Overview
The BMO CashBack Mastercard is one of the best no-annual-fee cash back cards in Canada for grocery shoppers. It earns 3% cash back on groceries — which BMO claims is the highest grocery cash back rate among Canadian no-fee cards — plus 1% on recurring bill payments (streaming, utilities, subscriptions) and 0.5% on everything else.
At $0/year with no income requirement, it's a straightforward card built for everyday spending. Your cash back never expires (as long as the account is open), you can redeem any time for as little as $1, and you can choose to receive your rewards as a statement credit, a deposit to a BMO chequing or savings account, or a transfer to InvestorLine. There's no points program to figure out — just simple cash back.
The welcome offer sweetens the deal with up to 5% cash back on all purchases in your first 3 months, plus a 0.99% introductory balance transfer rate for 9 months (2% transfer fee). It's not a premium card — no travel insurance, no lounge access — but for a free card that rewards grocery spending, it's hard to beat.
Welcome Offer
BMO is offering a strong promotional start for new cardholders:
- Up to 5% cash back on all purchases in your first 3 months — a significant bump from the standard earn rates
- 0.99% introductory interest rate on balance transfers for 9 months (2% transfer fee applies)
The promotional 5% rate applies broadly to all purchases for the first three months, making it a great time to put everyday spending on the card and maximize your cash back.
How to Earn
The BMO CashBack Mastercard uses a simple tiered cash back structure:
| Category | Earn Rate | Cap |
|---|---|---|
| Groceries | 3% cash back | $500/statement period |
| Recurring bill payments | 1% cash back | $500/statement period |
| All other purchases | 0.5% cash back | Unlimited |
Grocery purchases earn the top rate at stores selling a complete line of food products — convenience stores, bakeries, butchers, and specialty shops are excluded and earn the base 0.5% rate. The $500/statement period cap on groceries means you can earn up to $15/month (or $180/year) at the 3% rate before purchases revert to the base rate.
How to Redeem
Cash back redemption is flexible and hassle-free:
- Statement credit — apply cash back directly to your credit card balance
- BMO chequing or savings account — deposit it directly into your bank account
- InvestorLine — contribute to a BMO investment account
- Automatic deposits — set up auto-redemption when your balance hits $25 or more
You can redeem for as little as $1, with no minimums or complicated redemption tiers. Cash back never expires as long as your account is open and in good standing.
Insurance & Benefits
The BMO CashBack Mastercard does not include travel insurance. BMO offers optional travel insurance plans that can be purchased separately:
- Single Trip Plans — emergency medical, trip cancellation, baggage loss
- Multi-Trip Plans — year-round protection for frequent travellers
Additional Perks
- Instacart+ — 3 months free plus a $5 monthly Instacart credit when you enrol your card
- BMO PaySmart — split eligible credit card purchases into smaller monthly payments at a low cost
- Credit Coach — free 24/7 credit score monitoring with no impact to your score
- Lock/unlock card — instantly lock your card from the BMO app if misplaced
- Financial insights — personalized spending insights through the BMO app
Who Is This Card For?
The BMO CashBack Mastercard is ideal for budget-conscious Canadians who want straightforward cash back without paying an annual fee. It's especially valuable for anyone who spends regularly on groceries — the 3% grocery rate is among the best you'll find on a no-fee card. If you prefer simple cash back over navigating points programs and don't need travel insurance bundled with your card, this is a solid everyday earner. The 5% promotional rate for the first 3 months makes it an easy choice for new cardholders looking to maximize early value.
Bottom Line
The BMO CashBack Mastercard delivers exactly what it promises: reliable cash back on the things you buy most, at zero annual cost. The 3% grocery rate stands out in the no-fee cash back category, and the 5% first-3-months promo gives you a strong start. It's not flashy — no lounge passes, no insurance, no big signing bonus in points — but for a free, uncomplicated cash back card that rewards everyday spending, it does the job well. If you want higher earn rates and don't mind an annual fee, check out the BMO CashBack World Elite Mastercard.
