One of the best perks of the BMO CashBack Mastercard may be its return on groceries – but you'll love how easy it is to apply for the credit card.
Photo by Markus Spiske on Unsplash
The BMO CashBack Mastercard is a solid no-annual-fee cash-back card that makes getting redemptions easy and straightforward. Its earn rate of 3% on groceries is the highest in Canada for a no-fee card, and in addition it offers 1% cash back on recurring bill payments. Everything else earns at 0.5%. You can redeem your cash at any time, starting with just $1 earned.
This card has a low $15,000 annual income requirement, which makes it accessible, even for students. And, because it’s from a big bank, the card is perfect for those who want to maintain all their accounts with one provider while enjoying the security of banking with a major household name.
| Annual fee | $0 |
| Rewards | 3% cash back on grocery purchases; 1% back on recurring bill payments; and 0.5% cash back on all other purchases |
| Welcome offer | 5% cash back for the first three months and 1.99% for 9 months on balance transfers (plus a 1% balance transfer fee). Welcome offer available until October 31, 2020. |
| Minimum income required | $15,000 (student eligibility may differ) |
| Purchase interest rate | 19.99% |
| Best features | Excellent earn rate on groceries; redeem cash any time, starting from $1 earned |
| Who it’s good for | People who spend big on groceries, as well as students, and those who want simplicity and to bank with a trusted bank name |
Get more details about the BMO CashBack Mastercard*
Groceries are a big spending category for most Canadians, and the BMO CashBack Mastercard offers an easy and accessible way to earn cash on this regular expense. Pay for food at a grocery store and you’ll get 3% back—the highest earn rate in this category of any no-fee cash back credit card in Canada. Its closest competitor, the PC Financial World Elite, technically allows for a 3% return on groceries but through its rewards program. And there is a personal income requirement of $80,000 minimum. The $15,000 personal income requirement of the BMO CashBack Mastercard makes its excellent cash-back rate very accessible.
It’s important to note that this earn rate is capped at the first $500 in grocery purchases per monthly statement period, after which time you’ll earn the card’s base rate of 0.5%. This cap resets every month, so it’s possible you won’t even hit it.
Recurring bill payments, or bills that are paid on a monthly or regular basis, earn a slightly elevated 1% return up to $500, after which time it drops to the 0.5% base rate. All other everyday purchases earn at 0.5%, with no limit to how much you can earn.
Get up to 5% cash back for the first 3 months; introductory 1.99% interest rate on balance transfers for 9 months with 1% transfer fee; plus apply now to get a $50 cash back bonus when you spend over $6,000 in the first year (up to $175 cash back).. Looking to entice new customers, the BMO CashBack Mastercard is offering a very tempting welcome of an accelerated cash back offer or for the first three months, up to $1,500 in purchases (whichever you hit first). This is a strong bonus for an entry-level, no-fee card.
As a credit card, you can us it anywhere Mastercard is accepted. And, outside of more “typical” grocery stores, you can also earn 3% cash back on groceries from No-Frills and Walmart Supercentre grocery store locations. You can use this card at Costco, but be aware that since Costco is a discount warehouse and not considered a grocery store, you’ll receive 0.5% cash back instead on grocery purchases there.
If you’re looking for ease and flexibility, you will not find a company with a better redemption system than BMO. First of all, unlike some other cards, you don’t have to wait for your rewards. You can redeem your cash back at any time of the year. And, even better, you can redeem cash back in increments starting from just $1, far more flexible than the minimums imposed by some other companies. And, if you’d like to have your cash automatically redeemed at every $25, that service is only a click away when you update your account.
No-fee cash-back cards tend to underdeliver by either not offering great rates of return or by requiring an inaccessible minimum personal annual income. We’ve covered the great rates, and you can add to that a super-accessible $15,000 annual income minimum, which puts this card within reach for many more Canadians. And, if you’re a university or college student, you can even get this requirement waived if you apply for the BMO Mastercard as your first credit card (here’s more info, if you’re a student and considering getting this card*).
Accelerated earn rates are usually what people look at first, but for those carrying a balance on a high-interest card, the balance transfer offer of 1.99% for 9 months (with a 1% balance transfer fee) will come as a very welcome bonus. Simply move that debt over and buy some low-interest time to pay it down. Note: you won’t earn rewards on balance transfers, and the interest rate will increase to 22.99%.
