BMO CD Rates for September 2024
Written by
Sarah Sharkey
Edited by
Joe Evans
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While there are hundreds of in-person branch options with BMO Bank, you can also manage your banking tasks over the phone or online. The bank earned a place as one of GOBankingRates’ Top Banks of 2024.
With this rating and the competitive CD rates offered, you might feel comfortable putting your savings to work through a BMO CD.
What Are the Current BMO CD Rates?
BMO offers 10 different Standard CD term lengths with various APYs. Regardless of the term length, you’ll need a minimum deposit of at least $1,000 to get started.
Below you’ll find a breakdown of the BMO CD rates. Remember that the rates you encounter might differ slightly based on your location.
| Term Length | APY |
|---|---|
| 3 months | |
| 6 months | |
| 9 months | |
| 12 months | |
| 18 months | |
| 24 months | |
| 30 months | |
| 36 months | |
| 48 months | |
| 60 months |
In addition to Standard CDs, BMO offers CD Specials. Currently, the five CD Specials come with significantly more attractive rates. Below is a closer look at those rates.
| Term Length | APY |
|---|---|
| 13 months | |
| 25 months | |
| 35 months | |
| 45 months | |
| 59 months |
Requirements and Penalties
When you open a CD at BMO, you won’t incur monthly maintenance fees. However, you’ll need to make a minimum deposit of at least $1,000 initially. When you add funds to the CD, you have a 10-day grace period to make any adjustments to the principal amount. After the 10 days, you’ll have to pay an early withdrawal penalty to access your funds before the maturity date.
The early withdrawal penalty varies based on the term length outlined in the chart below.
| Term | Interest Penalty |
|---|---|
| 1 month | You must forfeit all interest earned |
| 2 months to 11 months | 90 days of interest |
| 12 months to 23 months | 180 days of interest |
| 24 months to 35 months | 270 days of interest |
| 36 months to 47 months | 365 days of interest |
| More than 48 months | 545 days of interest |
When choosing the appropriate CD term, confirm you are comfortable with the term length. Accessing the funds held within your CD before the maturity date can get expensive.
Advantages and Disadvantages of BMO CDs
Before opening a CD at BMO, it is important to know the pros and cons.
Pros
- Competitive rates on some CD terms
- FDIC-insured
- Physical branches and online banking are available
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Cons
- Not all APYs are competitive, especially for shorter terms
- Minimum deposit requirement of $1,000
- Physical branches aren’t available in every state
How BMO CD Rates Compare
The average rate on a 12-month CD is 1.85% as of August 2024. When compared to the APY offered for a 12-month CD at BMO, it’s clear that you can lock in a great rate on your savings through this bank. But you can lock in an even better rate by considering the CD Specials offered by BMO. For example, the 13-month CD term comes with a APY.
However, not all BMO CD rates are equally attractive. With a range of rates, it’s a good idea to shop around for the term you had in mind before jumping into a BMO CD. You may find a better rate somewhere else for the term you are looking for.
Alternatives to a BMO CD
A BMO CD might not be the right fit for you. And that’s okay. If you want to explore some alternatives, check out the top options below:
- Discover® Bank Member FDIC: Discover Bank offers more than credit cards. You’ll also find 6-month CDs with a APY and 12-month CDs with a APY.
- Ally Bank: If you are looking for an entirely online banking option, you can find 12-month CDs at Ally Bank with a APY and 5-year CDs with a APY.
Who Should Consider Opening a BMO CD?
If you want to open a CD with a term of at least 12 months, BMO offers worthwhile options. In terms of putting your savings to work for you, that’s a great opportunity.
Anyone who already works with BMO for other banking needs might choose to open an account at this financial institution out of convenience. While the choice might be convenient for current BMO customers, it is also a smart one because many of the CD terms offer highly competitive rates.
Before moving forward, evaluate your savings goals. If you have a big purchase on the horizon, make sure you won’t have to tap into the CD funds early. Otherwise, you could get stuck paying an early withdrawal penalty.
Who Should Consider Other Options?
If you want to open a CD with a term length of less than 12 months, BMO might not be the right fit. That’s because the APYs offered on 3-month and 6-month CD terms aren’t as competitive as the other options. With relatively low APYs offered, you might be better off opting for a high-yield savings account that combines flexible access with a high APY.
Another reason to skip BMO is if you are just starting to build your savings. A minimum deposit requirement of $1,000 might put you out of the running for this savings vehicle. But that’s okay! You can find CDs with no minimum deposit requirements or choose to tuck your funds into a high-yield savings account or checking account.
If you prefer in-person banking, BMO might be a good option. The bank operates over 500 branch locations. However, these branches are not available in every state. Check out the branch locations before signing up and if in-person banking is a deal breaker, then BMO might not be a good fit in some states.
How To Open a BMO CD
If you want to open a BMO CD, you can complete the process online or at a physical branch. Come to the process prepared with your Social Security number or Individual Taxpayer Identification number handy. Additionally, you’ll likely need to provide your name, date of birth, physical address and email address. After reading all of the fine print, you can finalize your account set up by funding your account with a minimum of $1,000.
Other BMO Banking Options
Whether or not you want to open a BMO CD, you might find value in another banking product available through the financial institution. Below is a closer look at some of the best offerings available through BMO:
- BMO Savings Builder Account: This account comes with no monthly maintenance fees. During your first year, the bank will reward you with $5 for every month you tuck away at least $200 new dollars. You’ll need $25 to open this account and it offers a APY.
- BMO Relationship Plus Money Market Account: This account offers APY on your savings of less than $25,000. But that rate can slide up to APY if you maintain a quarterly combined balance of at least $250,000. The $10 monthly maintenance fee can be waived if you maintain a daily balance of at least $5,000.
Final Take
BMO offers a full suite of CDs. With their competitive rates and relatively low minimum opening deposit, you might find one to be the right fit for your financial goals. But before opening a CD, make sure to scope out the best CD rates to make sure you are getting the most bang for your buck.
FAQ
Here are the answers to some of the most frequently asked questions regarding CD rates.- Who has the highest 12-month CD rate?
- Some of the best 12-month CD rates can be found at BMO Bank, Bread Savings, Bask Bank and First Internet Bank.
- What are the terms for BMO CDs?
- The available terms for a standard CD with BMO include 3, 6, 9, 12, 18, 24, 30, 36, 48 and 60 months. For CD specials, the available terms include 13, 25, 35, 45 and 59 months.
- Can I open a BMO CD online?
- Yes, you can open a BMO CD online.
- Are there any penalties for early withdrawal?
- Yes, you'll face an early withdrawal penalty if you need to access your funds before the CD matures. The fee varies based on the term length. It ranges from all earned interest on a one-month CD to 545 days' worth of interest on a CD term of 48 months or longer.
- Does BMO offer any special promotions?
- Yes, BMO offers CD Specials with elevated APYs. For example, the CD Special with a 13-month term comes with a 4.00% APY.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 4, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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- FDIC. 2024. "National Rates and Rate Caps."
