Wednesday, December 18, 2013

TD Cash Rewards - 5% Cashback for 6 months Eligible Purchases

TD Bank has come out with a new credit card with an interesting new rewards structure.  It's called the TD Cash Rewards Visa Credit Card.

For six months you will get 5% cashback on any dining, groceries, gas and cable, phone and utility bill payments.  After the 6 month introductory rate, the cashback goes back down to 1% on everything.

There is no annual fee,

Is it worth getting?

I think the card is a nice card, but you won't see me running out to get one, and that's saying something.  Here's why:

Let's take the categories one at a time:

Dining - I will already get 5% cashback at Dining from Discover It during the first quarter of 2014, then in Quarter 2 I will get 5% cashback from Chase Freedom so I am covered for the next 6 months on dining.  I also don't eat at restaurants much.

Groceries - I have the American Express Blue Preferred which gets me 6% back at groceries, up to $6,000 in purchases a year.

Gas - Bank of America Privileges card gets me 4.5% back at groceries.  It's not 5%, but I'm not going to sign up for a new card for 0.5% more for 6 months.

Cable and Phone - I have a Chase Ink Business card which gets me 5% back on any Cable and phone purchases.

Utility Bill Payments - This one is actually interesting.  I don't have any cards that have special categories for Utility Bills.  That being said, my provider, PSE&G, charges a $4 convenience fee for using a credit card.  Much of the savings is now negated.  If this wasn't just for 6 months I would probably sign up just because of this category.

I think it's well established that I have a couple more credit cards than average.  If you don't have the same cards as me you should sign up for more cards.  If you are unwilling to do so, this card can be a nice option for 6 months.  The only downside is the hit on your credit score for a card that will be in your drawer after 6 months.

Thank you SW for the tip on the card!