In This Issue: 

🚨Neo’s New World Elite Mastercard: Is It Worth it? Calculate Yourself

🪪 American Express Cobalt Card: Multipliers Limited to Canada Only 

🆓 Pay Rent and Build Credit- All for Free with Chexy

🗺️ Chexy Deals: December flights to Lisbon, Paris and Copenhagen

Neo’s New World Elite Mastercard: Is Locking Up $10,000 for “Up to 7%” Cashback Really Worth It? 🙄

Neo Financial is back with its latest attempt to lure us in with high cashback rates — this time it’s “up to 7%” cashback rate for groceries. Yes, 7%. Sounds amazing, right? But here’s the thing: if you want that rate, you’ll need to deposit $10,000 into a Neo Everyday account and let it sit there. While the promise of 7% cashback might sound like the holy grail of rewards, is it actually worth freezing your cash for? 👏

Neo’s Offer: The High-Cashback Illusion?

Here’s what Neo’s World Elite Mastercard offers at a glance:

• Groceries: Up to 7% cashback (5% if you don’t lock in $10,000)

• Recurring Bills: Up to 5% cashback (4% without locked funds)

• Gas: Up to 4% cashback (3% without the deposit)

• Everything Else: 1% cashback, regardless of balance

While these cashback rates sound appealing, Neo’s requirement to lock up $10,000 in their Everyday account raises some questions. 

Here’s why: with a high-interest savings account (HISA) like EQ Bank (offering 4% interest), keeping that $10,000 in a HISA would earn you $400 per year. In contrast, Neo’s Everyday account only offers 1.5% interest, or $150 per year on $10,000. 

Here’s a quick look:

To Get the EQ Bank Savings Plus Account, Click Here.

To Get the Wealthsimple Account, Click Here.

While 5-7% on groceries and 4-5% on recurring bills is impressive and would even beat out the American Express Cobalt, Neo’s big “catch” as explained above, is that you need to lock up $10,000 in your account. 💸

But there’s more.

Spending Caps to Watch

Now, if the above has you thinking, there’s more you should know: Neo caps your annual accelerated cashback spending. 

The caps are set at:

• $12,000 on groceries and gas

• $6,000 on recurring bills

• And, $40,000 on “all else” (although the 1% rate is uncapped beyond that). 

So if your annual grocery or gas spending exceeds the limit, your rates dropdown. ⬇️

Compare this to options like the Scotia Momentum Visa Infinite’s $50,000 grocery cap — a card that offers 4% with no frozen cash requirements and $25,000 recurring payments cap, this might be better suited for those who like their rewards with fewer restrictions. More on this below. 😬

Is Neo’s Offer Really a Win? Calculate Yourself.

Now, to figure out if this is a good fit for you or not, you’ll need to do some math. Luckily, we’ve made it simple! Neo’s anticipated World Elite Mastercard offers impressive cashback rates, but the requirement to lock up $10,000 in their Everyday account to access those top rewards comes with significant trade-offs.

We crunched the numbers based on average spending in key categories and ended up with a net result of - $70. 🚨

In this case, Neo’s offer wasn’t worth the average Canadian expenses. However, your own spending may vary, so it’s crucial to calculate it based on your personal finances to see if locking in the $10,000 makes sense for you. You can easily do this by making a copy of this Google Spreadsheet Calculator:

Access the Spreadsheet Calculator Here

Just input your expected spending on groceries, recurring bills, gas, and other expenses, and the sheet will calculate whether the Neo offer gives you a net positive or negative return. 👏

Smarter Cashback Options That Don’t Lock Up Your Cash

If you found that you are net negative and are in the market for a new credit card with high earning rates, here are some great alternatives to consider:

1. Scotia Momentum Visa Infinite: This one’s a heavy-hitter for anyone who regularly spends on groceries, gas, and recurring bills (think Chexy for rent payments!). 

   1. It offers 4% cashback on groceries and recurring bills, 2% on gas, and 1% on everything else — all with no savings lock requirement. Plus, recurring payments include Chexy, which means that if you’re paying the average rent of $2,000 a month, that’s $600+ a year in cashback just on rent. Neo’s card can’t touch that… mainly because we don’t accept Mastercard. 🤣

2. TD Cash Back Visa Infinite: Offers 3% cashback on recurring bills, groceries, and gas with no savings lock-in required. 

