Compare the SimplyCash Preferred Amex monthly fee and rewards. Learn why Canadians are switching to cash back
While earning “points” for a first-class flight sounds incredibly glamorous, most of us just want to see our monthly grocery bill get a little smaller. There is a constant tug-of-war between complex travel rewards and the simplicity of cash. If you prefer the latter, the SimplyCash Preferred from American Express is likely sitting at the top of your “must-have” list.
This card is a heavy hitter designed for the pragmatic Canadian spender, someone who drives, eats, and buys things. It strips away the confusing “point valuations” and replaces them with a straightforward percentage. But is it worth the monthly fee? Let’s dive into the details.
How the “point” scoring works
The SimplyCash Preferred card uses a direct cash-back percentage. This is the ultimate “set it and forget it” card. You don’t have to log into a portal to book a hotel to get the best value. Every dollar you spend is tracked and rewarded based on where you spent it.
- 4% Cash Back on groceries: in an era of rising food prices, this is a massive win. If you spend $800 a month on groceries, you’re earning $32 back every single month just for eating.
- 4% Cash back on gas: whether it’s the daily commute or a trek across the Rockies, the 4% return at the pump is among the highest in Canada.
- 2% Cash back on everything else: This is the card’s secret weapon. Most “no-fee” or basic cards offer a measly 0.5% or 1% on “non-category” spending. A flat 2% on your car insurance, gym membership, and online shopping adds up significantly over a year.
The Fine Print on Caps: It is important to note that the 4% rate applies to a maximum of $1,200 in cash back annually in those specific categories. Once you hit that ceiling (which requires $30,000 in spend), the rate reverts to 2%.
Can you get the card?
Amex is often perceived as “exclusive,” but they have made the SimplyCash preferred quite accessible to the average working professional in Canada.
- Income Requirement: Unlike “World Elite” cards that often demand a $80,000+ personal income, this card generally requires a minimum personal income of just $12,000 annually.
- Credit Score: You will need a “Good” to “Excellent” credit score. Usually, a score of 700+ is the sweet spot for a smooth approval.
- Residency: You must be a Canadian resident and have a Canadian credit file.
Fees and interest rates: the real numbers
Instead of the traditional annual fee, Amex has moved toward a “subscription” style model for this card.
- Monthly Fee: $9.99. This totals roughly $120 per year. Many Canadians find the monthly hit easier to digest than a single $120 charge in January.
- Purchase Interest Rate: 21.99%.
- Cash Advance Interest Rate: 22.99%.
- Additional Cards: You can add a second card for a spouse or family member for $0, which helps you rack up that cash back even faster.
The advantages of “Amex Lifestyle” perks
Why pay $9.99 a month? Because the card behaves like a premium travel card.
- Comprehensive Insurance: You get $5 million in Emergency Medical Insurance, plus coverage for flight delays, lost baggage, and car rental theft/damage.
- Mobile Device Insurance: This is a fan favorite. If you pay for your smartphone with your card (or use it to pay your monthly bill), you’re covered for up to $1,000 in case of accidental damage or theft.
- Front Of The Line: Access to presale tickets for major concerts and theater productions in cities like Toronto, Vancouver, and Montreal.
Aspects to consider before you get the SimplyCash Preferred Card
Before you hit “Submit,” there are two “Canadian Realities” you need to consider.
The “Loblaws” Factor
American Express is widely accepted at Sobeys, Metro, Safeway, and Whole Foods. However, Loblaws-owned stores (No Frills, Real Canadian Superstore, Zehrs) do not accept Amex. If you do 100% of your shopping at No Frills, the 4% grocery perk becomes useless.
The Payout Timeline
Unlike some cards that let you redeem cash back every month, Amex typically pays out your accumulated balance as a statement credit once a year, usually in September. It’s like a yearly “gift” to yourself, but it requires patience.
Who should get the SimplyCash Preferred from Amex?
The SimplyCash Preferred from American Express is arguably the best “all-rounder” for Canadians who want to maximize their daily spending. If you shop at Amex-friendly grocery stores and value high-end insurance, the $9.99 monthly fee pays for itself almost instantly.
