BMO's High-Yield Savings Options

BMO offers high-yield savings accounts, but the rate and features depend on which BMO entity you bank with and which account you choose. BMO Harris Bank (the U.S. subsidiary) offers a BMO Harris High Yield Savings Account that pays interest above standard savings rates. BMO Financial Group (the Canadian parent) offers different products in Canada. The rate you receive changes based on market conditions and your account type, so you need to check BMO's current rates directly rather than rely on rates quoted elsewhere.

The key difference between BMO's high-yield savings and a regular savings account is the interest rate. A regular BMO savings account typically pays minimal interest—often less than 0.01% annually. A high-yield account pays substantially more, though the exact rate varies. You can view current rates on BMO's website or by calling a branch, and rates can shift without notice.

Key Takeaways

  • BMO Harris Bank offers a high-yield savings account in the U.S., but the interest rate and minimum balance requirements change regularly and vary by region.
  • You can open a BMO high-yield savings account online, by phone, or in person at a BMO branch, and you do not need an existing BMO account to open one.
  • High-yield savings accounts at BMO typically come with a debit card, online access, and the ability to link to external accounts for transfers.
  • BMO's high-yield rates are usually lower than rates offered by online-only banks, so comparing options across multiple institutions helps you find the best rate for your money.

How to Open a BMO High-Yield Savings Account

You can open a BMO Harris High Yield Savings Account online, by phone, or in person at a BMO branch. Online opening is the fastest route: you provide your name, address, Social Security number, and initial deposit information. The process typically takes 10 to 15 minutes, and your account opens the same day or the next business day.

If you open in person, bring a government-issued ID and proof of address (a recent utility bill or lease works). You will need to fund the account with an initial deposit; the minimum varies but is often $25 to $100. If you open by phone, a BMO representative walks you through the same steps and can arrange a transfer from another bank account to fund your new savings account.

Interest Rates and Minimum Balance Requirements

BMO's high-yield savings rate is not fixed and changes based on the Federal Reserve's actions and BMO's own pricing decisions. The rate you earn also depends on your account balance tier—some accounts pay higher rates on larger balances. You should check BMO's website or call 1-888-BMO-BANK (1-888-266-2265) to learn the current rate and any balance tiers that apply.

Minimum balance requirements also vary. Some BMO high-yield accounts have no minimum balance, while others require you to maintain a certain amount to earn the advertised rate. If your balance drops below the minimum, you may earn a lower rate or pay a monthly fee. Read the account disclosure document before opening to understand the exact terms.

Fees and Account Features

BMO high-yield savings accounts typically do not charge a monthly maintenance fee, though this can depend on the specific account type and your relationship with BMO. Overdraft fees, ATM fees, and transfer fees vary by account. You generally get unlimited ATM access at BMO branches and partner ATMs, and you can make unlimited transfers to and from linked external accounts online.

Most BMO high-yield savings accounts come with a debit card, online banking access, and mobile app access. You can set up automatic transfers, receive direct deposit, and monitor your balance 24/7. Some accounts limit the number of withdrawals per month (a federal rule that was suspended but may return), so confirm the current withdrawal policy when you open.

How BMO's Rates Compare to Other Banks

BMO's high-yield savings rates are typically lower than rates offered by online-only banks like Marcus, Ally, or American Express Personal Savings. Online banks have lower overhead costs and often pass those savings to customers through higher rates. If you prioritize the highest possible rate, you may earn more money elsewhere. If you value the ability to visit a physical branch or prefer to keep all your accounts at one institution, BMO's rate may be acceptable despite being lower.

The difference in annual earnings can be significant. On a $10,000 balance, a 0.01% rate (typical for regular savings) earns $1 per year. A 4.00% rate (typical for high-yield accounts at online banks as of early 2024, though rates fluctuate) earns $400 per year. BMO's rate falls somewhere between these extremes. Use an online savings calculator to compare what you would earn at BMO versus competitors before deciding.

Transferring Money In and Out

You can fund your BMO high-yield savings account with a direct deposit from your employer, a transfer from another bank account, or a check deposit (at a branch or via mobile deposit if available). Transfers from external accounts typically take one to three business days to appear in your BMO account. Direct deposits usually post within one business day.

To withdraw money, you can use the debit card at ATMs, transfer funds online to a linked external account, visit a branch to withdraw cash, or write a check if your account comes with a checkbook. Transfers to external accounts typically process within one to three business days. If you need cash immediately, visiting a BMO branch or using an ATM is fastest.

FDIC Protection and Safety

BMO Harris Bank is a federally chartered bank, and deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per account type, per bank. This means if BMO fails, your high-yield savings account balance (up to $250,000) is protected. If you have multiple account types at BMO—such as a checking account and a savings account—each is insured separately up to $250,000.

Your account information and online login are protected by encryption and multi-factor authentication. BMO also monitors accounts for fraud and can dispute unauthorized transactions. If you notice suspicious activity, contact BMO immediately at the number on the back of your debit card or through your online account.

Frequently Asked Questions

Can I open a BMO high-yield savings account without visiting a branch?

Yes. You can open online at bmoharris.com or by phone at 1-888-266-2265. You do not need to visit a branch unless you prefer to, though opening in person can be faster if you want to fund the account with cash immediately.

What happens if my balance drops below the minimum?

If your account has a minimum balance requirement and your balance falls below it, you may earn a lower interest rate or be charged a monthly fee. Check your account terms to see what happens. You can usually restore the minimum balance at any time to return to the full rate.

Can I have multiple BMO high-yield savings accounts?

Yes. You can open more than one high-yield savings account at BMO. Each account is insured separately by the FDIC up to $250,000, so if you have $500,000 across two accounts, both are fully protected.

How often does BMO change its high-yield savings rate?

BMO can change rates at any time without notice, though large changes usually happen when the Federal Reserve adjusts interest rates. You can check your current rate anytime by logging into your account online or calling BMO. Rates are not may provide and may go up or down.

Is a BMO high-yield savings account better than a money market account?

Both are savings products, but they differ in features and rates. A money market account may offer a debit card and checkbook but typically has higher minimum balances. A high-yield savings account is simpler and more flexible. Compare the rates and features of both at BMO to see which fits your needs.