Following from yesterday’s post, it seems to me that if you’re disciplined, you might be able to achieve the same effect even if you don’t have an RBC or National Bank of Canada point collecting card.
While those two banks have an option to redeem your points for RRSP, TFSA, or RESP contributions, or to pay down debt, the other four main banks all have cards that credit your account in amounts ranging from 0.25% – 2% of the amount charged to your card over the year.
If you had the no fee BMO 0.5% cash back card, for example, and charged $10,000 over the year, your card would be credited $50. If you had the no fee Scotia 1% card and spent the same $10,000, you would be credited $81.25 (0.25% on the first $1500, 0.5% on the second $1500 and 1% on amounts over $3000)
It is important to take any yearly fees into consideration. BMO also has a 1% cash back card, but it has a yearly fee of $49.
If you have a cash back card, you could make an extra cash contribution to your TFSA, RRSP etc. and then use the amount credited to your card for purchases you would otherwise have used cash for.
This would have the same effect as the bank is still essentially paying for your contribution. You just need to do a little footwork.