This is a weird month in the world of credit card points.
Both Staples and Sobes have dropped Air Miles.
BMO has decided to stop loafing and, for the first time in years, has tasted its in-house BMO rewards program for casual enthusiasts.
Eventually, Sin + Jugarnet remained irresistible, as its credit card portfolio became the most competitive in Canada.
The last place from which one would expect to see a Paris was the direction National Bank – But Canada’s sixth-largest bank is actually responding by force.
A collection of products of the National Bank
National Bank is one of the smaller players in the Canadian financial scene. Their presence is primarily limited to the province of Quebec, where they have a small but dedicated customer base.
However, none of this prevents Canadians from getting their excellent travel-based premium credit cards: National Bank World Elite MasterCard and National Bank Platinum MasterCard.
Before we get into the real exciting news, let’s take a quick look at the benefits of these products for cardholders.
Keep in mind that both are going to get much better, the world elite is ready to join The most lucrative prize in the country is the credit card.
These two credit cards are the in-house earnings of National Bank A la carte prizes, Which has a flat redemption price of 1 cent per point (cpp) for travel purchases through the National Bank’s in-house travel agency.
While this is not the most flexible redemption option, it is a much better value than the 0.83cpp that National Bank provides using the À la carte reward for direct cash back.
The World Elite Card requires a traditional আ 80,000 personal / $ 150,000 household income requirement for the high-end MasterCard, the current offer has no annual fee for the first year and offers a welcome bonus of À 20,000 la carte rewards, or $ 200 per tripAfter spending $ 3,000 in the first three months.
On top of this, you get up $ 250 credit For convenience, such as airport parking, luggage fees, and seat selection fees.
For those with an annual income of more than $ 15,000, the Platinum Card remains an effective choice for its À 20,000 la carte reward for the same cost requirement of $ 3,000 in the first three months. The annual fee of $ 99 has been waived.
Coming September 1: The highest earning MasterCard in Canada
The earnings rates on these cards are going to experience some exciting changes Let’s get started on how being pumped by World Elite’s daily awards More than double the current value As of September 1, 2022:
By pressing a few buttons on the keyboard, National Bank is replacing their World Elite MasterCard with an old tiered cost rewards system. One of the only true 5x point cards on the market.
World Elite Gas / EV, recurring bill payments and À la carte Rewards travel portals are also seeing an increase in revenue.
Getting a productive 5% return on the trip makes this product the equivalent of a Scotiabank Gold American Express card, and can even pay for an American Express Cobalt card in exchange for its money.
The $ 2,500 cap on 5x per month in grocery and restaurants is attractive because it has been broken down monthly rather than annually.
However, at a cap of যোগ্য 30,000 per year, the grocer / restaurant eligible for the highest prize category has the same prize ceiling as the National Bank World Elite MasterCard Amex Cobalt Card.
What makes it even better than cobalt is its base rate savings, which are reduced by just two points per dollar spent after hitting this cap. (In Cobalt, after hitting the annual ceiling, the base rate returns to one point per dollar spent.)
For my money, these changes are a direct shot across the bow of the National Bank, proving to big players like Scotiabank and BMO that this rogue financial institution is not over yet.
The 5x multiplier in the grocery and restaurant category, increasing the base rate after hitting the 30,000 cap, and the ability to redeem 1cpp on travel or 0.83cpp on everything else also feels like a swipe against the BMO award, whose signature card, BMO eclipse Visa Infinite, is just 5x in name And costs have a “true” earnings rate of 3.67% per dollar.
World Elite is the shining star of two National Bank products that are getting a facelift, the Platinum card is also getting a decent improvement:
No one is likely to complain about this improvement, but it is not enough to market the card on its own merits. After all, a base rate of 1 point per $ 1.5 cost, or 0.66%, discourages the long-term effectiveness of this product.
Travel Credit: Flexible $ 250 to Flexible $ 150
On a more unequal front, National Bank World Elite MasterCard is seeing a travel credit of $ 250 for airport parking, baggage fees and seat selection fees. Decreased to 150.
Although the amount you are getting refunded is declining, the flexibility is much nicer. One of the most consistent complaints I’ve heard about NBC’s travel spending credit is how difficult it was to settle them.
The new ability to redeem the modified $ 150 credit for accessing the airport lounge or upgrading your seat makes this credit easier and more relevant to use.
Think about the consequences of leaving your “Player 2” outside the airport lounge because you don’t have unpaid hospitality. With the change of NBC, you don’t have to face them.
Insurance: One step forward, two steps back
National Bank MasterCard family insurance changes where my feelings are most mixed.
First, the good news. As of September 1, 2022, both Platinum and World Elite products are getting mobile device insurance to protect your device from damage, theft or damage up to $ 1,000.
This assumes that you bought your phone entirely through a single purchase on your National Bank card, or made uninterrupted pre-authorized payments for your phone and pre-arranged bills on your National Bank MasterCard.
The downside is that some of National Bank’s traditionally strong insurance coverage will weaken.
World Elite is losing $ 2,000 coverage for personal items lost or stolen from a rental car.
Platinum, meanwhile, is also losing personal car rental car coverage, as well as its trip cancellation coverage falling from $ 1,250 to $ 1,000. Plus, its trip disrupted insurance is going to be about half of $ 2,500 to $ 1,500.
Mobile device insurance is welcome, but in the era of record long lineups at Canadian airports, the inconvenience of reducing security is unpleasant.
Conclusion
The past month of insanity in the world of credit cards and loyalty programs is now at the top with another impressive effort – this time by National Bank – to curb the price offer of their products. Let’s hope gambling pays off for them.
It is interesting to see a small player like National Bank feel fit to launch such a dynamic new product with a 5x income rate. As Canadian credit cards gradually become more competitive, we expect other banks to notice and strengthen their offers accordingly.
Until next time, collect a 5% return on all your groceries.
