Scotia Momentum No-Fee Visa Card Review 2024

The Scotia Momentum No-Fee Visa Card provides modest cash back on frequent spending categories. You’ll receive 1% cash back on gas, groceries, pharmacy purchases and bill payments. Unlike comparable cards, the Scotiabank No-Fee Visa Card offers a generous spending cap of $25,000. After exceeding this threshold, your cash-back rewards drop to a base rate of 0.5% on eligible purchases.

Cardholders may not like the rigid redemption process. While rewards accumulate each month, they’re awarded annually only once—in November. For some, the lack of redemption flexibility  may be a significant drawback that will drive them to consider other cash back credit cards that offer on demand rewards. However, others may see this as a boost to their holiday shopping and an easy way to keep track of how much cash back they’re earning per year.

Notably, the strong balance transfer promotion may be attractive to some. It offers an APR of 0.99% for six months, so you’ll have ample opportunity to refinance your debt at a lower interest rate. However, that low interest rate still increases to the standard APR after six months. You’ll also incur an additional 2% balance transfer fee if you do transfer your balance to this card.

This card serves as an entry-level option if you’re seeking to build your credit score.  The promotional balance transfer may benefit you, too. However, there are other no-annual-fee cards that offer enhanced cash back in certain spending categories with more redemption flexibility.

• No annual fee
• 1% cash back on grocery purchases, gas, drug store purchases and recurring bills
• 0.5% cash back on all other purchases
• Welcome bonus offering 5% cash back, up to $100 in rewards

Earning Rewards

While aligning with frequent spending categories, the Scotia Momentum No-Fee Visa is unsophisticated in its ability to earn rewards. The card offers a maximum of 1% cash back on purchases made at gas stations, grocery stores and drug stores, as well as on recurring bills. Recurring bills are defined as phone, cable, utilities, car or home insurance and subscriptions. All other purchases earn a base rate of 0.5%. You’ll also descend to the 0.5% earn rate when you exceed the high $25,000 spending cap. Despite the high spending cap, the accelerated earn rate on specified categories is lacklustre and easily outshined by other no-annual-fee cards on the market.

Redeeming Rewards

The most significant drawback to the Scotiabank Momentum No-Fee Visa is the highly rigid redemption process. Although you accumulate cash-back rewards monthly, you can only redeem them once annually. Every November, your rewards are deposited into an eligible Scotiabank chequing account or given to you as statement credit. This is a stark contrast to comparable cards, offering the ability to redeem cash back whenever you want. Overall, the lack of redemption flexibility may drive some away.

Rewards Potential

The Scotia Momentum No-Fee Visa offers modest cash-back rewards when held up next to its competitors. Based on average Canadian spending, Forbes Advisor estimates this card could earn $205.91 of cash back per year. While that’s not terrible, for a no-annual-fee card, the Scotia Momentum No-Fee Visa Card comes across as somewhat stingy, with returns that lag behind other basic cash-back options. Unless you are a devoted Scotiabank customer, other no-annual-fee cards provide superior cash back earnings.

• No Annual Fee: The Scotia Momentum No-Fee Visa Card offers cash-back rewards without an annual fee, making it an attractive choice for those seeking a cost-effective credit card option.
• Cash Back Rewards: Cardholders can earn up to 1% cash back on essential everyday expenses, including gas, groceries and recurring bills. This straightforward cash-back structure simplifies earning rewards on daily spending.
• Welcome and Balance Transfer Offers:  This card has an enticing 5% cash-back offer for the first three months on up to $2,000 in purchases and a 0.99% introductory interest rate on balance transfers for the first six months, increasing to 22.99% after that.
• Scotia SelectPay: Pay off your purchases of $100 or more with low interest rates and no installment plan fee.
• Supplementary Cards: $0 per year for supplementary cards.
• Save on Car Rentals: Up to 25% off base rates at participating AVIS locations and Budget locations in Canada and the U.S.
• Save Time at the Checkout: Compatible with Visa payWave, My Mobile Wallet and Apple Pay.

