[ANALYSIS] CIBC Dividend Visa Infinite Card
CIBC has made some significant changes to its earning ratios on its Dividend Visa Infinite Card, which increases the value of this credit card. This is definitely a welcome addition to the competition within the credit card cash back market.
Highlights
- $99 annual fee
- Earn 4% cash back on gas and grocery purchases
- Earn 2% cash back on Tim Hortons and TELUS purchases
- Earn 1% cash back on all other purchases
Details Explained
The $99 annual fee is pretty much in line with the comparable Scotiabank Momentum Visa Infinite card, minus the consistent first year fee waived with Scotiabank.
The 4% cash back on gas and groceries is really where the significant improvement kicks in. The 2% cash back on Tim Hortons and Telus specifically is because both brands are already partners with CIBC. Both companies also issue branded credit cards with CIBC (Tim Hortons and Telus)
The 4% and 2% cash back offers are only available on the first $80,000 in net annual card purchases (meaning all card purchases by all cardholders, at any type of merchant) or $20,000 on gas, grocery, TELUS or Tim Hortons purchases on your account, whichever comes first. Thereafter, you will continue to earn 1% cash back on all purchases.
This means that you can earn a maximum bonus cash back of:
- $20,000 x 4% = $800
- $20,000 x 2% = $400
- $800 x 2 + $400 x 2 = $2,400
The cash back is accumulated each month and awarded at the end of the year on the December statement.
Conclusion
Personally, I still wouldn’t sign up for this credit card, as I would actually recommend the Scotiabank Momentum Visa Infinite card instead, if I had to choose.That being said, I am very happy to see so many improvements to this credit card.