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.
