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BMO Cash Back Mastercard Review 2024

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The BMO CashBack Mastercard wears several hats. On the cash back rewards side of things, it earns its place on my list of the best no-fee credit cards in Canada.

If what you are looking for is a card that offers respite from high credit card interest rates on your balance, this card offers a 0.99% rate on balance transfers and is one of the best low-interest balance transfer cards in the country.

Lastly, the BMO CashBack Mastercard is a top contender on my list of the best student credit cards in Canada.

This BMO CashBack Mastercard review covers its benefits, downsides, how to redeem your BMO cash back, and how the card compares to its closest competitors.

BMO CashBack Mastercard

BMO CashBack Mastercard

Rewards: Up to 3% cash back on groceries, 1% cash back on recurring bill payments, and 0.50% back on everything else (3% and 1% cash back rates have monthly spending limits).

Welcome offer: 0.99% introductory balance transfer rate for 9 months (1% fee applies).

Interest rates: 20.99% on purchases and 22.99% on cash advances.

Annual fee: $0

BMO CashBack Mastercard Benefits

1. No annual fee. This is a $0 card that won’t cost you an annual fee.

2. 3% cash back on grocery purchases, 1% cash back on recurring bill payments, and 0.5% cash back on all other purchases after the bonus period ends.

3. 1.99% balance transfer rate for 9 months. A 1% transfer fee applies.

4. Purchase protection and extended warranty.

5. Get up to 25% off car rentals at National Car Rental and Alamo Rent A Car locations.

6. Get a 15% discount on Cirque du Soleil shows in Canada, and 20% off resident shows in Las Vegas.

Other features of this card are:

  • Purchase APR: 19.99%
  • Cash advances: 22.99%
  • Balance transfer: 22.99% after the 1.99% offer ends

The BMO CashBack Mastercard does fairly well for a no-fee cash back card. If you are looking for more comprehensive insurance coverage, you will need to consider other cards.

Note that there is a $500 maximum monthly spending limit for the 3% and 1% cash back reward rates. Purchases in these two categories that exceed these limits earn at the 0.5% rate.

The card has a low annual minimum income requirement of $15,000, which is why it is very popular among students.

Cons of the BMO CashBack Mastercard

As already mentioned, this card offers very little in the way of insurance. Other than purchase protection and extended warranty, perks like rental car insurance, emergency medical, and travel accident insurance benefits are not provided.

For these benefits, you can consider alternatives such as the Scotiabank Gold American Express or BMO Cash Back World Elite Mastercard. These two cards have annual fees.

Also, it does not offer the best cash back rate among no-fee cards, especially if you meet the higher maximum income thresholds for these cards.

How To Redeem Your BMO Cash Back

Redeeming your BMO cash back is easy. You can:

  • Deposit cash back into your BMO chequing or savings account
  • Apply it as a statement credit to your credit card balance, or
  • Transfer the amount to your BMO Investorline account

BMO Cash Back Mastercard vs. Alternatives

The BMO Cash Back Mastercard does well as a no-fee cash back card.

Alternatively, you could also take a look at the Tangerine Money-Back Credit card that offers a regular 2% cash back rate on up to 3 popular categories of spending, a 1.95% balance transfer rate, and a similar income requirement ($12,000). This Tangerine card also has no fees.

Tangerine Money-Back Credit Card

Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases.

Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value); 1.95% balance transfer rate for 6 months.

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Annual fee: $0

For even more perks, the new no-fee Tangerine World Mastercard does exceedingly well with a 2% regular cash back rate on up to 3 categories (e.g. groceries, gas, travel, recurring bill payment, pharmacy, etc.).

This World Mastercard also offers mobile device insurance, a 1.95% balance transfer for 6 months, rental car insurance, Mastercard Airport Experiences provided by Loungekey, and more.

Tangerine World Mastercard

Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases; VIP perks.

Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value).

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Annual fee: $0

Note that you will need a minimum annual personal income of $60,000 to qualify for this card.

Lastly, you can take a look at the SimplyCash Card from American Express and Home Trust Preferred Visa card, two no-fee cards that offer 1.25% and 1% cash back, respectively.

BMO Cash Back Mastercard Review
Overall
4.3

Summary

The BMO CashBack Mastercard is a no fee credit card offering up to 3% cash back on your purchases. This review covers its benefits, downsides and alternatives. Enjoy a 5% promotional cash back for 3 months.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

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