Looking for a banking partner that will meet all your needs? BMO could, but they provide low APYs

Illustration of the BMO Harris Bank logo surrounded by a blue and red frame. (Credit: Illustration by Fortune; Original logo by BMO Harris Bank)

BMO, formerly known as BMO Harris, is one of the largest banks in the U.S., with more than 600 branches nationwide. Though it offers many different checking and savings accounts, BMO provides below-average annual percentage yields (APYs) on its accounts.

Founded in 1817 in Canada, BMO is an FDIC-insured bank with locations in several U.S. states. They have various financial products–from money market accounts to credit cards to personal loans.  

BMO offerings

If you’re searching for a full-service bank that meets all your spending and saving needs, you might consider BMO. They have account options that run the gamut, from checking accounts to money market accounts to certificates of deposits (CDs) ranging from three months to five years. Many of these accounts offer meager interest rates, but if you’re searching for a bank that has a variety of products—like mortgages, personal loans, and auto loans—BMO could be a one-stop-shop for all of your banking needs.

Checking and savings accounts 

BMO has three checking accounts: Smart Advantage, Smart Money, and Relationship. Each has a minimum opening deposit of $25 and provides either no interest or very little interest to customers.

You should take note of any fees associated with these checking accounts, as there are many. 

BMO hasn’t done away with overdraft fees, so if you opt for the Smart Advantage or Relationship checking accounts, you’ll have to cough up a $15 fee per item—though you have the option of enrolling in overdraft protection services, like overdraft funding or an overdraft line of credit.

And if you opt for the Smart Money account, you can avoid overdraft fees entirely, as overdraft transactions are automatically declined with this account. You will pay for this advantage, though: the account has a monthly maintenance fee of $5.

All rates and fees are current as of September 13, 2023, and are subject to change. 

BMO Smart Advantage Checking

• Minimum opening deposit: $25
• APY: None
• Monthly maintenance fee: $0
• Non-BMO transactions: $3
• Paper statements: $3 (fee is waived if you’re age 65 or above)
• Check images: $3 
• Overdraft fee: $15 each
• Stop payment fee: $35 per request
• Account closing fee: $50 (if closed within 90 days)
• Outgoing domestic wire transfer: $30
• Outgoing international wire transfer: $50
• Foreign transaction fee: 2.8% of transaction
• Debit or ATM card replacement: $5
• Cashier’s check: $10
• Money order: $5
• Account Balancing / Research: $40 per hour & $15 minimum

BMO Smart Money Checking account

• Minimum opening deposit: $25
• APY: None
• Monthly maintenance fee: $5 (waived if you’re under age 25)
• Non-BMO transactions: $3
• Paper statements: $2 (can opt for paperless, and fee is waived if you’re age 65 or above)
• Check images: $3 (can opt-out)
• Overdraft fee: None (transactions that exceed your account balance are declined)
• Stop payment fee: $35 per request
• Account closing fee: $50 (if closed within 90 days)
• Outgoing domestic wire transfer: $30
• Outgoing international wire transfer: $50
• Foreign transaction fee: 2.8% of transaction
• Debit or ATM card replacement: $5
• Cashier’s check: $10
• Money order: $5
• Account Balancing / Research: $40 per hour & $15 minimum

BMO Relationship Checking

• Minimum opening deposit: $25
• APY: 0.01%
  • $1 million or more: 0.01%
• Monthly maintenance fee: $25 (can be waived if you meet specific requirements: see below)
• Requirements to have the monthly maintenance fee waived:
  • Must meet at least one of the below requirements:
    • Minimum daily ledger balance for the previous month is $10,000 or more
    • Monthly combined balance for the previous month is $25,000 or more
    • Client of employee benefits program, Best of BMO U.S., and have requested the waiver from BMO banker
• Non-BMO transactions: $3
• Paper statements: $2 (can opt for paperless, and fee is waived if you’re age 65 or above)
• Check images: $3 (can opt-out)
• Overdraft fee: $15 per item
• Stop payment fee: $35 per request
• Account closing fee: $50 (if closed within 90 days)
• Incoming wire transfers: free
• Outgoing domestic wire transfer: $30 (eligible for rebates if you’re Gold tier or higher)
• Outgoing international wire transfer: $50 (eligible for rebates if you’re Gold tier or higher)
• Foreign transaction fee: 2.8% of transaction
• Debit or ATM card replacement: $5
• Cashier’s check: $10
• Money order: $5
• Account Balancing / Research: $40 per hour & $15 minimum

Those planning to open multiple accounts with BMO might open a Relationship Checking account. Even though this account boasts additional benefits for those with more money stashed at BMO, this checking account offers a 0.01% APY and has overdraft fees.

