Aeroplan vs BMO Rewards

What Makes These Rewards Programs Different?

Aeroplan and BMO Rewards represent two fundamentally different approaches to credit card rewards in Canada. Aeroplan functions primarily as an airline loyalty program connected to Air Canada and the Star Alliance network, focusing on travel-related redemptions with potentially high-value returns. BMO Rewards operates as a more flexible bank-based program that allows cardholders to redeem points across multiple categories including travel, merchandise, statement credits, and even investment contributions.

The core difference between these programs lies in their redemption structures and point values. Aeroplan points typically yield around 2.1 cents per point when redeemed optimally for flights, particularly for premium cabins or international travel. BMO Rewards offers a more consistent but lower valuation of approximately 0.67 cents per point for travel redemptions, with even lower values for non-travel options.

Your personal spending patterns and lifestyle needs should guide your decision between these programs. Someone who travels frequently with Air Canada might extract maximum value from Aeroplan, while a cardholder who prioritizes everyday spending categories and redemption flexibility might prefer BMO Rewards.

How Aeroplan Structures Its Rewards

Aeroplan rewards center primarily around the Air Canada ecosystem and its extensive partner network. The program allows members to earn points through flights, co-branded credit cards, and partner purchases. These points can then be redeemed for flights, seat upgrades, vacation packages, and merchandise through the Aeroplan store.

The value proposition of Aeroplan becomes particularly attractive when redeeming for premium cabin flights or long-haul international travel. Strategic redemptions can yield values well above the average 2.1 cents per point, especially during off-peak travel seasons or when booking well in advance. This potential for outsized value makes Aeroplan appealing to frequent travelers who understand how to maximize the program's award chart.

Aeroplan credit cards typically offer bonus earning rates on Air Canada purchases and travel-related spending. Many cards also include valuable perks such as free checked bags, priority boarding, and sometimes lounge access depending on the card tier. These additional benefits can significantly enhance the overall value proposition for regular Air Canada customers.

How BMO Rewards Delivers Value

BMO Rewards takes a different approach by focusing on everyday spending categories and flexible redemption options. The program allows cardholders to earn points on all purchases, with accelerated earning rates in popular categories like groceries, dining, gas, and transit depending on the specific card.

Points earned through BMO Rewards maintain a consistent value when redeemed for travel through their portal, with approximately 150 points equaling $1 in travel credit. This straightforward valuation makes it easier to calculate the exact return on your spending compared to more variable airline programs. While the per-point value may be lower than Aeroplan's potential, the higher earning rates on everyday purchases can compensate for this difference.

BMO Rewards cards often include lifestyle credits, welcome bonuses, and insurance benefits that enhance their overall value proposition. The program's flexibility allows cardholders to redeem points for statement credits, gift cards, merchandise, and even contributions to investment accounts, making it suitable for those who want options beyond travel redemptions.

How Do You Earn Points With Each Program?

Understanding the earning structure of each program helps determine which one aligns better with your spending habits. Both programs offer multiple ways to accumulate points, but their emphasis differs significantly based on their core focus.

Aeroplan points accumulate primarily through Air Canada flights, Star Alliance partner flights, and co-branded credit card spending. The earning rate varies based on the distance flown, fare class, and your status level within the program. Co-branded credit cards typically offer 1-1.5 points per dollar on regular purchases and higher rates on Air Canada bookings or travel-related expenses.

BMO Rewards points are earned exclusively through credit card spending, with no direct flight-earning component. Cards like the BMO eclipse Visa Infinite offer accelerated earning rates of up to 5 points per dollar in categories like dining, groceries, gas, and transit, making them particularly valuable for everyday spending. Other purchases typically earn 1 point per dollar, similar to base rates on most rewards cards.

Maximizing Aeroplan Point Accumulation

Aeroplan members can boost their point balances through several strategic approaches:

• Flight earnings: Booking flights with Air Canada or Star Alliance partners generates points based on distance and fare class, with premium cabins earning substantially more.
• Credit card spending: Co-branded cards offer bonus points on Air Canada purchases and sometimes on categories like dining, groceries, or gas stations.
• Transfer partners: Converting points from hotel programs or transferable currencies like American Express Membership Rewards can provide additional earning opportunities.
• Promotional offers: Seasonal promotions, targeted offers, and shopping portal bonuses can accelerate point accumulation during specific periods.

The program particularly rewards those who frequently fly with Air Canada or its partners. Elite status members earn additional bonuses on flights, making the earning potential even higher for loyal customers. Strategic credit card use combined with regular flying creates a powerful earning combination that can quickly build substantial point balances.

