Best BMO Savings accounts, compared
The Bank of Montreal (BMO) is one of Canada’s Big 6 Banks, with more than 900 branches in Canada and more than 1,000 branches in the United States.
Like all big banks, you can expect a slew of top notch products and services geared toward helping you save, spend and invest.. With BMO, you’ll find chequing accounts, investment accounts, lending products, mortgages and – as this article will focus on – savings accounts.
We’ve done the research so you can understand the ins and outs of BMO’s savings accounts and find the right one for you.
My top pick
The BMO’s Savings Builder high interest savings account is a unique offering among big bank savings accounts.
The thing that makes the Savings Builder account interesting is its bonus interest rate structure. While its base interest rate is only 0.4%, customers who deposit at least $200 per month will earn 2% interest on their balance. Not bad.
We’ll break down the details of this account, and other BMO high interest savings accounts, below.
Best BMO saving accounts
If you’re in the market for a BMO savings account, here’s everything you need to know.
BMO Savings Amplifier Account
- Monthly fee: $0
- Interest rate: 1.55%
- Minimum balance: $0
- Number of transactions: Unlimited no fee self-serve transfers to other BMO accounts
The Savings Amplifier Account is a no frills, cheap savings account meant to be a place to stash short- and potentially long-term savings. The liquid nature of the account (meaning it’s super easy to access funds) makes it a great place to store vacation savings or an emergency fund – while also earning a bit of interest.
The account has no monthly maintenance fee, no minimum opening deposit, and no fees for electronic transfers to other BMO accounts. However, there is a $5 fee for pre-authorized debits, cash withdrawals and transfers made in-branch or through telephone banking.
Pros
-
No minimum balance
-
No monthly fees
-
Unlimited transactions to other BMO accounts
Cons
-
Low interest rate compared to others in the market
BMO Savings Builder Account
- Monthly fee: $0
- Interest rate: 0.4% base interest rate, 2% bonus interest rate
- Minimum balance: $0
- Number of transactions: One free transfer out of the account
The bonus interest rate is the main feature of this account, offering customers 2% interest on their balance if they make a deposit of at least $200 per month.
The major drawback to this account is its limited transactions, offering just one free transaction per month. For each additional withdrawal or transfer, a fee of $5 is charged.
Pros
-
No minimum balance
-
No monthly fees
-
Nice bonus interest rate of 2%
Cons
-
Limited transactions – only one free withdrawal or transfer out per month
BMO Premium Rate Savings Account
- Monthly fee: $0
- Interest rate: 0.01%
- Minimum balance: $0
- Number of transactions: Shared with chequing account
The BMO Premium Rate account is meant to be paired with a BMO chequing account – in fact, you can only open one if you have a chequing account unless you physically visit a branch. The neat thing is that you share transaction limits with both accounts. So, if you have an unlimited chequing account, you can withdraw an unlimited amount of times from your savings account.
There’s a tradeoff, however. And that’s the low interest you’ll earn with this account. If earning interest is important to you, this is likely not the best account for you.
Pros
-
No minimum balance
-
No monthly fee
-
High number of transactions, depending on the chequing account you pair it with
Cons
-
Low savings interest rate
-
Requires a BMO chequing account as well
BMO U.S. Dollar Premium Rate Savings Account
- Monthly fee: $0
- Interest rate: 0.05%
- Minimum balance: $0
- Number of transactions: Shared with chequing account
Are you a frequent traveller to the United States? If so,the U.S. Dollar Premium Rate Savings Account might be just what you need. With no minimum balance and no fees, you can pair it with your BMO chequing account, stash your American cash, and share transactions between accounts.
Think of this as the U.S. funds equivalent of the Premium Rate Savings Account, so the same pros and cons apply.
Pros
-
No minimum balance
-
No monthly fee
-
High number of transactions, depending on the chequing account you pair it with
-
A place to save your U.S. funds
Cons
-
Low savings interest rate
-
Requires a BMO chequing account as well
The BMO Family Bundle
BMO offers an interesting account option for families: its Family Bundle. With it, families can save money on fees while also enjoying their own private accounts.
With the Family Bundle, one person, typically a parent, can open an account and pay the necessary fees. Then, they can add up to three family members. The great part is that fees for those accounts are waived.
Summary of best BMO saving accounts
| Product name | Monthly fee | Interest rate |
|---|---|---|
| BMO Savings Amplifier Account | $0 | 1.55% |
| BMO Savings Builder Account | $0 | 0.4% or 2% |
| BMO Premium Rate Savings Account | $0 | 0.01% |
| BMO U.S. Dollar Premium Rate Savings Account | $0 | 0.05% |
BMO savings accounts reviews
Reviews, as with most online opinions, are varied. To get a sense of how people feel about BMO’s savings accounts, we looked at user feedback in online forums, such as Reddit. While opinions differ, there are a few common themes.
One Reddit user posted asking for advice on which BMO account to choose, and one response suggested having a reasonable expectation of what you’ll get out of any savings account. “It's a savings account. Your money isn't invested in anything, there's no risk,” one user wrote. “If the bank goes bust tomorrow, your money is insured (up to 100k). So just pick the one that gives you the best rate. If you're able to put in $200/month, then the [BMO Savings Builder Account] one will give you the best rate.”
While the advice might not be a silver bullet for everyone, it’s a great general rule of thumb when considering savings accounts.