The account also provides ATM reimbursements, up to $25 per statement period, but that’s not a huge benefit, considering that the monthly maintenance fee is $25. The maintenance fee can be waived, but customers must maintain a relatively high balance of $10,000 (or a combined balance of $25,000).

Though their checking accounts are less than remarkable, BMO offers generous checking account bonuses on all three of its accounts.

With each checking account, you can access your money for free via any of the more than 40,000 ATMs in BMO’s network.

Savings account 

Customers looking to earn extra cash on money parked in their savings account will likely want to look elsewhere. BMO’s Savings Builder account has an APY of just 0.01%—the national average rate on savings accounts is 43 times that amount. Currently, you can find high-yield savings accounts with APYs above 5%.

The Savings Builder account currently offers new customers an additional perk—if your savings grow by at least $200 every month, you’ll get a $5 savings reward the next month, up to $60.

Savings Builder Account

• Minimum opening deposit: $0.01
• APY: 0.01%
• Monthly maintenance fee: $0
• Compounding frequency: Interest is calculated daily and credited monthly 
• Non-BMO transactions: $3
• Account closing fee: $50 (if closed within 90 days)
• Paper statements: $3 (can opt for paperless and the fee is waived if you’re age 65 or above)
• Outgoing domestic wire transfer: $30
• Outgoing international wire transfer: $50
• Foreign transaction fee: 2.8% of transaction
• Debit or ATM card replacement: $5
• Cashier’s check: $10
• Money order: $5
• Account Balancing / Research: $40 per hour & $15 minimum

BMO savings rates compared to current top rates*

View this interactive chart on Fortune.com

Money market accounts

BMO’s money market, much like their checking and savings account options, offers a less-than-stellar APY. At 1.00%, the APY on the Relationship Plus Money Market account lags far behind some of the highest rates you can find on money market accounts. Also, customers who invest in this account will have to maintain a relatively high daily balance of $5,000 to get the $10 monthly maintenance fee waived. 

Customers with a Relationship Checking account can score a rate bump on their money market account: Customers must maintain a quarterly combined balance of more than $25,000 to receive the higher APY.

 Relationship Plus Money Market

• Minimum opening deposit: $25
• APY: 1.00%
  • If you have a relationship checking account, you could be eligible to earn a higher APY based on your quarter combined balance across eligible deposit accounts and investment balances:
    • $25,000–$99,999.99: 2.02%
    • $100,000–$249,999.99: 3.04%
    • $250,000 or above: 3.56%
• Monthly maintenance fee: $10 (can be waived if you meet certain requirements: see below)
• Minimum balance to have the monthly maintenance fee waived: $5,000 daily balance
• Compounding frequency: Interest is calculated daily and credited monthly 
• Non-BMO transactions: $3
• Stop payment fee: $35 per request
• Account closing fee: $50 (if closed within 90 days)
• Paper statements: $3 (fee is waived if you’re age 65 or above)
• Outgoing domestic wire transfer: $30
• Outgoing international wire transfer: $50
• Foreign transaction fee: 2.8% of transaction
• Debit or ATM card replacement: $5
• Cashier’s check: $10
• Money order: $5
• Account Balancing / Research: $40 per hour & $15 minimum

Certificates of deposit

Though many of BMO’s CDs have measly APYs, their 13-month, 25-month, 35-month, and 59-month CDs offer competitive rates: 5.10%, 4.75%, 4.50%, and 4.50%, respectively. 

Despite offering generous rates on some CDs, BMO has fairly hefty early withdrawal penalties, so if you plan to invest in a CD, be prepared to lose a lot of the interest you’ve earned if you tap your money early.