Optimizing BMO Rewards Earnings

BMO Rewards focuses on credit card spending as the primary earning mechanism, with particular emphasis on everyday categories:

• Category bonuses: Cards like the BMO eclipse Visa Infinite offer 5x points on dining, groceries, gas, and transit purchases, significantly accelerating point accumulation.
• Welcome bonuses: New cardholders often receive substantial point bonuses after meeting minimum spending requirements, providing a quick boost to rewards balances.
• Authorized user bonuses: Adding supplementary cardholders can generate additional points on some BMO cards, increasing household earning potential.
• Annual spending bonuses: Some premium cards offer additional points after reaching certain annual spending thresholds.

The program particularly benefits consumers whose spending aligns with the bonus categories. Someone who frequently dines out, commutes regularly, and spends significantly on groceries could accumulate points much faster with BMO Rewards than with programs focused primarily on travel spending. The straightforward earning structure also makes it easier to predict and calculate potential rewards.

What Are Your Redemption Options?

The true value of any rewards program lies in how you can use your accumulated points. Both Aeroplan and BMO Rewards offer multiple redemption paths, but their strengths lie in different areas and appeal to different types of consumers.

Aeroplan's redemption options center primarily around travel, with flight redemptions offering the highest potential value. The program uses a hybrid distance-based award chart that determines point requirements based on geographic zones and flight distance. Premium cabin redemptions, particularly for international business or first class, often deliver the highest per-point value, sometimes exceeding 3-4 cents per point.

BMO Rewards provides more diverse redemption options with a straightforward valuation structure. Travel bookings through their portal offer the best value at approximately 0.67 cents per point. Alternative redemptions include statement credits, gift cards, merchandise, and even contributions to investment accounts, though these typically provide lower values ranging from 0.33-0.5 cents per point.

Getting Maximum Value From Aeroplan Points

Strategic redemption of Aeroplan points can significantly increase their effective value:

• Premium cabin bookings: Business and first-class redemptions often provide the highest per-point value, especially for long-haul international flights.
• Partner airline redemptions: Sometimes booking through Star Alliance partners offers better value than direct Air Canada redemptions.
• Off-peak travel: Booking during less busy travel periods can require fewer points for the same routes.
• Stopover opportunities: Aeroplan allows adding stopovers to itineraries, effectively getting multiple destinations for minimal additional points.

The program rewards those willing to plan ahead and research optimal redemption opportunities. Flexibility with travel dates and destinations can substantially increase the value received from your points. The extensive partner network also provides access to destinations worldwide, making Aeroplan particularly valuable for international travelers.

Flexible Redemptions With BMO Rewards

BMO Rewards emphasizes simplicity and flexibility in its redemption structure:

• Travel bookings: Redeeming through the BMO Rewards travel portal provides the best value at approximately 150 points per $1 in travel credit.
• Statement credits: Points can be applied directly to your credit card balance, though at a lower value than travel redemptions.
• Gift cards: Various merchant gift cards are available through the rewards portal, typically at values lower than travel redemptions.
• Investment contributions: Unique to BMO, points can be converted into contributions to BMO investment accounts, providing long-term growth potential.

The program appeals to those who value flexibility and straightforward redemptions over potentially higher but more complex travel values. The ability to use points across multiple categories makes BMO Rewards suitable for a wider range of consumers, including those who may not travel frequently enough to maximize airline program benefits.

What Additional Benefits Come With Each Program?

Beyond the core earning and redemption features, both programs offer supplementary benefits that can significantly enhance their overall value proposition. These additional perks often play a decisive role for consumers choosing between the two programs.

Aeroplan credit cards typically include travel-focused benefits that complement the program's core offering. Depending on the specific card tier, these might include free checked bags on Air Canada flights, priority boarding, lounge access, comprehensive travel insurance, and accelerated qualification for elite status. These benefits can provide substantial value for frequent Air Canada travelers.

BMO Rewards cards offer a different set of perks focused on everyday value and lifestyle benefits. Many cards include annual lifestyle credits, mobile device insurance, extended warranty protection, and various travel insurance components. Premium cards may also provide airport lounge access through programs like Mastercard Airport Experiences.

Aeroplan's Travel-Enhancing Features

Aeroplan's additional benefits focus primarily on improving the travel experience:

• Elite status benefits: Some premium cards help accelerate qualification for Aeroplan Elite Status, which provides perks like priority check-in, complimentary upgrades, and bonus earning rates.
• Airport experiences: Benefits like priority boarding, free checked bags, and lounge access enhance the airport experience for cardholders.
• Travel insurance: Comprehensive coverage often includes trip cancellation/interruption, emergency medical, flight delay, and baggage protection.
• Preferred pricing: Elite members and credit cardholders sometimes access preferred pricing on award flights, requiring fewer points for the same redemptions.

