BMO's high-interest savings options and current rates
BMO offers high-interest savings accounts, but the rate you receive depends on the account type and how you bank with them. BMO's main high-interest savings product is the BMO High Interest Savings Account, which is available online and through some branches. The interest rate on this account changes regularly based on market conditions, so you should check BMO's website or call 1-800-363-9992 to see the current rate before opening.
BMO also offers savings rates through other products: the BMO SmartSaver Account (a basic savings account with a lower rate), and promotional rates on certain deposit products that vary by season. If you hold a BMO chequing account or have a mortgage with them, you may see different rates than a new customer would. Rates are not the same across all BMO branches or online platforms, so comparing the specific rate offered to you matters.
The rate BMO advertises is an annual percentage rate (APR). Interest is usually calculated daily and paid monthly or quarterly, depending on the account. You can move money in and out without penalty, though some accounts limit the number of withdrawals per month before fees apply.
Key Takeaways
- BMO's High Interest Savings Account rate changes regularly and varies by customer type, so you must check the current rate directly with BMO before deciding to open.
- Interest is calculated daily and paid monthly or quarterly, and you can withdraw money anytime without early-withdrawal penalties.
- BMO may offer different rates to existing customers, new customers, or those with other BMO products, so ask what rate applies to your situation.
- Some BMO savings accounts limit free withdrawals per month, so read the account terms to understand any fees that might apply.
How BMO's high-interest savings account works
When you open a BMO High Interest Savings Account, you deposit money and earn interest on the balance. The interest rate is variable, meaning BMO can change it at any time—usually when the Bank of Canada changes its policy rate. You do not have to do anything to earn the interest; it accrues automatically based on your daily balance.
Money deposited into the account is insured by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per depositor per institution. This means if BMO fails, your savings up to that limit are protected. If you have multiple accounts at BMO (such as a joint account), each is insured separately up to $100,000.
You can access your money through online banking, mobile app, ATM, or in-branch withdrawal. Some BMO savings accounts allow unlimited deposits but limit free withdrawals to a set number per month (often three to six). After that limit, you may pay a fee per withdrawal. Check the specific account terms when you open, because limits vary by account type.
Comparing BMO's rates to other banks
BMO's high-interest savings rate is one of many available in Canada. Other major banks like RBC, TD, and Scotiabank offer their own high-interest savings accounts, and online-only banks (such as Tangerine, EQ Bank, and Simplii Financial) often advertise higher rates because they have lower overhead costs. The difference between BMO's rate and a competitor's rate can be significant—sometimes 0.5% to 1.5% annually—which adds up over time on larger balances.
To compare fairly, look at the actual rate each bank is offering right now, not the rate from last month or last year. Rates change frequently. Also check whether there are any conditions: some banks offer a promotional rate for the first few months, then drop to a lower rate. Others offer higher rates only if you meet certain conditions, like maintaining a minimum balance or having a linked chequing account.
If you value convenience and already bank with BMO, the rate difference might be worth staying put. If you are moving money specifically to earn more interest and have no other BMO products, comparing rates across at least three banks takes 15 minutes and could earn you hundreds of dollars more per year on a large balance.
When to use a high-interest savings account versus other options
A high-interest savings account works best for money you want to keep safe and accessible but do not need immediately. Common uses include an emergency fund (three to six months of expenses), a down payment you are saving for, or money set aside for a known expense in the next one to three years. The interest rate is higher than a regular savings account, but lower than you might earn from stocks or bonds.
If you need the money within weeks or months, a high-interest savings account is better than a GIC (may provide investment certificate), because GICs lock your money away for a fixed term and charge a penalty if you withdraw early. If you will not need the money for five or more years and can tolerate some risk, investing in a diversified portfolio might earn more over time, though the value can go down as well as up.
High-interest savings accounts are not the right choice if you are trying to grow wealth long-term or if you need the money to stay in a chequing account for daily spending. They are also not ideal if you have a very small balance (under $1,000), because the interest earned will be minimal.
