To the point
Here's our detailed comparison of the BMO CashBack Mastercard and the Tangerine CashBack Credit Card.
BMO and Tangerine each offer a similar no-fee Mastercard credit card:
At first glance, they may seem to be identical, especially because of their name! But which one is the most advantageous?
Let’s look at each of their features in detail, to distinguish these two credit cards.
Welcome bonus
The welcome bonus offered by each of these credit cards varies according to promotions. However, there are differences to be aware of between the two credit cards.
When you sign up for a BMO® CashBack® Mastercard®*, you’ll receive 5% cash back for the first three months .
- The 5% cash back applies to eligible purchases up to $2,500:
- 5% on up to $500 in eligible grocery purchases = $25
- 5% for up to $500 in eligible recurring bill payments = $25
- and 5% on up to $1,500 of any other qualifying purchase during the Welcome Offer period = $75
So, for this offer, the maximum welcome bonus is $125.
By applying for the Tangerine Money-Back Credit Card you get an additional 10% cash back on up to $1000 in purchases. This is in addition to the basic cash back earning rate (between 0.5% and 2%).
Therefore, the maximum cash back for the Welcome Bonus is $100.
Advantage: Tangerine Money-Back Credit Card
Thanks to its clarity, the Tangerine Money-Back Credit Card has an advantage. The promotional offer is easy to understand and less restrictive.
Minimum income
The BMO® CashBack® Mastercard®* requires a minimum income of $15,000.
The Tangerine Money-Back Credit Card requires a minimum income of $12,000.
Advantage: It's a tie
The Tangerine Money-Back Credit Card earns this point. But still, both cards require an almost similar minimum income, with a minimal difference.
Cash Back Earning
BMO® CashBack® Mastercard®* cash back rates are as follows:
- 3% on grocery purchases (up to $500 in purchases per statement)
- 1% on recurring bill payments (up to $500 in purchases per statement)
- 0.5% on all other purchases (and once you’ve passed $500 in monthly category purchases)
The Tangerine Money-Back Credit Card has two cash back rates:
- 0,5 %
- 2 %
Tangerine offers a choice of two categories for the 2% cash back. This is beneficial for your highest expenses of your budget. Moreover, you can customize your cash back between the following 10 categories:
| Gas | Groceries |
| Recurring bills payments | Furniture |
| Drugstores | Hotel and motel |
| Home Improvement | Entertainment |
| Restaurant | Public transportation and parking |
In addition, if you deposit your cash back from this Tangerine Money-Back Credit Card into a Tangerine Savings Account, the financial institution will reward you.
You get a third category to choose from to receive a 2% cash back.
Cash back is unlimited, with no maximum purchase per statement.
Advantage: Tangerine Money-Back Credit Card, BUT ...
For ease of understanding, the BMO® CashBack® Mastercard®* is excellent. Plus, the 3% cash back rate is great for groceries, especially for a card with no annual fee!
The Tangerine Money-Back Credit Card earned the point with the great flexibility of customizing 2% cash back categories. The categories can be changed at will (although the change will not take effect until the next statement).
It is important to calculate whether a large part of your budget is spent on renovations or gas, for example. In this case, the Tangerine Money-Back Credit Card is the most appropriate, as the BMO CashBack Mastercard®* only offers 0.5% in these categories.
Both cards allow you to earn unlimited cash back.
Cash Back Terms and Conditions
The rebate deposit depends on the option and frequency chosen by the BMO® CashBack® Mastercard®* cardholder. It can be :
- by direct deposit to a BMO Savings Account, BMO Chequing Account, or BMO InvestorLine Account
- as a credit on your BMO credit card statement
Redeeming cash back can be done anytime, as soon as you reach one dollar. In addition, an automatic deposit option can be set up whenever you have a minimum of $25.
The cash back of the Tangerine Money-Back Credit Card is deposited monthly. The credit cardholder chooses the method of deposit either :
- in the savings account
- in the credit card account
The additional 15% cash back offer will be credited to the account one to two statement cycles after the 60-day promotional period.
Who wins : BMO CashBack Card
Because of its flexibility and the fact that points can be redeemed at any time, the BMO® CashBack® Mastercard®* has a clear advantage.
Note that the cash back can be deposited into a BMO InvestorLine account, allowing you toinvest using your credit card.
Same thing for the Tangerine Money-Back Credit Card but indirectly. A cash back deposit into the Tangerine bank account allows for transfer to a TFSA, RRSP or non-registered account.
Insurance
The BMO® CashBack® Mastercard®* offers:
- Purchase Protection
- Extended warranty
These new purchases charged to your card may have been made anywhere in the world. The lifetime maximum is $60,000 for :
- Loss, theft or damage to most new insured items for 90 days after the date of purchase
As for the extended warranty :
- It doubles the period of repair services, up to a maximum of one year
The Tangerine Money-Back Credit Card offers a:
- Purchase Protection
- Extended warranty
These new purchases charged to your card may have been made anywhere in the world. The lifetime maximum is $60,000 for :
- Loss, theft or damage to most new insured items for 90 days after the date of purchase
As for the extended warranty :
- It doubles the period of repair services, up to a maximum of one year
Equality
The BMO CashBack Mastercard and the Tangerine CashBack Mastercard®* have exactly the same insurance coverage. It’s a draw!
Bottom Line
So? Which Card is the winner?
For those who want simplicity, the Tangerine Money-Back Credit Card is perfect. It offers the flexibility to choose 2% discount categories and its welcome offer is very easy to understand.
The BMO® CashBack® Mastercard®* has a welcome offer that requires additional calculation. On the other hand, its base discount rate isone of the best for grocery expenses. In addition, the frequency of the discount can be paid without waiting for a fixed date.
And even if you currently own one of them, getting the other will diversify your cash back portfolio!
Here is a strategy for one month with a basic accumulation:
- Use your BMO® CashBack® Mastercard®* for groceries, up to a maximum purchase of $500 per statement, to earn 3% cash back.
- For $501 or more in grocery purchases and for the remainder of that month, use the Tangerine Money-Back Credit Card with the 2% category
- Determine your second category of 2% of the Tangerine Money-Back Credit Card based on your second largest budget item and use it for that expense
Finally, you should know that you can use either of these Mastercard credit cards at Costco, but you’ll only get 0.5% cash back. There are better credit cards for Costco here.
If you’ve ever had one of these two cards, what are your comments? Come and indicate them in the Facebook group (link at the bottom of the article).
To see the other cards, check out our ranking of the best cash back credit card offers in Canada.
Come to discuss that topic in our Facebook Group!