   1. The 1% on everything else is competitive and flexible. With a $120 annual fee, this card provides a strong earn rate across essential categories without the cash tie-up Neo requires.

      1. Also, it's great to use with Chexy.

These cards offer strong cashback without tying up your money.

American Express Cobalt Card Multipliers Now Limited to Canada: Here’s What You Should Know

The American Express Cobalt Card, dubbed the “best credit card in Canada” has officially restricted its accelerated earn rates to domestic spending only. Starting October 15, whether you’re dining out, buying groceries, or booking travel outside Canada, you’ll earn just 1x points rather than the higher rates stated on the credit card for domestic purchases. For many Cobalt users, especially those who travel and use this card (which you shouldn’t) this is a shift — but it’s also a reminder that there are other options for maximizing rewards on international purchases.

Why Should You Avoid Using the Cobalt Card Outside Canada?

In addition to the multiplier limits, the American Express Cobalt Card is NOT a “no foreign fee” credit card. This essentially means that cardholders will incur a foreign exchange fee of 2.5% on purchases made outside of Canada, this is on top of the current exchange rate. All in all, its best practice to use a no-foreign-fee credit card when spending outside of Canada.

Consider These No-Foreign-Exchange-Fee Alternatives

For Canadians who often make purchases abroad or shop online from international retailers, having a no-foreign-exchange-fee credit card is essential. Here are two solid alternatives that allow you to earn points without the added cost:

1. Scotiabank Passport Visa Infinite Card

   • No Foreign Transaction Fees: This is a key feature for international travelers who want to avoid extra charges on foreign purchases.

   • Reward Structure: Earn 2x Scotia Rewards points on dining, entertainment, and transit, and 1x on all other purchases. These points can be redeemed for travel, merchandise, and even statement credits, offering a lot of flexibility.

   • Additional Benefits: The Passport card includes six free airport lounge visits annually with Priority Pass, which can save you hundreds of dollars in airport lounge access fees.

2. Scotiabank Gold American Express Card

   • No Foreign Transaction Fees: Like the Passport, this card waives foreign exchange fees, making it ideal for international spending.

   • Reward Structure: Earn 5x points on dining, groceries, and entertainment, 3x points on gas, transit, and select streaming services, and 1x on all other purchases. This card offers a similar high earning rate on categories that Canadians frequently spend on, which makes it particularly versatile.

   • Travel Insurance Coverage: This card also includes great travel insurance, including emergency medical coverage and trip interruption insurance.

Both of these cards let you earn rewards without foreign transaction fees, making them some of the best card choices for purchases abroad.

Bottom Line: A Mixed Bag for Cobalt Cardholders

While the American Express Cobalt Card remains a solid choice for Canadians who spend mostly within Canada, this recent limitation on multipliers abroad, combined with the card’s foreign transaction fee, makes it less useful for international purchases. For those who travel often, supplementing your Cobalt Card with a no-foreign-fee credit card like the Scotiabank Passport Visa Infinite or Scotiabank Gold Amex is a smart move, ensuring you keep earning rewards without the extra costs.

Plus, signing up for one of these cards with the links above, will get you 1 month of Chexy fees waived.

So, if you’re sticking to purchases within Canada, the Cobalt Card still holds its value. But if your plans include a lot of international spending, having a no-foreign-fee card in your wallet will keep your points earning strong while avoiding unnecessary fees.

Exciting News: Pay Rent with Your Debit Card and Report Rent - All for FREE! 🆓

We’re thrilled to announce that you can now pay your rent using your debit card and report rent payments to Equifax for FREE with Chexy! This is a game-changer for anyone looking to take control of their finances and build credit while simplifying their rent payments.

Why You Need It?

1. 📈 No Credit or Low Credit? No Problem: Paying rent with your debit card allows you to manage your finances easily, even if you’re not ready to use a credit card or if you don’t have a good enough one to use with Chexy!

2. 🚀 Build Your Credit Score: Opting in to report your rent payments to Equifax helps boost your credit score over time, which can lead to better interest rates on loans, credit cards, and even mortgages.

