Looking for a top-notch cash-back credit card in Canada? Look no further than the BMO CashBack Mastercard. We explore its features, benefits, and downsides in this BMO CashBack Mastercard review.
BMO CashBack Mastercard – Summary
BMO Air Miles Mastercard
Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases.
Welcome offer: Get 800 bonus Air Miles plus a 0.99% introductory interest rate on balance transfers for 9 months with a 2% transfer fee.
Interest rates: 20.99% for purchases, 22.99% for cash advances.
Annual fee: $0
Recommended credit score:
Good to Excellent
On BMO’s website
Benefits of the BMO CashBack Mastercard
The BMO CashBack Mastercard comes with a range of standard benefits that make it an attractive option for cash-back enthusiasts. Earn cash back on your everyday purchases and enjoy the following advantages:
Cash Back Rewards
Earn up to 3% cash back on groceries, 1% on recurring bill payments, and 0.5% cash back on all other purchases. It has one of the highest cash back rate for groceries in Canada without paying an annual fee.
Easy Redemption
You can get cash back for as little as $1 at any time with your BMO MasterCard. You can also set up automatic cash back deposits into a BMO account (such as a checking, savings, or BMO InvestorLine account) once your cash back amount reaches $25.
You can even use your cash back rewards as statement credit.
No Annual Fee
Enjoy the benefits of the BMO CashBack Mastercard without worrying about annual fees.
Additional Perks
Free Supplementary Card for a spouse or relative as well as discounts on car rentals.
Downsides of the BMO CashBack Mastercard
While the BMO CashBack Mastercard has numerous advantages, it’s essential to consider its potential downsides, including:
Low base rate: Purchases other than groceries and recurring payments have a cash back earn rate of only 0.5%.
Capping on earn rates: a purchase limit of $500 per cycle period is applied to earn rates for groceries and recurring bill payments. Once you exceed this amount, earn rates revert to 0.5% within the same billing cycle.
How to Apply for the BMO CashBack Mastercard
Applying for the BMO CashBack Mastercard is a simple process. To be eligible, you must meet the following requirements:
- You must be at least the age of majority in the province where you live.
- You must not have declared bankruptcy in the last 7 years.
- Earns a minimum yearly income of $15,000.
You can apply for the card online or visit your nearest BMO branch. Existing BMO customers can log in to the BMO CashBack Mastercard website using their username and password.
BMO CashBack Mastercard Alternatives
If you’re considering alternatives to the BMO CashBack Mastercard, here are a few noteworthy options to explore:
Tangerine Money-Back Credit Card
Tangerine Money-Back Credit Card
Rewards: Earn 2% unlimited cash back in up to 3 categories of your choice plus 0.50% on all other purchases.
Welcome offer: Get an additional 10% cash back after spending $1,000 in the first 2 months ($100 value).
Interest rates: 19.95% for purchases, balance transfers, and cash advances.
Annual fee: $0
Recommended credit score:
Fair to Excellent
On Tangerine’s website
This card has no annual fee and allows you to earn up to 2% unlimited cash back in up to two categories and 0.5% cash back on everything else.
You can also earn extra rewards by getting your rewards deposited into your Tangerine Savings Account and get a third 2% money-back category.
Neo Credit Card
Neo Financial Mastercard
Rewards: Earn up to 15% cash back at Neo partners and never fall below 0.5% average cash back.
Welcome offer: Get an extra 15% cash back on your first purchases at many Neo partners.
Interest rates: 19.99% to 26.99% for purchases, 22.99% to 28.99% for cash advances.
Annual fee: $0
Recommended credit score:
Fair to Excellent
On Neo’s website
This no-fee card offers extra perks like an instant $25 bonus on approval and average 5% cash back at thousands of locations.
BMO CashBack World Elite Mastercard
BMO CashBack World Elite Mastercard
Rewards: Earn up to 5% cash back on groceries, 4% on transit, 3% on gas, 2% on recurring bills, and 1% on everything else.
Welcome offer: Get an extra 10% cash back in the first 3 months (up to $2,600), plus the first-year annual fee waived.
Interest rates: 20.99% for purchases, 23.99% for cash advances.
Annual fee: $120
Recommended credit score:
Good to Excellent
On BMO’s website
This card offers a tiered earning structure where you can earn 5% cash back on groceries, up to $500 spent per month; 4% cash back on transit, up to $300 spent per month; and 3% cash back on gas and electric vehicle charging.
You can also earn 2% cash back on recurring bill payments, like your monthly phone bill or your favourite streaming service.
Credit Card | Annual Fee | APR Purchases | APR Cash Advances | Rewards |
BMO Cash Back Mastercard | $0 | 20.99% | 22.99% (21.99% for Quebec Residents | 3% cash back on grocery and food purchases, 1% cash back on recurring bills, and 0.5% on all others |
Neo Financial Mastercard | $0 | 19.99%-26.99% | 22.99%-28.99% | 5% average cash back at 10,000 affiliated merchants across Canada |
Tangerine Money-Back Credit Card | $0 | 19.95% | 19.95% | Get 2% cash back on purchases you make every day in two 2% cash-back categories of your choice. |
BMO CashBack World Elite Mastercard | $120 | 20.99% | 23.99% (21.99% for Quebec Residents | 5% cash back on groceries,4% on transit,3% on gas, 2% on recurring bills and 1% on all others |
Is the BMO CashBack Mastercard Worth It?
For Canadians seeking a no-fee cash-back credit card, the BMO CashBack Mastercard is definitely worth considering.
Its attractive rewards structure, coupled with the absence of annual fees, makes it an appealing choice for everyday spending.
Regular travellers will also like the savings on rental cars. There are premium cards available with more features, but they come with an annual fee.
Keep in mind the downsides mentioned earlier and check whether the card fits with your spending habits and financial goals.
FAQs
How can I redeem the cash back rewards earned with the BMO CashBack Mastercard?
You can redeem your BMO CashBack Mastercard rewards for as low as $1. You can apply it as a statement credit, deposit it into your BMO account, or contribute it to your BMO InvestorLine account.
Is there a limit to the cash back I can earn with the BMO CashBack Mastercard?
The BMO CashBack Mastercard has spending limits for earning cash back. You can earn up to 3% cash back on eligible grocery purchases and 1% on recurring bill payments for spending up to $500 per billing cycle. Earn rates will revert to 0.5% once you exceed this limit.