The savings might be significant: While most traditional bank cards charge around 20% interest, the cards below offer rates of interest which might be half that or lower. Some low-interest cards even offer attractive balance transfer deals that permit you repay your debt at a greatly reduced rate of interest for a limited time. To discover which cards offer the very best rates of interest, perks and deals, read on to see our list of the very best low-interest bank cards in Canada.
Why it’s best to trust us
MoneyDown is an award-winning magazine that has been helping Canadians with their money since 1999. Our editorial team of trained journalists works closely with leading financial experts in Canada. To enable you find the very best financial products, we compare offerings from over 12 major institutions, including banks, credit unions and bank card issuers. Learn more about our promoting and trusted partners.
Why low-interest cards are a superb option immediately
A brand new report suggests that more Canadians are seeing bank card debt skyrocket as the fee of living crisis and better rates of interest put pressure on household budgets. A report from TransUnion released Tuesday said the variety of Canadians paying only the minimum monthly balance on their bank cards rose eight basis points year-on-year to 1.3 percent in the primary quarter.
At a look: The MBNA True Line Gold Mastercard has a daily purchase rate of interest of 8.99%, which is lower than half the rate of interest of a typical bank card. Plus, the annual fee of $39 is manageable.
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MBNA True Line Gold Mastercard
- Annual fee: $39
- Interest charges: 8.99% on purchases
- Welcome offer:
- Earning rates: None
- Annual income requirement: None
Per
- Get as much as nine authorized users totally free.
- When you rent a automotive from Budget or Avis, you save no less than 10% on the bottom price.
Disadvantages
- This bank card doesn’t offer many perks and advantages and doesn’t offer points or money back rewards.
- The purchase rate of interest for Quebec residents is 10.99% – that is higher than the rate of interest offered to residents of other provinces and territories. However, this card continues to be the bottom rate of interest MBNA bank card available to Quebec residents.
At a look: The Flexi Visa from Desjardins Credit Union offers a low rate of interest of 10.90% and perks like limited travel insurance, insurance for brand spanking new mobile devices as much as $1,000, and the flexibility to pay for major purchases in monthly installments.
Flexi-Visa
- Annual fee: $0
- Earning rates: None
- Interest charges: 10.90% on purchases and money advances
- Welcome offer: None
- Annual income requirement: None
Per
- It includes travel insurance coverage that covers medical emergencies, trip cancellation, and lost or damaged baggage.
- Purchase a brand new mobile device with this card and receive as much as $1,000 in coverage against loss, theft, damage or mechanical failure.
- Access to Accord D through Desjardins, which can help you quickly receive a financing approval of as much as $50,000.
Disadvantages
- While limited travel insurance is a profit, it only covers the primary three days of your trip. If you’re absent for an extended period, you will want to take out additional insurance.
- The rate of interest isn’t the bottom on this list.
At a look: This low-interest card from MBNA gives you most of the same advantages because the MBNA True Line Gold Mastercard – also on this list – with barely higher rates of interest. The advantage of this card is that it includes no annual fee and a protracted interest-free balance transfer.
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- The promotional 0% rate of interest for balance transfer is valid for a full 12 months, providing you with loads of time to repay any outstanding debts.
- Add as much as nine authorized users to the account totally free (depending on which repayment plan you select on your purchase).
Disadvantages
- Insurance or other perks and advantages are usually not included.
- There isn’t any annual fee, but you pay barely higher interest than with the comparable MBNA True Line Gold Mastercard.
At a look: The only American Express card on this list, this no-annual-fee essential bank card offers a low 12.99% rate of interest and in addition offers Amex-like perks like front-of-the-line experiences, dining and entertainment, and special offers.
American Express Essential Card
- Annual fee: $25
- Interest rate: 12.99% on purchases
- Welcome offer: None
- Annual income requirement: 15,000 US dollars
Advantages:
- American Express cards give cardholders access to advance tickets, exclusive events and choose dining and entertainment experiences.
- In addition, the corporate offers “Plan It,” which lets you repay larger purchases in installments for a hard and fast monthly fee. The amount of the installment is determined by which repayment plan you select on your purchase.
Disadvantages:
- The included travel insurance is restricted to coverage of as much as $100,000 for accidental death and disability.
- Doesn’t include as many extras as other bank cards, like this one best travel insurance bank cards.
At a look: With a really reasonable annual fee of $29 and an rate of interest of 13.99%, the BMO Preferred Rate Mastercard is attractive to those that wish to stick to a serious bank – especially current BMO customers. The welcome offer sweetens the deal much more.
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BMO Mastercard with preferential rate
- Annual fee: $29
- Interest rate: 13.99% on purchases
- Welcome offer: You can get an introductory rate of interest of 0.99% on balance transfers for 9 months with a transfer fee of two%.
- Annual income requirement: $15,000 (personal or household)
Advantages:
- With this special offer, you’ll receive a 0.99% rate of interest on balance transfer for nine months and no annual fee for the primary 12 months.
- When you open a BMO Performance Checking Account, you will never need to pay the BMO Preferred Rate Mastercard annual fee again.
- Add one other cardholder totally free.
Disadvantages:
- This bank card doesn’t offer any insurance, rewards or other extras.
- The balance transfer promotion lasts nine months, making it not the longest offer among the many cards on this list.
At a look: Unlike most bank cards, the National Bank Synchro Mastercard has a variable rate of interest. You pay an rate of interest of 4% plus the bank’s base rate (or 11.2%) on purchases. The Synchro bank card has the advantage of a lower rate of interest than other cards, but carries the danger that your rate of interest could increase in the longer term.
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National Bank Syncro Mastercard
- Annual fee: $35
- Interest rate: 4% + Prime (11.2%) on purchases
- Welcome offer: This card doesn’t currently offer a welcome bonus.
Advantages:
- The rates of interest of 11.2% for purchases and eight% + base rate (15.2%) for money advances or 8% + base rate (15.2%) for balance transfers are very competitive.
Disadvantages:
- While the acquisition rate of interest continues to be quite low, the minimum rate of interest is higher than the fixed rates of interest offered by other cards on this list.
- If rates of interest proceed to rise, your purchase rates of interest could increase (especially should you are inclined to carry over a balance).
Our methodology: How we determine the very best cards
The MoneyDown editorial team selects the very best bank cards by evaluating the worth they provide Canadians in various categories. Our rating of the very best low-interest bank cards is predicated on comparing an in depth list of card details and features, including competitively low rates of interest, annual fees and welcome offers. We also considered the professionals and cons of every card so you’ll be able to work out which one most closely fits your financial needs. Our rankings are an unbiased source of data for Canadians. Adding affiliate links doesn’t affect the outcomes. Read more about how MoneyDown makes money.
continuously asked Questions
Most bank cards offer a hard and fast rate of interest, which suggests that you’re going to be charged a single, unchanging percentage in your purchases. With a variable rate bank card, however, the rate of interest you will be charged on unpaid balances can change based on just a few aspects.
Typically, the rate of interest is tied to the bottom rate, which fluctuates, and a hard and fast percentage is added on top. For example, a card may charge the bank’s base rate plus 5%. Your credit rating also plays a job in determining how low an rate of interest you’ll be able to get.
There’s a straightforward reason to think about a variable rate card: If you’ve got excellent credit, you would get a number of the lowest rates of interest on the bank card market. But in case your credit is not so great, you should keep it easy, or you wish a card that also comes with an incredible balance transfer promotion, consider a hard and fast rate card.
Other best bank cards in Canada:
