CIBC Dividend® Visa* Card Review
The CIBC Dividend® Visa* Card is a no annual fee credit card that lets you earn up to 2% cash back on card purchases. The concept of a no annual fee credit card with cash back rewards is a winning one, especially since there’s also no limit on the total cash back you can earn. However, this card lacks some additional benefits and perks, as well as an attractive welcome bonus. If you’re looking for a card that combines cash back rewards, no annual fees, and a low-income requirement, the CIBC Dividend® Visa* Card might be for you.
- Cash back rewards
- No annual fee
- Free additional cards
- Shopping protection
About the CIBC Dividend® Visa* Card
The CIBC Dividend® Visa* Card is a no annual fee credit card that offers cash back rewards. Cardholders can earn 2% cash back on their first $6,000 on net annual eligible grocery purchases, and 0.5% cash back on their first $6,000 on all other annual purchases. After that, all other annual purchases over $6,000 earn 1% cash back, with no limit on the total cash back you can earn.
Cardholders can also get up to three free additional cards, so you can earn even more cash back on everyday spending. The low minimum household income of $15,000 makes this a highly accessible card, and the $0 annual fee means there’s no cost to carry it.
The CIBC Dividend® Visa* Card has few included perks. For starters, it comes with purchase security and extended protection insurance. Items purchased with it can be replaced if lost, stolen, or damaged (within 90 days), and you can double manufacturer’s warranty (up to one year) on most items. Additionally, cardholders get discounts at participating AVIS and Budget Rent A Car locations and get $100,000 in common carrier accident protection.
CIBC Dividend® Visa* Card: At A Glance Welcome Bonus: None Minimum income eligibility requirement: $15,000 household Annual Fee: $0 Credit Score Required: Good Interest Rate on Purchases: 19.99% Interest Rate on Cash Advances: 22.99% Rewards: Earn up to 2% cash back on eligible purchases
Card Features & Benefits
The CIBC Dividend® Visa* Card’s stand-out feature is a better-than-average (for a no-fee card) cash back earn rate.
- Earn 2% cash back on your first $6,000 on net annual eligible grocery purchases
- Earn 0.5% cash back on your first $6,000 on all other annual purchases
- Earn 1% cash back on all other annual purchases over $6,000
- No annual fee
- Low minimum income requirement: $15,000 annual household income
Like most other no-fee cards, the CIBC Dividend® Visa* Card doesn’t offer a ton of extras, but it does include a few benefits:
- $100,000 Common Carrier Accident Insurance: This coverage protects you, your spouse, and your children when you travel.
- Free additional cards: Get up to three free additional cards.
- Car rental discounts: Save up to 25% at participating AVIS and Budget Rent A Car locations.
- Purchase Security and Extended Protection: Replace lost, stolen, or damaged items within 90 days of purchase and double manufacturer’s warranty (up to one year) on most items.
Given that you’re not paying an annual fee, consider these a bonus just for carrying this card in your wallet
Pros and Cons
The headline benefit to the CIBC Dividend® Visa* Card is the cash back program, offering 2% cash back on the first $6,000 on net annual eligible grocery purchases, and 0.5% cash back on the first $6,000 on all other annual purchases. After that, all purchases begin to earn at 1% cash back, with no limit on how much you can earn. The rate is fair (though some other no annual fee credit cards beat it), but the change in rates at the $6,000 mark is a bit confusing and seems arbitrary. The card does allow you to earn unlimited cash back but there is no flexibility in how or when you receive it—it comes as a statement credit every December.
- No annual fee
- Shopping protection included — Double the manufacturer's original warranty up to one year on most of your purchases
- Includes Common Carrier Accident Insurance
- $6,000 category limits can be confusing
- Annual rewards pay-out — Cash back rewards are paid annually (every December)
When it comes to no annual fee credit cards, the existence of great rewards or outstanding perks can really push one product to the top of the list. While the CIBC Dividend® Visa* Card does offer cash back rewards, the base earn rates are average and include a $6,000 cap after which they change to 1% cash back on all purchases. It’s true that the earn potential is unlimited, and the multiplier on Grocery is high at 2% but the base earn category limits are confusing. Even more importantly, this card doesn’t offer many perks, and the ones it does offer (common carrier accident insurance and discounts on car rentals) seem to be more suited to a travel card.
All things considered, the CIBC Dividend® Visa* Card succeeds in offering the valuable combination of cash back rewards with a no annual fee product. However, you might want to consider other no annual fee credit cards with better cash back rates before making a final call. Or if you don’t mind paying a moderate annual fee for better rewards, check out our Best Cash Back Credit Cards page.