The rising cost of food is a major concern in Canada. Although inflation sparked by the COVID-19 pandemic has eased, the cost of groceries remains higher than pre-pandemic levels.
There are numerous interlocking reasons for this upward trend—supply issues, climate change, energy costs, inflation and geopolitics among them—and the U.S. administration’s new tariffs on Canadian products has compounded their impact.
One easy way to reduce the impact of high grocery prices is to use a cash back credit card. The Neo World Elite Mastercard returns 5% on grocery purchases—one of the highest earn rates in the country—along with generous earn rates on other top spending categories.
Unlike many other cash back credit cards, the Neo World Elite Mastercard offers consistent, top-tier cash back rates that provide real value back to customers. The cash back earned is immediately deposited into a rewards wallet and can be redeemed at any time. Let’s see how much you could save on everyday expenses.
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Neo World Elite Mastercard
Annual fee: $125
Interest rates: 9.99% to 29.99% on purchases, 22.99% to 28.99% cash advances
Earn rate: 5% cash back on grocery purchases; 4% on recurring expenses; 3% on gas and EV charging; and 1% on all other purchases
Welcome offer: None
Annual income requirement: Personal income of $80,000 or household income of $150,000
What is the average food cost per month in Canada?
The average monthly Canadian credit card bill in 2024 was $2,100, reports Payments Canada, which operates the country’s payment systems. A large chunk of that money goes to groceries—they account for 20% of household expenses, according to the Consumer Price Index (CPI), which monitors the prices of goods and services over time. Put together, that data means we spend an average of $420 on groceries per month ($5,040 per year), making it the biggest expense for most Canadian households, not including taxes and shelter.
Other major spending categories for Canadians include gas, at 10% of your bills, and recurring bills, which account for 8%. On a $2,100 credit card bill, the values of these purchases are $210 and $168, respectively. Along with your grocery purchases, that’s $798 spent in the top three categories. With the right credit card, you could get a portion of those expenses back as cash in your account.
Save on groceries with a cash back credit card
How do you pick the right cash back card for your and your family’s needs? Check the earn rates in high-spend categories like groceries and gas. The Neo World Elite Mastercard has one of the strongest rewards structures in the country.
| Spending category | Cash back rate |
|---|---|
| Grocery | 5% |
| Recurring bills | 4% |
| Gas | 3% |
| Everything else | 1% |
With the Neo World Elite Mastercard, your regular cash back rate for groceries is 5%, one of the highest in the market. Using the average $420 grocery cost mentioned above, you’d get back $21 per month, or $252 for the year. At this earn rate, the card’s annual fee will be paid off in less than three months.
Below, see how much cash back the card would give you per month and per year, based on CPI data and that average credit card bill of $2,100.
| CPI percentage | Average monthly spending | Cash back rate from Neo World Elite Mastercard |
Monthly cash back | Annual cash back | |
|---|---|---|---|---|---|
| Groceries | 20% | $420 | 5% | $21 | $252 |
| Recurring bills | 8% | $168 | 4% | $6.72 | $80.64 |
| Gas | 10% | $210 | 3% | $6.30 | $75.60 |
| EV charging | 2% | $42 | 3% | $1.26 | $15.12 |
| Dining | 10% | $210 | 1% | $2.10 | $25.20 |
| Drugstore purchases | 8% | $168 | 1% | $1.68 | $20.16 |
| Travel | 10% | $210 | 1% | $2.10 | $25.20 |
| Other expenses | 32% | $672 | 1% | $6.72 | $80.64 |
| Total | 100% | $2,100.00 | n/a | $47.88 | $574.56 |
And here’s how the Neo World Elite Mastercard performs against Canadian competitor cards with the same monthly credit card purchases. (Card information was collected on Dec. 19, 2024.)
| Monthly cash back | Annual cash back | Annual fee | Total estimated annual value | |
|---|---|---|---|---|
| Neo World Elite Mastercard | $47.88 | $575 | -$125 | $450 |
| Competitor 1 | $21 | $252 | $0 | $252 |
| Competitor 2 | $31.50 | $378 | $0 | $378 |
| Competitor 3 | $36.96 | $305 | -$139 | $305 |
| Competitor 4 | $45.99 | $552 | -$120 | $432 |
| Competitor 5 | $42.51 | $507 | -$120 | $387 |
| Competitor 6 | $31.50 | $378 | -$99 | $279 |
| Competitor 7 | $42 | $504 | -$120 | $384 |
| Competitor 8 | $27.93 | $355 | $0 | $355 |
| Average | $36.36 | $423 | n/a | $358 |
As you can see, the Neo World Elite Mastercard beats its competitors on nearly every metric, putting more money into your pocket at the end of each month.
Partner rewards
Neo has partnered with over 10,000 merchants across Canada to give cardholders access to exclusive cash back offers over and above the card’s base earn rates. You can receive welcome offers up to 15% cash back, with an average ongoing cash back rate of 5%.
The Neo World Elite Mastercard has other perks, too, including car rental collision loss damage coverage, plus a comprehensive travel insurance package that protects you for out-of-province or country emergency medical expenses, delayed or lost baggage, trip cancellation or interruption, and more.
If you’re looking for a way to combat high grocery prices, a cash back card is a good place to start. Consider the Neo World Elite Mastercard to take back a cut of your costs.
This article is sponsored.
This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers.
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Read more about grocery shopping:
- How much will Trump’s tariffs cost Canada and Canadians?
- Some grocery prices are going up in February—here’s why
- Food inflation: Canadians to spend $801 more on food in 2025
- To save money, Canadians are buying more private-label grocery brands
The post Which credit card gives the most cash back for groceries? appeared first on MoneySense.