Finally! Apply for a CIBC Costco Mastercard Now to Get a Welcome Bonus!

From now until December 31, 2022, CIBC will give you a welcome bonus on the new CIBC Costco Mastercard.

young woman celebrating a victory while working with mobile phone in the office

Image source: Getty Images

The CIBC Costco Mastercard is now Costco’s official rewards credit card. And, for a no-fee card, I have to say: it’s not bad. The card has a base rate of 1% as well as numerous bonus rates, such as unlimited 3% back for restaurants, 2% for your first $8,000 spent on, and 3% back for your first $5,000 spent at Costco Gas.

But that’s not all. Now, starting on August 31, 2022, the card will have another perk: a welcome bonus.

Get a $20 welcome bonus before December 31, 2022

Yes, starting on August 31, CIBC will give you a $20 statement credit as a nice “thank you” for using your card. And you don’t even have to spend a tonne of money to get it.

Here’s how the bonus works: on August 31, CIBC will send out new CIBC Costco Mastercards. This new card will replace your Capital One card (the card you should be using now), and it will become your new Costco rewards card and ID badge.

Once you receive your card, all you need to do is make a single purchase with the card before December 31. Just one. It can be a $5 slice of pizza at a Costco restaurant or $100 on gas. Then simply register your card with the CIBC Mobile Banking App or CIBC Online Banking. After that, you’ll get your $20 as a statement credit.

Okay, $20 isn’t a lot. But think about it this way: your Costco membership costs $60. In terms of your membership, CIBC is giving you a third of the membership cost back simply for making a purchase on the card. When you think about it that way, that’s a pretty good deal.

What other benefits does the CIBC Costco Mastercard have?

A $20 welcome bonus is a complement to the other exciting perks this new Costco rewards card offers.

As I said above, perhaps the most exciting benefit is the card’s bonus rates. To date, this version of the Costco rewards card is the only one that has ever earned extra cash back for Costco purchases. At 2% back, you can finally collect more money when you shop on (in-store purchases still earn at 1%). This rate maxes out at $8,000 spent (or $160 in cash back), after which you’ll earn 1% on purchases.

Then there’s gas. You’ll earn 3% back on Costco Gas and 2% at non-Costco gas stations. Like your earn rate on online purchases, these bonus rates max out at a cumulative $5,000 spent (1% afterward). The 3% back on restaurants is fairly lucrative, too, especially since it comes with no annual spending cap.

In addition to the bonus rate, the CIBC Costco Mastercard comes with mobile insurance coverage — a first for the Costco credit card family. When you purchase a phone with your CIBC Costco Mastercard, you get valuable insurance that protects it from theft or damage. You’ll also get purchase security and extended warranty insurance.

Should you get a Costco rewards card for the welcome bonus?

If you’re a regular shopper at Costco, then, yes, this card should occupy an important place in your wallet (even better — it replaces your Costco membership ID, too). That said, if you’re on the fence about becoming a Costco member, I doubt the $20 welcome bonus will change your mind. You can get higher welcome bonuses on Canada’s top cards and, not to mention, earn more cash back, too.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends Mastercard. Fool contributor Steven Porrello owns no position in the companies mentioned. 

More on Personal Finance

woman retiree on computer

Retirees: Here’s How to Boost Your CPP Pension

Retirement planning is best done when considering not only your CPP pension, but also your investments in income-producing stocks like…

Read more »

Female hand holding piggy bank. Save money and financial investment
Personal Finance

Here’s Why a Big Emergency Fund Is a Terrible, Terrible Idea

Here's why saving more than six months' worth of expenses can be disadvantageous to your household.

Read more »

cup of cappuccino with a sad face
Personal Finance

5 Super-Simple Ways to Completely Ruin Your Credit Score

Building your credit score takes time, dedication, and smart decisions. Tearing your credit score apart — well, you could do…

Read more »

Young woman sat at laptop by a window
Personal Finance

5 High-Paying Side Hustles That Could Help You Save for Retirement in 2022

If you're struggling to save for retirement, here are five side gigs that could give your retirement fund a boost.

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Personal Finance

The Tax Deadline Is Almost Here! Here Are 5 Things You Need to Know if You Haven’t Filed Yet

The deadline to file your taxes is May 2. If you haven't started yet, here's what you should know.

Read more »

consider the options
Personal Finance

New to Investing? Be Sure You Avoid These 5 Newbie Mistakes

If you're new to investing, here are five big mistakes you should watch out for.

Read more »

Couple relaxing on a beach in front of a sunset
Personal Finance

Lazy Canadians: Here’s How You Can Make $200 Per Week in Passive Income

To earn $200 a week, invest money in high-quality stocks or ETFs.

Read more »

gas station, convenience store, gas pumps
Personal Finance

Costco vs. Canadian Tire: Which Rewards Card Will Save You More on Gas in 2022?

The CIBC Costco Mastercard earns 3% back at Costco Gas, and the Canadian Tire Mastercard earns 10 cents per litre.…

Read more »