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Scotia Momentum No-Fee Visa Card Review

Scotiabank Momentum No-Fee Visa Card review

Justin da Rosa

Jan 27, 2025

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Overall rating

First year value

$271

Get this card if you:

  • want to earn cash back with no annual fee
  • value a good welcome offer
  • don't need comprehensive insurance benefits

Scores by category

Balance Transfer 4.2

No Annual Fee 4.0

Welcome Bonus 2.9

Groceries 2.8

Gas 2.8

Highlights

$271

First year value

5% cash back

Welcome bonus

Interest Rates

19.99%

Purchase APR

22.99%

Balance transfer APR

22.99%

Cash advance APR

Eligibility

Fair

Recommended credit score

Quick overview

If you’re looking for a no-fee, no-frills credit card that’ll let you earn points as you spend on essentials, the Scotiabank Momentum No-Fee Visa Card might be right for you. 

This card aims to help you earn points on the things you regularly spend on, such as gas, groceries, drugstore purchases and recurring bill payments. With a 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments, it caters to everyday shoppers looking to earn rewards on their routine expenditures. Additionally, the welcome bonus is decent, offering 5% cash back for a limited-time: Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases); Plus, get a 0% introductory interest rate on balance transfers for the first 6 months (22.99% after that; annual fee $0).

It’s not a perfect card, though – and, really, there’s no such thing. The Scotiabank Momentum No-Fee Visa Card has some limitations that might turn you off. The reward structure for non-essential spending is just 0.5%. The redemption process is also quite rigid; cash back is accumulated monthly but can only be redeemed once a year in November, which may not suit those who prefer more frequent or flexible redemption options. The card also lacks comprehensive insurance coverage, a common perk among credit cards, although optional insurance can be purchased. Lastly, the foreign transaction fee of 2.5% could be a drawback for those who travel or make purchases in foreign currencies.

Still, take a look at the Scotia Momentum No-Fee Visa Card if you’re budget-conscious and want to earn cash back on your daily spending without worrying about an annual fee. 

Who is this card for?

If you're someone who appreciates the value of every dollar and seeks a credit card that aligns with a practical budget, the Scotiabank Momentum No-Fee Visa Card might be what you need. It's especially beneficial for you if your regular expenses include a significant amount on groceries, gas and recurring bills, as it offers cash back on these purchases without the sting of an annual fee. 

You'll find this card particularly advantageous if you're starting out with credit cards and want a simple tool to build credit and accumulate rewards. It's also a smart choice if you're looking to transfer and pay down existing debt, thanks to its promotional balance transfer offer. However, if you're a frequent traveler or you're after extensive insurance benefits and flexible reward redemption, you might want to look elsewhere for a card that’ll satisfy those needs.

The Scotiabank Momentum® No-Fee Visa* Card is also a great option for students in search of a cash-back card that doesn't charge an annual fee and offers a low introductory rate on balance transfers.

Pros and cons

Pros

Pros

  • No annual fee: The card does not charge an annual fee, making it cost-effective for users.

  • Cash back rewards: Offers 1% cash back on eligible gas, groceries, drugstore purchases and recurring bill payments.

  • Welcome bonus: There is a welcome bonus of 5% cash back on up to $2,000 in eligible purchases within the first three months.

  • Promotional balance Transfer Rate: A promotional 0% annual interest rate on balance transfers for the first six months (with a 2% balance transfer fee).

  • Rental car discounts: Cardholders can save up to 25% off base rates at participating AVIS and Budget locations in Canada and the U.S.

Cons

Cons

  • Limited insurance: No included insurance coverage, though optional insurance bundles are available for a fee.

  • Low base rewards rate: After exceeding the $25,000 spending cap, the cash back rewards drop to a base rate of 0.5%.

  • Rigid redemption process: Cash back is accumulated monthly but can only be redeemed once annually in November.

  • Balance transfer fee: There is a 2% balance transfer fee when utilizing the promotional balance transfer rate.

  • Foreign transaction fee: The card charges a 2.5% foreign transaction fee on purchases made in a foreign currency.

  • Limited perks: Compared to other no-fee cards, the Scotiabank Momentum No-Fee Visa Card offers fewer perks and lower reward rates.

Welcome bonus

  • Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases); Plus, get a 0% introductory interest rate on balance transfers for the first 6 months (22.99% after that; annual fee $0)
  • The welcome bonus is credited in two installments, provided the account is in good standing.
  • The bonus cash back is credited within seven months from the account open date.
  • Regular cash back earned during the promotional period is credited as per the regular schedule.

How to earn points

  • Earn cash back on eligible purchases at the regular cash back rate after the promotional period.
  • Earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments.
  • Earn 0.50% cash back on all other eligible purchases.
  • The cash back earned is credited according to the regular payment schedule.

Key benefits

  • No annual fee for both primary and additional cards.
  • Competitive cash back rate on everyday purchases.
  • $0 for each additional cards.

Insurance coverage

There is no insurance included with the Scotiabank Momentum No-Fee Visa card. However, you can purchase optional insurance in two packages.

  • Basic protection includes a life benefit, a critical illness benefit, and a hospitalization benefit. 
  • Comprehensive protection includes everything in the basic protection pack and a disability benefit, job loss benefit, and a strike or lockout benefit. 

Scotiabank credit card insurance is charged at a monthly rate of $1.09 per $100 on your account. For example, if you carry a balance of $3,000, your monthly cost is $32.70 for a maximum payout of $50,000. 

So, if you carry a balance, while it’s nice to know your credit card balance will be paid off if you die or fall critically ill, your money is more valuable in a term life insurance policy. 

