Top Offers of April 23, 2024
You could get over 10 times** the average savings account rate with our featured partners below.
*Annual Percentage Yield
**Accurate as of April 2024, assuming FDIC average savings rate of 0.47% and $2,500 deposit.
BMO Alto CD Rates
BMO Alto offers six CDs with terms ranging from six months to five years. They don’t have a minimum balance or minimum opening deposit, making them accessible to many savers. Each CD term offers an APY that’s more than twice the Federal Deposit Insurance Corp. (FDIC)’s national average interest rates for CDs, which range from 1.52% for a six-month term to 1.38% for a five-year term.
Here’s a look at BMO Alto’s CD terms and APYs:
| CD Term | APY* | Minimum Opening Deposit | $1,000 Deposit Value at Close of CD |
|---|---|---|---|
| 6-month CD | 5.15% | $0 | $1,025.43 |
| 1-year CD | 5.05% | $0 | $1,050.50 |
| 2-year CD | 4.65% | $0 | $1,095.16 |
| 3-year CD | 4.50% | $0 | $1,141.17 |
| 4-year CD | 4.50% | $0 | $1,192.52 |
| 5-year CD | 4.50% | $0 | $1,246.18 |
BMO Alto CD: Who It’s Best For
BMO Alto’s CDs are designed for those looking to grow their savings securely during fixed terms. Here’s a look at who might benefit the most from opening a CD with BMO Alto and why:
- Savers looking for the best CD rates: BMO Alto offers high rates that are competitive with the best CD rates available.
- New savers: A BMO Alto CD can be a great choice for someone just beginning their savings journey since they don’t have a minimum deposit or minimum balance requirement.
- Risk-averse investors: If you prefer a safe investment without the ups and downs of the stock market, these CDs offer guaranteed growth and FDIC insurance.
- Savers with personal finance goals: Whether you’re saving for a down payment on a home or planning a major purchase, BMO Alto’s CDs can help you plan for financial goals, ensuring your account matures exactly when needed.
- People comfortable with online banking: BMO Alto doesn’t have bank branches or a mobile app, so you’ll have to use its website to manage your account.
BMO Alto CDs: Additional Information
Here are the details on BMO Alto’s CDs, including minimum deposits, fees and possible penalties.
Minimum Deposit
There’s no minimum deposit required to open a CD with BMO Alto, but you’ll need to fund the account within 10 days or it’ll be closed automatically.
Monthly Fees
BMO Alto doesn’t charge any monthly fees for opening or maintaining a CD account.
Compounding Schedule
The interest on BMO Alto CDs is compounded daily and is credited to your account on the last day of the month and at maturity.
Early Withdrawal Penalty
The penalties for withdrawing funds from your CD before the maturity date are as follows:
- For terms of 11 months or less: 90 days of interest
- For terms of one year or more: 180 days of interest
When your CD matures, you’ll have a 10-day grace period from the maturity date to make a withdrawal without penalty.
FDIC Insurance
BMO Alto’s CDs are insured by the FDIC up to $250,000 per depositor, per ownership category, providing a secure way to save.
BMO Alto CD Rates vs. Other Top Banks
BMO Alto offers a higher interest rate on its one-year CD term than the five online and brick-and-mortar banks we compared it to. And unlike Chase, Citibank and Discover, it doesn’t have a minimum opening deposit requirement.
Here’s how BMO Alto compares to five other major financial institutions:
| Bank | APY on 1-Year CD* | Minimum Opening Deposit | $2,500 Deposit Value at Close of CD |
|---|---|---|---|
| BMO Alto | 5.05% | $0 | $2,626.26 |
| Capital One | 4.90% | $0 | $2,622.49 |
| Chase | 0.01% (standard rate) 2.00% (relationship rate) | $1,000 | $2,500.25 (standard rate) $2,550 (relationship rate) |
| Citibank | 0.05% (no-penalty CD) 2.00% for balances below $100,000 (fixed-rate CD) | $500 | $2,501.25 (no-penalty CD) $2,549.95 (fixed-rate CD) |
| Discover | 4.70% | $2,500 | $2,617.51 |
| Synchrony | 4.90% | $0 | $2,622.15 |
Additional Ways To Save With BMO Alto
Apart from its CDs, BMO Alto offers one high-yield savings account with similar benefits. It doesn’t offer any other deposit accounts, such as money market accounts or checking accounts.
BMO Alto Online Savings Account
The BMO Alto Online Savings Account offers an APY that’s more than 10 times higher than the 0.47% national average interest rate for savings accounts.
This bank account is particularly appealing for its accessibility: There are no monthly fees, no minimum opening deposit requirements and no minimum balance. BMO Alto’s high-yield savings account also offers unlimited transfers and withdrawals.
| BMO Alto Account | APY* | Minimum Opening Deposit | Monthly Fee |
|---|---|---|---|
| BMO Alto Online Savings Account | 5.10% | $0 | $0.00 |
The Bottom Line: Is a BMO Alto CD Right For You?
BMO Alto offers six CD terms with high APYs, catering to both short-term savers and those looking for longer investment options. The online bank’s CDs are also accessible for a wide range of savers since there’s no minimum deposit requirement.
Whether you’re saving for a specific purchase, building an emergency fund or planning for the future, a high-yield BMO Alto CD can help you achieve your financial goals.
FAQ: BMO Alto CD Rates
Yes, BMO Alto is an online bank, which allows it to offer higher rates than many traditional brick-and-mortar financial institutions since it doesn’t have the overhead costs of maintaining branches. BMO Alto customers can’t get service at BMO branch locations, as the two banks operate separately.
Yes, BMO Alto is available in every state. Because BMO Alto is an online-only bank and doesn’t have a mobile app, customers can only access their accounts through the bank’s website.
Yes, BMO Alto is FDIC-insured up to the maximum legal amount of $250,000 per depositor, per account category and per bank.
*Data accurate at time of publication
**Rates accurate as of April 16, 2024
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
Rashawn MitchnerManaging Editor
Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance and insurance topics.
