So in looking at a new bank for my everyday needs, I wanted to figure out which offered the better incentive program - either PC Points (PC Financial) or Air Miles (Bank of Montreal). Grocery savings were the 'unit of measure' in comparing the point systems (frugal!). PC Points earn one grocery dollar per 1000 points, while a $20 Dominion gift certificate can be earned with 140 Air Miles.
(Geek alert warning- yellow) I actually built a calculator to help me figure it out, which, if anyone is interested, (geek alert warning- orange) is available for download below.
In general, if I do not change my debit and credit card usage behavior, Air Miles via BMO is a better offer, even factoring in the service fees with the BMO i.connect plan. However, once I begin to start using the related credit card (i.e. Mosaik Mastercard or PC Financial Mastercard) instead of my debit card for the same purchases I make today with a debit card, PC Financial is the winner by a landslide.
Here are the details:
Scenario 1: Points are estimated based on everyday banking activity and credit card transactions are not taken into consideration.
BMO - Air Miles: $80 savings on groceries annuallyScenario 2: Points are estimated based on everyday banking activity and current annual credit card purchases, using either a 1point/$40 Mosaik MC (Air Miles) or the PC Financial MC (PC Points).
PC Financial - PC Points: $33 savings on groceries annually
BMO - Air Miles: $80 savings on groceries annuallyScenario 3: Assumes I will replace a percentage of current debit card usage with credit card usage in order to maximize points, in addition to my current average annual credit card spend.
PC Financial - PC Points: $45 savings on groceries annually
BMO - Air Miles: $80 savings on groceries annuallyAs I think scenario three is quite reasonable (if not simply the most intelligent), again, PC Financial looks like the leader. One more quick test (online banking facilities) and I think we can wrap this up!
PC Financial - PC Points: $213 savings on groceries annually
|Download - Incentive Points Calculator (28 Kb)|