The value of rewards points varies depending on your card and the type of rewards you’re earning (points or cash back). When it comes to cash back, it’s simply a set percentage of whatever you spend on the card, either across the board or in specific categories such as groceries, gas, or recurring bills. Points based rewards require a bit more calculation.

To estimate the value of points, divide the dollar value of a reward by the number of points required, then multiply that amount by the number of points you earn per dollar. For example, the TD First Class Travel Visa Infinite earns 9 points per $1 spent on travel booked through Expedia for TD. If 100,000 points can be redeemed for $500 in travel, each point is worth $0.005, which works out to a 4.5% return on eligible travel purchases.

Truthfully, there is no “best” all-around rewards program. It really depends on what your goals are around earning and collecting points. For instance, Aeroplan is largely considered the best rewards program for North American flights due to their ownership by Air Canada, whereas international flyers may find that the superior flexibility from American Express Membership Rewards gives them more options. For staying at hotels, Marriott Bonvoy points provide the best value, while the Scotia Scene+ program is ideal for movie lovers who want to earn points for a wide variety of redemption options every time they visit the cinema. The important thing is to compare programs to find the one that will work best for you.

Our pick for the best rewards card in Canada is the American Express Cobalt due to its high-earning point values across almost all major categories, generous welcome bonus and comprehensive insurance package. Plus, point redemption options are highly flexible - you can transfer your rewards points to other valuable loyalty programs like Aeroplan, or use them for statement credits.While selecting your own rewards credit card, it is important to consider your travel, grocery, gas and other expenses to choose a card tailored to your preferences.