CIBC Dividend® Visa* Card review

Quick overview of the CIBC Dividend® Visa* Card

Cash back credit cards are one of the most popular types of rewards credit cards in Canada, but if you don’t want to pay an annual fee for the benefits of cash back, you’ll need to choose from a smaller pool of available options. That said, there are several strong no-fee cash back credit cards on the market today, including the CIBC Dividend® Visa* Card.

Who can benefit from the CIBC Dividend® Visa* Card?

The CIBC Dividend® Visa is ideal for individuals who want to earn cash back without paying an annual fee. Whether you're a frequent grocery shopper, rely on transportation, or make recurring payments, the CIBC Dividend® Visa* Card offers competitive cash back rates on these categories. Additionally, the card provides a complimentary SPC membership, making it a great choice for students looking to save on everyday purchases.

Pros and cons of the CIBC Dividend® Visa* Card

Pros

• No annual fee

• High earn rates on popular spending categories

• Up to three additional cards at no extra cost

• Low required household annual income of $15,000†

• No limit on the cash back you can earn†

Cons

• Low earn rates on everyday spending

• Only option to redeem cash back rewards is statement credit

Welcome bonus with the CIBC Dividend Visa credit card

Get up to 10 cents off per litre at participating gas stations with Journie Rewards.

How to earn cash back with the CIBC Dividend® Visa* Card

The CIBC Dividend® Visa* Card is a cash back credit card. That means when you make purchases with this credit card, a small percentage of your spending accumulates as cash back. After the welcome offer ends, this credit card lets you earn 2% cash back on eligible groceries.^† (An eligible grocery store is classified by the credit card network as a grocery store. Costco and Walmart, for example, are not classified as grocery stores, but Loblaws, Sobeys and No Frills are classified as grocery stores.) Additionally, you can earn 1% cash back on eligible gas, electric vehicle charging, transportation, dining and recurring payments^† and then 0.5% on everything else†.

Redeeming cash back

Cash back can be redeemed on demand by cardmembers at any time they have a minimum of $25 through CIBC Online and Mobile Banking^®.^†  This is a huge benefit because it is much more convenient to use cash back towards purchases or paying down the balance of your credit card.

Key benefits of the Dividend^® Visa* Card from CIBC

The CIBC Dividend® Visa* Card is an affordable way to earn cash back rewards on your everyday spending. This no-fee cash back credit card offers a range of benefits that make it a great choice for savvy shoppers.

After the welcome offer promotional period ends, you'll earn 2% cash back on eligible groceries, 1% cash back on eligible gas, electric vehicle charging, transportation, dining and recurring payments†. Plus, you'll receive 0.5% on everything else††. With no annual fee, you can enjoy these rewards for free.

In addition to cash back rewards, this credit card offers some insurance coverage. You'll enjoy double the manufacturer's warranty on new purchases, up to one year, and $100,000 in common carrier insurance^†. All told, there is plenty of value on offer despite the lack of an annual fee.

CIBC Dividend® Visa* Card insurance coverage

The CIBC Dividend® Visa* Card doesn’t have the robust suite of insurance you’ll find with many fee-based cash back credit cards, but it does offer several additional perks and features beyond cash back rewards:

• Extended Protection Insurance, which doubles the manufacturer’s warranty on items purchased with this credit card up to 1 year.^†
• Purchase Security, which insures most new items purchased on this credit card from theft, loss, or damage for 90 days after purchase.^†
• Common Carrier Accident Insurance, which covers you if you travel by plane, ferry, train, or bus. You, your spouse, and your children are covered with up to $100,000 in insurance. Just make sure you book your fare with this credit card and are the primary cardholder.^†

Extra benefits of the CIBC Dividend Visa credit card

• Car rental savings: Get up to 25% off vehicle rentals at Avis® and Budget® locations worldwide when you pay with your CIBC credit card.
• Send money abroad with $0 fees: Send money abroad to over 120 countries with a $0 transfer fee.
• CIBC mobile app access: Set up alerts, pay your bill, track your cash back rewards, and more with the CIBC Mobile Banking App and CIBC Online Banking.
• Mobile wallet connectivity
• Credit report alerts

Rates and fees

The CIBC Dividend® Visa* Card has a Purchase Annual Interest Rate of 20.99%^†, which is well within the normal range for a cash back credit card. If you were to take a cash advance from this credit card, the money you withdraw would be subject to a 22.99%^† (non-Quebec residents†) cash advance annual interest rate. The balance transfer annual interest rate is 22.99%^† (non-Quebec residents†). Shopping with this credit card is extremely easy because VISA is widely accepted across Canada and globally.  

