Scotia Bank and GM have partnered to offer a new no annual fee co-branded credit card with a very rich rewards program. The program has already launched, and will offer cardholders a robust 5% in GM earnings on the first $5,000 spent on the card, and 2% thereafter.
TD used to partner with GM, but the program was terminated shortly after GM’s restructuring during the financial crisis.
The new no fee card offered by Scotia and GM will offer the following key benefits:
- Earn up to 5% in GM Earnings on the first $5,000 spent annually, and 2% thereafter
- $1 in GM Earnings = $1 off the purchase price or lease of a new Chevrolet, Buick, GMC, or Cadillac
- Earnings do not expire as long as you are a cardholder
- No earning caps or redemption limits
- Purchase security and extended warranty
There will also be a version of the card with a $79 annual fee, which allows cardholders to earn 5% up to $10,000 in spend, and 2% thereafter. It also comes with a more robust suite of travel insurance coverages.
All rewards are earned in GM Earnings. One GM Earning dollar is equal to one dollar toward the purchase price or lease down payment of any eligible new Chevrolet, Buick, GMC or Cadillac. Customers can redeem GM Earnings anytime, and have the ability to combine with any in-market offers. As such, If you spend $5,000 on your credit card, you will accumulate $250 in GM Earnings (5%), which you can then apply to the purchase price OR lease of a new Chevrolet, Buick, GMC or Cadillac.
With most no fee credit cards offering around 1% in value, and most premium cards offering up to 2% in value, this card is sure to ring true for those loyal to GM cars. If someone spends approximately $15,000 on their credit they will accumulate $450 a year in savings on their new GM vehicle.
“Scotiabank is proud to offer our customers some of the richest credit card rewards in the Canadian marketplace and today’s launch continues to set us apart,” said James O’Sullivan, Group Head of Canadian Banking at Scotiabank.
With GM selling 249,800 vehicles in Canada in 2014 and representing 2 of the top 10 cars sold in Canada in 2015 (the GMC Sierra & Chevrolet Silverado) the savings offered by the card are sure to appeal to a large audience.
Time will tell how popular the new Scotia GM VISA card becomes. With the recent introduction of cash back, grocery, and flexible travel cards we’ll see if Canadians are willing to tie themselves to GM. That said, for those loyaly to GM, few, if any cards will offer as much bang for their buck as the new Scotia GM Visa card.