The key takeaway from online threads is that BMO, like all big banks, is a safe place to keep your money. However, there are options out there with higher interest rates and more perks, if you’re willing to go with a smaller, fintech company like KOHO or Wealthsimple. More on other options below.
How to open a BMO savings account
- Complete the application online – make sure to have your social insurance number handy
- Get approved in a matter of minutes
- Start banking online instantly. Your debit card will be mailed and you should receive it in a matter of weeks
BMO savings account compared
BMO Savings Amplifier Accounts Vs. KOHO Essential Plan
The BMO Savings Amplifier is a standard big bank savings account. It’s solid but fairly no frills, with no monthly fee and will earn you 1.55%.
The KOHO Essential Plan offers a variety of perks, all for free.You earn 1% cash back on groceries, dining (includes restaurants, food delivery, bars, coffee shops and more), and transportation — everything from your transit card top-up, train or bus ticket, gas purchases, Ubers and more (not flights or cruises — think daily commutes), along with 3.5% interest on your balance.
That’s a lot of perks packed into an account you can essentially get for free.
KOHO Essential
3.9
Poor
Suggested credit scoreto receive the latest news, tips and offers by email
Pros
-
A no-fee account option
-
Earn up to 5% cash back on your purchases
-
Accepted worldwide, wherever Mastercard is accepted
-
Three account tiers, so there’s something for everyone
-
Earn interest on your account
-
RoundUps feature helps you save
-
Financial coaching is available
-
Features like Credit Building (to help you build your credit history) and Cover (to protect you from overdrawing your account)
-
Compatible with Apple Pay
-
Joint account option for families and couples
Cons
-
No physical branches or tellers
-
No RRSP, TFSA or RESP accounts
-
Customer service not on par with the big banks
-
Missing some banking features, like wire transfers, currency exchanges and multiple lines of business like financial planning, mortgages and insurance
Eligibility
Poor
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Poor
Required Annual Personal Income
$0
Required Annual Household Income
$0
1%
cash back on groceries, eating & drinking, and transportation
3.5%
interest earned on your account balance
up to 5%
extra cash back at selected merchants
cash back on groceries, eating & drinking, and transportation
1%
interest earned on your account balance
3.5%
extra cash back at selected merchants
up to 5%
$48
Annual Fee $4/month ($0 annual fee when you set up a recurring direct deposit or make a monthly contribution of $1,000 or more to the card)
1.5%
Foreign Transaction Fee 1.5% FX fee
Annual Fee
$48
Foreign Transaction Fee
1.5%
Pros
-
A no-fee account option
-
Earn up to 5% cash back on your purchases
-
Accepted worldwide, wherever Mastercard is accepted
-
Three account tiers, so there’s something for everyone
-
Earn interest on your account
-
RoundUps feature helps you save
-
Financial coaching is available
-
Features like Credit Building (to help you build your credit history) and Cover (to protect you from overdrawing your account)
-
Compatible with Apple Pay
-
Joint account option for families and couples
Cons
-
No physical branches or tellers
-
No RRSP, TFSA or RESP accounts
-
Customer service not on par with the big banks
-
Missing some banking features, like wire transfers, currency exchanges and multiple lines of business like financial planning, mortgages and insurance
Eligibility
Poor
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Poor
Required Annual Personal Income
$0
Required Annual Household Income
$0
1%
cash back on groceries, eating & drinking, and transportation
3.5%
interest earned on your account balance
up to 5%
extra cash back at selected merchants
cash back on groceries, eating & drinking, and transportation
1%
interest earned on your account balance
3.5%
extra cash back at selected merchants
up to 5%
$48
Annual Fee $4/month ($0 annual fee when you set up a recurring direct deposit or make a monthly contribution of $1,000 or more to the card)
1.5%
Foreign Transaction Fee 1.5% FX fee
Annual Fee
$48
Foreign Transaction Fee
1.5%
BMO Savings Amplifier Account Vs. EQ Bank
BMO’s no fee option and low 1.55% interest makes the Savings Amplifier Account, as we’ve said, low fee but low reward. EQ Bank, however, will give you 3.75% interest (if you set up direct deposit; otherwise, they’ll give you 2.00%) and also has no fees. Similar to KOHO’s account, EQ’s acts like a hybrid chequing/savings account as well — so you can tap to your heart’s content while also building some serious interest.
While BMO's Savings Amplifier Account keeps fees at bay, its low interest rate won't help your savings grow much over time.
If you're serious about growing your money and want an account that blends convenience with high returns, EQ Bank's hybrid chequing/savings structure could be the ideal fit.
Go with EQ BankBMO Savings Amplifier Account Vs. TD Every Day Savings Account
We’ll cut to the chase: TD Bank and the Every Day account does everything BMO’s account does but not quite as well – at least when it comes to the interest you’ll earn. With BMO’s account, you’ll earn 1.55%. With TD’s, you’ll earn 0.01%. So, obviously, BMO wins here. Both are well-established, safe places to stash your money and big bank savings accounts play well with big bank chequing accounts: Meaning, if you have an existing BMO chequing account, it might make sense to also have a BMO savings account. The same can be said for TD.
Frequently asked questions
Justin is a writer and editor who has been covering personal finance for over 10 years. He's written for companies such as KOHO, Ratehub, BMO, Zoocasa, and Questrade, among others. Justin also created a course in Content Creation, which he taught at York University for four years. When not writing, Justin can be found at a live concert, on the golf course, riding a motorcycle, or sailing.
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