The BMO CashBack Mastercard is a simple no-fee card built around one number: 3% back on groceries, which BMO says is the highest non-promotional grocery rate on a no-fee cash back card in Canada. Add 1% on recurring bills and the cash comes out whenever you want it, from $1.
What I'd flag right away is the shape of the rest. The 3% stops after $500 of groceries per statement cycle, everything outside groceries and bills earns just 0.5%, and there is no travel insurance at all. To me this is a grocery card to pair with a stronger everyday or travel card, not a card to carry alone.
Welcome offer
BMO is offering up to 5% cash back in your first 3 months, verified on the BMO page on October 13, 2026. The 5% applies to set amounts of spending over the first three billing cycles: up to $500 of groceries, up to $500 of recurring bills and up to $1,500 of everything else, for a maximum of $125 in cash back. Applications must be received by October 31, 2027.
The offer also includes a 0.99% introductory rate on balance transfers posted in the first 9 statement periods, with a 2% transfer fee. It is closed to current or former cardholders reopening the card or switching in from another BMO card, and all cash back earned in the first 90 days is cancelled if the card is closed within 90 days.
There is no minimum spend, so every eligible dollar up to the limits earns 5%. To collect the full $125, put about $835 a month on the card for the first three billing cycles, ideally with groceries and recurring bills filling their $500 slices. Spending past the limits earns the regular rates.
Fees & eligibility
The card has a $0 annual fee, and additional cardholders are free. There is no published minimum income on the BMO page, only a note that applicants must meet BMO's income requirements.
Purchases carry 21.99% interest and cash advances and balance transfers 23.99% (21.99% in Quebec). Two missed minimum payments in 12 months raise the rates to 25.99% and 27.99% for at least a year. Foreign currency purchases cost 2.5% on top of the network rate. Cash back only comes out ahead when the balance is paid in full every month.
Earning rewards
Two categories earn boosted cash back, each on a fixed amount of spending per statement cycle: 3% on the first $500 at grocery stores and 1% on the first $500 of recurring bill payments. Everything else, including spending past either limit, earns 0.5% with no cap.
At the limits, that is up to $15 a month from groceries and $5 from bills. Groceries must be bought at merchants in Canada coded by Mastercard as grocery stores and supermarkets (MCC 5411), so convenience stores, general merchandise stores, bakeries, butchers and speciality shops earn the 0.5% base rate.
Redeeming rewards
Cash back can be redeemed any time at bmocashback.com for as little as $1, as a statement credit or as a deposit into a BMO chequing, savings or InvestorLine account, arriving in 2 to 5 business days.
You can also set up automatic redemptions once the balance reaches $25. There is no once-a-year payout to wait for. If the account is closed, you have 90 days to redeem the balance by phone before it expires.
Perks & benefits
The perks are light, as expected at this price. The most useful for a grocery card is three months of Instacart+ with a $5 monthly Instacart credit on one order of $50 or more each month the membership stays active; after the free months, the credit requires a paid Instacart+ membership.
The rest are discounts: up to 30% off Avis and 35% off Budget when you prepay, up to 20% off National and Alamo and 5% off Enterprise, and 20% off Cirque du Soleil shows touring Canada. There is no lounge access, no travel credit and no foreign fee waiver.
Insurance
Insurance is limited to purchases. Items bought with the card are covered against theft or damage for 90 days, and the manufacturer's warranty is extended by up to 1 extra year, with a $60,000 lifetime maximum per account across both. The coverage is underwritten by CUMIS and secondary to any other insurance you hold.
There is no travel insurance: no emergency medical, no trip cancellation, no flight or baggage delay and no rental car cover. BMO's page says so plainly and points to its separate paid travel plans.
My take
I'd get this card if you want a no-fee way to earn 3% on a modest grocery bill; if you want one card for everything, or any travel cover at all, I'd skip it.
What I like is the simplicity: no fee, a 3% grocery rate and cash you can pull out from $1 at any time. For someone who already banks with BMO and spends around $500 a cycle on groceries, I think it does that one job well, and the 1% on bills is a small bonus on top.
The weak spots are the 0.5% base rate, the $500 grocery limit and the empty insurance section. Once spending moves past groceries, almost any other no-fee card earns more, and the welcome offer tops out at $125. If you qualify for the CashBack World Elite, its 5% grocery rate and 1% base are worth comparing against its $139 fee.
The good
- 3% on groceries with no annual fee
- Redeem cash back any time from $1
- Up to 5% cash back for the first 3 months
The catch
- Only 0.5% on everything outside groceries and bills
- 3% stops after $500 of groceries per statement cycle
- No travel insurance and a 2.5% FX fee