Interest Rates

• Purchase APR: 19.99%
• Cash Advance APR: 22.99%
• Balance Transfer APR: 0.99% for six months, then 22.99%

Fees

• Annual Fee: $0
• Cash Advance Fee: $5
• Balance Transfer Fee: $5, or 2% of the transferred amount during the promotion period
• Foreign Transaction Fee: 2.5%

• Estimated Credit Score: Good/Excellent
• Canadian Residency: Canadian Citizen/Resident
• Age of Majority: 18 or 19 years of age, depending on your province
• Minimum Income Requirements: $12,000 per year for individuals

Scotia Momentum No-Fee Visa Card vs. Scotiabank Scene Visa Card

The Scotiabank® Scene+™ Visa* Card appeals specifically to entertainment aficionados who enjoy earning Scene+ points for Cineplex movies, restaurants and travel. It provides 2 points per dollar spent on Cineplex and grocery purchases, making it easy to rack up points for free movies—a film buff’s dream. Considering the average spending habits of Canadians, Forbes Advisor approximates that this card has the potential to accumulate $278.51 in annual rewards, giving it a major leg up over the Scotiabank Momentum No-Fee Visa.

In addition, one of the standout features of the Scene+ Rewards program lies in its versatility, offering optimal value across four distinct categories: travel, groceries, restaurants and movies. Unlike most rewards programs that excel in only one category, this card’s ability to perform well across multiple areas is undoubtedly a benefit. While it may not secure you first-class flight deals, like specialized travel cards, it does  allow you to redeem points for travel expenses.

The Momentum Visa is only the better choice if you are the regular t grocery shopper in your household—as it offers a consistent 1% cash back on grocery purchases, while the accelerated 2 points per dollar earn rate for groceries on  the Scene+ card is limited to specific grocery brands. Besides this primary-grocery-shopper circumstance, the Scene+ Visa wins.

Scotia Momentum No-Fee Visa Card vs. Simplii Financial Cash Back Visa

The Simplii Financial Cash Back Visa is an excellent no-annual-fee card for foodies and socialites. With its strong 4% cash back on dining, The Simplii card outperforms the Momentum No-Fee card on restaurant and bar spending.

Both cards make strategic sense in different scenarios for basic, no-annual-fee cash back. However, If we compare the total annual rewards offered by Scotiabank and Simplii, Forbes Advisor estimates that you’ll end up with an additional $163.19 in rewards, based on average spending, if you go with the Simplii Cash Back Visa.

However, Simplii’s weakness lies in spending caps. Simplii has a cap of $5,000 on dining out and $15,000 on all other categories. Once these thresholds are met, your cash-back rate will decrease to the same 0.5% base rate the Scotiabank Momentum No-Fee Visa has. Big spenders should consider looking at other cash back cards outside of these two to maximize their rewards potential.

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

When picking the perfect no-annual-fee cash-back credit card between the Scotiabank Momentum No-Fee Visa Card or the BMO CashBack® Mastercard®*, the real decision comes down to whether you’re loyal to Scotiabank or BMO and your level of spending. Big spenders should know that the attractive 3% cash back rate on groceries from the BMO CashBack only applies to your first $500 of grocery purchases per month. Afterward, the cash-back rate drops to 0.5% until the following month.

Both the Visa and the Mastercard reimburse recurring bills, but the BMO edges ahead with its higher return on groceries. Overall, Forbes Advisor estimates that the BMO CashBack Mastercard can earn $289.24 per year in cash back, which exceeds the Scotiabank Momentum’s $205.91 in annual cash-back earnings per year. So, BMO is likely the better choice, based on that alone.

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With this card, the scoring model considers factors such as, but not limited to, rewards rates and categories, fees, welcome bonuses and other benefits and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

If you’re in the market for a straightforward cash-back card from a major Canadian bank, this card may be for you. It’s perfect  for those whose spending features gas, groceries and bills over everything else. However, for the big spenders, the dreamers of grand rewards and extra perks, there might be a more enticing option elsewhere, like the Scotiabank Momentum Visa Infinite. Despite the Momentum Visa Infinite’s annual fee, it opens the door to substantially higher cash-back rates across similar categories.

Still, the Scotiabank Momentum No-Fee Visa is straightforward, dependable and ideal for those looking to dip their toes into the world of credit cards for the first time.

Related: Canada’s best credit cards