BMO CashBack® MasterCard®* review

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3.5

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3% Cardholders earn 3% (up to a monthly max of $500) cash back on groceries

1% Cardholders can earn 1% (up to $500 per month) on any recurring bill payments*

0.5% Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*

20.99% Purchase APR

22.99% Cash Advance APR 21.99% for Quebec residents

$0 Annual Fee

Good Recommended Credit Score

$15,000 Required Annual Personal Income

3.5

BMO CashBack® MasterCard®* review

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Quick overview of the BMO CashBack Mastercard

A credit card that has no annual fee and yet offers generous cash back for everyday purchases is a rare find on the Canadian credit card landscape. That’s why BMO CashBack® MasterCard®* has always been a coveted piece of plastic among Canadian consumers looking for a no-fee card with easy cash back earnings.

BMO has recently made a few changes to this popular cash back card. There are some adjustments to the earn rates (mostly positive), as well as modifications to the way cardholders can redeem cash back earnings. Here’s a look at the changes and at what stays the same (spoiler alert: BMO’s CashBack MasterCard remains a solid choice for your wallet).

Who's it for?

This BMO CashBack® MasterCard® is ideal for consumers looking for a cash back card with no annual fee who spend a lot on groceries and recurring payments. Frequent travellers will also appreciate the discount on rental cars. Certainly, there are premium cards with more bells and whistles, but then you pay for those extras with an annual fee.

Pros and cons

Pros

Pros

  • No Annual Fee: A rare find in Canada for a cash back card

  • A generous 3% cash back on groceries (up to $500 monthly)

  • Easily redeem from $1, set up automatic redemptions, or use as a statement credit

  • Additional perks include discounts on rentals, free supplementary cards and show discounts

Cons

Cons

  • Outside of groceries and recurring payments, the standard earn rate drops to 0.5%

  • Monthly caps on top earn rates for groceries and recurring payments

  • A 2% balance transfer fee applies

  • The interest rate on the remaining balance transfer amount increases after the introductory period

BMO CashBack welcome offer

Get 5% cash back in your first 3 months*.

How to earn cash back with the BMO CashBack credit card

Cardholders earn 3% (up to a monthly max of $500) cash back on groceries, 1% (up to $500 per month) on any recurring bill payments and 0.5% (no monthly max) on all other eligible purchases*.

This new cash back structure is now tiered but a lot more appealing—especially if you spend a lot on groceries or make numerous recurring payments.

Redeeming cash back with the BMO CashBack card

BMO made it even easier to redeem your cash back rewards. You can get your cash back from BMO MasterCard at any time from as little as $1. You can also set up automatic cash back redemptions into a BMO account (like a chequing, savings or BMO InvestorLine account) every time your cash back amount reaches $25. You can even choose to use your cash back rewards as a statement credit. This card’s varied methods of redemption offer incredible flexibility, especially compared with cash back cards that only let you redeem your points once a year or only once you reach a set minimum reward amount.

Key benefits

One feature that continues to make the BMO CashBack® MasterCard® offers stand out from many other no-fee—and even premium—cash back cards, is the ability to earn up to 3% on groceries with $0 annual fee.

BMO CashBack Mastercard insurance coverage

  • Purchase protection: All items you charge to the card receive 90 days of insurance against damage and theft.
  • Extended warranty: When you charge an item to the card, this coverage automatically extends the original manufacturer's warranty by 1 year.

Extra card perks

Many more of the BMO CashBack® MasterCard®*’s attractive extras are staying the same. These include:

  • Receive a discount on car rentals.*
  • Free supplementary cards for a spouse or other relative of the primary cardholder.
  • Enjoy 15% off admission to Cirque du Soleil shows in Canada and 20% off shows in Las Vegas.*
  • You also have the option to purchase identity/credit monitoring, identity theft assistance and balance protection.*

What people have to say

If you're monthly spending on groceries is really low, this seems like the best card available...Even if you're spending $1,200/month on groceries, it still seems worth it to me.

/u/Spyrothedragon9972

Reddit user Spyrothedragon9972 finds this card worth having despite the monthly spending cap on cash back for groceries. With a no-fee cash back credit card like this, you're in a win-win situation.

How the BMO CashBack® MasterCard®* compares

BMO CashBack Mastercard vs. Tangerine Money Back

Credit Card Name Annual Fee Promotion Regular Cash Back Rate
BMO CashBack® MasterCard®* $0 Get 5% cash back in your first 3 months* 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases*
Tangerine Money Back $0 2% in 2 money-back categories, and 0.5% on all other purchases

Tangerine Money-Back Credit Card

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3.8

Good

Suggested credit score

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Pros

  • No annual fee

  • Choose the spending categories where you want to earn the most cash back

  • Unlimited cash back—no maximum spending limit for any purchase category

  • Cash back is paid out monthly rather than annually

  • Periodically includes a special welcome offer where you can get extra cash back

  • 1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*

Cons

  • Regular cash back rates are still lower than what you can get from a card with an annual fee

  • Limited extra perks or benefits beyond the cash back and balance transfer promotion

  • Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart

  • Tangerine does not have any physical bank branches

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$12,000

Pros

  • No annual fee

  • Choose the spending categories where you want to earn the most cash back

  • Unlimited cash back—no maximum spending limit for any purchase category

  • Cash back is paid out monthly rather than annually

  • Periodically includes a special welcome offer where you can get extra cash back

  • 1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*

Cons

  • Regular cash back rates are still lower than what you can get from a card with an annual fee

  • Limited extra perks or benefits beyond the cash back and balance transfer promotion

  • Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart

  • Tangerine does not have any physical bank branches

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$12,000

Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)

2%

Get a Tangerine Savings account and add a 3rd 2% cash back category.

