The 1.25% Rebate Credit Card Details

This Mastercard credit card has no annual fee, and offers a 1.25% cash back IF you spend more than $9000 in a calendar year. If you spend that much, or more, you get the 1.25% rebate on ALL of your spending. So this isn't one of those tiered reward credit cards, like the TD Rebate Rewards Card.

I'm not sure of any higher cash-back no annual fee card in Canada. If you know of one, I'd like to hear about it :)

Why Cash Back Credit Cards Are Better Than Points Cards

So, this card is the highest cash-back card in Canada with no annual fee. Some of the Airmiles, Aeroplan, Avion, etc, points cards may work out to earn more, but I despise points cards, and here's why:

1. Their point values can decline at any time
2. The points sometimes expire (Aeroplan points do)
3. You can't do anything with the points while they're in point form, while with annual cash back rebates, you can invest/save/spend, etc. (though sometimes you can accrue enough points in less than a year)
4. They can be hard to spend. Cash is more useful than any gift certificate or "business class upgrade

Now, if you don't spend $9000 in a year, your reward will be 0.5% or even 0.25% if it's low enough. So, that's the one hassle with this card, you need to spend, on average, at least $750 /month on it.

Can't Spend that Much?

If you want a no-fee credit card that has absolutely no hassles, like having to spend enough, then the CitiMastercard Enrich is the better cash back option for you, which gives you 1% cash back from the first dollar you spend, even if you spend $100 per year. 

National Bank of Canada and their 1.25% Cash Back Credit Card

National Bank of Canada is a pretty big bank in Quebec, but this card is available to anyone in Canada. You can apply online, and you don't really need to care too much about the Ultramar aspects of it (unless, of course, you live in an area served by them). But be sure to read all the aspects about the card before getting/using one (like the $250 cap on yearly rebates, similar to Citi's card).