RBC credit cards are issued by Royal Bank of Canada and come in several versions, each with different rewards, fees, and features
Royal Bank of Canada (RBC) offers credit cards across three main categories: no-annual-fee cards for basic spending, mid-tier cards with rewards and travel benefits, and premium cards aimed at high-income earners. Each card charges a different annual fee (or none), earns rewards at different rates, and includes different protections and perks. The card you choose depends on how much you spend, what you spend on, and whether the annual fee pays for itself through rewards or benefits you actually use.
RBC does not have a single "best" card for everyone. A student with modest spending needs a different card than someone who travels frequently or someone who spends heavily on groceries and gas. This guide walks through the main RBC cards, what each costs, what each earns, and how to think about whether the annual fee makes sense for your situation.
Key Takeaways
- RBC offers no-fee cards that earn basic cash back or points, and premium cards with annual fees that include travel insurance, airport lounge access, and higher earning rates.
- The card that makes financial sense depends on your annual spending and what categories you spend most in — groceries, gas, travel, or general purchases.
- Annual fees range from zero to several hundred dollars; a card only makes sense if the rewards and benefits you use exceed what you pay.
- RBC cards earn rewards either as cash back (a percentage returned to your account) or as points (redeemable for travel, merchandise, or statement credits).
- Comparing cards means looking at the earning rate, annual fee, and the specific benefits included, not just picking the one with the highest advertised rewards rate.
RBC's no-annual-fee cards and what they earn
RBC offers several cards with no annual fee. These cards earn either cash back or points on all purchases, or bonus rates in specific categories. The RBC Cash Back Mastercard earns a flat percentage back on all purchases (the exact rate varies by card version). The RBC Rewards Mastercard earns points instead of cash back, which you can redeem for travel bookings, merchandise, or statement credits.
No-fee cards make sense if you spend under a certain threshold or if you do not want to pay for features you will not use. The trade-off is that the earning rate is lower than premium cards. For example, a no-fee card might earn 1% cash back on all purchases, while a premium card might earn 2% or more — but the premium card costs $100 to $300 per year. If you spend $5,000 annually, the extra 1% on a premium card would earn you $50, which does not cover the fee. If you spend $20,000 annually, that extra 1% is $200, which might justify the fee depending on other benefits.
Mid-tier cards with annual fees and travel benefits
RBC's mid-tier cards typically cost $120 to $150 per year and include travel insurance, purchase protection, and higher earning rates than no-fee cards. These cards often earn bonus points in specific categories — for example, 3 points per dollar on travel and dining, 1 point per dollar on everything else. Some include travel perks like travel insurance that covers trip cancellation, baggage delay, or emergency medical expenses abroad.
These cards make sense if you travel at least once or twice per year and want insurance coverage without buying it separately, or if you spend enough in bonus categories to earn back the annual fee. A card that earns 3 points per dollar on $5,000 in annual travel and dining spending generates 15,000 points. If those points are worth 1 cent each (a common redemption value), that is $150 in value — enough to cover a $120 annual fee. Add in travel insurance that would otherwise cost $50 to $100 per trip, and the card pays for itself.
Premium cards for high spending and frequent travel
RBC's premium cards cost $300 to $500 per year and target people who spend heavily or travel frequently. These cards typically include higher earning rates (sometimes 2% or more on all purchases), premium travel insurance, airport lounge access, concierge services, and other luxury perks. Some include travel credits that reimburse a portion of annual travel spending, effectively reducing the net cost of the annual fee.
Premium cards only make financial sense if you spend enough to earn back the fee through rewards and actually use the included benefits. If a card costs $450 per year but includes a $200 annual travel credit and you travel twice per year, the net cost is $250. If you earn 2% cash back on $30,000 in annual spending, that is $600 in rewards — enough to cover the fee and come out ahead. But if you spend $10,000 per year and never use the lounge or travel insurance, the card is expensive and not worth it.
