you're lucky!

Quick Facts

Annual fee $0
Interest rate 19.95%
Min. income No set minimum
Reward type Cash Back
Reward 1% on ALL purchases with no limits
2% on up to 3 bonus categories of your choosing
HTS reward return 1.3% of spending for a typical person after annual fee deducted
Sign-up bonus 4% cash back on your chosen bonus categories for 3 months with no limit
Apply Click here

Positives:

  • 1% cash back on everyday purchases.
  • 2% cash back on 2 bonus spending categories of your choosing - the only card on the market to offer this.
  • 3rd bonus category if you choose to deposit your money back into a Tangerine savings account.
  • You can switch your bonus categories once every 90 days in case your spending habits change.
  • Great limited time sign up bonus of 4% cash back on your bonus categories with no caps or limits - all competing cards have caps on sign up bonuses.
  • Automatic monthly cash back redemption as a statement credit or deposit into your Tangerine Savings Account.
  • Low 1.5% foreign currency transaction fee - nearly all other cards charge 2.5%.
  • No caps or limits to the amount of cash back you can earn.
  • No annual fee for both primary and secondary cardholders.

Negatives:

  • Poor insurance package when compared to other top no-fee cards.
  • Sign up bonus isn't permanent like with some other cards - so don't miss out.

Insurance Package:

  • Extended warranty - up to one year.
  • Purchase protection - 90 days.

How The Bonus Categories Work

There are currently 10 bonus spending categories that you can choose from right away when you apply. Then later, you can change your categories as often as you want, but changes will only come into effect after 3 billing cycles of having used the previously selected categories. This is to prevent people from constantly adjusting their categories moment to moment as they're making purchases.

Here's what's currently available:

  1. Gas
  2. Grocery
  3. Drug Store
  4. Recurring Bills
  5. Restaurants
  6. Entertainment
  7. Home Improvement
  8. Furniture
  9. Hotel-Motel
  10. Public Transportation and Parking

You automatically get 2 bonus spending categories when you sign up for the card and choose to get your money back as a monthly statement credit to your credit card account. But, if you opt to deposit it into a Tangerine Savings Account instead, you'll permanently get a 3rd bonus category.

How To Maximize Your Rewards

The first thing you're going to want to do is make sure you have a Tangerine savings account so you can get that 3rd bonus category.

Tangerine offers no-fee banking with easy electronic transfers to all other Canadian banks via online banking. You can even email money for free using their own email money transfer solution so you don't have to worry about getting your money in and out. It all works seamlessly with your current bank - I know because I'm a Tangerine client myself but use another bank for my primary chequing. Even if you don't use the account for anything else but securing the 3rd bonus category, it's still worth it.

Right now, you can get a ton of extra bonuses like 2.4% interest for 6 months, $25 bonus for setting up an Automatic Savings Plan (ASP) with a minimum $100 monthly contribution for 6 months, a $75 bonus for opening a chequing account, and an extra $25 bonus for using my Orange Key. That's $125 in bonuses just for opening free accounts.

Open A Free Savings Account: Click Here
Open A Free Chequing Account: Click Here
Use This Orange Key: More25

Next, you need to figure out where you spend your money so you can decide which bonus categories to choose. The FREE Monthly Budget Planner I offer to everyone who joins my money saving tips newsletter can help you do this. Be sure to check back every now and then to see if your spending habits change so you can adjust your categories.

Combining the Tangerine Money-Back Credit Card with another no-fee cash back credit card that has fixed bonus spending categories is a great way to earn more cash back. For instance, if you have another card that gives you 2% on gas and groceries already, you can choose 3 different categories on your Tangerine card for a total of 5 bonus categories as long as you split your spending properly across both cards.

Finally, be sure to maximize the no-limit 4% sign up bonus on your chosen spending categories.

One way to do this is to choose Grocery as one of your categories and then go to a grocery store that has a gift card mall where you can buy gift cards to your favourite stores and restaurants. Stock up on gift cards for stores where you regularly shop anyway and the increased 4% rate still applies.

That means you are effectively earning 4% on all those future purchases made with your gift cards that you can carry forward until well after your 4% bonus expires. Just make sure you only buy what you will spend money on anyway and that you don't lose your gift cards. Once your cash back drops to 2% again, you can still continue doing this to increase your rate at some stores from 1% to 2%.

