How Does The New BMO CashBack World Elite MasterCard Stack Up?

If you’ve kept up with this blog for a while then you’ll know that I tend to prefer cash back to travel rewards. Unfortunately there aren’t a lot of options for earning big rewards from cash back credit cards. That’s why I was excited (and a little surprised) to see a new cash back card offering from BMO.

The new BMO CashBack World Elite MasterCard offers unlimited cash back on everything you buy, no matter what spending category. The card pays a flat rate of 1.75 percent on all purchases – the highest base rate of any cash back card on the market. It also comes with a few other goodies, such as:

  • Extended Warranty Plus – Which doubles the original manufacturer’s warranty period, up to a maximum of two additional years rather than the standard of one year.
  • $0 Annual Fee for the first year – This offer is limited to new accounts. Applications must be received between May 13, 2015, and August 31, 2015. Full annual fee ($120) applies after the first year.
  • Free additional cards – Add additional cardholders to your credit card account and earn even more cash back with no additional annual fee.

Your cash back rewards accumulate and automatically get credited to your statement annually (in January).

How does it compare?

When we last ranked cash back credit cards we looked at no-fee cards and annual fee cards to see how they each stacked up.

On $12,000 per year in spending, the BMO CashBack World Elite MasterCard pays $210 in the first year and then just $90 each year thereafter (after deducting the annual fee).

Conversely, the SimplyCash Card from American Express pays $307.50 in the first year and then $150 per year afterwards.

It’s clear the new BMO card is not meant for light spenders, as it would rank no better than 5th best in the no-fee, low spend category.

On $30,000 per year in spending, the BMO CashBack World Elite MasterCard pays $525 in the first year and then $405 each year thereafter (after deducting the annual fee).

The Scotia Momentum Visa Infinite – reigning cash back king in Canada – pays $732 in the first year and then $633 per year afterwards.

The new BMO card slides into the number 3 spot for best cash back credit card, trailing the Scotia Momentum Visa Infinite card and coming in slightly behind the SimplyCash Preferred Card from American Express (due to its generous 6-month bonus period and lower annual fee of $79).

Final thoughts

It’s great to see another solid cash back card offering, this time from one of the major banks. In a time where the best rewards cards seem to get discontinued at worst or watered-down at best, it’s a nice to have another rewards card paying more than 1 percent with no hassles or restrictions.

Still, it’s not enough to put the BMO CashBack World Elite MasterCard into the conversation of best cash back credit card on the market. But if you’re looking for a solid rewards card and don’t want the hassle of carrying multiple cards to use for groceries, gas, and travel, then this card is a decent choice.

Get 40,000 Points and $60 Cash Back With TD First Class Travel Visa Infinite

After earning an incredible $1,550 in credit card rewards last year, including bonuses from three new card applications, I expected to slow down and not do much credit card point hacking this year. But when I came across an offer from TD for its First Class Travel Visa Infinite card, it was too good to pass up.

Here’s the promotion:

New applicants will receive a welcome bonus of 20,000 TD Points once your application is approved. Then, if you spend $1,000 on your card within the first 90 days of opening your account, you can get an additional 20,000 TD Points AND the annual fee for the card for the first year will be reimbursed by TD – saving you an additional $120.

You must apply by August 31, 2015 to be eligible for this offer from TD.

It gets even better. For a limited time, you’ll get an additional $60 cash back when you apply for the TD First Class Travel Visa Infinite card through Great Canadian Rebates. This cash back boost is available until June 30th, 2015.

TD First Class Travel Visa Infinite card benefits

So the promotion is great, but what about the card benefits? You’ll earn 3 TD Points for every dollar spent on the card, and through a partnership with Expedia you’ll get 9 TD Points per $1 spent when you book your travel online through ExpediaforTD.com.

10,000 points is worth $50 in travel, so your return on regular spending is 1.5 percent. You can book your trip with your card anywhere you find a travel deal through any travel agency or website, and then redeem your TD Points for that trip within 90 days of booking.

If you find a cheaper, identical trip within 24 hours of booking through ExpediaForTD.com, Expedia will refund the difference — and give you a Future Travel Credit worth $50.

TD Points can be redeemed to help pay for almost any travel expense charged to your card; from flights, green fees and car rentals to theme park passes – even airport parking and taxes.

Travel protected with insurance coverages including Travel Medical Insurance and Travel Cancellation / Trip Interruption Insurance.

The annual fee ($120) is reimbursed for the first year only.

Final thoughts

I took advantage of the TD First Class Travel Visa Infinite card offer because it has everything I look for in a credit card promotion:

  1. The annual fee is waived (or in this case reimbursed) in the first year.
  2. A generous initial welcome bonus – 20,000 points is worth up to $100 in travel.
  3. Very little effort to earn an additional bonus – spend $1,000 in the first 90 days to get an additional 20,000 points and the annual fee reimbursement.
  4. Earn even more cash back by applying through Great Canadian Rebates – a $60 bonus.

Altogether I’ll earn $260 within the first three months of using the card, and it won’t cost me a dime. This will also give me a chance to test drive the TD Rewards platform and see how easy it is to redeem rewards. Credit card issuers are great at promoting how much you’ll earn with the card, but ultimately a great rewards program comes down to how you’re able to redeem your points to get the best value.

Apply for the TD First Class Travel Visa Infinite card.