The Bank of Montreal is offering a $150 bonus credit on its CashBack World Elite MasterCard. The way the credit card works is that you earn 175 points for every $100 that you spend. Each point is worth 1 cent, so you are essentially getting 1.75% return on all purchases. The bonus promotion gives you up to 15,000 bonus points, which is the equivalent to $150.
- $120 annual fee
- No fee for supplementary cardholders
- Earn $50 cash back (or 5,000 points) when you apply for the credit card within 45 days for your first purchase (when you apply between January 4, 2016, and April 30, 2016)
- Earn $100 cash back (or 10,000 points) when you spend $3,000 within the first 3 months (when you apply between January 4, 2016, and April 30, 2016)
- Earn 1.75% cash back on all purchases
- BMO Concierge Service
- Complimentary Roadside Assistance Program
- Extended Warranty Plus
- Travel and medical insurance
The $150 cash back bonus essentially covers the first year $120 annual fee. For credit card churners, note that if you cancel your card within 90 days of opening your account, the bonus points will be cancelled.
Comparison to Other Credit Cards
I would compare this credit card to 2 other credit cards. Let’s say you spent $500 per month on gas and groceries and another $500 on other expenses.
With the MBNA Smart Cash Platinum Plus MasterCard, you will earn $500 x 2% cash back on gas and groceries (= $10) + $500 x 1% on other purchases (= $5) for a total of $15 cash back per month. Being a no annual fee card, in 1 year, you will receive $180 net.
With the Scotia Momentum Visa Infinite Card, you will earn $500 x 4% cash back on gas and groceries (= $20), let’s say $100 x 2% on drug store and recurring bills (= $2) and the remaining $400 x 1% on other purchases (= $4) for a total of $26 cash back per month. With a $99 annual fee, in 1 year, you will receive $26 x 12 – $99 = $213 net.
Lastly, with the BMO CashBack World Elite MasterCard, you will earn $1,000 x 1.75% = $17.50 per month. With a $120 annual fee, in 1 year, you will receive $17.50 x 12 – $120 = $90 net.
This credit card does not really provide the best rewards. I would do a budget on how much you spend monthly to determine whether this credit card is worthwhile to have. For now, the sign up bonus is a great deal to give yourself a chance to try this credit card out, but there may be better options out there.