[ANALYSIS] Scotiabank Gold American Express Card

With the Scotiabank Gold American Express Card, you earn Scotia Rewards points that will be used for travel expenses. The highlights of the credit card are as follows:

  • $99 annual fee (waived the first year)
  • Earn 15,000 sign up bonus points after your first purchase
  • Earn 4 points for every $1 you spent on gas, grocery, dining and entertainment
  • Earn 1 point for every $1 spent on all other expenses

The annual fee being waived the first year makes this card a no-brainer to have on the first year. The question is whether it is worth it to retain this credit card beyond the first year. What I find valuable on this credit card is the 4x points on the category spends which includes the usual, gas and grocery, but more significantly dining and entertainment. The points can add up very quickly. For example. Let’s say you spend $1,000 a month:

  • $500 (gas, grocery, dining and entertainment) = 4 x 500 = 2,000
  • $500 (other purchases) = 1 x 500 = 500
  • (2,000 + 500) x 12 = 30,000 points = $300
  • $300 – $99 (annual fee) = $201

But let’s say you have a 1% cash back credit card with no annual fee:

  • $1,000 (spend per month) x 12 (months) = $12,000
  • $12,000 x 1% = $120

Just based on this calculation, you already came out ahead. Just replace your monthly spending with the numbers into the calculations that I have laid out and then you can decide whether the $99 annual fee is worth it for you. Basically the more you spend on gas, grocery, dining and entertainment, the more worth it this credit card will be for you.

The Scotiabank Platinum American Express Card version was discussed here.

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