BMO’s high interest savings rate is one of the most competitive among Canadian big banks.
That said, you won’t earn much on your deposit and after accounting for inflation, chances are that you are losing purchasing power over time.
A high interest savings account is very similar to regular savings with the additional benefits of higher rates and a chance to grow your money faster.
This review of BMO’s high interest savings accounts (HISA) covers their features, savings account rates, fees, and alternatives.
Bank of Montreal Overview
The Bank of Montreal (BMO) was founded over 200 years ago in 1817. It is one of the top-5 banks in Canada based on assets and market capitalization.
BMO has more than 12 million customers and 40,000 employees.
Its stock trades on the Toronto Stock Exchange under the ticker symbol “BMO”.
BMO High Interest Savings Account
BMO offers several savings accounts, including;
- BMO Smart Saver Account: This account pays a 0.30% interest on your balance and includes one free transfer out per month.
- BMO Premium Rate Savings Account: You earn up to 0.01%, and can share transaction limits with your chequing plan.
- BMO Savings Builder Account: This HISA offers a tiered interest rate of up to 0.70% when you meet the eligibility requirements.
- BMO U.S. Dollar Premium Rate Savings: This account pays 0.05% interest on your USD savings.
BMO Savings Builder Account
The BMO Savings Builder Account rewards active savers with bonus interest each month they increase their account balance by $200 or more.
- 0.10% base interest rate, plus
- 0.60% bonus interest when your savings balance increases by at least $200.
The bonus interest is applicable to balances of up to $250,000.
The Savings Builder account has no monthly fees; however, you pay a $5 fee for each withdrawal or transfer out.
One free transfer out per month is included in the plan, but it does not support bill payments or Interac e-Transfers.
BMO High Interest Savings Account Alternatives
For savings rates better than what the BMO Savings Builder account offers, you can consider the following options.
EQ Bank Savings Plus
The EQ Bank Savings Plus account offers one of Canada’s best high interest savings rates at 1.50%. This hybrid account has both chequing and savings account features including:
- Free mobile cheque deposits
- Free unlimited bill payments and electronic fund transfers
- Free unlimited Interac e-Transfers
- Eligibility for Canada Deposit Insurance Corporation (CDIC) protection up to $100,000 per insured category
Interest earned is calculated daily on your closing balance and it is paid out monthly.
EQ Bank’s savings plus account has no monthly fees and no minimum balance requirement. Learn more in this detailed review.
KOHO Earn Interest pays a 1.20% interest rate on your balance when you set up direct deposit e.g. your paycheque to the account.
In addition to this high-interest savings rate, KOHO users also enjoy access to the following perks:
- Access to early payroll: Get $100 of your paycheque 3 days early for free
- Budgeting app
- Free Interac e-Transfers and bill payments
- CDIC protection
- Automatic savings by rounding up your purchases and saving the difference
- 0.50% to 2.00% cash back on all purchases when you pay with your KOHO prepaid card
- $20 welcome bonus after making your first purchase
Learn more in this KOHO review.
Best High Interest Savings Accounts in Canada (BMO vs. EQ Bank vs. KOHO)
|BMO Savings Builder Account||EQ Bank Savings Plus Account||KOHO|
|Interest rate||Up to 0.70%||1.50%||1.20%|
|Monthly account fee||$0||$0||$0|
|Number of free transactions/month||1 free transfer out||Unlimited free transactions||Unlimited free transactions|
|Free Interac e-Transfers||N/A||Unlimited free Interac e-Transfers||Unlimited free Interac e-Transfers|
|Other features||N/A||Access to cheap international money transfer; free mobile cheque deposits||Access to a cash back card, early payroll, joint accounts, and credit building|
|Learn more||Read review||Earn 1.50% today||Earn 1.20%|
BMO HISA FAQs
Does BMO offer a high interest savings account?
BMO’s best savings account rate is offered by its Savings Builder account for active savers.
What is the interest rate on BMO’s high interest savings account?
As of June 2022, the best interest rate on the BMO Savings Builder account is 0.70%.
Which Canadian bank has the best savings rate?
The rates on savings accounts change all the time and a bank offering the best rate today may not be as competitive tomorrow. For high interest savings accounts, the current rates range from 0.05% to 1.70%.
How much interest will a savings account pay on $1,000?
Assuming the bank is offering 0.50%, you will get approximately $5.00 after 1 year. At a 1.50% interest rate, you get approximately $15.00 in return after one year.
How about other big banks?
I have reviewed the high interest savings accounts for other big banks below:
- Scotiabank High Interest Savings Accounts
- RBC High Interest Savings Accounts
- TD High Interest Savings Accounts
- CIBC High Interest Savings Accounts
Do you bank with the Bank of Montreal? What’s your take on their savings account rates?