Amex Cobalt vs BMO Cashback World Elite Mastercard: Which Is Better for You?

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When choosing the right credit card, you want something that fits your lifestyle and spending habits. Two popular choices in Canada are the Amex Cobalt Card vs. BMO Cashback World Elite Mastercard. Both cards offer valuable rewards, perks, and benefits, but which one is better for you?

In this post, we’ll break down everything you need to know about these two credit cards so that you can make an informed decision. We’ll compare the rewards, fees, perks, and more. Let’s dive in!

1. Overview of the Amex Cobalt Card

The Amex Cobalt Card is a popular option for those who love earning rewards on everyday spending, particularly dining, groceries, and travel. The card stands out for its excellent point-earning potential and flexibility in redeeming rewards.

Key Features:

  • 5x points on dining and food delivery
  • 3x points on streaming services
  • 2x points on travel, transit, and gas
  • 1x point on all other purchases
  • Welcome bonus: Earn 2,500 points each month, and spend $500, up to 30,000 points in your first year.
  • Annual fee: $156/year ($12.99/month)

The points earned with the Cobalt card can be redeemed for various things, including travel, merchandise, and even statement credits. One of the biggest perks of this card is how much you can save on travel if you redeem your points strategically.

Pros of the Amex Cobalt Card:

  • High rewards on dining and travel: This card’s rewards are fantastic if you are fantastic 
  • Flexible rewards redemption: Points can be used for travel, shopping, or credits toward your balance.
  • Travel insurance: Comprehensive insurance for travel, rental cars, and lost baggage is included.

Cons of the Amex Cobalt Card:

  • Limited acceptance: Since it’s an American Express card, it may only be accepted at some retailers, especially smaller merchants.
  • Monthly fee: While the monthly payment is manageable, it adds up to more than some annual fee cards over time.

2. Overview of the BMO Cashback World Elite Mastercard

The BMO Cashback World Elite Mastercard is excellent for those looking to maximise cashback on everyday purchases. It offers solid cashback rewards and some notable perks for frequent travellers.

Key Features:

  • 5% cash back on groceries
  • 4% cashback on transit, gas, and electric vehicle charging
  • 3% cash back on dining, entertainment, and recurring bill payments
  • 1% cash back on all other purchases
  • Welcome offer: Get 10% cashback on all purchases up to $2,600 for the first three months.
  • Annual fee: $120 (waived for the first year)

The cashback is easy to redeem. You can have it deposited into your BMO account or applied directly to your credit card balance.

Pros of the BMO Cashback World Elite Mastercard:

  • Generous cashback rates: You can earn significant cashback, particularly on groceries and transit, making it ideal for everyday use.
  • No foreign transaction fees: Travelling abroad won’t be charged the standard 2.5% foreign transaction fee.
  • Travel insurance: The card comes with travel insurance, including trip cancellation, trip interruption, and emergency medical coverage.

Cons of the BMO Cashback World Elite Mastercard:

  • High-income requirement: To qualify, you need a personal income of at least $80,000 or a household income of $150,000.
  • Annual fee: The $120 annual fee can be high, though it is waived for the first year.
  • Lower travel rewards: While the cashback is excellent, it offers fewer travel-specific rewards than other premium cards.

3. Rewards Comparison: Amex Cobalt vs. BMO Cashback World Elite

When comparing rewards, it on what type of spending you do most.

  • Amex Cobalt is fantastic if you spend a lot on dining and travel. With 5x points on restaurants and food delivery and 2x on travel-related expenses, it’s designed for those who value experiences and travel.
  • BMO Cashback World Elite, on the other hand, is perfect for those who prioritise groceries and transportation costs. The 5% cashback on groceries and 4% on transit and gas means you can quickly accumulate cashback for everyday essentials.

Both cards offer valuable rewards, but the Amex Cobalt card leans toward lifestyle and travel rewards, while the BMO Cashback World Elite card is best for practical, everyday cashback.

4. Fees Comparison

  • Amex Cobalt: The fee is $12.99 per month, which totals about $156 annually.
  • BMO Cashback World Elite: The card has an annual fee of $120, which is waived for the first year.

Regarding fees, the BMO Cashback World Elite is ahead, especially with the first year’s fee waiver. However, if you plan to travel frequently and maximise your points, the Amex Cobalt’s monthly fee might be worth it.

5. Perks and Additional Benefits

Both cards offer vital additional perks, though they cater to different needs.

  • Amex Cobalt offers comprehensive travel insurance, including coverage for trips, rental cars, and lost baggage. You’ll also enjoy exclusive access to events and offers through the American Express network.
  • BMO Cashback World Elite also offers travel insurance and no foreign transaction fees, saving you money when travelling internationally. You can also access BMO’s World Elite travel perks, such as VIP airport lounge access and concierge services.

6. Final Verdict: Which One Is Right for You?

Both cards are great, but the choice depends on your spending habits and lifestyle.

  • Choose the Amex Cobalt Card if you love to dine out, travel frequently, and want flexible rewards that you can use toward various things like travel, gift cards, or statement credits. The high rewards rates on dining and travel-related purchases make this card an excellent option for frequent travellers and food lovers.
  • Choose the BMO Cashback World Elite Mastercard if you prioritise cashback on everyday purchases, especially groceries and transportation. The 5% cash back on groceries is unbeatable for families and frequent shoppers, and the no foreign transaction fees make it a solid choice for international travellers.

Ultimately, the Amex Cobalt and BMO Cashback World Elite Mastercard offer significant value. It all comes down to how you prefer to be rewarded: travel points or cold, hard cash back.

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