3

Earn 0.50% on all your other everyday purchases.

0.5%

Variable APR

19.95% - 24.95%

Balance Transfer Rate

1.95%

Cash Advance APR

19.95%

Annual Fee

$0

Foreign Transaction Fee

2.5%

Tangerine Money-Back Credit Card vs. BMO CashBack® MasterCard®

The Tangerine’s Money-Back card’s top earn rate is only 2%, there are no category caps and categories are also customizable, so it’s definitely smart doing a comparison of the BMO CashBack® MasterCard®* and the Tangerine Money Back card before deciding what’s best for you.

Simplii Financial™ Cash Back Visa* Card

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22% cash back†

Welcome offer

Excellent

Suggested credit score

Up to 10% cash back† for your first 3 months up to $1,000 eligible spend

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Pros

  • Extremely high cash back on bars and restaurants

  • Solid cash back on groceries, drug store, gas and prepayments

  • No annual fee

  • Up to three additional cards free of charge

Cons

  • Cash back applied as year-end statement credit

Eligibility

Recommended Credit Score

Excellent

Required Annual Household Income

$15,000

Pros

  • Extremely high cash back on bars and restaurants

  • Solid cash back on groceries, drug store, gas and prepayments

  • No annual fee

  • Up to three additional cards free of charge

Cons

  • Cash back applied as year-end statement credit

Eligibility

Recommended Credit Score

Excellent

Required Annual Household Income

$15,000

Earn 4% on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year†

4%

Earn 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited

1.5%

Earn 0.5% on all other credit card purchases with no limit on how much you can earn†

0.5%

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$0

Foreign Transaction Fee

2.5%

BMO CashBack Mastercard vs. Simplii Financial Cash Back Visa

If you're fond of dining at restaurants and bars and you're looking for a no-fee cash back credit card, the Simplii Financial Cash Back Visa card is a better option. With this card, you can enjoy 4% cash back on bars and restaurants, 1.5% on eligible gas, groceries, drugstore purchases, and pre-authorized payments (up to $ per year† - 0.5% on all other credit card purchases with no limit on how much you can earn†. 

†Terms and conditions apply. Click ‘Apply Now’ for complete details. This offer is not available for residents of Quebec

‡"Purchase" means any Transaction other than a Cash Advance, Balance Transfer or Convenience Cheque. "Cash" means a Cash Advance, Balance Transfer and Convenience Cheque. Interest rates may change from time to time.

Simplii FinancialTM" is a trademark and division of CIBC. Banking services are not available in Quebec.

BMO CashBack MasterCard for students

BMO CashBack® Mastercard®* for students

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3.0

5% cash back

Welcome offer

Good

Suggested credit score

Get 5% cash back in your first 3 months.*

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Pros

  • No annual fee: this makes it cost-effective for students looking to build credit without incurring additional expenses.

  • Earn cash back on everyday purchases, including up to 5% cash back on every purchase in your first three months.

  • Credit building: If you’re responsible, you can build a positive credit history, which helps you get better credit cards and more

Cons

  • Higher interest rates: If you can’t pay off your balance in full, opt for a low interest credit card

  • Limited additional benefits: While there are some benefits, it’s not the full suite of perks, but then again, there’s no annual fee.

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • No annual fee: this makes it cost-effective for students looking to build credit without incurring additional expenses.

  • Earn cash back on everyday purchases, including up to 5% cash back on every purchase in your first three months.

  • Credit building: If you’re responsible, you can build a positive credit history, which helps you get better credit cards and more

Cons

  • Higher interest rates: If you can’t pay off your balance in full, opt for a low interest credit card

  • Limited additional benefits: While there are some benefits, it’s not the full suite of perks, but then again, there’s no annual fee.

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$0

Required Annual Household Income

$0

Earn 3% cash back on groceries

3%

Earn 1% cash back on recurring bill payments like your mobile phone, streaming and subscription services

1%

Earn 0.5% cash back on all other purchases

0.5%

Purchase APR

20.99%

Cash Advance APR

22.99%

Annual Fee

$0

It’s worth noting that BMO also has a BMO CashBack® MasterCard®* version for students. Like the standard BMO CashBack® MasterCard®*, the student version has no annual fee and a welcome offer of 5% cash back in the first 3 months (max of $125 cash back)*. The earn rates are 3% (monthly max of $500) cash back on groceries, 1% (to $500per month) on recurring bill payments and 0.5% (no max) on all other eligible purchases*. It also features the same flexible redemption opportunities. The perks are also similar to the standard BMO CashBack® MasterCard®*.

Is it worth it?

The BMO CashBack® MasterCard®* is definitely worth it for those look for a no annual fee credit card with low income requirements. Whether you're a student or someone with a modest annual income and you desire cash back rewards, this card merits serious consideration.

BMO CashBack MasterCard eligibility

The following are the eligibility requirements for the BMO CashBack Mastercard:

  • A Good credit score
  • $15,000required personal income

*Terms and conditions apply

†Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of January 4, 2023.

BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

Sandra MacGregor Freelance Contributor

Sandra MacGregor has been writing about finance and travel for nearly a decade. Her work has appeared in a variety of publications like the New York Times, the UK Telegraph, the Washington Post, Forbes.com and the Toronto Star.

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