How RBC rewards work and what they are worth
RBC cards earn rewards in two forms: cash back or points. Cash back is straightforward — you earn a percentage of each purchase and it appears as a credit on your statement or can be transferred to your account. Points are more flexible but require redemption. You accumulate points and then choose how to use them: book travel through RBC's travel portal, redeem for merchandise, or convert to a statement credit.
The value of points depends on how you redeem them. If you book travel through RBC's portal, points might be worth 1.5 cents each. If you redeem for merchandise or a statement credit, they might be worth 1 cent each. This means the same 10,000 points could be worth $100 as a statement credit or $150 if used for travel. Readers who do not travel should look at the statement credit value; readers who travel regularly should compare the travel redemption value.
RBC also offers promotional earning rates — for example, 5 points per dollar on groceries for the first three months, then 1 point per dollar after. These promotions are temporary and change periodically. Always check the current terms before choosing a card based on a promotional rate.
Annual fees and when they make sense
The annual fee is the single biggest factor in deciding whether a card is worth it. A card only makes financial sense if the rewards and benefits you actually use exceed the annual fee. To calculate this, add up your expected annual spending in each category, multiply by the earning rate, and compare to the fee.
Example: You spend $3,000 per year on groceries, $2,000 on gas, $4,000 on travel and dining, and $6,000 on other purchases. A mid-tier card earning 3 points per dollar on travel and dining and 1 point per dollar on everything else would earn 12,000 + 6,000 + 12,000 = 30,000 points. If those points are worth 1 cent each, that is $300 in value. If the annual fee is $120, you come out $180 ahead. But if you only spend $5,000 total per year, the same card earns just 5,000 points ($50 in value), making the $120 fee a net loss.
Many people overestimate their spending or assume they will use benefits they do not actually use. Before choosing a premium card, look at your actual credit card statements from the past year and calculate what you would have earned with each card you are considering.
How to compare RBC cards side by side
When comparing RBC cards, look at four things: the annual fee, the earning rate in your main spending categories, the specific benefits included, and the redemption value of rewards. Create a straightforward table with each card as a column and these four rows. Fill in the numbers from RBC's current terms (these change, so check RBC's website directly).
Then estimate your annual spending in each category and calculate the total rewards you would earn with each card. Subtract the annual fee. The card with the highest net value is the one that makes the most financial sense. Do not choose based on the advertised rewards rate alone — a card that earns 5% in one category but costs $300 per year is not better than a card that earns 2% on everything with no fee, unless you spend heavily in that one category.
Also consider your credit score and spending habits. If you carry a balance month to month, the interest you pay will far exceed any rewards you earn. If you pay in full each month, rewards are pure benefit. If you are new to credit or rebuilding your score, a no-fee card is a better starting point than a premium card.
Frequently Asked Questions
Do I need a high credit score to get an RBC credit card?
RBC's no-fee cards are generally easier to get approved for than premium cards. Premium cards typically require a higher credit score and higher income. If you are new to credit or have a lower score, start with a no-fee card and build your credit history. You can upgrade to a premium card later once your score improves.
Can I switch from one RBC card to another without closing my account?
Yes, RBC allows you to convert from one card to another, sometimes without closing the original account. This can help preserve your credit history. Contact RBC directly to ask about conversion options for the specific cards you are considering.
What happens to my rewards if I close an RBC credit card?
Any rewards you have accumulated remain in your account and can still be redeemed after you close the card. However, you stop earning new rewards once the card is closed. If you are switching cards, redeem your points before closing the old card to avoid any issues.
Are RBC credit card rewards taxable income?
In Canada, credit card rewards are generally not considered taxable income by the Canada Revenue Agency. They are treated as a discount on your purchase rather than income. However, if you are self-employed or running a business, consult a tax professional about how to report rewards earned on business spending.
How long does it take to earn enough points for a travel redemption?
This depends entirely on your spending and the earning rate. A card earning 3 points per dollar on $5,000 in annual travel spending generates 15,000 points per year. Most travel redemptions require 25,000 to 50,000 points, so you might need one to two years of spending. Check RBC's redemption chart to see what specific trips or bookings cost in points.