These benefits particularly appeal to frequent Air Canada travelers who can maximize their value through regular use. The cumulative savings from checked bag fees alone can often offset annual card fees for those who fly several times per year, making premium Aeroplan cards cost-effective despite higher annual fees.

BMO Rewards' Everyday Value Additions

BMO Rewards cards complement their flexible redemption structure with practical everyday benefits:

• Annual lifestyle credits: Many cards offer annual credits that can be applied to various purchases, effectively reducing the net annual fee.
• Purchase protection: Extended warranty coverage and purchase protection against damage or theft provide additional security for major purchases.
• Mobile device insurance: Coverage for smartphone damage or theft when the device is purchased or monthly bills are charged to eligible cards.
• Concierge services: Premium cards often include concierge assistance for travel planning, dining reservations, and other lifestyle needs.

These benefits focus on providing everyday value rather than exclusively enhancing travel experiences. The practical nature of these perks makes BMO Rewards cards attractive even for consumers who may not travel frequently, as they can extract value from the program through regular daily spending and protection benefits.

How Do Annual Fees Compare Between Programs?

The cost of participating in these rewards programs varies significantly based on the specific card tier and associated benefits. Understanding the fee structure helps determine whether the potential rewards justify the investment.

Aeroplan credit cards span a wide range of annual fees, from entry-level options around $0-$139 to premium cards commanding $599 or more. Higher-tier cards typically offer more substantial travel benefits, higher earning rates, and additional perks that can offset the fee for frequent travelers. The value proposition depends largely on how often you fly with Air Canada and whether you can maximize the included benefits.

BMO Rewards cards similarly offer multiple fee tiers, ranging from no-fee options to premium cards with annual fees around $120-$499. The fee structure generally correlates with earning rates, redemption values, and additional benefits. Many cards include annual lifestyle credits that effectively reduce the net cost, making even premium cards potentially cost-effective for regular users.

Justifying Aeroplan Card Costs

When evaluating whether an Aeroplan card's annual fee makes sense for your situation, consider:

1. Calculate the value of included travel benefits like free checked bags and lounge access based on your typical annual travel frequency.
2. Estimate the additional points you'll earn through category bonuses compared to a no-fee card alternative.
3. Factor in the value of travel insurance coverage, which might otherwise require separate purchase.
4. Consider welcome bonuses, which can often provide first-year value exceeding the annual fee.

For frequent Air Canada travelers, premium Aeroplan cards often provide value well beyond their annual fees through tangible benefits like lounge access and checked bag allowances. Occasional travelers might find better value in mid-tier or entry-level options with lower fees but still meaningful benefits.

Evaluating BMO Rewards Card Fees

When assessing BMO Rewards cards' fee structures, consider these factors:

1. Determine whether your spending patterns align with the card's bonus categories to maximize point accumulation.
2. Calculate the value of annual lifestyle credits, which directly reduce the effective annual fee.
3. Assess the importance of included insurance benefits based on your typical purchase and travel patterns.
4. Compare welcome bonuses across different card tiers to identify the best short-term value proposition.

BMO Rewards cards often provide good value even for consumers who don't travel frequently, as their earning structures focus on everyday spending categories. The inclusion of annual credits on many cards effectively reduces their net cost, making them accessible options for a wide range of consumers.

Which Program Suits Different Spending Profiles?

Your personal spending habits and lifestyle preferences should ultimately guide your choice between these programs. Different consumer profiles naturally align better with one program over the other based on their specific characteristics.

Frequent travelers who primarily fly Air Canada or Star Alliance partners will typically extract maximum value from Aeroplan. The program's structure rewards those who understand how to optimize redemptions and can be flexible with their travel plans. The additional travel benefits included with premium cards further enhance the value proposition for regular flyers.

Everyday spenders who want straightforward rewards and flexible redemption options often find BMO Rewards more suitable. The program's emphasis on bonus points for common spending categories like groceries, dining, and gas makes it easy to accumulate substantial rewards through regular purchases, even without frequent travel.

