BMO Cashback Mastercard

Overview

The BMO Cashback Mastercard is BMO Bank of Montreal's no-annual-fee cashback card on the Mastercard network. Its standout feature is a 3% cashback rate on groceries — among the highest grocery return available on any no-fee card in Canada. There is no minimum income requirement, making it broadly accessible, and cashback can be redeemed at any time starting from $1. For straightforward, no-cost cashback on everyday purchases, this card is one of the most competitive options in the country.

Who this card is for

This card is for Canadians who want the highest possible grocery cashback without paying an annual fee. If your monthly grocery bill runs $400–$500 CAD and you want that spending to work harder without committing to a fee card, the 3% rate here is difficult to beat at no cost. It also suits people who appreciate flexible cashback redemption — you're not waiting for an annual payout or accumulating points you have to convert. Redeem when you want, in amounts as small as $1.

Key benefits

The 3% cashback on groceries applies to the first $500 CAD in grocery purchases per statement period. Spend the full $500 each month and you're earning $15 CAD per month — $180 CAD per year — from groceries alone, with no annual fee offsetting that gain.

Recurring bill payments earn 1% cashback. Think of recurring charges as phone bills, streaming subscriptions, insurance premiums, and gym memberships — the steady, predictable expenses that flow through your credit card automatically each month. All other eligible purchases earn 0.5% cashback.

Cashback is redeemable at any time starting from $1, which is more flexible than cards that require a minimum threshold or pay out once a year. A promotional higher earn rate typically applies in the first few months for new cardholders — check current offers at bmo.com.

Potential drawbacks

The 3% grocery rate is capped at $500 CAD per month in grocery spending. Once you exceed that threshold in a statement period, additional grocery purchases earn only 0.5%. For households spending $800–$1,000 CAD or more monthly on groceries, the cap limits total annual grocery cashback to $180 CAD. The BMO Cashback World Elite Mastercard lifts that earn rate to 5% on groceries (first $500/month) and adds higher rates across gas, transit, and recurring bills, but requires an $80,000 CAD income and a $120 CAD annual fee.

How it compares

The RBC Cash Back Mastercard is another no-fee card that earns 2% on groceries up to $6,000 per year and 1% on everything else — a higher grocery ceiling but a lower rate. The BMO Cashback Mastercard's 3% on $500/month works out to $180 CAD annually, while RBC's 2% on $6,000 works out to $120 CAD — BMO's card wins in total grocery cashback for spenders under the cap. For higher grocery volumes, RBC's uncapped 2% rate keeps pace for the first $6,000 and then continues beyond it.

Bottom line

The strongest no-fee grocery cashback card in Canada for most households. If your monthly grocery spend is $500 CAD or less, this card earns more from groceries than any other no-fee option available right now.