CIBC Dividend Visa Infinite Review: The Best Cash Back Credit Card In Canada - Forbes

Earning Rewards

To maximize your earnings from the start, you skip the first annual fee and receive 10% cash back on total net purchases up to $2,000 in the first four months (up to $200 in cash back). Beyond that, earn rates drop but continue to deliver competitve returns on everyday essentials. You'll collect 4% on eligible grocery and gas purchases, 2% on transportation, dining and recurring payments and 1% on everything else. With groceries and gas prices currently high because of inflation, now is the time to consider paying with a card like this.

You can save even more on fuel by linking your CIBC Dividend Infinite Card to Journie Rewards. Earn 3 cents per litre when you fill up at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations. Get an additional 7 cents per litre every time you earn 300 Journie Points. These savings can really add up for those who spend a lot of time on the road.

While there is no limit to how much you can earn with this card, there is a cap on the 4% and 2% spending categories. These rates apply until you reach $80,000 in net annual purchases or $20,000 in groceries, gas, transportation, dining and recurring payments (whichever comes first). Afterwards, cash-back rewards fall to 1% for the remainder of the calendar year. The 1% base rate, however, has no limit.

Even with a few cash-back caveats, the earning potential is outpacing competitors. Credit cards with 4% cash back typically only offer this rate for one spending category. Most credit cards offer 2% as a higher tier and 0.5% as the base rate.

Redeeming Rewards

Cashing in on CIBC Dividend Visa Infinite Rewards is easy and flexible. You can redeem cash back using CIBC Online or Mobile Banking whenever you have a minimum $25 cash back balance. A credit will be applied to your account within five days of submitting the redemption request. Any cash back earnings left over at the end of the year will be added as a credit to your January statement.

When you're earning real cash, flexible redemption options give you more control over your hard-earned money. Some credit cards only issue a reimbursement once per year as a statement credit. With the CIBC Dividend Visa Infinite Card, you can access your funds when you actually need them.

Rewards Potential

The real value of a cash back card is based on potential annual earnings. We did the math for you by calculating what the average Canadian spends every year for each CIBC Dividend Visa Infinite cash back category. Forbes Advisor uses data from multiple government agencies in order to determine both baseline income and credit card spending averages across various categories.

Forbes Advisor estimates the total annual credit card spending to be $27,851.70. Of that amount, grocery and gas purchases add up to $10,896, earning $435.84 in cash back. The $5,211 spent annually on dining and recurring bills would net $104.22. We can tag another $117.44 on annual cash back for $11,744.70 in other spending categories (like air travel, hotels, online purchases and miscellaneous spending) that could reasonably be charged to a credit card.

The total cash back collected brings the potential annual earnings to $657.50. When we subtract the annual $120 fee, this card still earns a more-than-solid $537.50. Only a handful of credit cards come close to this level of earning power. Plus, there's still room to make even more money before hitting the purchase limits.