The BMO CashBack World Elite Mastercard is one of the various credit cards that are offered in Canada. However, unlike many other credit cards, the BMO CashBack World Elite Mastercard promises a high cash back earning potential for groceries. This card offers a 5% cash back on all groceries which allows the card to boast the highest overall cashback offer among all other comparable cards in this category.
This can be – and often is – incredibly useful to most Canadians, especially when one considers the skyrocketing prices of food, with a 5% to 7% rise in 2022 due to inflationary pressures. However, a very important point that many of the people who sign up for this card fail to notice is this: the 5% cash back rate applies to the first $500 spent on grocery purchases per statement period, after which the rate reverts to 1% unlimited cash back.
Given that the annual food expenditure for a family of four is estimated at $1,230 per month, it’s easy to max out the 5% cash back on the first $500. At least you’ll earn 1% cash back on the remaining $730. Many may see this as a trivial amount, but overtime, this amount has the potential to build up to a large sum of money that may end up giving you a free trip to the grocery store. Besides, 1% cashback is better than nothing!
The wonderful cashback incentives that the BMO CashBack World Elite Mastercard offers don’t stop at groceries only. In addition to the high cash back rate on groceries, cardholders can also earn 10% cash back on their purchases for the first three months (up to $260 worth of cash back) when they apply on or before July 31, 2023.
A great start for your cashback path
This is often seen as a great way to get a head start on earning cash back with the card, and the cashback incentives don’t stop here. After three months from the date an individual signs up for the card, cardholders will earn 3% cash back on gas on the first $300 spent on gasoline or diesel as well as electric charging purchases – for those with electric vehicles – per statement period.
Furthermore, cardholders can earn 4% on transit fares (including ride shares, taxis, and public transportation) on the first $300 spent on ground transportation purchases per statement cycle period, and 2% on recurring bills such as phone bills, gym memberships, and streaming services.
All these additional cash back earning opportunities make the card a great option for those who frequently use these types of services, and as a majority of these services can be considered essential to most people, this card offers great value to all those who use it and can further incentivize those who are cautious spenders to loosen the straps on their wallets as they know they will get some of the money they spend back.
For all the wonderful incentives the BMO CashBack World Elite Mastercard offers, there is a cost. The card has a $120 annual fee, which can be a significant cost for some. However, in a bid to expand its customer base, the BMO CashBack World Elite Mastercard offers two very valuable incentives.
How do the incentives work?
The first incentive – which is squarely targeted at new customers in a bid to make the card more appealing for those who are considering it – is the wavering of the annual fee for the first year. The second incentive is that the card has a 0% balance transfer fee with no limit, which can be beneficial for those looking to transfer a balance from another credit card.
The 0% balance transfer fee can be a great way to save money if you are currently carrying a balance on a high-interest credit car. However, due to all the incredible deals that the BMO CashBack World Elite Mastercard has to offer, qualification for this card is much harder than regular cards.
To qualify for the BMO CashBack World Elite Mastercard, cardholders must have an annual income of CAD 80,000 for an individual or CAD 150,000 for a household. This threshold is seen by many as the greatest barrier to access this card, especially considering that the median salary in Canada is approximated at CAD 72,000.
This would automatically rule out half of the income-earning population as they do not meet this requirement, but those who are fortunate enough to meet this requirement will find that the card offers a lot of benefits. Furthermore, another great benefit of the BMO CashBack World Elite Mastercard is that the rewards associated with the card do not expire as long as the account is open and in good standing.
Options for cardholders
Cardholders can redeem their cash back in two ways: when there’s a set amount available up to a minimum of $25 (which can be redeemed in increments of $5 or as a one-time lump sum that requires a minimum cash-back balance of $1). This is relatively flexible, as cardholders can redeem cash back as regularly as they want with a relatively low limit.
The rewards can be received as cash, put into an investment account, or applied as credit towards your statement, which gives you options to redeem the rewards as per your preference. All one has to do to redeem their rewards is simply log into their BMO Mastercard account. In addition to the cash back earning potential for groceries, the card offers a number of additional benefits. Firstly, cardholders are charged no fee on foreign transactions, which is very beneficial for those who make frequent international travels, even to the nearby USA.
Furthermore, cardholders will earn 1% cash back on all other purchases, which can add up over time. Additionally, cardholders can save 25% at rentals at participating Alamo and National Car Rental locations, which can be a significant savings for those who frequently rent cars. The card also offers 24-hour access to Mastercard’s concierge staff, which can be a useful resource for those who need assistance with travel.