Do you have existing credit card debt that you would like to pay off faster? Are you someone who tends to have a balance on your credit card? Do you need immediate relief from high interest rates?

If you answered yes to any of these questions, then a low interest credit card could be the answer.

The BMO Preferred Rate Mastercard is one of the top low interest credit cards – and could end up saving you hundreds in interest per year. (Tip: To find out exactly how much you’ll save, enter your typical balance in our sidebar calculator – the ‘Max Annual Savings’ calculation will update instantly.)

Here's what this card offers.

BMO Preferred Rate Mastercard permanent low interest rates

Instead of offering rewards, this credit card gives low interest rates instead. You can have a permanent interest rate of only 13.99% on purchases.

Not to mention the introductory balance transfer interest rate of 0.99% for 9 months. And with your savings on interest charges, you should be able to pay down your balance faster.

2 benefits to the BMO Preferred Rate Mastercard

Besides the low interest rates, here are a couple of other things to like about this credit card.

1. Low annual fee

Most low interest credit cards have an annual fee, and this one is no exception.

However, it's quite low – a reasonable $29. This small fee is more than offset by what you can potentially save in credit card interest.

2. Two types of insurance coverage

Even though it's a basic card with low rates, it still provides some insurance.

You'll get Purchase Protection, letting you shop with peace of mind knowing your purchases are covered in the event that they're lost, stolen or damaged within 90 days. You also get one year of Extended Warranty – which kicks in once the manufacturer warranty expires.

2 drawbacks to the BMO Preferred Rate Mastercard

There are a couple of things to be aware of, however.

1. Not the greatest balance transfer offer

If savings from existing debt is what you're after, this card doesn't have the greatest balance transfer offer, with a somewhat higher promotional rate of 0.99% (but with a long 9 months).

In this case, we suggest taking a look at the MBNA True Line^® Mastercard^®, which has a better balance transfer of 0% for 12 months.

2. No rewards on purchases

We love our credit card rewards, but unfortunately this credit card doesn't have any.

Since it's a low interest credit card, it essentially replaces rewards with lower interest rates, giving you savings in another form.

This card is only meant to help those who carry a balance, as the lower rates will save more than any amount of credit card rewards.

Bottom line

For interest savings, you've come to the right place. You'll get low rates on all your purchases and balance transfers, and get a decent promotional balance transfer offer to help save on any existing credit card debt.

But if you pay your balance in full and don't have any credit card debt, there are plenty of other credit cards suited to you.

FAQ

What are the interest rates on the BMO Preferred Rate Mastercard?

The BMO Preferred Rate Mastercard has low permanent rates of 13.99% on purchases. The cash advance and balance transfer rate is 15.99%.

Is there a promotional balance transfer offer with the BMO Preferred Rate Mastercard?

There is! You'll get a low interest rate of 0.99% on balance transfers for the first 9 months you have the card, with a transfer fee of 2% of the amount transferred.

What is the annual fee of the BMO Preferred Rate Mastercard?

The BMO Preferred Rate Mastercard has a low annual fee of $29.