The BMO CashBack Mastercard is a no-annual-fee credit card with a genuinely strong grocery earn rate of 3% and an attractive welcome offer. It sits in BMO's entry-level cash back lineup but delivers a premium grocery earn rate that rivals paid cards. Here's a full review.
Annual fee: $0
Income requirement: None specified
Interest rate: 19.99% purchases / 22.99% cash advances
Welcome bonus: 5% cash back on all purchases for first 3 months (up to $2,500 spend)
Network: Mastercard
The 3% grocery rate is the headline feature — it's among the highest no-fee grocery rates in Canada. However, the 0.5% rate on general purchases is below average. This card is best used specifically for grocery purchases, with a different card for everything else.
The BMO CashBack Mastercard's welcome offer of 5% back on all purchases for the first 3 months (capped at $2,500 in total spending, or up to $125 in cash back) is one of the best welcome bonuses available on a no-fee card. If you have any significant purchases planned — a new appliance, back-to-school shopping, holiday gifts — timing your application to coincide can dramatically increase first-year value.
Cash back accumulates throughout the year and is automatically applied as a statement credit once per year in January. The minimum redeemable amount is $1, which is more accessible than many competitors. Unlike some cards where you have to actively request redemption, the annual credit happens automatically, which is a convenience benefit.
Being a no-fee card, insurance is limited:
No travel insurance is included. For travel purposes, you'd need to supplement with a paid card or standalone insurance policy.
The BMO CashBack Mastercard earns more on groceries than the Tangerine card (3% vs. 2%), but the Tangerine card allows you to earn 2% in multiple categories, which may be worth more overall depending on your spending profile. The PC World Elite Mastercard earns 4.5% at Loblaw stores but only applies to Loblaw-banner grocery chains. The BMO card is the best choice for non-Loblaw grocery shoppers who want a no-fee option.
The BMO CashBack Mastercard is one of Canada's best no-fee grocery cards, with a 3% earn rate that outperforms many paid competitors on that one category. The low earn rate on general purchases means it works best as a dedicated grocery card rather than an all-purpose wallet. The welcome bonus makes the first few months of ownership particularly rewarding.
KOHO is a prepaid Mastercard that earns up to 5% cashback with no annual fee and no interest charges. If you're drawn to the BMO CashBack because of its no-fee positioning, KOHO offers a compelling comparison — especially for Canadians who want cashback without any risk of carrying a balance.
Earn $100 bonus cash with code 45ET55JSYA
Get $100 with KOHOTD Cash Back Visa Review · RBC Cashback Mastercard Review · Best No Annual Fee Cards · Best Cards for Groceries