In retrospect, the American Express Cobalt card was too good to last.
I wrote about the changes to Cobalt in a recent newsletter. To quickly recap, travel expenses will earn one point per dollar spent starting Oct. 8, down from the current two. Cobalt will still offer its signature reward, five points per dollar spent at restaurants, bars and grocery stores, plus three points per dollar spent on eligible streaming services and two points per dollar spent on transit and gas. But, no question, the card has lost a step against the competition.
What else is out there for Cobalt cardholders open to alternatives? I asked readers what works for them and chose a few responses to share because they sound like they have wide appeal:
- Scotiabank Passport Visa Infinite: Notable for not charging foreign exchange transaction fees, which can add 2.5 per cent to the cost of purchases outside Canada; offers two reward points per dollar spent on dining and groceries, entertainment and transit, taxis and ride-sharing, with 3x rewards for buying groceries at Sobey’s, Safeway, IGA and a few others.
- BMO CashBack World Elite Mastercard: Rewards of 2 to 5 per cent on various spending categories.
- CIBC Costco Mastercard: 2 or 3 per cent cash back on purchases at Costco, gas stations and restaurants.
- American Express SimplyCash Preferred: The highlight is 4 per cent cash back on gas and groceries; 2 per cent on everything else.
The financial website Ratehub.ca recently posted a comparison of what it considers three of the best cards in Canada. Amex Cobalt was on the list, along with Scotiabank Passport Visa Infinite and the Tangerine Money-Back Credit Card.
I’m targeting the Tangerine card for further investigation. Could be a good backup to my Cobalt card for those not-infrequent moments when Amex isn’t accepted by a merchant. You can pick two spending categories to receive unlimited 2 per cent cash back, and you can change the categories to suit your spending. Comments, anyone who uses this card? Send them my way at rcarrick@globeandmail.com.
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Rob’s personal finance reading list
Tax practitioners have offered some suggestions to the federal government on amending requirements for individual taxpayers to report bare trusts to the Canada Revenue Agency. As you may recall, CRA announced a last-minute exemption for bare trust filing for the 2023 tax year. New guidance for bare trust filing has yet to be announced.
A look into the world of recreational vehicles. “Why buy a $1-million cottage when you can park a $100,000 trailer next to Lake Erie for $5,300 from May 1 to Oct. 31?”
Are you charging your phone properly?
Get the most value out of your phone by following a few basic rules for charging and maximizing battery life.
Advice on avoiding food poisoning from leftovers, including grains and pasta.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Reader comment: My favourite response so far to the newsletter on self-checkout is this one. “Hey Rob. I dislike self checkouts mainly because there are as many different machines to be ‘trained’ on as there are different stores. The heightened security at self-checkouts is another turn-off that you just don’t get with cashiers. Cashiers are cheerful, knowledgeable and helpful. Take that, touchscreen! I mean really, Rob. Customers are one step away from having to stock shelves for the Waltons and Westons of the world. Oh wait, they’re beginning to use robots for that too!”
Note: The Walton family owns a big stake in Wal-Mart, and the Westons control Loblaw Cos.
Do you have a question or comment for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
An overview of a crucial aspect of home insurance – sewer backup protection.
In the social sphere
Social Media: A helpful thread on X covering the basics of registered education savings plans. Parents, check this out.
Watch: Brutally honest financial advice from the U.S. personal finance guy Ramit Sethi.
Money-Free Zone: I was watching a TV show called The Sympathizer recently and in an oddly detailed moment, one character presents another with an Isley Brothers album while noting that if features a cover of the Todd Rundgren song Hello It’s Me. If someone puts that much effort into highlighting some classic 1970s-era soul, I’m there. I liked the Hello It’s Me cover fine, but the musical rabbit hole I went down after listening to it took me to something even tastier. It’s a 10-minute Isley cover of Carole King’s It’s Too Late. The Isleys were apparently big King fans, and their take on this song is mellow soul greatness.
More PF from The Globe
- The best mortgage rates in Canada? We tested five websites in a head-to-head comparison
- You can take workplace pensions off your list of things that are broken in Canada
- Financial education in schools is a good start. But the psychology of money is complex and students need help navigating the real world
- How multi-generational families are splitting mortgage costs
