BMO Harris Bank Cash Back Mastercard® Review

The BMO Harris Bank Cash Back Mastercard® is a cash back credit card with no annual fee and a decent rewards program geared toward people who spend lightly to moderately on gas and groceries. This rewards scheme is similar to BMO Harris Bank Platinum Rewards Mastercard’s, with the major difference that rewards accrue as cash back instead of BMO Harris Rewards loyalty currency, which can be redeemed for merchandise, travel, and other items.

BMO Harris Bank Cash Back Mastercard also has a solid, easily attainable sign-up bonus and 0% APR interest on balance transfers for at least 12 months from account opening. If you’re in the market for an entry-level cash back credit card, this product is definitely worth a closer look – and a close comparison with the many competing options on the market.

How the BMO Harris Bank Cash Back Mastercard® Stacks Up

The BMO Harris Bank Cash Back Mastercard is one of the better cash-back credit cards on the market right now, thanks in part to a solid 5% cash-back tier and a downright generous 3% cash-back tier.

Does that mean you shouldn’t consider any alternatives before you apply? Of course not. Here’s how the BMO Harris Bank Cash Back Mastercard stacks up against another cash-back card that earns up to 5% on eligible purchases: the Chase Freedom Unlimited Credit Card.

Key Features of the BMO Harris Bank Cash Back Mastercard®

The new and improved BMO Harris Bank Cash Back Mastercard® has a lot of great features. Note the above-average sign-up bonus, generous multi-tiered rewards program, cell phone insurance, and 0% APR intro offer on balance transfers.

Sign-up Bonus

When you spend at least $2,000 within the first 3 months of opening your account, you get a $200 cash back bonus.

Earning Cash Back

BMO Harris Bank Cash Back Mastercard has a three-tiered cash-back program:

• 5% cash back on eligible streaming, cable TV, and satellite purchases
• 3% cash back on gas and groceries, up to a combined $2,500 in eligible spending per calendar quarter
• Unlimited 1% back on all other spending, including spending in the 2% categories above the $2,500 quarterly cap

To maximize the rewards program’s value, set up all your streaming, cable, and satellite accounts to autopay with your BMO Harris Bank Cash Back Mastercard. Use this card as your default gas and grocery credit card too, at least until you’ve hit the $2,500 combined spending cap.

Redeeming Cash Back

Accumulated cash back can be redeemed for statement credits in $5 increments, starting at a $15 redemption minimum. You can also redeem for gift cards and merchandise at variable minimums, but statement credits generally offer the best value.

Important Fees

There is no annual fee. The foreign transaction fee is 3% of the transaction amount. Balance transfers and cash advances cost the greater of $10 or 3%, while late and returned payments cost up to $37.

Introductory APR

Newly opened accounts enjoy interest-free balance transfers for 12 months from account opening. Qualifying balance transfers must be completed within 90 days of account opening. After the promotional period ends, variable regular APR applies.

Additional Card Benefits

This card has some nice fringe benefits backed by Mastercard, including:

• Emergency roadside assistance
• Complimentary rental car insurance (loss and damage) on rentals charged in full to the card
• Extended warranties of up to 24 months on items with original warranties of less than 12 months
• Cell phone protection up to $400 per occurrence when you pay your phone bill in full with your BMO Harris Bank Cash Back Mastercard
• Syncs with BMO’s Total Look interface, which shows you your entire relationship with BMO at a glance (see below)

Credit Required

This card requires good to excellent credit. If you have any significant blemishes in your credit history, your application could be denied.

Advantages of the BMO Harris Bank Cash Back Mastercard®

Why apply for the BMO Harris Bank Cash Back Mastercard? The easily attainable sign-up bonus is a clear plus, as are the first-year balance transfer promotion and the solid ongoing rewards program.

