💡 BMO CashBack Mastercard (Student) Review — Best for Grocery Savers & Smart Spenders

7.2

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Highlights:

• Annual Fee: $0
• Purchase Rate: 21.99%
• Cash Advance Rate: 23.99%

For students who want a no-fee credit card and decent cash back on essentials, the BMO CashBack Mastercard for Students is one of the stronger picks in Canada. It won’t make you rich from rewards, but it does offer practical perks that suit typical student spending: groceries, recurring bills, everyday purchases.

If you’re trying to build credit without paying fees or chasing overly complex rewards, this card is worth a look. Let’s break down what it offers, what its limitations are, and whether it’s right for you.

🔍 Key Features at a Glance

CreditAssess.ca Opinion: For a student card, this setup is balanced. The grocery bonus is solid, the recurring bill rewards meaningful, and the $0 fee makes the cost of entry negligible. The welcome offer sweetens the deal. However, the regular 0.5% on “everything else” is low — so if much of your spend is outside groceries or bills, you may not get much return there.

💳 Rewards & Earning Breakdown

Here’s how the rewards break down in more detail:

• The 5% welcome cash back rate for the first 3 months can give a nice boost early on.
• There are spending caps: particularly, the 3% on groceries is capped monthly; once you exceed a threshold, excess grocery spend will revert to the 0.5% rate.

CreditAssess.ca User Review:

“I cooked a lot during school, so groceries were my biggest spend. That 3% on groceries means more every week. I don’t care about the 0.5% so much for clothes or coffee — but it’s nice to have those covered.”
— Jasmine, University of Toronto

🔒 Protections & Extra Perks

Even though this is a student card with no annual fee, BMO includes a few protection features:

• Purchase Protection: many items are insured against theft or damage for a set period (often 90 days).
• Extended Warranty: coverage in addition to the manufacturer’s warranty on eligible purchases.
• Car Rental Discounts: discounts with certain car rental partners.

Opinion: These protections are very welcome for students. Buying laptops, phones, or textbooks with this card gives peace of mind. Cards with no annual fee often skim on protections, so this is a strength.

🧮 Costs, Eligibility & Use Case

• APR is ~21.99% on purchases, ~23.99% on cash advances.
• No income requirement in many cases, which makes this accessible.
• Must be a student at recognized post-secondary institution. Age of majority in your province applies.

CreditAssess.ca User Review:

“As an international student, I worried I’d be turned down. But BMO asked for my study permit and proof of enrollment, and approved me. The limit isn’t huge, but I’m using it mostly for groceries and streaming, so it works.”
— Alex, Dalhousie University

✅ Pros & ❌ Cons

✅ Pros

• Zero annual fee — always a big plus as a student.
• Very good grocery cash back rate among student cards.
• Bonus cash back on recurring bills helps with subscriptions and utility-type spending.
• Solid protection features (purchase protection, extended warranty).
• Flexible redemption: statement credits, direct deposit, etc.

❌ Cons

• Low return rate (0.5%) on most non‑bonus spend. If you spend heavily outside groceries or bills, much of your spend will get this low rate.
• Grocery bonus is capped monthly; once cap is hit, excess grocery spend gets low rate. For big spenders, this limits how much you can earn.
• Interest rates are high — carrying a balance is expensive.
• Few travel or luxury perks — this is a very basic rewards student card.

👤 Who This Card Is Best For

You should seriously consider this card if:

• You’re a student with little or no credit history.
• Much of your regular spending is on groceries, bills/subscriptions, everyday essentials.
• You want a card with good protections without a yearly cost.
• You don’t need fancy travel insurance or premium perks yet.

It might not be ideal if:

• You spend heavily on travel, flights, or want to use rewards for flights or hotels.
• Most of your spend is in bonus‑categories that aren’t groceries or bills (e.g. luxury shopping, travel), because the 0.5% elsewhere is weak.
• You expect large purchases and want better APR or interest features.

📊 Sample Earnings Scenario

Here’s a sample of what someone might earn using this card moderately well:

Let’s say monthly spends:

• Groceries: $400 → 3% → $12 cash back
• Recurring bills/subscriptions: $100 → 1% → $1
• Other purchases (books, clothes, coffee, etc.): $200 → 0.5% → $1

Total monthly cash back: around $14 → $168/year from $7,200 spend. Add in any welcome bonus, and the first year could be higher.

🙋 Common Questions (FAQ)

Here are questions people often search regarding this card—and answers based on BMO’s info plus CreditAssess.ca insight.

Q: What qualifies as “recurring bill payments”?
A: Usually things like streaming subscriptions (Netflix, Spotify), mobile phone/internet bills, possibly utilities if set up regularly. Always check BMO’s terms to ensure specific merchants qualify.

Q: Is there a spending cap for the grocery bonus or recurring bills bonus?
A: Yes. The 3% cash back on groceries has a monthly spending cap. Once you exceed that cap, extra spend in those categories drops to the 0.5% rate.

Q: When can I redeem my cash back?
A: Pretty flexibly. You can redeem as a statement credit, direct deposit, or into certain BMO savings or investment accounts. There’s no minimum in some cases — some redemptions can be made with as little as $1 in cash back.

Q: Will this card help build my credit score?
A: Yes. Like most student cards, responsible use (paying on time, keeping low balance relative to limit) will help your credit history. BMO reports to credit bureaus. Because there’s no annual fee and you can use it for everyday purchases, it’s low risk if you’re disciplined.

Q: What happens after the welcome offer ends?
A: After the first 3 months of 5% back (on eligible purchases up to whatever the limit is), your cash back goes to the standard rates: 3% on groceries (within cap), 1% on recurring bills, and 0.5% on everything else. So you’ll still earn, but not as aggressively.

Q: Are there foreign transaction fees?
A: Yes — this card, like most Canadian credit cards, charges foreign transaction fees when used outside Canada (usually ~2.5%).

🧭 CreditAssess.ca Verdict

The BMO CashBack Mastercard for Students is one of the better student cards if your spending aligns with its strengths: groceries and recurring bills. The no annual fee, decent protections, and welcome offer make it very appealing. If you stay within bonus categories, you’ll get good value.

If your spending is more across discretionary shopping, travel, or categories without bonus rates, you might find other student cards or even entry‑level travel/rewards cards give greater return. But for many students, this is a smart starter card — reliable, simple, and without hidden fees.

Final Rating: 7.2 / 10

Disclaimer: Refer to the credit card official web page for the latest up to date rates, terms, and conditions. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute professional and/or financial advice.