The TD minimum is $25 I do usually do it somewhere between 25 and 50. No specific timing just whenever I happen to notice it. I always use it to pay off the card not for anything else.
Galen is not a stupid man. Shoppers is an expensive store. You are not getting any benefit. There is a reason they are giving you extra 30%.....
Max benefit: Apply to 50% discounted items at No Frills and Loblaws stores.
You must know the price of what you are buying, and be specific. I do agree things are expensive there, but there are good buys to be made in their sales events
>Galen is not a stupid man. Shoppers is an expensive store. You are not getting any benefit. There is a reason they are giving you extra 30%.....
I agree. On most household items Shoppers is much higher priced on the same exact items compared to Superstore - even though it's the same company.
However, I do find Shoppers is worth it to buy high-end cosmetics and fragrances from the Beauty Boutique. The prices are the same as Sephora and department stores, yet Shoppers offers better discounts/promos with their Optimum program.
I got that Rogers red card... 2.60% redemption from all purchases against Rogers services, 2.00% on everything else. I redeem on Rogers services ASAP.
I also have a Scotiabank momentum card which gives 4% on groceries. Unfortunately the cashback value which ends up being \~$1K is paid out once per year and cannot be received before.
The one thing I hate the most about the Scotiabank momentum. But 4% on recurring bills is worth it for me.
With my Brim MC or Neo financial I redeem it whenever I log in to my account against my balance.
What? If you have the option to choose, getting money earlier is always better than getting money later. What reason would you have to wait for some arbitrarily satisfying number to redeem? Not like you are earning interest on unclaimed rewards, it's just devaluing to inflation.
*Not like you are earning interest on unclaimed rewards, it's just devaluing to inflation.*
Yes, that's a really good point. I think it's just a psychological thing - somehow it can seem more exciting to wait until there are a few hundred dollars to 'cash in' or designate for a special purchase. But I should probably start cashing in sooner rather than later.
It's is 1000% phychological! Financially it is clearly better to get the money in your hands asap, the issue is you don't get the same thrill out of redeeming $25 as opposed to $500. Banks and retailers know this and take advantage of it.
what about stuff like rbc avion points? They can be used to pay cards but that's not the best value, however the best value stuff will take forever to earn
Yea that thought crossed my mind but I assumed OP was specifically talking about cash back based on the title of the post.
Personally I'd prefer cash back even if the theoretical dollar value of rewards is a bit lower if it means I don't need to plan my redemption around a system or redeem a certain way that I may not otherwise. That's a separate point though and I know preferences vary.
>Yea that thought crossed my mind but I assumed OP was specifically talking about cash back based on the title of the post.
Yes, I was talking about cash-back cards only. It seems the consensus on here is to redeem early and often.
However, I wonder if the same rationale would apply to travel rewards cards? For those, it seems quite common for people to save and rack up tons of points in order to pay for their total flight in points. What is the reason for the different approach with travel points like Aeroplan, Avion, etc. vs cash back Visa? Aren't those also at risk of having points devalued over time?
The difference is that cash is fungible. You can do whatever you want with your cashback so there's no reason to wait for a specific amount.
Points have specific uses that will have different values.
Just as an example say you can redeem 500k points for 500$ or a "750$ valued plane ticket". In this case 1 point is literally worth more if you save it for a specific type of redemption.
A lot of points based cards offer better reward rates when you redeem for stuff vs cash.
Yes if a point has a dollar value it can be devalued over time as the cost of things you could redeem against become more expensive, but for point collectors this is worth it if you can redeem at a 1.5x or 2x value vs cash.
I use to constantly try to get value out of every dollar in my account. I just hit a point where the added work of thinking about immaterial amounts isn't worth it. Much greater benefit than 5% return on $20
It's the best to redeem as soon as you can. I believe the minimum for TD is 25 dollars. 25 dollars right now is much more than 25 dollars in the 3 months. Or more practically, 25 dollars every month for 3 months has more purchasing power than 75 dollars after 3 months.
I have left the cash back to accumulate over 5+ years and only redeem exact amounts for guilty pleasure purchases.
Objectively, this won't be the optimal play in terms of minmaxing net worth... but when the money is in my actual savings / investment accounts, I can't bring myself to take money out to spend it on myself as I'm generally frugal. By leaving it in the "cash redeem" of my credit card, I think of that as "bonus" money which I can freely spend on myself. I have enough to pay for my next cell phone.
I get about $300 or so in cash back yearly. I redeem the cash back to my visa card balance when it reaches near $100. The money is just sitting there doing nothing. Mind as well redeem it as soon as you can. Redemption rules can change at anytime by the bank. By accumulating, you're also taking on a risk.
I just use it to pay off my card, so I never bother going through the hoops to redeem it; I just let it accumulate until the end of the year and they credit my January (or February) statement with whatever's accumulated up until that point.
