Scotia Momentum No-Fee Visa Card review

How the Momentum No-Fee earns cash back

The card pays 1% cash back in five groups: groceries; gas and EV charging; transit, rideshare and food delivery; drugstores and pharmacies; and recurring bill payments. Those categories share a combined cap of $15,000 in spending a year. Everything else earns 0.5%.

Take an example household spending $400 a month on groceries, $150 on gas, $100 on transit and delivery, $50 at the drugstore and $200 on recurring bills. That’s $900 a month at 1%, or $9, plus $500 of other spending at 0.5%, or $2.50. The total is $11.50 a month, or $138 a year, and the $10,800 of yearly category spending stays under the cap.

Spending beyond the $15,000 cap no longer earns the 1% rate, so households with large grocery and bill totals should check how much of their yearly spending falls into these categories.

The introductory offer

For the first 3 months, every purchase earns 5% cash back, on up to $2,000 in total purchases. Spending the full $2,000 earns $100, which is more than eight months of cash back on the example budget above.

You also get a 0.99% introductory interest rate on balance transfers for 9 months, with a 2% transfer fee. Moving a $3,000 balance would cost a $60 fee plus about $22 in interest over the 9 months if the balance stayed the same, far less than carrying it at a standard purchase rate.

Redeeming cash back and extra perks

You can redeem your cash back at any time once you have at least $25. On the example budget’s $11.50 a month, you’d reach that minimum in a little over two months.

The card also offers up to 25% off Avis and Budget car rentals and up to 6 cents a litre in value at Shell. For drivers, the Shell savings sit alongside the 1% gas rate.

Fees, interest and the fine print

There is no annual fee. Purchases are charged 20.99% interest and cash advances 22.99%, so carrying a balance would quickly cancel out the modest cash back rates.

Foreign currency purchases carry a 2.5% fee, so $1,000 spent abroad costs about $25 in fees, five times the $5 you’d earn back on it at 0.5%. The card lists no insurance coverage, so look to another card if you need rental car or purchase protection, even when using the Avis and Budget discount.

Who it suits, and who should look elsewhere

The Momentum No-Fee suits first-time cardholders who want a simple, free card, and people who want to move a balance at a low introductory rate while earning a little cash back. It’s also a reasonable backup card to keep open, since it costs nothing to hold.

Once the introductory period ends, the ongoing rates are modest. If you want a long-term everyday card, a no-fee card with 2% categories will likely earn more on the same spending.

How it compares

The Tangerine Money-Back Credit Card also has no annual fee and pays 2% in categories you choose, with 0.5% on everything else. Its bonus rate is double the Momentum No-Fee’s 1%.

Within Scotiabank, the Scotia Momentum Visa Card costs $49 a year and earns 2% on groceries. If your grocery bill is large, the higher rate can cover the fee: at $500 a month, the extra 1% comes to $60 a year.

Before you apply

The recommended credit score is 660 or higher, and Scotiabank makes the final decision based on your full credit profile. Confirm the introductory offer and balance transfer terms on Scotiabank’s website before you apply.