3. ✅ No Hidden Fees: You can enjoy the convenience of paying rent digitally and building your credit without the worry of extra fees —because it’s all FREE!

How to Get Started:

1. Sign up on Chexy by visiting chexy.co/creditb.

2. Add your rental and landlord information to start paying rent with your debit card.

3. Complete KYC and add your debit card.

4. Once you are paying rent with us, opt-in to the Chexy Credit Builder with just a few clicks and watch your credit score grow over time!

Whether you’re looking to improve your credit or just simplify your monthly rent payments, this makes it easier than ever. Start today and enjoy the benefits of hassle-free rent payments with Chexy!

We’re excited to share exclusive travel and credit card insights through this feature with Prince of Travel, where we collaborate with expert partners to bring you the latest tips and trends in personal finance and travel. Let’s dive in!

How to start your European adventures in business class

Perhaps Aeroplan’s biggest strength as a rewards program is that it can be used on more than 50 airlines.

Today, we’ll tell you about some of the best Air Canada partner airlines for flying to Europe in business class.

Aeroplan’s flight reward chart sets specific points totals required to book flights on these partner airlines.

The reward chart divides destinations into four geographic zones, and in these examples, we’ll look at flights from the North America zone to the Atlantic zone.

Our first recommendation is Austrian Airlines.

Austrian flies to multiple cities in the eastern half of North America (including Montreal) and Los Angeles.

Under the reward chart, you can get that flight from Montreal for 70,000 Aeroplan points, as it just barely reaches into the 4,001 to 6,000 miles distance category.

However, it was difficult to find award availability on Austrian based on our quick searches, so it will likely take some persistence and patience.

Up next is TAP Air Portugal, which serves Toronto and Montreal, both of which fall under the 0 to 4,000 miles section of the reward chart.

That means a direct flight to Lisbon in business class costs 60,000 points, and availability is relatively easy to come by.

The final airline we’ll tell you about this week is SWISS, which also serves Toronto and Montreal.

A direct flight from Toronto costs 70,000 points, while a flight from Montreal costs 60,000.

Interestingly, however, we found flight itineraries for those amounts that first involved short economy class flights on Air Canada to United States airports: Toronto-Chicago-Zurich and Montreal-Boston-Zurich.

The trans-Atlantic portions of both those itineraries are in SWISS business class.

In our next column, we’ll tell you about two more of the best trans-Atlantic business-class products available through Aeroplan.

Credit Card Spotlight 🔦

Welcome to Chexy Credit Card Spotlight! 👀 Each month we’ll recommend a credit card that everyone should have! This time, we’ve got the Scotiabank Gold American Express—perfect for everyday buys and travel. Let's jump in. ✅

Scotiabank Gold American Express Card

Earn up to 6X the Scene+TM points on every $1 CAD you spend in Canada on eligible grocery, dining, and entertainment purchases.

Earn Rates:

6X on every $1 CAD you spend in Canada at Sobeys, Safeway, FreshCo, Foodland, and more.

5X for every $1 CAD you spend on Dining, Food Delivery, and other eligible grocery stores.

5X for every $1 CAD you spend on eligible entertainment purchases. Includes movies, theatre, and ticket agencies.

3X for every $1 CAD you spend on gas and daily transit options. Includes rideshare, buses, taxis, subway, and more.

3X for every $1 CAD you spend in Canada on eligible select streaming services.

1X on Everything Else

Annual Fee:

The card has a $120 annual fee but your first year is waived!

Check out these awesome deals you definitely don't want to miss if you're thinking about traveling in the next few months!

1. Toronto (YYZ) ➡️ Newark (EWR) ➡️ Paris (CDG)

   • Cost: 28,100

     

   • Dates: December 5th, 2024

   • Book: Here

2. Toronto (YYZ) ➡️ Newark (EWR) ➡️ Lisbon (LIS)

   • Cost: 29,700

     

   • Dates: December 4th, 2024

   • Book: Here

3. Toronto (YYZ) ➡️ Copenhagen (CPH)

   • Cost: 28,300

     

   • Dates: December 7th, 2024

   • Book: Here