How to open a BMO high-interest savings account
You can open a BMO High Interest Savings Account online, by phone, or in person at a BMO branch. Online is usually fastest—you can complete the process in 10 to 15 minutes on BMO's website. You will need to provide your name, date of birth, address, phone number, and email. BMO will verify your identity using information from your credit file or by asking security questions.
If you already have a BMO chequing account, opening a savings account is faster because BMO already has your information on file. You can often link the accounts immediately and transfer money between them. If you are a new BMO customer, the process takes slightly longer because BMO must verify your identity more thoroughly.
Once the account is open, you can deposit money by transferring from another bank account, depositing a cheque through mobile deposit, or visiting a branch with cash. The first deposit can usually be made the same day you open the account online. Interest starts accruing on the balance immediately.
Fees and account limits to know
BMO's High Interest Savings Account typically has no monthly fee, no minimum balance requirement, and no fee to open or close the account. However, some accounts charge a fee for each withdrawal beyond a certain number per month. The fee is usually $1 to $2 per excess withdrawal, and the limit is often three to six free withdrawals monthly.
If you plan to withdraw money frequently, check whether the account you are opening has withdrawal limits. Some BMO savings accounts have no limit on withdrawals, but these may offer a lower interest rate. It is a trade-off: more access, lower rate; fewer free withdrawals, higher rate.
If your balance exceeds $100,000, only the first $100,000 is covered by CDIC insurance. If you have more than that to save, you could split it across multiple banks (each insured up to $100,000), open a joint account at BMO (which gets its own $100,000 coverage), or explore other CDIC-insured products.
What happens to your money if BMO changes its rate
BMO can change the interest rate on your account at any time, and you will not receive advance notice in most cases. When the rate changes, your new interest earnings will reflect the new rate immediately. You are not locked into a rate, which is why it is called a variable-rate account. This is different from a GIC, where the rate is fixed for the term.
If BMO lowers the rate and you are unhappy, you can move your money to another bank's high-interest savings account. There is no penalty for closing a BMO savings account. You can transfer the balance to another bank within a few business days. Some people move their money when rates drop significantly, chasing the highest available rate across banks.
If you want a may provide rate that will not change, BMO offers GICs with fixed rates for terms ranging from 30 days to five years. The trade-off is that your money is locked away, and you cannot withdraw it early without losing interest or paying a penalty.
Frequently Asked Questions
Can I have multiple BMO high-interest savings accounts?
Yes, you can open more than one BMO savings account if you want to organize money for different goals. Each account earns interest at the same rate. However, each account is insured separately by CDIC only up to $100,000, so if you have $150,000 across two accounts, only $100,000 is covered. Splitting money across multiple banks is a better way to protect balances over $100,000.
How often does BMO pay interest on a savings account?
BMO calculates interest daily based on your balance, but pays it monthly or quarterly depending on the account type. Check your account terms or ask BMO directly which schedule applies to your account. You can see the interest deposited in your account statement.
Is there a minimum balance to earn interest at BMO?
Most BMO high-interest savings accounts have no minimum balance requirement, so you earn interest on any amount, even $1. However, the interest earned on very small balances will be minimal. Check the specific account terms when you open, because requirements can vary.
Can I use a BMO high-interest savings account as an emergency fund?
Yes, a high-interest savings account is one of the best places for an emergency fund because the money is safe, insured by CDIC, and accessible within one business day. The interest rate is higher than a regular savings account, so your money grows slightly while you wait. Keep three to six months of expenses in the account so you have it when you need it.
What is the difference between BMO's high-interest savings account and a GIC?
A high-interest savings account lets you withdraw money anytime with no penalty, but the rate can change. A GIC locks your money for a fixed term (30 days to five years) at a may provide rate, but you cannot withdraw early without losing interest. Use a savings account for money you might need soon; use a GIC for money you will not touch for months or years.