The BMO Cashback World Elite Mastercard has been making waves with its enticing offers and high cashback rates, particularly the 5% cashback on groceries. But is it truly one of the best cashback cards available in Canada? Let’s dive into the details and find out.
Signup Bonus: A Strong Start
BMO offers a compelling signup bonus for the Cashback World Elite Mastercard. New cardholders can earn 10% cashback on their purchases for the first three months, up to a maximum spend of $2,600. This translates to a $260 cashback bonus, which is quite generous for a card with a $120 annual fee.
Additionally, the annual fee is waived for the first year, adding extra value to the offer. If you sign up through Credit Card Genius, you can even get an extra $100 in cashback, bringing the total potential value to $480 in the first three months. This aggressive promotion shows BMO’s eagerness to attract new customers.
Rewards: The Devil’s in the Details
The rewards structure of the BMO Cashback World Elite Mastercard initially seems impressive. The card offers:
- 5% cashback on groceries, capped at $500 per month
- 4% cashback on transit, capped at $300 per month
- 3% cashback on gas, capped at $300 per month
- 2% cashback on recurring bills, capped at $500 per month
While these rates are attractive, the low monthly caps significantly limit their potential. For example, many cardholders who qualify for a World Elite Mastercard are likely to spend more than $500 on groceries each month, which means the 5% cashback is only applicable to a fraction of their spending.
The absence of a restaurant category is another limitation, especially since dining is a significant expense for many. Cards like the Simply Visa Cashback offer 4% cashback on restaurants, providing a more balanced rewards structure.
Insurance: Comprehensive but Not Exceptional
The BMO Cashback World Elite Mastercard provides a robust insurance package with 13 different coverages, which is more than most cards in its category. The insurance includes emergency medical, trip cancellation, and rental car coverage, among others.
However, none of these coverages stand out as exceptional. For instance, the emergency medical insurance only covers individuals up to age 64, whereas other cards might cover up to age 65 or even 75. While the breadth of coverage is commendable, the depth of each individual coverage is average at best.
Perks: Roadside Assistance and More
One of the standout perks of the BMO Cashback World Elite Mastercard is its free roadside assistance, a benefit not commonly found in Canadian credit cards. This perk is estimated to be worth about $69 annually. However, the Triangle World Elite Mastercard, a no-fee card, offers better roadside assistance, making this perk less unique.
Other perks include savings at Shell gas stations and discounts on car rentals, which are fairly standard for credit cards at this level. The card also provides access to over one million WiFi hotspots worldwide, adding convenience for frequent travelers.