Key numbers
Term length	APY
3-month	0.05%
6-month	0.05%
9-month	0.05%
12-month	0.05%
13-month	5.10%
18-month	0.05%
24-month	0.05%
25-month	4.75%
30-month	0.05%
35-month	4.50%
36-month	0.10%
45-month	4.50%
48-month	0.15%
59-month	4.50%
60-month	0.25%

• Minimum opening deposit: $1,000
• Compounding frequency: Interest is calculated daily and credited monthly 
• Early withdrawal penalty: Varies by term length
  • 1 month: All interest earned
  • 2 to 11 months: 90 days’ interest
  • 12 to 23 months: 180 days’ interest
  • 24 to 35 months: 270 days’ interest 
  • 36 to 47 months: 365 days’ interest 
• 48 months or longer: 545 days’ interest

Other services BMO offers 

BMO provides many other products—from IRAs to credit cards to lending products like mortgages and personal loans.

• IRAs: BMO offers IRA CDs and an IRA savings account called IRA Premium Savers. The IRA Premium Savers is an interest-bearing account available as a Roth, traditional, or SEP IRA. You’ll need a minimum deposit of at least $1,000 for an IRA CD and $100 for the Premium Savers.
• Credit Cards: They have four types of credit cards: a travel card, a cash-back card, a 0% introductory APR card on new purchases and balance transfers, and a no-annual-fee rewards card.
• Mortgages: BMO offers various types of mortgages such as fixed rate, adjustable rate, low down payment mortgages, refinancing, jumbo mortgages and cross-border mortgages.
• Auto Loans: These loans are available for trucks, boats, RVs, campers, motor homes, and more. Term lengths range from 12 to 20 months, and APRs vary based on loan amount, model year, loan-to-value, term length, and credit history.
• Personal loans: Amounts range from $1,500 to $35,000, with 12 to 60 months repayment terms for personal loans. APRs vary based on loan, amount, repayment term length, and credit history.
• Private Student Loans: BMO provides private student loans through Nelnet Bank. Borrowers can take out up to $125,000 for undergraduate loans and up to $175,000 for graduate or doctorate loans.
• Home equity loans: Home equity loans allow customers to borrow against the value of their homes. By tapping the equity they have in their homes, customers can use that money however they choose. Loan values start at $5,000, and terms range from five to 20 years.
• HELOCs: HELOCs enable customers to tap into their home's equity as needed. Rates on these loans are variable, depending on what state the home is located in, someone’s creditworthiness, the credit limit amount, and the loan-to-value ratio, among other factors.
• Credit builder loan program: You take out a loan (a minimum of $1,000) to purchase a BMO CD with a term length between 24 and 60 months. Once you pay back the loan with regular on-time payments—which allows you to build your credit score—you’ll receive the principal (ie. the amount you initially invested) plus any interest.
• Savings secured loans: These loans allow customers to borrow against money they have in BMO CDs or savings accounts. Doing so allows you to tap your money and avoid early withdrawal penalties or loss of interest. 

The BMO platform and customer support 

Customers can access their BMO accounts online and through BMO  apps, which are available in the Apple App and Google Play stores.

If you need to contact BMO customer service, you can do so via phone or email, depending on the product. You can call them between 7 a.m. and 10 p.m. CT, Monday through Friday, or 8 a.m. to 8 p.m. on Saturdays and Sundays.

Pros and cons of BMO

Pros

• Many types of accounts. BMO is one of the largest banks in the country, and when you bank with them, you get many account options.
• Physical branches. BMO has over 600 branches nationwide, so you can visit the bank in person.
• Low minimum opening deposits for checking and savings accounts. You only have to deposit $25 to open one of their checking or money market accounts. To open a savings account, you can get started with even less: Just one cent.

Cons

• Very low APYs on most accounts. If you’re chasing high yields, BMO has lackluster APYs on their checking, savings, and money market accounts.
• High early withdrawal penalties for CDs. BMO has harsh penalties for touching your CD early.

Frequently asked questions

What does BMO Bank stand for?

BMO is an FDIC-insured bank previously known as BMO Harris. It was founded 1817 as Bank of Montreal.

Is BMO a U.S. bank?

BMO was founded in Canada but now serves customers in the U.S. and Canada.

What is the new name for BMO Bank?

In 2022, BMO Harris Bank was renamed to BMO after it found that many of its customers referred to it simply as ‘BMO’. This change was phased in over a year and a half.