The BMO CashBack Mastercard occupies a sweet spot in the Canadian credit card landscape: it’s a no-fee card with a strong grocery earn rate among no-annual-fee products, plus useful extras like flexible cash back redemptions and solid digital tools. As of 2025, its combination of 3% cash back on groceries, 1% on recurring bills and 0.5% everywhere else makes it particularly appealing to budget-conscious families, students and newcomers who want straightforward rewards without paying an annual fee or meeting high income thresholds, though caps on bonus categories and a modest base earn rate mean it won’t be the perfect one-card solution for every wallet.
BMO CashBack Mastercard: Strong Everyday Value With No Annual Fee
- Strong grocery earn rate with no annual fee: Earn 3% cash back on eligible grocery purchases up to $500 per statement period, without paying an annual fee.
- Useful rewards on recurring bills: Get 1% cash back on eligible recurring bill payments, also capped at $500 monthly, turning predictable expenses into steady rewards.
- Flexible, easy redemptions: Redeem from $1 as a statement credit or deposit into eligible BMO chequing, savings or InvestorLine accounts, with automatic options from $25.
- Accessible eligibility and free additional cards: With no stated minimum income and no annual fee for authorized users, it suits students, newcomers and households sharing one account.
- Welcome bonus and balance-transfer option: A limited-time offer of up to 5% cash back for three months plus 0.99% balance transfers for nine months (2% fee) boosts first-year value.
- Helpful digital tools for tracking and control: BMO’s online and mobile banking tools make it easy to monitor spending, manage cash back and stay on top of payments.
Potential Drawbacks of the BMO CashBack Mastercard
- Caps on bonus categories: The 3% grocery and 1% recurring-bill earn rates apply only to the first $500 per month in each category; beyond that you earn 0.5%.
- Low base earn rate on other purchases: All non-grocery, non-recurring-bill spending earns just 0.5% cash back, below many flat-rate cards that offer 1% or more on everything.
- Costly if you carry a balance: Purchase and cash-advance interest rates around 21.99%–23.99% mean any unpaid balance can quickly erase the value of earned rewards.
- Less attractive for frequent travellers: A 2.5% foreign transaction fee and limited travel insurance or perks make it weaker than dedicated travel cards for trips abroad.
How to Apply for the BMO CashBack Mastercard
- Confirm eligibility and review current offers: Ensure you meet age and residency requirements, and check the latest welcome bonuses, cash back structure and rates on BMO’s official page.
- Gather your information: Have your personal details, employment information, gross annual income, housing status and key monthly obligations ready for the application.
- Apply online or via BMO Online Banking: Apply from BMO’s public website or sign in to BMO Online Banking for a faster, partially pre-filled application, then consent to a credit check and submit.
- Receive and activate your card: If approved, BMO will mail your card; once it arrives, activate it online, in the mobile app or by phone and set your PIN.
- Set up digital access and optimize usage: Register for online and mobile banking, enable alerts, arrange payments, and direct your grocery and recurring bills to the card while managing redemptions to fit your goals.
To sum up, the BMO CashBack Mastercard is a strong everyday card for Canadians who pay in full and concentrate a good portion of their spending on groceries and recurring bills. If that sounds like your budget, and you’re comfortable managing your account digitally, the combination of no annual fee, competitive grocery rewards, flexible redemptions and a solid welcome offer makes it well worth considering. Always double-check the current terms on BMO’s official site before you apply, then decide whether this card aligns with your broader credit card strategy and long-term financial plan.
