BMO CashBack Mastercard Review

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.

BMO CashBack Mastercard*

Get more details about the BMO CashBack Mastercard*

8 things to know about the BMO CashBack Mastercard

1. Everyday cash back rewards

On groceries:

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.

For everything else:

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. 

2. Welcome offer

Looking to entice new customers, the BMO CashBack Mastercard is offering a very tempting welcome of an accelerated 5% cash back 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. 

3. As a Mastercard, it’s accepted virtually everywhere

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.

4. Flexible cash back redemptions

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. 

5. Income requirements

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*). 

6. Balance transfer offer

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%.

7. Fees

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.

8. Card perks

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.

How much can you earn with the BMO CashBack Mastercard

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.)

At this rate you’d make back nearly three weeks’ worth of grocery money every year.

Are there any drawbacks to the BMO CashBack Mastercard?

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.

BMO CashBack Mastercard alternatives

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. 

Tangerine Money-Back Mastercard

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. 

Rogers Platinum Mastercard

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. 

PC Financial Mastercards

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.

Did you know sometimes the best credit card is multiple credit cards?

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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