BMO savings account interest rates vary by account type and change regularly

BMO does not publish a single interest rate for all savings accounts. The rate you earn depends on which account you open — BMO offers several types, each with different rates — and rates shift based on what the Bank of Canada does with its policy rate. As of now, BMO's posted rates for common savings products range from near zero on basic savings accounts to around 4% to 5% on high-interest savings accounts, but you need to check BMO's website or call a branch for the exact current rate on the specific account you are considering.

The reason rates change so often is that BMO sets its savings rates partly in response to the Bank of Canada's overnight rate, which influences how much banks pay depositors. When that rate moves, BMO typically adjusts within days or weeks. This means the rate you see today may not be the rate you lock in tomorrow.

Key Takeaways

  • BMO's savings account rates depend on the account type you choose, not a single rate across all accounts.
  • High-interest savings accounts at BMO currently pay more than traditional savings accounts, though the exact rate changes regularly.
  • BMO's rates move when the Bank of Canada changes its policy rate, so checking the current rate before you open an account matters.
  • You can see BMO's current rates on their website, by phone, or in person at a branch.

The main BMO savings account types and how their rates differ

BMO offers several savings products, and the interest rate you earn depends on which one you choose. A BMO Savings Account (their basic option) typically pays very little interest — often less than 0.5% — and is designed for everyday access rather than growth. A BMO High-Interest Savings Account pays significantly more, usually in the 4% to 5% range, though the exact rate shifts with market conditions.

BMO also offers BMO SmartSaver, which is a hybrid account that pays a modest rate on your balance and may include other features like bill pay or a debit card. The rate on this account is typically lower than a dedicated high-interest savings account but higher than a basic savings account.

If you have a larger sum to deposit, BMO offers GICs (may provide Investment Certificates), which lock your money away for a fixed term — usually three months to five years — in exchange for a may provide rate. GIC rates are often higher than savings account rates because you cannot touch the money until the term ends.

How BMO's rates compare to other banks

BMO is a major bank, and major banks typically pay lower rates on savings accounts than smaller banks or online-only banks. This is partly because major banks have more branches, more staff, and higher costs to cover. If you shop around, you may find that online banks or credit unions offer higher rates on savings accounts than BMO does.

For example, some online banks currently offer high-interest savings rates above 5%, while BMO's high-interest savings account may be at or below that level. The difference compounds over time: on a $10,000 balance, a 1% difference in rate means $100 per year in additional interest. Before you open a BMO account, it is worth checking what other institutions are offering.

When and why BMO's rates change

BMO does not change its rates on a fixed schedule. Instead, the bank adjusts rates in response to moves by the Bank of Canada. When the Bank of Canada raises its overnight rate, banks typically raise the rates they pay on savings accounts (and charge on loans) within a few days to a few weeks. When the overnight rate falls, savings rates usually fall too.

This means that if you are comparing rates across banks, the rate you see today may not be the rate you earn six months from now. If rates are falling, locking in a rate through a GIC can protect you. If rates are rising, a high-interest savings account lets you benefit from increases without waiting for a term to end.

How to find BMO's current rates

BMO publishes its current rates on its website under the savings or deposit section. You can also call BMO at 1-800-363-9992 or visit a branch in person to ask about rates. When you call or visit, ask specifically about the account type you are interested in, because the representative will give you the rate for that product.

If you are comparing BMO to other banks, write down the rates and the account types side by side. Pay attention to whether there are any conditions — for example, some accounts require a minimum balance to earn the posted rate, or they pay a lower rate if your balance drops below a threshold.

What happens to your interest if you move money in and out

Interest on BMO savings accounts is calculated daily but paid monthly. This means that if you deposit $5,000 on the first of the month, you earn interest on that $5,000 for the entire month, and the interest is added to your account on the last day of the month (or the first day of the next month, depending on the account). If you withdraw $2,000 on the 15th, you earn interest only on the remaining $3,000 for the second half of the month.

With a GIC, you do not earn interest monthly. Instead, the interest accrues over the term and is paid to you when the term ends. If you need the money before the term ends, you may face an early withdrawal penalty that reduces or eliminates the interest you would have earned.

Frequently Asked Questions

Does BMO pay interest on checking accounts?

Most BMO checking accounts pay little to no interest. BMO offers some premium checking accounts that may include a small interest rate, but the rate is typically much lower than what you would earn in a savings account. If earning interest is your goal, a savings account or high-interest savings account is the better choice.

Can I lock in a rate at BMO?

Yes, through a GIC. A GIC lets you lock in a may provide rate for a set period — typically three months to five years. Once the term ends, the rate is no longer may provide, and you can choose to renew at the new rate or move your money elsewhere. Savings accounts do not lock in a rate; the rate can change at any time.

What is the minimum balance to earn the posted rate?

This varies by account. Some BMO accounts require a minimum balance (often $1,000 or $5,000) to earn the full posted rate. If your balance falls below the minimum, you may earn a lower rate or no interest at all. Check the account details on BMO's website or ask a representative for the specific minimum.

How often does BMO change its rates?

BMO does not change rates on a fixed schedule. Rates typically move within days or weeks after the Bank of Canada changes its overnight rate, but the timing varies. You can check BMO's website regularly or sign up for rate alerts if BMO offers them to stay informed of changes.

Is my money safe if I keep it in a BMO savings account?

Yes. BMO is a member of the Canada Deposit Insurance Corporation (CDIC), which means deposits up to $100,000 per account type are insured. If BMO fails, the CDIC protects your money. This protection applies to savings accounts, checking accounts, and GICs held at BMO.