The American Categorical Cobalt Card has lengthy ranked as the very best Canadian bank card for on a regular basis spending. This lifestyle-oriented card is one that each Canadian ought to have of their pockets for a mess of causes.
With excellent incomes charge multipliers, a low price, and loads of prime notch switch companions, it’s no surprise that the Cobalt Card has established itself as a prime contender within the Canadian market since its debut in 2017.
If you happen to’ve but to enroll, let’s have a look at six explanation why the American Categorical Cobalt Card needs to be the subsequent bank card in your portfolio.
American Categorical Cobalt Card
- Earn as much as a complete of 15,000 MR factors upon spending $750 in every of the primary 12 months
- Earn 5x MR factors on groceries, eating places, bars, and meals supply
- Earn 3x MR factors on eligible streaming companies
- Earn 2x MR factors on gasoline and transit purchases
- Switch MR factors to Aeroplan, Avios, Flying Blue, Marriott Bonvoy, and extra
- Benefit from the unique advantages of being an American Categorical cardholder
- Bonus MR factors for referring household and buddies
- Month-to-month charge: $12.99
1. Earn 5x Factors on Eats and Drinks
The American Categorical Cobalt Card affords an excellent 5 Membership Rewards (MR) factors for each greenback spent at eating places, bars, cafés, meals supply companies, and even grocery shops in Canada.
On the naked minimal, these factors are value 1 cent per level, which equates to a 5% return on eats and drinks. We worth American Categorical Membership Rewards factors at 2.2 cents per level, given how versatile they’re.
Utilizing this valuation, you might have a look at the speed of return at 11%, which is unparalleled in Canada. No different Canadian bank card with versatile factors currencies has this sort of earn charge, and it’s very satisfying to get 5x factors on each day necessities like groceries and eating out.
You’ll earn this 5x multiplier on as much as $2,500 spent every month, which equates to $30,000 spent per 12 months. Due to this fact, if you happen to can max it out, that’s a whopping 150,000 MR factors in your account, along with every other factors you’d earn on the cardboard.
Curious what number of factors you might earn together with your month-to-month spending habits?
Use the calculator under to estimate what number of American Categorical Membership Rewards factors you might rack up with the Cobalt Card.
In case your grocery and eating funds doesn’t fairly add as much as $2,500 every month, needless to say grocery shops additionally promote present playing cards, which you’ll then use at different companies the place you’d in any other case earn much less.
Along with this beneficiant 5x earn charge, you’ll earn 3x MR factors per greenback spent on a plethora of streaming subscriptions in Canada, together with Netflix, Disney+, Crave, Spotify, Apple Music, and extra.
You’ll additionally earn 2x MR factors per greenback spent on gasoline, journey, and public transit purchases in Canada.
Sadly, the incomes charge for journey purchases is dropped to 1 level per greenback spent as of October 8, 2024. Nevertheless, you possibly can simply bypass this by having an optimized bank card portfolio, including the American Categorical Gold Rewards Card or American Categorical Platinum Card, each of which supply 2x MR factors on journey.
2. Modest Welcome Bonus
Along with the 5x incomes charge on meals and drinks, there’s a welcome bonus to sweeten the deal for brand spanking new cardholders, too, which comes with a singular construction that encourages month-to-month spending.
As an alternative of a one-time bonus, you’ll obtain 1,250 MR factors for every month within the first 12 months as a cardholder during which you spend $750, netting you to a complete of 15,000 MR factors for the welcome bonus.
Membership Rewards factors have a tonne of energy, as they offer you a number of choices for redemptions. You may select to switch them to airline or lodge loyalty packages, redeem them for flights with the Amex Mounted Factors Journey Program, or apply them as a press release credit score in opposition to any buy.
Whereas there are actually different playing cards different there with increased welcome bonuses, these usually come at the next price and with much less aggressive incomes charges for on a regular basis spending. Certainly, with the Cobalt Card, you’ll be sure you watch your factors steadiness develop shortly with the month-to-month bonuses and your each day spending mixed.
3. Earn Membership Rewards Factors
American Categorical Membership Rewards are essentially the most versatile and versatile factors foreign money in Canada. That’s as a result of they will do every thing {that a} money again or fixed-value factors foreign money can do, however they will additionally do rather more.
For instance, you possibly can redeem your factors in opposition to any buy made to the cardboard at a price of 1 cent per level by means of the “Use Factors for Purchases” redemption choice. Whereas there are actually different methods to get larger worth out of your factors, if you happen to’re on the lookout for a easy method to offset prices, Amex MR factors supply an ideal choice.
Take into account that the cardboard earns 5x factors on eats and drinks, and if you happen to redeem factors for a press release credit score at a charge of 1 cent per level, you’re taking a look at a wholesome 5% return on spending, which is nice!
Different factors packages in Canada supply the choice to e book flights at the next worth of round 2 cents per level. Luckily, Amex MR factors additionally supply this feature by means of the Amex Mounted Factors Journey Program.
Nevertheless, if you happen to’re on the lookout for essentially the most useful method to redeem your factors, look no additional than the lengthy record of airline and lodge loyalty program switch companions out there by means of Membership Rewards.
4. Airline & Lodge Switch Companions
American Categorical means that you can switch Membership Rewards factors to 6 totally different airline loyalty packages and two lodge loyalty packages. Amongst them are a number of the hottest frequent traveller packages on the market, together with prime loyalty packages from every of the three main airline alliances.
