BMO Alto Review: Truly High-Yield Savings To Grow Your Money
Written by
Kathy Evans
Edited by
Melanie Grafil
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
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GOBankingRates Score
BMO Alto
-
Interest Rates
5.0
-
Savings Account
4.8
-
CD Account
4.8
-
Banking Experience
4.5
Pros
- Above-national average APY on savings and CD accounts
- No minimum balance and a $0 minimum opening deposit
- Can receive a higher APY if CD interest rates change
Cons
- No physical branches
- No debit cards or checks included
- No mobile app available
BMO Alto Overview
BMO Alto is an online-only savings bank that prides itself on having zero fees and offering its customers great rates. Launched in April 2023, this online savings platform offers only two types of accounts: CDs and high-yield savings. Compounded interest on its high-yield savings accounts is currently APY and is compounded daily. This rate earned BMO Alto a spot in GOBankingRates’ Best High-Yield Savings Accounts of 2024.
Customers can access their accounts on BMO Alto’s simple website. BMO Alto is considered one of the best online savings banks and is supported by the BMO Financial Group, a global financial services company with over 200 years of banking experience.
BMO Alto Review
GOBankingRates scored BMO Alto fairly high on its interest rates, savings account, CD account and overall banking experience features. Here’s why.
Interest Rates
The FDIC reports that the national average APY on savings accounts is around 0.45%, and the highest-yield savings accounts offer around 6%. BMO Alto’s current APY is — very close to the highest national APY.
Depending on the term length, the average CD account APY is between 0.23% and 1.80%. BMO Alto’s APY on a 12-month term CD is currently — again, much higher than the national average.
Savings Account
You can maximize your personal savings with a BMO Alto online-only savings account. Its attractive APY is just the beginning of all it has to offer. Here are some of the benefits.
- No fees
- Unlimited withdrawal and transfer transactions
- $0 minimum required opening deposit
- No minimum account balance requirements
Thanks!
It’s easy to open a BMO Alto savings account online. Select the “Open In Minutes” icon on the homepage and begin filling out the application. Before you begin, a pop-up informs you of the current online savings opening balance requirements, APY and interest rate. Simply select “Get Started” to start your application.
The savings webpage also has a handy calculator to help you figure out how much you could save with a BMO Alto online savings account. Answer the questions, and BMO Alto will determine your savings over a specified period.
You’ll be asked:
- How much money do you want to initially deposit into your account?
- How much you will regularly deposit?
- How frequently will you make your deposit?
- How long do you plan to save?
CD Account
You can also grow your personal savings with a BMO Alto online-only CD account. With an impressive APY on a 12-month term CD, BMO Alto is a winner compared to today’s average CD rates. BMO Alto’s CD accounts include:
- No minimum balance
- 6 available fixed terms (6 months to 60 months)
- $0 minimum required opening deposit
- Monthly paid interest
APY rates for each of the six BMO Alto CD fixed terms are between and up to .
To open a BMO Alto CD account online, select the “Open In Minutes” icon on the main CD account page and begin filling out the application. A pop-up opens to inform you of the current minimum balance requirements and APY and interest rate. By default, it’s set to the 6-month online CD. Select “Get Started” to start applying.
Similar to the savings webpage, the CD page also has a calculator to help you figure out how much you could earn with a BMO Alto online CD. Enter the amount you want to deposit into your CD, select your desired term using the dropdown feature and select “Calculate.”
The results will show you how much interest you could earn by your specified date and the total amount that would be in your account.
Banking Experience
While BMO Alto has only been around for less than a year, it’s one of the largest banks in North America. Its popularity is most likely because of its stellar high-yield savings and CD accounts. But because it doesn’t offer mobile banking or have any branch locations, it falls short for those who prefer in-person or on-the-go banking using a mobile app. However, it does have support digital retail and payment platforms across the 50 states.
Some customer reviews rate BMO Alto relatively low, indicating issues such as not being able to transfer money from their CD account to an external bank account and less than stellar customer service. Alternatively, some customers sang BMO Alto’s praises for the speed at which they were able to open a CD account.
Comparable BMO Alto Options
All online banks have their strengths and weaknesses. Here’s how BMO Alto compares to a few of its competitors.
Ally
Both banks are online-only and offer CD and savings accounts. However, Ally offers a full suite of financial services including:
- Checking and savings accounts
- High-yield CD accounts
- Credit cards
- Investment accounts
- Mortgage, auto and personal loans
Chime
BMO Alto and Chime* both offer digital-only banking services with high-yield savings accounts. Like Ally, Chime offers more financial products than BMO Alto. Chime also has an extensive ATM network with more than 60,000 fee-free locations. Although Chime does not offer a CD account, it does have a no-fee1, no-interest2 Credit Builder Secured Visa® Credit Card3.
SoFi
SoFi offers significantly more financial products than BMO Alto, including private student loans, personal loans, mortgage loans and auto refinance loans. BMO Alto fares better in the high-yield savings account category, offering APY, with SoFi currently coming in slightly lower at APY.
Final Take
BMO Alto is an online-only savings bank available nationwide. It’s a great choice if you’re looking for a simple, secure and safe place to park and increase your savings. Overall, it’s a convenient option if you want a nationally known bank and are comfortable with banking completely online.
FAQ
Here are the answers to some of the most frequently asked questions about BMO Alto.- Does BMO Alto have a mobile banking app?
- No. Customers can access their savings and CD accounts online through the BMO Alto website.
- How do I transfer funds to and from my BMO Alto account?
- You can transfer money between your BMO Alto accounts and up to five external accounts online through the BMO Alto website. You must be the account owner or co-owner of the external account to transfer funds between that account and your BMO Alto account.
- Can I get a BMO Alto checking account with a debit card?
- No. BMO Alto does not offer checking accounts or issue debit cards with its savings and CD accounts. You can manage your money online only via the BMO Alto website.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of June 5, 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.
To determine rankings for the Best CD Accounts, GOBankingRates looked at the following factors from all banks (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY; (5) 60-month CD APY; and (6) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighted 0.5 times, factor (3) was weighted 2 times, and factors (4) and (5) were weighted 4 times. All products and offerings had to be available as of Nov. 8, 2023 to be considered.
To determine rankings for the Best High-Yield Savings Accounts, GOBankingRates looked at the following factors from all banks: (1) minimum deposit to open an account; (2) monthly savings fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) minimum needed to earn APY; (4) savings APY; and (5) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (2) and (3) were weighted 1.5 times; factor (4) was weighted 4 times; and factor (5) was weighted 0.5 times. To be considered for the high-yield savings account, the product offered had to have an APY above 0.45%. All products and offerings had to be available as of Nov. 8, 2023 to be considered.
*Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank, N.A. or Stride Bank, N.A.
1There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.
2Out-of-network ATM withdrawal and OTC advance fees may apply. View the Bancorp agreement or Stride agreement for details; see back of card for issuer.
3The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
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