Wrapping It Up

The new Tangerine credit card has become an instant hit.

People were buzzing about it on Reddit for months before it launched and jumping at the opportunity to sign up for the limited preview they were offering. Now that it is available to everyone and a great sign up bonus has been added, I expect it will become even more popular. You're going to start seeing these things at checkouts everywhere.

If you're a big spender, don't mind paying an annual fee, or care about more about insurance and other perks - there better cards out there. But, if you want the maximum possible cash without paying a fee, this is your card.

Apply Now!

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  • Best No Fee Cash Back Credit Card
    • 1% earned on all purchases
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  • The #1 Credit Card in Canada
    • 25,000 bonus points - worth about $750 when converted to Aeroplan miles
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  • 4% Back On Gas & Groceries + 1st Year Free
    • 4% cash back on gas & groceries - highest of any card
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Comments

CanadianDaniel's picture

Great article Stephen ... Exciting because not only can I now accelerate cash rewards from regular grocery shopping via the Tangerine card, I can also earn Air Miles at grocers like Metro. Same notion for the Shoppers Optimum program. In the credit card rewards game, we call this triple-dipping. Frugal shoppers rejoice!

April 05, 2016 @ 12:44 pm
Gloria Clamen
Gloria Clamen's picture

I had signed up for the new credit card offered to me as a customer of Tangerine several months ago, as per their trial. They have just rewarded me by offering me 4% on 3 categories for 3 months - an amazing perk!

April 05, 2016 @ 3:15 pm
Stephen Weyman
Stephen Weyman's picture

Glad to hear they are giving this to existing customers as well, good for them! It's a pretty unprecedented sign up perk for a no-fee cash back card because it doesn't have any limits. I'm pretty sure they are taking a small loss on every dollar at 4% during this promo period, but that's just me guessing based on what I know credit cards roughly charge in merchant fees.

April 05, 2016 @ 4:04 pm
Sherri
Sherri 's picture

How long is the 4% bonus available ? One month of spending or 3? Also do you think recurring monthly seasons hockey tickets would be a recurring bill ? Just thinking .....

April 06, 2016 @ 1:07 am
Stephen Weyman
Stephen Weyman's picture

The bonus is available for 3 months after you account is open. I believe the terms say 93 days exactly if my memory is correct.

Monthly hockey tickets may be classified as Entertainment, so I'm not sure. It really depends on how the merchant (in this case the hockey team) has elected to classify themselves. You could try calling and asking but you'll probably run into a lot of employees who have no clue what you're talking about, but the easiest way to know would just be to give it a try.

April 06, 2016 @ 11:13 am
paul
paul's picture

Hello,
I have a small business what would be the best card for cash back.

April 13, 2016 @ 2:39 pm
Stephen Weyman
Stephen Weyman's picture

Well paul, you can use personal cards for small business purposes so I would just get one of the top personal cards per my rankings and just use it solely for business purposes. That way it's easy to keep your transactions separate for accounting purposes.

April 13, 2016 @ 4:46 pm
Dave Gordon
Dave Gordon's picture

I have all of my credit cards set up to pay the full balance due by the due date, directly from my bank account. This avoids interest charges, and lets me travel worry-free because I don't need to access my bank over public wi-fi hotspots - a security no-no!

Unfortunately, I cannot do this with the Tangerine card unless I have a Tangerine bank account to pay from - which I don't want or need. This is the only bank/credit card that doesn't allow automatic payment from a major bank account like TD or Royal.

September 09, 2016 @ 3:54 pm
Stephen Weyman
Stephen Weyman's picture

Auto pay is a great feature. Some banks definitely don't offer this though but most of the big ones do. I personally don't do it because I want to review my transactions before paying the bill to make sure I don't miss anything and there aren't any fraudulent charges.

September 12, 2016 @ 11:35 am
Dan M.
Dan M. 's picture

Do you have any ideea in which category amazon is? I spent a lot on amazon and I don't want to apply to their own cc.

September 22, 2016 @ 5:49 pm
Stephen Weyman
Stephen Weyman's picture

Unfortunately I don't know - but Tangerine MasterCard customer service might know.

September 23, 2016 @ 1:22 pm

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