Extras

  • Scotiabank SelectPay helps you pay off large purchases over a period of time with no interest for a low fee. 

How this card compares

$484

First Year Value

$384

Annual Value

Welcome Bonus: 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.

Learn More

Scotiabank Momentum No-Fee Visa Card vs. Tangerine Money-Back Credit Card

The Scotiabank Momentum No-Fee Visa Card and the Tangerine Money-Back Credit Card are both strong contenders in the no-annual-fee cash back credit card market in Canada, but they cater to slightly different users. 

The Tangerine Money-Back Credit Card, on the other hand, allows you to earn 2% cash back in two categories of your choice, with the option to add a third category by depositing your rewards into a Tangerine Savings Account. It also lets you earn Earn 0.50% on all your other everyday purchases.% on all other eligible spending. This could be more beneficial if you prefer to tailor your rewards to your personal spending patterns. The Tangerine card also offers an introductory bonus: New cardholders get a bonus 10% cash back for the first 2 months – up to $100. Offer ends Jan. 31, 2025

5% cash back

Welcome Bonus

$526

First Year Value

$401

Annual Value

Welcome Bonus: Get 5% cash back in your first 3 months*

Learn More Apply Now On BMO's Secure Site

Scotiabank Momentum No-Fee Visa Card Vs. BMO CashBack Mastercard

The Scotiabank Momentum No-Fee Visa Card and the BMO CashBack Mastercard both offer attractive cash back rewards without an annual fee, but they cater to different spenders. This card is ideal if you want to earn rewards on everyday purchases. 

In comparison, the BMO CashBack Mastercard offers a tiered cash back system with 3% cash back on groceries (up to $500 monthly), 1% on recurring bill payments (up to $500 per month), and 0.5% on all other purchases with no monthly maximum. This could be more advantageous if your spending is heavily skewed towards groceries and recurring payments. The BMO card also boasts a flexible redemption option, allowing you to redeem cash back at any time and in any amount, which contrasts with the Scotiabank card's once-a-year redemption policy. 

*Terms and conditions apply.

†Based on a comparison of the non-promotional grocery rewards earn rate on cash back credit cards with no annual fee as of January 4, 2023.

10% cash back†

Welcome Bonus

$0

First Year Value

$0

Annual Value

Welcome Bonus: Earn up to 10% cash back† for your first 3 months up to $1,000 eligible spend.

Learn More Apply Now On CIBC's Secure Site

Scotiabank Momentum No-Fee Visa Card Vs. Simplii Financial Cash Back Visa Card

The Scotiabank Momentum No-Fee Visa Card and the Simplii Financial Cash Back Visa Card both reward everyday spending, but they do so in different ways. 

The Simplii Financial Cash Back Visa Card offers a more lucrative cash back rate of up to 4% on restaurant, bar, and coffee shop purchases, up to $ per year, and 1.5% on gas, groceries, drugstores, and pre-authorized payments, up to $ per year. This card might be more appealing if you dine out frequently or have a higher spend in these categories.

Additionally, the Simplii card offers an attractive welcome bonus of up to 10% cash back† for your first 3 months up to $1,000 eligible spend. Both of these cards only allow you to redeem your cash back once per year, making them less flexible than other cards.

Is the Scotiabank Momentum No-Fee Visa Card worth it?

It’s a practical choice for individuals who spend on everyday essentials such as groceries, gas and recurring payments, and who are drawn to simplicity and savings. With no annual fee, it's a cost-effective option. The card's welcome bonus and the introductory balance transfer rate add short-term value, making it particularly appealing if you're planning significant spending soon after acquiring the card or if you're considering consolidating and paying down existing debt.

However, the card's benefits are most rewarding for those who consistently spend in the specific categories that earn cash back. If your spending is varied or if you're a frequent traveler, the card's limited reward categories and lack of travel perks may not align with your lifestyle.

FAQs

  • What are the cash back rewards I can earn with the Scotiabank Momentum No-Fee Visa Card?

    +

    With the Scotiabank Momentum No-Fee Visa Card, you can earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments. After reaching a certain spending cap, the cash back rate drops to 0.5%. It's important to note that cash back is accumulated throughout the year and is only paid out once annually in November.

  • Does the Scotiabank Momentum No-Fee Visa Card have any fees for additional cards?

    +

    No, there are no fees for additional cards on the Scotiabank Momentum No-Fee Visa Card account. You can add supplementary cardholders to your account without incurring extra annual fees, allowing family members to contribute to the cash back earnings.

  • Is there a Scotiabank student credit card?

    +

    Yes, the Scotiabank Momentum No-Fee Visa Card is an ideal choice for students, thank to its no annual fee and cash back features. As well, this card particularly attractive for students just starting out with credit cards.

  • Is the Scotiabank momentum no-fee visa good for foreign transactions?

    +

    The Scotiabank Momentum No-Fee Visa Card may not be the best option for foreign transactions. It charges a foreign transaction fee of 2.5% on purchases made in a currency other than Canadian dollars. This fee is fairly standard across many credit cards; however, it can add up if you frequently travel abroad or make online purchases from international retailers.

Justin da Rosa Freelance Writer

Justin is a writer and editor who has been covering personal finance for over 10 years. He's written for companies such as KOHO, Ratehub, BMO, Zoocasa, and Questrade, among others. Justin also created a course in Content Creation, which he taught at York University for four years. When not writing, Justin can be found at a live concert, on the golf course, riding a motorcycle, or sailing.

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†Terms and Conditions apply.