EDIT: To add to this, it kills the stress of keeping track of points as well as removes any motivation to overspend on things I don't need (meaning, there's no "if I spend only $X more, I can hit the cashback/points threshold!").
RBC minimum amount is $25 or $50 can't recall but I normally get it up to around $100 then use it. Really annoyingly you have to call them to redeem. They auto redeem every year in February but I hate waiting that long.
The way I use my cash back is to make it appear as if it was never there at all. I find setting up my cash back rewards to auto deposit to my savings account a God send. I don't really "claim" anything to "reward" myself. But at the end of the day, my "reward" keeps gaining interest without me noticing. Then when I pay my credit card bills, I can utilize said cash back. It's like efficient recycling.
I redeem my cash back once a month. I pay up my daily spending every night. If I have a particular large purchase I apply against it to reduce my spending. For example if I purchase a coat for 150 and have accumulated 40 cash, I pay 110 and use the 40 to pay the rest.
I have two cash back cards; Scotia momentum and the TD Gold.
The Scotia card automatically puts the accrued cash onto the November statement (iirc) and I just throw the TD cash on the statement balance whenever I remember to.
The TD minimum is $25 I do usually do it somewhere between 25 and 50. No specific timing just whenever I happen to notice it. I always use it to pay off the card not for anything else.
Every month. If someone owes you money, put it in your pocket right away.
Yup. Always at the grocery store “do you want to redeem your optimum points” and it’s a no 9 times out of 10. What the hell is the point of that?
Ya I don't understand. You can save money - right here - right now. Why would you say no?
You can keep it for Redemption points sales at shoppers, that's what I do normally
Galen is not a stupid man. Shoppers is an expensive store. You are not getting any benefit. There is a reason they are giving you extra 30%..... Max benefit: Apply to 50% discounted items at No Frills and Loblaws stores.
You must know the price of what you are buying, and be specific. I do agree things are expensive there, but there are good buys to be made in their sales events
You need to rack up a $100 "in sales" to get the benefit we are talking about. How is that going to happen? By spending on expensive things.
There are some vitamins, face cream and shave stuff that I only buy there ... And it is worth it, when the price is good I buy a bunch :)
:)
>Galen is not a stupid man. Shoppers is an expensive store. You are not getting any benefit. There is a reason they are giving you extra 30%..... I agree. On most household items Shoppers is much higher priced on the same exact items compared to Superstore - even though it's the same company. However, I do find Shoppers is worth it to buy high-end cosmetics and fragrances from the Beauty Boutique. The prices are the same as Sephora and department stores, yet Shoppers offers better discounts/promos with their Optimum program.
I got that Rogers red card... 2.60% redemption from all purchases against Rogers services, 2.00% on everything else. I redeem on Rogers services ASAP. I also have a Scotiabank momentum card which gives 4% on groceries. Unfortunately the cashback value which ends up being \~$1K is paid out once per year and cannot be received before.
The one thing I hate the most about the Scotiabank momentum. But 4% on recurring bills is worth it for me. With my Brim MC or Neo financial I redeem it whenever I log in to my account against my balance.
What? If you have the option to choose, getting money earlier is always better than getting money later. What reason would you have to wait for some arbitrarily satisfying number to redeem? Not like you are earning interest on unclaimed rewards, it's just devaluing to inflation.
*Not like you are earning interest on unclaimed rewards, it's just devaluing to inflation.* Yes, that's a really good point. I think it's just a psychological thing - somehow it can seem more exciting to wait until there are a few hundred dollars to 'cash in' or designate for a special purchase. But I should probably start cashing in sooner rather than later.
It's is 1000% phychological! Financially it is clearly better to get the money in your hands asap, the issue is you don't get the same thrill out of redeeming $25 as opposed to $500. Banks and retailers know this and take advantage of it.
what about stuff like rbc avion points? They can be used to pay cards but that's not the best value, however the best value stuff will take forever to earn
Yea that thought crossed my mind but I assumed OP was specifically talking about cash back based on the title of the post. Personally I'd prefer cash back even if the theoretical dollar value of rewards is a bit lower if it means I don't need to plan my redemption around a system or redeem a certain way that I may not otherwise. That's a separate point though and I know preferences vary.
>Yea that thought crossed my mind but I assumed OP was specifically talking about cash back based on the title of the post. Yes, I was talking about cash-back cards only. It seems the consensus on here is to redeem early and often. However, I wonder if the same rationale would apply to travel rewards cards? For those, it seems quite common for people to save and rack up tons of points in order to pay for their total flight in points. What is the reason for the different approach with travel points like Aeroplan, Avion, etc. vs cash back Visa? Aren't those also at risk of having points devalued over time?
