The Amex SimplyCash & SimplyCash Preferred are set to see a new look and some changes in a welcome refresh this October.
In this article we’ll break down the changes, as well as give our opinion on whether the card is worth keeping or getting as a new applicant.
American Express SimplyCash
Annual Fee: $0
Income: N/A
Interest Rate: 19.99% Purchases, 21.99% Cash Advances
Supplementary Cards: $0
One of the best entry level no-fee cards in Canada sees a small improvement in its earning structure starting October 12, 2022. The flat earn rate of 1.25% remains, while the SimplyCash will now earn 2% cash back at eligible grocery stores (up to $15,000 in spend) and 2% cash back at eligible gas stations.
Currently the SimplyCash has a welcome offer of 4% back for the first 6 months, up to $5,000 of spend which will net you $200 in cashback.
For someone who wants a no-annual fee cash back card, but does not meet the high income requirements for higher end Visa and Mastercard products, the SimplyCash may be the way to go. If you already hold a SimplyCash, we see no reason to cancel the card as the improvements come without an increase to the $0 annual fee.
American Express SimplyCash Preferred
Annual Fee: $99, rising to $9.99/month starting October 12th ($119.88 annually)
Income: N/A
Interest Rate: 19.99% Purchases, 21.99% Cash Advances
Supplementary Cards: $0
Currently the SimplyCash Preferred comes with a flat 2% cash back on all purchases. In order to keep it competitive with other cash back cards on the market, American Express has added two new categories which earn more than the base 2% back.
4% cash back at eligible grocery stores in Canada (up to $30,000 in spend) and 4% cashback at gas stations in Canada
The improvements come at the cost of an increase in the card’s annual fee, which rises to $9.99 monthly ($119.88 annually) from $99 annually. While this is a material increase, it isn’t entirely unprecedented as it puts it on par with other “premium” cash back cards offered by banks in Canada.
But before you go cutting up your SimplyCash, it is important to note that for most, the fee increase should not dissuade you from keeping the card for another year. Upon spending $1,000 in 4% categories, you would have broken even on the $20 annual fee increase and would be net positive from thereon in. ($1,000 x 2% = $20)
For people considering the card, it may be worth it to apply before October 12th, and take advantage of the lower annual fee, paired with the intro offer of 10% cash back for 4 months, up to $4,000 in spend.
Bottom Line
Both the American Express SimplyCash, and SimplyCash Preferred are going to see positive improvements this fall that continue to keep them competitive in the cash-back card market in Canada. With this, they are also getting a design refresh which brings them closer in looks to the Amex BlueCash Everyday, and BlueCash Preferred cards available in the U.S market.
Unfortunately, there is an increase on the annual fee for the SimplyCash Preferred, but for the vast majority of individuals, the earn rate increase will more than make up for the $20 annual fee increase, although it’s always recommended to do the math yourself. There is a calculator below that you can use to see if the card is still worth hanging onto for another year, or applying for as a new applicant.
If you are a new applicant, feel free to use the StackUp tool to compare your statistics to others who have applied for the card to see if you may be in a good position to be approved for the card.
If you currently hold the SimplyCash, or SimplyCash Preferred, we invite you to add your own statistics to our ever-growing database of data-points to help others gain a better view of their own approval odds. It is completely confidential and would be a great help to others applying for cards, as well as us as we try to grow this platform.
Thank you for taking the time to read our first article. If you have any questions, feel free to comment below and we will respond to them as soon as possible.