RBC Ion and Ion+ Visa: New Entry-Stage Avion Credit score Playing cards

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 try how these two refreshed entry-level playing cards may make its approach into your pockets.

RBC Ion Visa

The RBC Ion Visa is RBC’s new product, the place the Rewards+ Visa was, and earns the brand new Avion Rewards factors.

Word that whereas these have the identical title because the extra premium RBC Avion Visa Infinite and RBC Avion Visa Infinite Privilege playing cards, this earns Avion Premium somewhat than Avion Elite factors (extra particulars beneath on the implications).

The RBC Ion Visa has no annual charge. As a welcome bonus for brand new cardmembers, you may earn 6,000 Avion factors upon approval supplied 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, gasoline, rideshare, every day public transit, electrical car charging, streaming, digital gaming, and digital subscriptions

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

This no-fee 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 possible enchantment to youthful millennials and Gen Z who want to earn versatile journey rewards.

6,000 factors is a wonderful bonus on a no-annual charge bank card and could be redeemed via 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 absolutely anticipated on entry-level playing cards reminiscent of this RBC Ion Visa.

RBC Ion+ Visa

The RBC Ion+ Visa is RBC’s new product to exchange the outdated Signature RBC Visa Card, and likewise earns the brand new Avion Rewards factors.

The RBC Ion+ Visa has a brand new month-to-month charge of $4, and the signup bonus is 12,000 Avion factors upon approval in case you 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, gasoline, every day transit, rideshares, streaming, digital gaming and digital subscriptions

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

The elevated earnings classes are close to an identical to the lower-tier RBC Ion Visa, however the Ion+ comes with a month-to-month $4 price to offset that. Furthermore, the extra elevated earnings classes on the Ion+ additionally embody eating and meals supply.

Month-to-month charges somewhat than annual charges are a pattern we’re seeing throughout the larger bank card panorama throughout Canada, and the explanations are apparent: it seems decrease at first look, and it’s straightforward to know for the youthful technology who’re very accustomed to month-to-month subscription fashions.

Between the RBC Ion Visa and the RBC Ion+ Visa, you’ll need to decide the Ion+ in case you spend at the least $134 a month on groceries, eating, meals supply, gasoline, transportation, streaming, digital gaming, and digital subscriptions, since that’s the breakeven level on the $4 month-to-month charge.

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

For the small month-to-month charge, there may be additionally a fundamental set of insurance coverage protection, together with cell machine insurance coverage, buy safety, and prolonged guarantee.

Find out how 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 (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 could 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 an alternative, 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 quite a bit weaker than the 1cpp redemption fee that you simply get from holding a higher-tier Avion card.

Fortunately, in case you additionally maintain, say, an RBC Avion Visa Infinite, you may 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, in case you ever resolve to improve your Ion card to one of many RBC Avion playing cards, any factors you’ve collected shall 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 straight in opposition to journey at 1cpp.

Your factors by no means expire for so long as you’re a cardholder. Should you cancel or swap to a distinct RBC product, you will 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 interested by cancelling your RBC Avion Visa Infinite or RBC Avion Visa Infinite Privilege however need to maintain your factors alive or protect an outdated credit score account.

Nonetheless, both of the higher-tier playing cards could be the optimum selection for a brand new signup in case you qualify for them, with bigger welcome bonuses and journey insurance coverage advantages.

After that, you may reevaluate the worth proposition within the second yr, and take into account switching to both of the Ion merchandise relying in your month-to-month spending on groceries, gasoline, every 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 revolutionary and refreshing, proven in main adjustments to their elevated class earnings, new month-to-month charge 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 larger RBC Avion portfolio, but in addition stand out on their very own as distinctive product choices to carry long-term.

The welcome bonus choices are strong throughout the board, and you’ll improve each the brand new playing cards to a extra premium Avion Rewards card anytime you want to reap the benefits of RBC Avion’s wonderful switch companions.

Seek advice from RBC web page for updated supply phrases and circumstances.