I enjoy sharing great ways other than coupons and sales to save money.
Here is a deal that is outside of using coupons – cash back and responsible credit! Currently the ScotiaBank Momentum Visa has a promotion where you have no annual fee for the first year (usually $99 per year) with a 4% cash back on grocery and gas purchases. The promotion ends June 30, 2014 so make sure you apply before this date.
This is a great way to increase your grocery savings.
I am a strong advocate of responsible credit as I believe that if you pay with debit or cash you are simply subsidizing the consumers that do not use credit cards.
Here are some of the main benefits of the card:
- Earn 4% cash back on gas and grocery purchases (on your first $25,000 of annual spending on these categories)
- Earn 2% cash back on drug store purchases and recurring bill payments (on your first $25,000 of annual spending on these categories)
- Earn 1% cash back on all purchases made above the $25,000 threshold on the categories listed above
- Earn 1% cash back on all other purchases.
Here is an example of how much you could save with a cash-back credit card like this in a year:
- Gas + Groceries (assuming a monthly budget of $500 for gas and groceries) = $500 x 12 = $6,000
- Drug store + Recurring Bills (assuming your cable, utilities, and drug store costs around $100 per month) = $100 x 12 = $1,200
- Other purchases = $400 x 12 = $4,800
Total $1,000 per month and $12,000 per year.
Cash Back analysis with the Scotia Momentum Visa:
- $6,000 x 4% = $240 (gas and groceries cash back)
- $1,200 x 2% = $24 (drug store and recurring bills cash back)
- $4,800 x 1% = $48 (other cash back)
Total = $312 Cash Back.
This is not a bad way of reducing your grocery bill even further – I would recommend evaluating closer to see if the cash back is worth it for the 2nd year but you could always cancel the card before the first year is up to get the cash back up to that point.
Here is a link to more information about the card and the application form.