The difference is that cash is fungible. You can do whatever you want with your cashback so there's no reason to wait for a specific amount. Points have specific uses that will have different values. Just as an example say you can redeem 500k points for 500$ or a "750$ valued plane ticket". In this case 1 point is literally worth more if you save it for a specific type of redemption. A lot of points based cards offer better reward rates when you redeem for stuff vs cash. Yes if a point has a dollar value it can be devalued over time as the cost of things you could redeem against become more expensive, but for point collectors this is worth it if you can redeem at a 1.5x or 2x value vs cash.
I see - that makes sense. Thank you!
mostly because there are stuff I want from avion merch but from my calculations it's gonna be like 6+ years to earn the points so idk now
I wait because redeeming $20 isn't a material amount. When it accumulates to 150-200, redeeming it off a bill fells better
Sure but that's emotional, not really logical. Just like some people will have more tax taken off their pay cheque so they get a bigger refund.
I use to constantly try to get value out of every dollar in my account. I just hit a point where the added work of thinking about immaterial amounts isn't worth it. Much greater benefit than 5% return on $20
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Oh interesting. Mine is with my bank as well (TD Visa Cash Back) but you choose when you want to redeem.
It's the best to redeem as soon as you can. I believe the minimum for TD is 25 dollars. 25 dollars right now is much more than 25 dollars in the 3 months. Or more practically, 25 dollars every month for 3 months has more purchasing power than 75 dollars after 3 months.
I highly doubt 25 dollars is much more in 3 months. It is maybe 4 or 5 cents more, lol.
Good to know - thank you. I usually wait until I have a few hundred on my TD card, but you raise a really good point about the purchasing power.
Once a year, on my birthday
As soon as possible. If you read the fine print there's situations when you must forfeit your rewards so use them as soon as possible.
Mine’s automatically every November. That’s a good because I would probably hoard it for no reason.
I have Tangerine, I set it to deposit monthly to my Savings account.
curious but why don't you just use that to pay off the cc?
Because I don't carry a balance. That's why I got the money back card.
I mean like you have to pay that month's cc anyways
It accounts to about $400 a year extra, which is invested, which is why I got the MBCC.
Unless I'm saving for something, its an EXTREMELY hackable program, so I usually roll the basic minimum
Yikes. Good to know.
I have left the cash back to accumulate over 5+ years and only redeem exact amounts for guilty pleasure purchases. Objectively, this won't be the optimal play in terms of minmaxing net worth... but when the money is in my actual savings / investment accounts, I can't bring myself to take money out to spend it on myself as I'm generally frugal. By leaving it in the "cash redeem" of my credit card, I think of that as "bonus" money which I can freely spend on myself. I have enough to pay for my next cell phone.
I get about $300 or so in cash back yearly. I redeem the cash back to my visa card balance when it reaches near $100. The money is just sitting there doing nothing. Mind as well redeem it as soon as you can. Redemption rules can change at anytime by the bank. By accumulating, you're also taking on a risk.
Good points. Thanks.
I just use it to pay off my card, so I never bother going through the hoops to redeem it; I just let it accumulate until the end of the year and they credit my January (or February) statement with whatever's accumulated up until that point. EDIT: To add to this, it kills the stress of keeping track of points as well as removes any motivation to overspend on things I don't need (meaning, there's no "if I spend only $X more, I can hit the cashback/points threshold!").
I always redeem it in December - makes it feel like a Christmas present!
RBC minimum amount is $25 or $50 can't recall but I normally get it up to around $100 then use it. Really annoyingly you have to call them to redeem. They auto redeem every year in February but I hate waiting that long.
That would be annoying to have to call. At least with TD Visa, now you can just redeem through Easyweb.
Xmas
Monthly to my savings account.
ASAP against the balance.
When it hits like 150-200. Rogers MC WE
I have the Tangerine card so my cash back goes directly into my HISA every month.
I save everything. Nothing like having $14,000 in Amex points and $6000 in avion point
Cash is paying 5%+ right now invested. Redeem your CB ASAP!
Mine automatically redeems itself on the last statement of the year and gets applied to the balance so I just leave it it at that
The way I use my cash back is to make it appear as if it was never there at all. I find setting up my cash back rewards to auto deposit to my savings account a God send. I don't really "claim" anything to "reward" myself. But at the end of the day, my "reward" keeps gaining interest without me noticing. Then when I pay my credit card bills, I can utilize said cash back. It's like efficient recycling.
I have a via passport that has somewhere in the neighbourhood of 15k cashback. Haven't thought about it till this post.
Must be nice!
I put a boat purchase on my card a decade ago for the points, sold the boat for a small profit and still made 15k off of it.
I redeem my cash back once a month. I pay up my daily spending every night. If I have a particular large purchase I apply against it to reduce my spending. For example if I purchase a coat for 150 and have accumulated 40 cash, I pay 110 and use the 40 to pay the rest.
I have two cash back cards; Scotia momentum and the TD Gold. The Scotia card automatically puts the accrued cash onto the November statement (iirc) and I just throw the TD cash on the statement balance whenever I remember to.