BMO offers high yield savings accounts, but the rate depends on your account type and balance

BMO Bank of America does offer high yield savings accounts through its BMO High Yield Savings product. The rate changes based on market conditions and your account balance tier — BMO publishes current rates on its website, and you can call 1-800-BMO-1234 to confirm the exact rate before opening. Unlike some online banks that advertise a single rate to all customers, BMO's rate structure may vary by deposit amount and account type.

The account is available to existing BMO customers and new customers opening accounts online or at a branch. You can fund it with an initial deposit and add money through transfers from other BMO accounts, ACH transfers from outside banks, or in-person deposits at a BMO branch. Interest compounds daily and deposits into the account, meaning you earn interest on your interest as well as your principal.

Key Takeaways

  • BMO High Yield Savings accounts earn interest that varies by balance tier and market conditions, so you should check the current rate before opening.
  • The account requires an initial deposit to open, and you can add funds through transfers, ACH, or branch deposits.
  • Interest compounds daily, so your earnings grow faster than in a standard savings account.
  • BMO accounts are FDIC insured up to $250,000 per depositor, per account type, so your money is protected if the bank fails.
  • You can access your money through online transfers, ATM withdrawals, or in-person branch withdrawals without penalty.

How BMO's rates compare to other banks

BMO's high yield savings rate is competitive with other large national banks, though online-only banks sometimes offer higher rates because they have lower operating costs. The difference between BMO and an online bank might be 0.5% to 1% annually, depending on the current market and each bank's strategy. If you already bank with BMO and value having a physical branch nearby, the convenience may outweigh a slightly lower rate.

The best way to compare is to check BMO's current rate against rates from online banks like Marcus, Ally, or American Express Personal Savings on the same day. Rates change frequently — sometimes weekly — so a rate that was higher last month may be lower today. Write down the rates and the date you checked them, then decide whether the difference matters to your situation.

Minimum deposit and account requirements

BMO requires an initial deposit to open a High Yield Savings account, though the minimum amount varies. You can open the account online with a transfer from another bank account, or in person at a BMO branch with cash or a check. Once the account is open, there is no minimum balance requirement to keep the account active, though some balance tiers earn higher rates than others.

If your balance falls below a certain threshold, your rate may drop to a lower tier. BMO publishes these tiers on its website and in the account disclosure documents you receive when you open the account. Check the current tier structure before depositing, so you know what rate you will actually earn on your balance.

How to open a BMO High Yield Savings account

You can open an account online at bmoharris.com or at any BMO branch. Online, you will need your Social Security number, a valid government ID, and a funding source — either a transfer from another bank account or a debit card. The process takes about 10 minutes, and your account number is issued immediately, though transfers from outside banks may take one to three business days to post.

At a branch, bring your ID and initial deposit in cash or check form. A banker will walk you through the account setup and answer questions about rates and features. If you are an existing BMO customer, opening an additional High Yield Savings account is faster because BMO already has your information on file.

Withdrawal rules and access to your money

BMO High Yield Savings accounts have no withdrawal limits or penalties. You can move money out through online transfers to another BMO account or an outside bank, ATM withdrawals using your debit card, or in-person withdrawals at a branch. Transfers to outside banks typically post within one to three business days, depending on the receiving bank's processing time.

There is no monthly limit on how many times you can withdraw, unlike some savings accounts that cap withdrawals at six per month. This flexibility makes the account useful both for saving and for keeping money accessible in case of emergency.

FDIC insurance and account safety

Deposits in a BMO High Yield Savings account are FDIC insured up to $250,000 per depositor, per account type. This means if BMO fails, the Federal Deposit Insurance Corporation will reimburse you for your balance up to that limit. If you have multiple account types at BMO — for example, a checking account and a savings account — each type is insured separately, so you could have up to $250,000 in each.

If you have more than $250,000 to save, you can open a second High Yield Savings account at a different bank to keep the full amount insured. BMO's website has a tool to help you understand how your accounts are covered under FDIC rules.

Interest rates and how they change

BMO's high yield savings rate is set by the bank and changes based on the Federal Reserve's interest rate decisions. When the Fed raises rates, BMO typically raises its savings rate within days or weeks. When the Fed cuts rates, BMO's rate usually falls as well. The bank is not required to match the Fed's moves exactly, so the timing and size of rate changes can vary.

You can check your current rate anytime by logging into your BMO account online, calling customer service, or visiting a branch. If you want to know how BMO's rate compares to other banks, check the rates on the same day across multiple banks, because rates can shift daily.

Frequently Asked Questions

Can I transfer money from my BMO checking account to the high yield savings account?

Yes. If you have a BMO checking account, you can transfer money to your High Yield Savings account online through BMO's website or mobile app. The transfer posts immediately if both accounts are at BMO. You can set up recurring transfers to move money automatically each month.

What happens to my interest if I withdraw money?

Interest is calculated daily on your balance, so if you withdraw money mid-month, you earn interest only on the amount that was in the account. For example, if you had $10,000 for 15 days and $5,000 for 15 days, you earn interest on the average of those two amounts for that month.

Is there a fee to open or maintain a BMO High Yield Savings account?

BMO does not charge a monthly maintenance fee for High Yield Savings accounts. There are no fees for transfers, withdrawals, or ATM use at BMO ATMs. Out-of-network ATM fees may apply if you use another bank's ATM, depending on your account type.

Can I use a debit card to withdraw from my high yield savings account?

Yes. BMO issues a debit card for High Yield Savings accounts, and you can use it to withdraw cash at BMO ATMs and other banks' ATMs (though out-of-network fees may apply). You can also use the card to make purchases, though most people use savings accounts primarily for withdrawals and transfers.

What if BMO's rate drops below other banks?

You can move your money to another bank at any time without penalty. Open an account at the new bank, then transfer your balance from BMO using an ACH transfer or by asking the new bank to pull the funds. The process takes one to three business days, and your money earns interest at BMO until the transfer completes.