A $0 annual fee card means every dollar of cash back is pure upside — there’s no fee to offset first. The trade-off is usually a lower top reward rate or tighter spending caps than fee-based cards charge for. We’re actively reviewing more no-fee cards, so treat this as our current shortlist rather than an exhaustive one — check back as we add to it.
How we chose these: we only included cards with a genuinely $0 ongoing annual fee — not cards where the fee is simply waived or rebated for the first year only (several strong cards fall into that category; we’ve noted them separately below). Figures are pulled directly from each issuer’s published rates and fees pages.
#1
Tangerine Bank · Mastercard
Bonus Rate
2% (your choice of 3 categories)
The most flexible $0-fee card on the site — choose your own bonus categories from 13 options, changeable every 90 days.
0.5% base rate outside your chosen categories.
#2
BMO · Mastercard
Bonus Rate
3% on groceries (capped)
One of the highest $0-fee grocery cash back rates available.
Bonus rate caps at $500 in spend per statement period, per category.
#3
Simplii Financial (a division of CIBC) · Visa
Bonus Rate
4% on dining (capped)
Strong $0-fee dining rate plus a broad 1.5% tier for gas, groceries, drugstores, and bills.
Dining bonus caps out at just $200/year in actual cash back; not available to Quebec residents.
#4
CIBC · Mastercard
Annual Fee
$0 for the card (active paid Costco membership required)
Bonus Rate
3% restaurants / Costco gas
$0 fee for the card itself if you’re already a Costco member, with a solid restaurant and gas rate.
Requires an active, paid Costco membership to open and keep the account; cash back pays out once a year as a Costco-only certificate.
Also worth a look — cards that waive the fee for year one: if you’re comfortable reassessing after 12 months, CIBC Dividend Visa Infinite, CIBC Aventura Visa Infinite, and BMO Ascend World Elite Mastercard all rebate their annual fee for the first year, giving you a free trial of a higher-earning card before deciding whether the ongoing fee is worth it. See our
Best Cash Back and
Best Travel pages for details.
| Card | Annual Fee | Best Bonus Rate | Credit Score Needed |
|---|
| Tangerine Money-Back | $0 | 2% (your choice) | Good |
| BMO CashBack Mastercard | $0 | 3% groceries (capped) | Good |
| Simplii Cash Back Visa | $0 | 4% dining (capped) | Good |
| CIBC Costco Mastercard | $0 (+ paid Costco membership) | 3% restaurants/Costco gas | Good |
Frequently Asked Questions
What’s the best no annual fee credit card in Canada?
Among cards we’ve reviewed, Tangerine Money-Back stands out for flexibility since you choose your own 2% bonus categories. BMO CashBack Mastercard and Simplii Cash Back Visa are strong picks if groceries or dining are your biggest category, respectively.
Are no-fee cards worse than cards with an annual fee?
Not necessarily — it depends on your spending. No-fee cards typically cap their bonus rates lower or apply tighter spending limits than fee-based cards. If your spending in the bonus categories is modest, a no-fee card can easily out-earn a fee-based card once you subtract the fee.
Do no annual fee cards still offer a welcome bonus?
Some do — for example, Tangerine and Simplii have both advertised limited-time welcome offers. These change frequently, so check the issuer’s official page for current terms before applying.
Rates, fees, and rewards shown are as last verified by MoneyMint and may have changed — always confirm current terms on the issuer’s official page before applying. Some links on this page may be affiliate links, meaning MoneyMint could earn a commission if you apply through them, at no extra cost to you. This never affects which cards we feature or how we rank them. This is general information, not personalized financial advice — consider your own spending habits and consult a qualified professional for advice specific to your situation.
