RBC is launching two brand-new bank cards: the RBC Ion and RBC Ion+ Visa playing cards, as replacements for the RBC Rewards+ Visa and Signature RBC Reward Visa, respectively.

Let’s undergo the brand new choices, and the way a refreshed variant of those two entry-level playing cards might make its approach into your pockets.

RBC Ion Visa

The RBC Ion Visa is RBC’s new product the place the Rewards+ was, and earns the brand new Avion Rewards factors. Notice that whereas these have the identical identify because the extra premium RBC Avion Visa Infinite and RBC Avion Visa Infinite Privilege playing cards, this earns Avion Premium quite than Avion Elite factors (extra particulars under on implications).

The RBC Ion Visa has no annual price and as a welcome bonus for brand new cardmembers, you’ll be able to earn 6,000 Avion factors upon approval offered you apply earlier than November 30, 2022.

On on a regular basis spending, you’ll earn rewards as follows:

• 1.5 Avion factors for each $1 spent on groceries, fuel, rideshare, day by day public transit, electrical automobile charging, streaming, digital gaming, and digital subscriptions

• 1 Avion level for each $1 spent on all different purchases

This no-annual bank card is clearly focused for informal travellers who spend a good quantity on rideshares, transit, streaming, and video video games. It’s the one card to focus on spending in these classes, and can doubtless enchantment to youthful millennials and Gen Z who want to earn versatile journey rewards.

Noticeably, this welcome bonus shouldn’t be solely almost twice as excessive but additionally considerably simpler to earn because it’s not damaged up into 7 chunks. 6,000 factors is a wonderful bonus on a no-annual price bank card and may be redeemed by way of the Avion Rewards portal. This additionally brings the welcome bonus extra in line to different entry-level in-house-rewards-earning playing cards, such because the CIBC Aventura Visa Card and the TD Rewards Visa Card, with slight variations on which service provider classes earn at bonus charges.

Insurance coverage choices are fundamental, which is totally anticipated on entry-level playing cards resembling this RBC Ion Visa.

RBC Ion+ Visa

The RBC Ion+ Visa is RBC’s new product to exchange the Signature RBC Visa Card, and likewise earns the brand new Avion Rewards factors.

The RBC Ion+ Visa has a brand new month-to-month price of $4, and the signup bonus is 12,000 Avion factors upon approval if you happen to apply previous to November 30, 2022.

You’ll earn the next rewards on on a regular basis spending:

• 3 Avion factors for each $1 spent on grocery, eating, meals supply, fuel, day by day transit, rideshares,  streaming, digital gaming and digital subscriptions

• 1 Avion level for each $1 spent on all different purchases

Noticeably, the elevated earnings classes are close to similar to the lower-tier RBC Ion Visa, however this Ion+ comes with a month-to-month $4 value to offset that. The extra elevated earnings classes on the Ion+ embrace eating and meals supply.

Month-to-month charges quite than annual charges are a development we’re seeing throughout the higher bank card community throughout Canada, and the explanations are apparent: it seems decrease at first look, and it’s simple to know for the youthful technology who’re very aware of month-to-month subscription fashions.

Between the RBC Ion Visa and the RBC Ion+ Visa, you’ll wish to decide the Ion+ if you happen to spend at the least $134 a month on groceries, eating, meals supply, fuel, transportation, streaming, digital gaming, and digital subscriptions, since that’s the break-even level on the $4 month-to-month price.

The 12,000 Avion level welcome bonus can also be simply earned by merely being permitted for the cardboard, and may be redeemed utilizing the Avion Rewards portal.

For the small month-to-month price, there may be additionally fundamental insurance coverage protection together with cellular gadget insurance coverage, buy safety, and prolonged guarantee.

The best way to Use Avion Factors from the RBC Ion Playing cards

Though the RBC Ion and Ion+ Visas earns the identical Avion factors because the higher-tier RBC bank cards, these factors can’t be transferred to RBC’s airline companions – more often than not (technically, Ion and Ion+ earn Avion Premium whereas the Avion Visa Infinite and Avion Visa Infinite Privilege earn Avion Elite factors).

The exception is WestJet Rewards, the place Ion-earned Avion factors may be transferred at a 1:1 ratio (1 Avion level = $0.01 in WestJet {Dollars}).

Additionally, Ion cardholders can’t redeem factors through the Air Journey Redemption Schedule, which helps you to use Avion factors to e-book round-trip economic system class tickets departing from Canada, as much as a sure most ticket worth.

As a substitute, you’re restricted to utilizing your factors at a flat fee of 0.58 cents per level (cpp) for journey booked through the Avion Rewards centre, which is loads weaker than the 1cpp redemption fee that you simply get from holding a higher-tier Avion card.

Fortunately, if you happen to additionally maintain, say, an RBC Avion Visa Infinite, you’ll be able to switch Avion factors at a 1:1 ratio between your totally different Avion playing cards, so the weaker factors you earn from the Ion playing cards can nonetheless be transformed into extra highly effective Avion playing cards too. 

What’s extra, if you happen to ever determine to improve your Ion card to one of many RBC Avion playing cards, any factors you’ve collected will probably be upgraded as nicely. Then, you’ll have the flexibility to entry higher-value journey redemptions which might be unique to Avion cardholders: frequent flyer companions, the Air Journey Redemption Schedule, and the flexibility to redeem factors immediately in opposition to journey at 1cpp.

Your factors by no means expire for so long as you’re a cardholder. In the event you cancel or change to a special RBC product, you could have 90 days to redeem your factors earlier than they go away.

The RBC Credit score Card Portfolio

Lengthy-term, as playing cards with no or low annual charges, the RBC Ion and Ion+ Visa playing cards could be good downgrade choices if you’re enthusiastic about cancelling your RBC Avion Visa Infinite or RBC Avion Visa Infinite Privilege however wish to maintain your factors alive or protect an outdated credit score account.

Nevertheless, both of the higher-tier playing cards could be the optimum alternative for a brand new signup if you happen to qualify for them, with bigger welcome bonuses and journey insurance coverage advantages.

After that, you’ll be able to reevaluate the worth proposition within the second 12 months, and take into account switching to both of the Ion merchandise relying in your month-to-month spending on groceries, fuel, day by day transit, rideshare, streaming, digital gaming, and digital subscriptions.

Conclusion

The RBC Ion Visa and RBC Ion+ Visa playing cards are welcome new merchandise to exchange the earlier RBC Rewards+ Visa and Signature RBC Rewards Visa playing cards, which had begun to develop a bit stale.

These two new playing cards are modern and refreshing, proven in main adjustments to their elevated class earnings, new month-to-month price construction on the Ion+, and ever so slight adjustments to their journey insurance coverage insurance policies. The target market is undeniably mass market, skewing in the direction of millennials, Gen Z, and different youthful individuals who are likely to spend on streaming, digital gaming, and digital subscriptions.

On this approach, the Ion and Ion+ not solely fills a helpful supporting function to higher RBC Avion community, but additionally stand out on their very own as distinctive product choices to carry long-term.

The welcome bonus choices are stable throughout the board, and you’ll improve each the brand new playing cards to a extra premium Avion Rewards card anytime you want to benefit from RBC Avion’s glorious switch companions.

Discuss with RBC web page for updated provide phrases and circumstances.