Aeroplan
Membership Rewards factors could be transferred to Aeroplan factors at a 1:1 ratio in increments of 100 factors, beginning at 1,000 MR factors.
Aeroplan factors are essentially the most useful kind of airline factors for Canadians to earn, as they will simply unlock discounted journey in financial system class, enterprise class, and First Class to locations everywhere in the world.
As a member of Star Alliance, along with reserving Air Canada flights, you may also use Aeroplan factors to e book flights with different Star Alliance members, equivalent to United Airways, Lufthansa, All Nippon Airways, Thai Airways, Singapore Airways, and lots of extra.
Plus, Aeroplan companions with different airways that don’t belong to Star Alliance, which opens the door for distinctive redemptions everywhere in the world.
Aeroplan stays top-of-the-line loyalty packages within the the world, and having the choice to earn MR factors on the Cobalt Card and convert them to Aeroplan factors is without doubt one of the greatest methods to leverage the various candy spots in this system.
British Airways Avios
The British Airways Membership is one other nice choice for transferring American Categorical MR factors, as there are fairly just a few candy spots for short-haul flights throughout totally different locations on the planet, together with Europe, Asia, and Australia with oneworld airways.
Much like Aeroplan, MR factors could be transferred to British Airways Avios at a 1:1 ratio in increments of 100, and with a minimal of 1,000 MR factors.
Plus, with the partnership between British Airways and Qatar Airways, you may also switch your Avios between the 2 packages immediately, permitting you to e book the world’s greatest enterprise class – Qatar Airways Qsuites – beginning at simply 70,000 Avios one-way from North America to Doha.
Air France KLM Flying Blue
Representing the SkyTeam alliance, Air France KLM Flying Blue is without doubt one of the greatest packages for reserving transatlantic flights in financial system, premium financial system, or enterprise class.
That’s as a result of flights with Air France and KLM have the next “Saver”-level costs for flights from wherever in North America to wherever in Europe:
- Economic system: 25,000 miles
- Premium financial system: 40,000 miles
- Enterprise class: 60,000 miles
One factor to bear in mind is that the switch ratio to Flying Blue is 1:0.75, so that you’ll must issue that in whenever you’re deciding which program to e book flights with.
Nevertheless, you’ll additionally wish to take note of this system’s month-to-month Promo Rewards, which supply reductions on award journey of as much as 50%. If you happen to can snag a flight on an eligible route, the sub-par switch charge turns into much less burdensome.
Marriott Bonvoy
Marriott is the world’s largest lodge chain, with a powerful international footprint of over 7,500 inns. Membership Rewards factors could be transformed into Marriott Bonvoy factors at a charge of 5:6, that means that you just’ll get 1,200 Bonvoy factors for each 1,000 MR factors you switch.
Whereas it’s often extra advisable to switch Membership Reward factors to Air Canada Aeroplan, The British Airways Membership, or Air France KLM Flying Blue, there’s nonetheless a number of worth to be discovered within the Marriott Bonvoy program.
That is particularly the case if you happen to’re travelling in locations like Asia or the Center East, the place Marriott Bonvoy Elite standing goes a great distance in the direction of elevating your journey expertise.
5. Entry to Amex Affords
Holding an American Categorical card comes with many extra advantages, equivalent to entry to Amex Affords.
A few of the different extra common Amex Affords we’ve seen lately are the annual Store Small promotion and the recurring Marriott supply.
So as to make the most of these and different affords that pop up, you’ll should navigate to the Amex Affords part on-line after logging in, or just logging into your account.
The affords undoubtedly add up over time, and may simply offset the month-to-month charge with a single buy.
6. Insurance coverage Protection
The American Categorical Cobalt Card wraps issues up with a strong record of insurance coverage provisions for a card in its value vary.
Just by being a Cobalt cardholder, you’ll routinely obtain emergency medical insurance coverage for 15 days, as much as a most of $5,000,000, if you happen to’re below the age of 65.
Moreover, if you happen to use your Cobalt Card to pay on your journey bills, you’ll be eligible to obtain many extra varieties of journey insurance coverage protection, which incorporates:
- Misplaced or stolen baggage insurance coverage, as much as a most of $500 per journey
- $250,000 journey accident insurance coverage
- Flight and baggage delay insurance coverage, as much as a most of $500
- Lodge housebreaking insurance coverage, as much as a most of $500
- Automotive rental theft and harm insurance coverage
Journey cancellation and interruption insurance coverage is a noteworthy omission that you just’d discover on different bank cards in the same charge vary, in order that’s one thing to weigh up if these varieties of journey insurance coverage are significant to you.
Buy safety, prolonged guarantee, and cellular machine insurance coverage spherical out the protection sorts.
Conclusion
The American Categorical Cobalt Card is the very best all-around Canadian bank card on the subject of on a regular basis spending.
The Membership Rewards factors earned by means of its welcome bonus and beneficiant class spending multipliers, when transferred to one in every of American Categorical’s airline or lodge companions, can go a great distance in the direction of fuelling your subsequent journey.
Any Canadian family can reliably earn a handful of high-value journey redemptions 12 months after 12 months just by utilizing the Cobalt Card to pay for his or her grocery and eating bills – and you may’t actually ask for extra from a bank card than that!
