To the point
BMO announced significant changes to the BMO Rewards program and related credit cards effective May 2021.
BMO: Changes For BMO Rewards in May 2021
In 2020, credit card interchange fees were revised downwards, directly impacting the rewards obtained from many credit card issuers.
After the announcement of changes for the BMO AIR MILES® World Elite®* Mastercard®* and the BMO CashBack® World Elite®* Mastercard®*, The Bank of Montreal – BMO has announced changes to the BMO Rewards program that will take place in May 2021.
An increase in the number of BMO Rewards points required for travel
Effective May 5, 2021, there will be an increase in the number of points required to book travel with BMO Rewards: 150 BMO Rewards points instead of 140 points for a $1 value.
| Travel | Before May 5, 2021 | After May 5, 2021 |
| $100 | 14,000 points | 15,000 points |
This is called a devaluation. As of May 5, 2021, the value of 1 BMO point will be reduced from 0.71 cents to 0.67 cents.
Mathematically, this affects the earning value of the five BMO Rewards credit cards, as we will see below.
Note that other methods of using points remain unchanged, so it will be just as rewarding to use your BMO Rewards points for travel as it is to redeem points for financial products with BMO (15,000 points = $100).
The least attractive option is to pay for any purchase with your points (15,000 points = $75).
Compensation for Existing BMO Rewards Customers
To offset the value of BMO Rewards points for existing customers, on May 5, 2021, BMO will increase your existing BMO Rewards points balance by 7%.
For example, if you had earned 28,000 BMO Rewards points (a $200 value) with your new BMO eclipse Visa Infinite* Card or BMO Ascend World Elite Mastercard, BMO will add 1,960 points to your BMO Rewards account on May 5, 2021. You’ll have a balance of 29,960 BMO Rewards points, which will still be worth $200.
So, I would strongly suggest that you unlock your Welcome Bonus or earn a maximum of BMO Rewards points BEFORE May 5, 2021, to benefit from this 7% increase in your BMO Rewards points balance.
As a recent BMO eclipse Visa Infinite* cardholder myself, that’s exactly what I plan to do. For example, I just got my welcome bonus by carrying all my purchases on it (I usually use my American Express Cobalt® Card for Good Food).
And I’ll try to earn as many points as I can before May 5, 2021:
BMO Rewards point earning value after May 5, 2021
On May 5, 2021, the five BMO Rewards credit cards’ earning rates won’t change. But the earning value will be decreased if you intended to use your points for travel.
Here’s how it affects each of the five BMO Rewards credit cards. And I’ll suggest alternative credit cards for the most common credit cards.
BMO Ascend World Elite Mastercard
Depending on the purchases you make with the BMO Ascend World Elite Mastercard, you’ll earn a return of 1.33% to 2% when you use your BMO Rewards points for travel:
| Category | Before May 5, 2021 | After May 5, 2021 |
| Travel, Dining, Entertainment | 3 points | 3 points |
| Return | 2,14 % | 2 % |
| Other | 2 points | 2 points |
| Return | 1,43 % | 1,33 % |
There are many alternatives for travel credit cards:
- With the Scotiabank Passport™ Visa Infinite* Card, you earn 2 points per dollar for groceries, entertainment, dining and local transportation (that’s 2% in travel rewards), you don’t pay FX fees and you get 6 annual passes to VIP airport lounges.
- The National Bank’s World Elite Mastercard® offers 1 to 5 points per dollar (1 to 5% in travel rewards) and the best insurance on the market
- With the Scotiabank Gold American Express® Card, you earn 5 points per dollar for entertainment, groceries and dining (that’s 5% in travel rewards), and you don’t pay FX fees.
- With the HSBC World Elite® Mastercard®, you earn 6 points per dollar for travel (that’s 3% in travel rewards), and you don’t pay FX Fees.
- The MBNA Rewards World Elite® Mastercard® offers between 1 and 5 points per dollar (that’s 1-5% in travel rewards)
BMO eclipse Visa Infinite* Card
Depending on the purchases you charge to your BMO eclipse Visa Infinite* Card, you’ll earn between 0.67% to 3.33% when you use your BMO Rewards points for travel:
| Category | Before May 5, 2021 | After May 5, 2021 |
| Grocery, Dining, gas, transportation | 5 points | 5 points |
| Return | 3,57 % | 3,33 % |
| Other | 1 point | 1 point |
| Return | 0,71 % | 0,67 % |
There are many alternatives for travel credit cards, requiring less than $80,000 of personal income:
- The American Express Cobalt® Card you earn 5 points per dollar for grocery, dining, food delivery (that’s 5% in travel rewards), 2 points per dollar for transportation, gas and travel (that’s 2% in travel rewards) and 1 point per dollar everywhere else (that’s 1% in travel rewards). No minimum income required.