The BMO CashBack Mastercard is a no-fee card, which means you don’t have to pay annual fees for you or any additional authorized users. The regular purchase interest rates of 19.99% and cash advance rate of 22.99% are in line with typical rewards cards.
Of course, the downside to no-fee cards is that they usually include few if any frills, and the BMO CashBack Mastercard is no exception. That said, cardholders do receive discounts of up to 25% on car rentals from National and Alamo, automatic extended warranty which doubles the manufacturer’s warranty on purchases up to an additional year, and purchase protection.
You may be wondering just how much money you can earn with this card. Your final total will depend on your spending habits, but we put together a quick guide based on the following monthly spending scenario. (You just take what you spend monthly in that specific category, times that by 12, and then multiply it again the rate. Example below: $400 x 12 x 0.03 = $144.)
| Bonus Categories | Monthly Spend | Annual Rewards |
|---|---|---|
| Groceries (3%) | $400 | $144 |
| Recurring bills (1%) | $200 | $24 |
| Everything else (0.5%) | $1,000 | $60 |
| Total | $288 |
At this rate you’d make back nearly three weeks’ worth of grocery money every year.
The BMO CashBack Mastercard has a lot going for it—but there are a couple of caveats.
First, there are spending caps on the bonus categories. That said, they’re quite generous at $500 per month and do reset every month. However, if you consistently spend more than $500 on groceries per month, you might want to consider other credit card options without caps.
Second, the base earn rate is 0.5%. You’re not going to see a lot of money back at that rate. But the reality is that’s a pretty standard return for a no-fee card from a big bank.
If you’re looking for a way to maximize your return on groceries without paying an annual fee, here are some other cards to consider.
The Tangerine Money-Back Mastercard is a no-fee cash back card lets you earn 2% back on purchases in up to three bonus categories including drug stores, hotel-motel, restaurants—and groceries. Even better, there are no caps on earnings.
Another no-fee card, the Rogers Platinum lets you earn a flat rate of 1% cash back on every purchase, so while this won’t give you the best rate on groceries, it doubles the typical 0.5% rate on all other purchases.
If you shop regularly at Loblaws banner stores, like No-Fills, Fortinos, or Real Canadian Superstore, you can earn 1% to 4% in points on your grocery bills, depending on which PC Financial credit card you qualify for according to your annual income. Like the other cards on this list, there is no annual fee.
The BMO CashBack Mastercard has no annual fee and earns unusually high rewards on groceries, making it a clear choice for those spends. However, its base rate of just 0.5% cash back on everything else isn’t as competitive. You might do well to carry it in tandem with another card (or cards) with stronger offerings in other spending categories.
For example, you could carry the BMO CashBack Mastercard for its 3% return on groceries but use either the SimplyCash American Express or the Roger World Elite, for their base rates of 1.25% or 1.5% respectively, on everything else. Or, with the Home Trust Preferred Visa, you’d get the slightly lower (but still more competitive) 1% base rate but also have access to great perks like no foreign transaction fees. None of these cards carry an annual fee, so you could get more cash back or perks just for spending strategically.
By carrying different cards for different types of purchases you can really beef up your rewards. And, if you choose no-fee cards to complement the BMO CashBack Mastercard, you won’t even have to pay. Do note that you’ll have to be comfortable juggling more than one credit card bill.
Get more details about the BMO CashBack Mastercard*
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I can see the bank changing the cash back plan down the road after customers sign up. it seems commonplace nowadays for these huge corporations/companies to rope in clientele and then change the rules on them by way of the small print buried in a one sided contract.
I thought that due to covid the annual fees on bmo elite MasterCard was cancelled but I got charged it was announced in the spring l believe
What happens if you get a notification on your BMO online banking that you have been preapproved already for the BMO Cashback Credit Card, and you call and accept the offer? What is the process from that point after you accept the offer, and how long does it take before you actually receive the card in the mail?
When the 3% is for grocery purchases, which were bought at Costco or Walmart, etc., you later learn that you didn’t receive the 3% because the store is listed as a warehouse or anything other than a grocery store.
You really need to check each store’s ‘code’ to really benefit or even monitor the % of cash you get back.
I phoned BMO MasterCard to inquire why some of my recurring bills were not part of this program. I was told it was because the company had not coded them as reoccurring payments. I was told to contact the companies in question which I did. All but one of them said they were coded correctly and this is how BMO M/C gets out of paying the full % back in regards to the reoccurring payments. They put the blame on the other company.