Ideal Candidates for Aeroplan

Aeroplan works best for consumers with these characteristics:

• Frequent Air Canada flyers: Those who regularly travel with Air Canada or Star Alliance partners can maximize both point earning and the value of additional card benefits.
• International travelers: People who take multiple international trips annually can benefit from Aeroplan's extensive global partner network and potentially high-value premium cabin redemptions.
• Strategic planners: Consumers willing to research optimal redemption opportunities and plan travel well in advance can extract maximum value from the program.
• Premium cabin aspirations: Those interested in business or first-class travel experiences can achieve these goals more economically through strategic Aeroplan redemptions than by paying cash.

The program particularly rewards loyalty to Air Canada and willingness to learn the intricacies of the redemption system. Consumers who view travel as a passion rather than just transportation often appreciate Aeroplan's potential for aspirational redemptions.

Perfect Matches for BMO Rewards

BMO Rewards typically appeals to consumers with these traits:

• Everyday category spenders: Those who spend significantly on groceries, dining, gas, and transit can rapidly accumulate points through category bonuses.
• Redemption flexibility seekers: People who want options beyond travel redemptions appreciate the ability to use points for statement credits, gift cards, or investment contributions.
• Simplicity valuing consumers: Those who prefer straightforward earning and redemption structures without complex optimization strategies find BMO Rewards more accessible.
• Occasional travelers: Consumers who travel a few times annually but don't want their rewards program exclusively focused on travel benefits can extract good value from BMO Rewards.

The program works well for practical consumers who want rewards that integrate seamlessly into their everyday lives without requiring significant changes to their spending or travel habits. The consistent point valuation also makes it easier to understand exactly what rewards you're earning.

How To Make Your Final Decision

Choosing between Aeroplan and BMO Rewards requires careful consideration of your personal circumstances, spending patterns, and rewards preferences. A systematic approach can help ensure you select the program that will provide maximum value for your specific situation.

Start by analyzing your spending patterns over the past few months to identify your highest expense categories. This data provides crucial insight into which program's earning structure will reward your natural spending habits most effectively. Next, consider your travel frequency and preferences, particularly whether you regularly fly with Air Canada or its partners.

Evaluate how you prefer to use rewards – whether you prioritize travel experiences, practical everyday value, or maximum flexibility. Finally, consider the additional benefits that matter most to you, such as travel insurance, purchase protection, or airport perks, and which program better delivers these features.

Questions To Guide Your Choice

Ask yourself these key questions when deciding between the programs:

1. Do you frequently fly with Air Canada or Star Alliance partners, or is your travel more varied across different airlines?
2. Are your largest monthly expenses in categories like groceries, dining, gas, and transit where BMO Rewards offers bonus points?
3. Do you prefer potentially higher-value but more complex redemptions, or straightforward redemptions with consistent value?
4. How important are additional travel benefits like lounge access, free checked bags, and comprehensive travel insurance?

Your answers to these questions will likely point toward a natural fit with one program over the other. Remember that your optimal choice may change over time as your spending habits and travel patterns evolve, so reassess periodically.

Combining Programs For Maximum Benefits

Some consumers find that using cards from both programs strategically provides the best overall value:

• Use an Aeroplan card specifically for Air Canada purchases and travel spending to maximize point earning in these categories.
• Employ a BMO Rewards card for everyday categories like groceries, dining, gas, and transit where it offers accelerated earning rates.
• Leverage the specific benefits of each program where they provide the most value – Aeroplan for flight redemptions and BMO for flexibility.
• Take advantage of welcome bonuses from both programs to maximize short-term rewards while determining which provides better long-term value.

This hybrid approach requires managing multiple cards but can significantly increase your overall rewards earning. Many savvy consumers effectively use this strategy to maximize returns across different spending categories.

Maximize Your Rewards Potential Today

Choosing between Aeroplan and BMO Rewards ultimately comes down to aligning a program with your personal spending habits, travel patterns, and redemption preferences. Both programs offer substantial value when used strategically, but they cater to different consumer profiles and priorities.

Aeroplan excels for frequent Air Canada travelers and those who value potentially high-return travel redemptions, particularly for premium cabins and international flights. The program rewards those willing to learn its intricacies and plan strategically to maximize value. Additional travel benefits like lounge access and free checked bags further enhance its appeal for regular flyers.

BMO Rewards stands out for its straightforward structure, everyday category bonuses, and flexible redemption options. The program provides consistent value without requiring complex optimization strategies, making it accessible for a wider range of consumers. Its focus on common spending categories allows for rapid point accumulation through regular purchases.

Whichever program you choose, the key to maximizing value lies in understanding its structure and aligning your card usage with your highest spending categories. Take time to analyze your spending patterns, consider your redemption preferences, and evaluate which additional benefits matter most to you. This thoughtful approach ensures you'll select the rewards program that truly maximizes your benefits and enhances your financial life.