Table Of Content
BMO Bank offers a few different CD options for people to choose from. These CDs offer competitive APY, varied term lengths, FDIC insurance, and easy deposit options. This article will be focusing on the ins and outs of CDs offered at BMO Bank.
BMO CDs
APY Range
Minimum Deposit
Our Rating
Terms
How BMO Bank CDs Work?
BMO offers a few different options when it comes to CD rates.
Furthermore, you will be protected from market volatility no matter what period length you choose. The standard CD terms start at three months and are capped at 5-year terms. The standard CD minimum deposit amount is $1,000.
Depending on the time of the year, BMO offers special CDs at different rates than the traditional ones. There is a $1,000 minimum deposit and you can find 13, 25, 35, 45, and 59-month term lengths.
What Are The BMO Bank CD Rates?
As of June 2024, there is no significant difference between 12 months and 60 months – the APY is quite similar. However, the BMO special CDs offer competitive rates and offer terms for both the medium and long run.
However, when it comes to short-term CDs, it lacks good options. For example, if you need a high 3-month CD rate, you won't be able to get it with BMO.
Here are the current rates:
CD Term | APY | Minimum Deposit |
|---|---|---|
3 Months | 0.05% | $1,000 |
6 Months | 0.05%
| $1,000 |
9 Months | 0.05%
| $1,000 |
12 Months | 0.05%
| $1,000 |
18 Months | 0.05%
| $1,000 |
24 Months | 0.05%
| $1,000 |
30 Months | 0.05%
| $1,000 |
36 Months | 0.10%
| $1,000 |
48 Months | 0.15% | $1,000 |
60 Months | 0.25%
| $1,000 |
13 Months | 4.90% | $1,000 |
25 Months | 4.40% | $1,000 |
35 Months | 4.30% | $1,000 |
45 Months | 4.30% | $1,000 |
59 Months | 4.30% | $1,000 |
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How Much Can You Earn If You Deposit $100,000 Today?
In case you deposit $100,00 to BMO Bank, here are the expected earnings (before tax) in case the interest is compounded daily:
CD Term | APY | Interest Earned |
|---|---|---|
3 Months | 0.05% | $12
|
6 Months | 0.05%
| $25
|
9 Months | 0.05%
| $37
|
12 Months | 0.05%
| $49
|
18 Months
| 0.05%
| $74
|
24 Months | 0.05%
| $99
|
30 Months | 0.05%
| $247 |
36 Months | 0.10%
| $296
|
48 Months | 0.15% | $594
|
60 Months | 0.25%
| $1,992 |
13 Months | 4.90% | $5,375 |
25 Months | 4.40% | $9,462 |
35 Months | 4.30% | $13,167 |
45 Months | 4.30% | $17,238 |
59 Months | 4.30% | $23,184 |
Are BMO Bank CD Rates Competitive Compared to Other Banks?
When compared to other banks, BMO typically offers more choices for their CD terms (length of contract). Furthermore, the CD yields are competitive and are above the national average for CD rates. When compared to online banks, the CD APY is typically in line with BMO CDs compared to online banks.
Online banks CD rates are usually high as there is less overhead for the online bank since they do not have to pay as many employees, own a building, maintain the building, or have any of the usual expenses associated with running a traditional bank.
Furthermore, online banks offer better rates simply because they need to attract and keep customers who usually go to a traditional bank.
CD APY Range | Minimum Deposit | |
|---|---|---|
Marcus | 3.90% – 5.10% | $500 |
First Internet Bank | 4.14% – 5.26% | $1,000 |
Barclays Bank | 3.50% – 5.00% | $0 |
PNC Bank | 5.05% | $1 |
Quontic Bank | 4.30% – 5.05% | $500 |
PenFed Credit Union | 2.00% – 4.35% | $1,000 |
Alliant Credit Union | 5.08%-5.20% | $1,000 |
Sallie Mae | 5.00% – 5.10% | $2,500 |
Bread Financial | 4.25% – 4.75% | $1,500 |
Capital One | 3.90% – 5.00% | $0 |
Chase Bank | 3.00% – 4.75% | $1,000 |
Discover Bank | 3.75% – 4.30% | $2,500 |
CIT Bank | 0.30% – 3.50% | $1,000 |
Ally Bank | 3.00% – 4.50% | $0 |
Citi Bank | 0.05% – 4.75% | $500 |
Connexus Credit Union | 3.51% – 4.85% | $5,000 |
Merrick Bank | 4.20% – 5.40% | $25,000 |
Fidelity | 4.65% – 5.40% | $1,000 |
Charles Schwab | 5.35% – 5.51% | $1,000 |
Vanguard | 4.90% – 5.50% | $1,000 |
BMO Harris | 0.05% – 4.50% | $1,000 |
Wells Fargo | 4.25%- 4.75% | $2,500 |
Synchrony Bank | UP TO 5.10 % | $0 |
Citizen Bank | 2.75% – 5.25% | $1,000 |
TD Bank | 1.00% – 5.00% | $250 |
Navy Federal | 4.70% | $1,000 |
LendingClub | 4.00% – 5.15% | $2,500 |
BMO Bank CDs vs Savings
While CDs and savings accounts offer interest rates, they differ in their rates, minimum requirements, fees, benefits, and withdrawals.
Savings accounts offer a lower APY of 0.01%, while CD rates are anywhere between 0.05% – 4.50%. The savings rates are lower since it does not have any maintenance fees and the accessibility of their money while it is in the savings account. However, it's lower rates than the rates you can find in other high-yield savings accounts.
CDs require individuals to keep their money deposited throughout the length of the term, while savings accounts allow people to have access at any point after it is deposited. It should be noted however that too many withdrawals within a period could lead to fees.
For minimum requirements, the savings account could be opened with a minimum of $25, and there will be a $5 monthly charge if the balance falls below $100. The CD minimum deposit ranges anywhere from $1,000 to $5,000, depending on the CD you choose.
About BMO Bank
BMO Bank is an American based financial institution that is based in Chicago, Illinois. The bank operates in Illinois, Indiana, Arizona, Missouri, Minnesota, Kansas, Florida, Wisconsin, and California.
If you want to know more about the bank, you can take a look at our BMO Bank rating for 2024.
FAQs
Does BMO Bank Offer No Penalty CD Rates?
BMO does not offer no-penalty CD, they currently only offer standard CDs, online CDs, Add-on, bump rate, and step rate CDs.
If you are interested in no-penalty CDs, take a look at our best banks with no penalty CD list.
Does BMO Bank Offer promotions on CDs?
BMO offers CD specials for automatic renewal CDs based on the maturity date. For example, a 7 month CD special will automatically renew to a 6 month standard CD.
Does BMO Bank CDs come with a grace period?
BMO does offer a grace period of ten calendar days after the maturity date to withdraw funds without being charged an early withdrawal penalty.
If the CD is closed during the grace period you will not earn interest after the maturity date. BMO will send a pre-maturity reminder and a confirmation of the renewal.
How BMO Bank CDs interest are calculated?
Early withdrawal penalties are calculated using the interest rate that is applicable to the CD at the time of early withdrawal.
If the amount of the penalty goes over the amount of your accrued and unpaid interest, there will be a reduction of principal to pay the penalty.
How does the BMO Bank early withdrawal penalty work?
Early withdrawal penalties are calculated using the interest rate applicable towards the CD at the early withdrawal time.
If the amount of the penalty goes over the amount of your accrued and unpaid interest, there will be a reduction of principal to pay the penalty.
How We Rate Certificates of Deposits: Our Methodology
The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:
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CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.
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CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.
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Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.
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Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.