• No Annual Fee. BMO Harris Bank Cash Back Mastercard has no annual fee. That’s great news for frugal cardholders who don’t want to give back any of their cash back earnings – and a potential game-changer for light spenders who don’t earn rewards quickly enough to offset even modest annual fees.
• Easily Attainable Sign-up Bonus. This card’s $200 sign-up bonus is easy to attain, requiring just $2,000 in spending within 3 months. That’s lower than many competing rewards cards.
• Up to 5% Cash Back on Eligible Purchases. This card earns up to 5% cash back on eligible streaming, cable TV, and satellite services. That’s a higher rate of return on such purchases than most competing cards.
• 3% Cash Back on Eligible Gas and Grocery Purchases. You’ll also get 3% cash back on gas and grocery purchases, up to $2,500 in combined spending per calendar quarter. Again, this is a sight better than most competing cards.
• Introductory Balance Transfer APR Promotions. This card waives interest on balance transfers for 12 months from the date of first transfer, provided the transfer occurs within 90 days of account opening. This is a clutch incentive for new cardholders who pay down existing high-interest credit card balances.
• Solid Value-Added Benefits. For an entry-level cash back credit card, BMO Harris Bank Cash Back Mastercard has a pretty great lineup of value-added benefits, including up to $400 per occurrence in cell phone coverage (less deductible and subject to restrictions, but still).
• No Penalty APR. This card doesn’t charge penalty interest. That’s great news for prospective cardholders who occasionally miss payments due to liquidity issues or unforeseen expenses. Some competing cash back cards charge penalty interest up to 30% APR, and keep those sky-high rates in effect indefinitely once a single payment has been missed.

Disadvantages of the BMO Harris Bank Cash Back Mastercard®

This card has some notable drawbacks, including mediocre baseline cash-back rewards and a foreign transaction fee. It’s your call whether they trump the benefits.

• 3% Category Earnings Capped at $2,500 in Combined Quarterly Spending. BMO Harris Bank Cash Back Mastercard caps 3% cash back earnings on gas and groceries at $2,500 in combined quarterly spending. If you have a long commute or multiple mouths to feed at home, you’re liable to bump up against this limit well before the end of the quarter. To maximize your cash back earnings, consider applying for a card with higher category caps – or none at all.
• Mediocre Cash Back Earnings in All Other Spending Categories. This card earns just 1% cash back in most spending categories. In fact, the only spending that doesn’t earn 1% cash back is gas and grocery spending under the $2,500 quarterly cap, which earns 2%. That’s a big drawback relative to flat-rate cash back cards such as the Capital One Quicksilver Cash Rewards Credit Card and the Citi Double Cash Card, which earn 1.5% and 2%, respectively, on all spending.
• $15 Minimum Redemption Threshold. Before you can redeem your rightful cash back, you need to accumulate at least $15 in rewards. That requires you to spend at least $300 in the 5% categories, $500 in the 3% categories, or $1,500 in the 1% category (everything else). This last ask isn’t an easy task if you’re a very light spender. Some competing cards, such as Chase Freedom Unlimited, allow you to redeem cash back in any amount.
• Has a Foreign Transaction Fee. This card’s 3% foreign transaction fee is a significant impediment for world travelers who don’t want to carry large quantities of cash overseas, where it’s vulnerable to theft. It more than offsets potential cash back earnings, even in the 2% categories. If you travel abroad frequently, consider an annual-fee-free travel rewards card with no foreign transaction fees.

Final Word

The BMO Harris Bank Cash Back Mastercard®  is pretty similar to the Bank of America Customized Cash Rewards Credit Card. That card also offers elevated cash back earning rates on gas and grocery purchases, also has a $100 sign-up bonus, and also offers interest-free balance transfers to new cardholders.

It might be tempting to choose based on your current banking habits. After all, it’s a straightforward matter to apply for a credit card from the institution with which you already bank.

Then again, there are so many cash back credit card options out there, including products that rank higher (in our estimation) than either BMO Harris Bank Cash Back Mastercard or the Bank of America Customized Cash Rewards Credit Card. Why settle for the first choice that presents itself when you can strive for better?