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BMO CashBack Mastercard

Last updated: April 13, 2021
  • 5% Cash back
  • $25 First-year value
Signup bonus:
5% cash back in the first three months, up to $25 total cash back for spending $500
Annual fee:
$0
Earning rate:
3% cash back on groceries
1% cash back on recurring payments
0.5% cash back on all other purchases
Insurance:
Basic

The BMO CashBack Mastercard is a solid choice for anyone who prefers cash back and spends a fair amount every month at grocery stores. Its 3% return on groceries is outstanding for a no-fee card, and the flexibility of BMO’s cash back redemption options also counts in its favour.

However, the excellent 3% earning rate only applies on the first $500 in groceries per month, so you may wish to compare this card against other options if your spending volume is higher.

Bonuses & Fees

As a welcome bonus, the BMO CashBack Mastercard offers 5% cash back on the first $500 spent within the first three months, up to a total of $25 in cash back rewards.

The card has no annual fee, making it a great choice to keep around as a free primary or backup credit card, all while supporting the longevity of your credit history. You could also downgrade to this card after collecting the bonus on a higher-tier BMO CashBack credit card to preserve your account history.

It’s also free to add authorized users.

Earning Rewards

The BMO CashBack Mastercard earns cash back at the following rates:

  • 3% cash back on groceries
  • 1% cash back on recurring bill payments
  • 0.5% cash back on all other purchases.

A 3% return on groceries is a ridiculously high rate for a no-fee card, and even higher than many premium cards out there. The 1% cash back on recurring payments is also a fairly competitive rate for a no-fee product.

However, you’ll only get the bonus rates on your first $500 spent per month. The card isn’t great for high spenders, but if you’re in the market for a card with no annual fee, you’re probably pretty budget-conscious to begin with.

The 0.5% cash back rate for uncategorized purchases is rather uninspiring, but it isn’t too far off of the value of the rewards on BMO’s other no-fee cards. All other things being equal, cash back is certainly a more versatile rewards currency, and a strong grocery category only sweetens the deal.

Redeeming Rewards

There are three ways to redeem your cash back on the BMO CashBack Mastercard:

  • Deposit into a BMO chequing or savings account
  • Deposit into a BMO InvestorLine account
  • Redeem as a credit against your credit card’s statement

Any of these three options can be requested at any time when you’ve earned at least $1 of cash back. You can also set up automatic payments, which will automatically trigger one of the above three redemption options every time you reach $25 of cash back.

BMO’s cash back redemption options are relatively flexible compared to its peers, many of which only allow you to claim your cash back earnings once a year.

Perks & Benefits

As a no-fee card, the BMO CashBack Mastercard comes with relatively few perks.

You’ll enjoy a 25% discount at select National and Alamo Rental locations, as well as BMO-specific discounts for 15% off Cirque du Soleil’s Canadian tours and 20% off resident shows in Las Vegas.

Insurance Coverage

Insurance benefits on the BMO CashBack Mastercard are also limited.

The card does not offer any types of travel insurance; instead, its coverage is limited to extended warranty (doubling the manufacturer’s standard warranty, up to one additional year) and purchase protection (against accidental damage or theft within 90 days).

Apply Now

As a basic no-fee product, this credit card has no minimum income requirement.

Consider supporting Prince of Travel by applying for the card via our affiliate link below.

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