Home electronic fund BMO Cash Back World Elite Mastercard Review – Forbes Advisor Canada

BMO Cash Back World Elite Mastercard Review – Forbes Advisor Canada

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Earn rewards

This card offers cash back on a number of daily purchases, but its real appeal is its earning potential for groceries. You earn 5% cash back on rides, which is the highest overall offer of any comparable card in this category. Scotia Gold American Express offers 6% cash back on groceries, but only at select stores, such as Sobeys, IGA and FreshCo. This card therefore always offers the highest cash back rate on all grocery purchases. Given that food prices increased by 5% to 7% in 2022 Due to inflationary pressures, the BMO CashBack World Elite Mastercard is a very attractive credit card that can be incredibly useful to most Canadians.

However, it should be noted that 5% applies on the first $500 spent on grocery purchases per statement period, then groceries revert to 1% unlimited cash back thereafter. Since the annual food expenditure for a family of four is estimated at $1,230 per month, maximizing the 5% cash back on the first $500 is easy. At least you’ll earn 1% cash back on the remaining $730.

You’ll also earn 3% Cash Back on Gas on the first $300 spent on fuel or electric vehicle charging purchases per statement period and unlimited 1% Cash Back thereafter. You’ll earn a hefty 4% cash back on public transit, which includes carpools, taxis and public transit, again on the first $300 spent on ground transportation purchases per statement cycle period and unlimited 1% cash back thereafter. Plus, you’ll earn 2% on recurring bills, such as phone bills, gym memberships, and streaming services.

If you use it as your everyday credit card (and pay it off monthly), it’s easy to earn money on basics like monthly groceries, gas, and food. recurring purchases.

As for other benefits, the card offers 1% cash back on all other purchases; 25% savings on rentals at participating Alamo and National Car Rental locations; 24-hour access to Mastercard concierge staff and access to airport lounges. Plus, you can earn more money if you add another cardholder for $50 per year.

In terms of rewards offered, this card is close to similar cards, like the CIBC Dividend Visa Infinite.

Redeem rewards

Rewards associated with this card do not expire as long as your account is open and in good standing. You can redeem Cash Back in two ways: when there is a fixed amount available up to a minimum of $25 (which can be redeemed in $5 increments or as a one-time lump sum that requires a minimum cash back balance of $1). It’s pretty flexible, as you can redeem cash back as regularly as you want with a relatively low limit.

To redeem rewards, you must log in to your BMO Mastercard account. You have the option of depositing the money in a BMO chequing or savings account, placing it in an InvestorLine account or using it to pay off your credit card balance.

Rewards potential

The actual value of a cash back card is based on potential annual earnings. We’ve done the math for you by calculating what the average Canadian spends each year on each CIBC Dividend Cash Back Visa Infinite category. Forbes Advisor uses data from multiple government agencies to determine both basic income and credit card spending averages in various categories.

Forbes Advisor estimates total annual credit card spending at $27,851.70. Of that amount, grocery purchases total $7,536 per year, earning $315.36 in cash back. We factored in the $500 per month spending cap to arrive at this figure, earning 5% for the $500 per month and 1% thereafter. Gas is $3,360 per year, which earns $100.80 in cash back at the rate of 3%. Recurring bills are $2,436, which earns $48.72 at 2%.

From there, other purchases (such as meals, entertainment, online shopping, airfare, hotel stays, and miscellaneous expenses) make up the remaining $14,529.70. Assuming you earn the 1% base rate on these, that adds an additional $145.19 to your annual cash back. All of this brings the grand total of annual earnings to $610.07. Once you factor in the $120 annual fee, this card brings in $490.07 in net cash back earnings per year, and potentially more on that if you frequently spend on public transit or carpooling, since this purchase category alone earns an impressive 4% cash back.

Compared to similar cards such as CIBC Dividend Visa Infinite Card at $537.50 annual revenue, Scotia Momentum Visa Infinite Card at $491.14 annual revenue and SimplyCash Preferred Card from American Express at $458.03 $ in annual earnings, the BMO CashBack World Elite Mastercard seems pretty average. the pack, despite its flashy 5% cash back rate.

Overall, the card has a decent rewards program. After all, it’s easy to earn over $400 in rewards just by using it for groceries and gas. With that kind of rewards potential, we think it’s worth paying the $120 annual fee.