How the CIBC Dividend® Visa* Card compares

As we mentioned above, your possibilities for a no-fee cash back credit card in Canada are not endless. That said, there are several good competitors in the market. Here’s how the CIBC Dividend® Visa* Card compares:

Comparing the best no-fee cash back credit cards	CIBC Dividend® Visa* Card	Tangerine Money-Back Credit Card	SimplyCash® Card from American Express
--
Cash back rewards	2% cash back on eligible groceries† and up to 1% 1% cash back on eligible gas, electric vehicle charging, transportation, dining and recurring payments,† 0.5% on everything else†	2% back on two categories of your choice, 0.5% back on all other purchases (Get a Tangerine Savings account and add a third 2% cash back category.)	Earn 2% cash back on eligible gas station purchases in Canada, 2% back on eligible groceries in Canada (up to $300 cash back annually) and 1.25% back on everything else.
Welcome offer	Get up to 10 cents off per litre at participating gas stations with Journie Rewards.	Get a bonus 10% cash back for the first 2 months – up to $100. Plus, a 1.95% promotional balance transfer interest rate for the first 6 months.	Earn a bonus 5% cash back on purchases in your first 3 months (up to $2,000 in purchases).
Insurance coverage	Extended Protection Insurance, Purchase Security, common carrier insurance†	Extended warranty, purchase assurance	Travel accident, buyer’s assurance, purchase protection, car rental and theft damage
Purchase annual interest rate	20.99%† (non-Quebec residents†), 22.99% on balance transfer annual interest rate and 22.99%† on cash adnvacnes for non-Quebec residents†	19.95%	21.99%
Minimum income requirement	$15,000	$12,000	N/A
Free supplementary cards?	Yes, up to 3	Yes	Yes
Get started	Apply now	Read Review	Apply now

†Terms and Conditions Apply

The CIBC Dividend® Visa* Card has a relatively standard base cash back earn rate of0.5% on all purchases†, although it is low. Its main earn rate is highest for eligible groceries. As a result, this card is best suited for someone who spends enough money on groceries to enjoy the 2% cash back on eligible groceries^†.

If you don’t see yourself spending enough to benefit from the CIBC Dividend® Visa* Card, the SimplyCash® Card from American Express might be more appealing to you. Earn 2% cash back on eligible gas station purchases in Canada, 2% back on eligible groceries in Canada (up to $300 cash back annually), and 1.25% back on everything else. Plus, the card’s welcome bonus is notable:

• Earn a bonus 5% cash back on purchases in your first 3 months (up to $2,000 in purchases).

  That’s on top of your everyday cash back earn rates.
  
  *Current or former Cardmembers with this Card are not eligible for this offer. Other terms apply.

Though the Tangerine Money-Back may only offer 0.5% cash back on all purchases, it still gives you 2% back on two categories of your choice and also offers a reduced rate balance transfer, which is helpful in case you need to consolidate your credit balances.

Is the CIBC Dividend® Visa* Card worth it?

If the CIBC Dividend® Visa* Card regular earn rate was higher and new cardholders were offered a welcome bonus to accelerate their cash back, this card would be perfect.

While Extended Protection Insurance and Purchase Security are great tools, additional travel insurance would further enhance this credit card's appeal. The absence of a cash back limit and the option to obtain free supplementary cards make it a potentially excellent choice, depending on your individual spending habits.

CIBC Dividend^® Visa eligibility requirements

To apply for the CIBC Dividend® Visa, you must meet certain eligibility requirements, including:

• Be a Canadian resident
• Be the age of majority in the province in which you live
• Have a credit score of ≥ 640.
• Have a minimum annual income of $15,000^†

You can apply for the CIBC Dividend® Visa* Card online, over the phone, or at your local branch. You must be a Canadian resident and the age of majority in your province. If you aren’t a CIBC customer already, you’ll need to provide information like your address and income. The entire process of applying takes about five minutes and you will get a response in as little as 60 seconds. There is no annual fee for the CIBC Dividend® Visa* Card, so applying is free.

Disclosures:

†Terms and Conditions Apply. This offer is not available for residents of Quebec.

The information for the CIBC Dividend® Visa* Card has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.

Jordann Brown Author

Jordann Brown Author

Jordann Brown is a freelance personal finance writer whose areas of expertise include debt management, homeownership and budgeting. She is based in Halifax and has written for publications including The Globe and Mail, Toronto Star, and CBC.

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