- With the Scotiabank Passport™ Visa Infinite* Card, you earn 2 points per dollar for groceries, entertainment, dining and local transportation (that’s 2% in travel rewards), you don’t pay FX fees and you get 6 annual passes to VIP airport lounges. Personal income of $60,000 required (identical to BMO’s card )
- With the Scotiabank Gold American Express® Card, you earn 5 points per dollar for entertainment, groceries and dining (that’s 5% in travel rewards), and you don’t pay FX fees. Personal income of $12,000 required.
BMO Rewards® Business Mastercard®*
Depending on the purchases you make with the BMO Rewards® World Elite®* Business Mastercard®*, you’ll earn 1% to 2% back by using your BMO Rewards points for travel:
| Category | Before May 5, 2021 | After May 5, 2021 |
| Gas, office supplies, cell phone and internet recurring payments | 3 points | 3 points |
| Return | 2,14 % | 2 % |
| Other | 1.5 points | 1.5 points |
| Return | 1,07 % | 1 % |
Here is an excellent alternative for a small business credit card with similar purchase categories:
- With the American Express Business Edge™ Card, you earn 3 points per dollar for office supplies and electronics, transportation and gas, food and beverages (that’s 3% in travel rewards) and 1 point per dollar everywhere else (that’s 1% in travel rewards).
BMO eclipse Visa Infinite Privilege* Card
Depending on the purchases you charge to your BMO eclipse Visa Infinite Privilege* Card, you’ll earn between 0.67% to 3.33% when you use your BMO Rewards points for travel:
| Category | Before May 5, 2021 | After May 5, 2021 |
| Grocery, dining, pharmacy, gas, travel | 5 points | 5 points |
| Return | 3,57 % | 3,33 % |
| Other | 1 point | 1 point |
| Return | 0,71 % | 0,67 % |
BMO® Rewards® Mastercard®*
Depending on the purchases you charge to your BMO Rewards® Mastercard®*, you’ll earn 0.67% when you use your BMO Rewards points for travel:
| Category | Before May 5, 2021 | After May 5, 2021 |
| Other | 1 point | 1 point |
| Return | 0,71 % | 0,67 % |
Thinking about applying for a BMO Rewards credit card?
Strategically, today is still a good time to apply for one of the BMO Rewards credit cards.
Indeed, if you unlock your Welcome Bonus before May 5, 2021, your points will keep their current valuation, even if you use them after May 5, 2021.
For example, if you spend $3,000 on your new BMO eclipse Visa Infinite* Card, you will earn the first part of the Welcome Bonus: 25,000 points. As of May 5, 2021, BMO will add 7% to your BMO Rewards account (or 1,750 points).
Your points will keep their value of $178 for travel rewards.
The same applies if you spend $3,000 with your new BMO Ascend World Elite Mastercard, you’ll get the first part of the welcome bonus: 30,000 points. As of May 5, 2021, BMO will add 7% to your BMO Rewards account (or 2,100 points).
Your points will keep their $214 value for travel rewards.
Finally, if you’re self-employed or a small business owner, if you spend $5,000 with your new BMO Rewards® Business Mastercard®*, you’ll earn 50,000 BMO Rewards points. As of May 5, 2021, BMO will add 7% to your BMO Rewards account (or 3,500 points).
Your points will keep their value of $357 for travel rewards.
Bottom Line
A new devaluation affecting the BMO Rewards program, only a few years after the previous one. Unfortunately, this program continues to lose value without offering customers competitive methods to redeem their points.
To book travel with BMO Rewards points, you must use BMO’s online booking platform. While the fares are mostly the same as what you could find on your own at online travel agencies such as Expedia or Hotels.com, we would appreciate the opportunity to use BMO Rewards points for any travel charged to the card.
This is what other top-rated travel programs allow, such as:
Please feel free to comment on this publication either below or in the Facebook group: what do you think of these changes to BMO Rewards?
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