BMO savings account interest rates vary by account type and change with the market
BMO (Bank of Montreal) offers several savings accounts, and each one earns interest at a different rate. The rate you receive depends on which account you choose, how much money you keep in it, and the current interest rate environment. BMO adjusts its rates periodically, so the rate you see today may not be the same next month.
The most common BMO savings products include the BMO Savings Account (a basic option), the BMO Premium Rate Savings Account (which typically pays higher interest if you maintain a minimum balance), and promotional rates that BMO offers for limited periods. Some accounts also offer tiered rates—meaning you earn more interest on larger balances.
To find the current rate for a specific account, you need to check BMO's website, call their customer service line, or visit a branch in person. Rates are not fixed and can change without notice, so the number you see quoted today is not a may provide of what you will earn next month or next year.
Key Takeaways
- BMO offers multiple savings account types, each with its own interest rate that changes based on market conditions.
- Premium or high-interest savings accounts typically require you to maintain a minimum balance to earn the advertised rate.
- You can check your account's current rate on BMO's website, through their mobile app, or by contacting a branch directly.
- Interest is usually credited to your account monthly, though the exact timing depends on your account type and BMO's processing schedule.
- Rates can change at any time, so comparing BMO's rates to other banks helps you decide whether your savings are earning competitively.
How interest accrues and when you receive it
BMO calculates interest on your daily balance and credits it to your account, typically on a monthly basis. This means the bank looks at how much money you have in the account each day, applies the interest rate to that amount, and then deposits the earned interest into your account once a month.
The exact date interest posts varies by account type. Some accounts credit interest on the last day of the month; others may credit it on a different schedule. You can see the interest posted in your transaction history and account statements. If you leave the interest in the account, it will earn interest in the following month—this is called compounding.
Minimum balance requirements and how they affect your rate
Some BMO savings accounts pay a higher interest rate only if you maintain a minimum balance. For example, a Premium Rate Savings Account might require you to keep $5,000 or $10,000 in the account to earn the advertised rate. If your balance falls below that threshold, you may earn a lower rate or no interest at all for that month.
Other BMO savings accounts have no minimum balance requirement but pay a lower interest rate in exchange. The trade-off is flexibility versus earning potential. Before opening an account, confirm what minimum balance (if any) applies and whether falling below it temporarily will cost you interest.
Comparing BMO rates to other banks
BMO's savings rates are competitive but not always the highest available. Online banks and credit unions sometimes offer higher rates because they have lower overhead costs. A rate that seems reasonable at BMO might be 0.5% or 1% lower than what you could earn elsewhere.
To compare fairly, look at the rate for the same account type at other institutions—don't compare BMO's basic savings account to another bank's premium account. Also check whether minimum balance requirements apply and whether the rate is promotional (temporary) or ongoing. A promotional rate might be higher for the first few months, then drop to a standard rate.
What happens to your rate when the Bank of Canada changes its policy rate
BMO and other banks adjust their savings rates in response to changes in the Bank of Canada's policy interest rate. When the Bank of Canada raises rates, banks typically raise savings rates too—though not always by the same amount. When the Bank of Canada cuts rates, savings rates usually fall as well.
The lag between a Bank of Canada rate change and a BMO rate change can be days or weeks. BMO is not required to match the Bank of Canada's move exactly, so you may see BMO's rate stay the same even after the central bank moves. This is why monitoring your account's rate over time matters: you want to know whether BMO is keeping pace with the market or falling behind.
How to check your current BMO savings rate
The fastest way to see your rate is to log into your BMO online banking account or mobile app. Your account details page will show the current interest rate for your specific account. You can also see the interest you've earned year-to-date in your account statements.
If you don't have online access or prefer to speak with someone, call BMO's customer service number or visit a branch. Have your account number ready. A representative can tell you your current rate, explain any minimum balance requirements, and discuss whether switching to a different BMO savings product might earn you more interest.
Moving money between BMO accounts or to another bank
If you find that BMO's rate is lower than what you could earn elsewhere, you can transfer your savings to another bank. Most banks allow you to move money out without penalty—savings accounts are not like GICs or term deposits with early-withdrawal fees. The transfer typically takes one to three business days.
You can also move money between your own BMO accounts if you have multiple ones. For example, if BMO launches a new high-interest savings account with a better rate, you can move your balance from an older account to the new one. There is no fee for internal transfers, and the money moves within hours or the next business day.
Frequently Asked Questions
Does BMO charge a fee to earn interest on savings?
No. Interest is earned automatically on your balance; there is no fee to receive it. However, some BMO savings accounts charge a monthly account fee if you don't meet minimum balance or activity requirements. Check your account's fee schedule to see whether a monthly charge applies.
Can I withdraw money from my BMO savings account without losing interest?
Yes. Withdrawals do not forfeit interest you have already earned. Interest is calculated on your daily balance, so if you withdraw money mid-month, you earn interest only on the balance you held. The interest you already received stays in your account.
How often does BMO change its savings rates?
BMO can change rates at any time, though most changes happen when the Bank of Canada adjusts its policy rate or when BMO responds to competitive pressure from other banks. There is no fixed schedule. Check your account periodically or sign up for rate alerts if BMO offers them.
What is the difference between a savings account and a TFSA at BMO?
Both earn interest, but a TFSA (Tax-Free Savings Account) lets you withdraw money and recontribute it without losing contribution room, and the interest earned is not taxed. A regular savings account has no contribution limits but interest is taxable income. BMO offers both, often at different rates.
If I move my money to another bank, will I owe taxes on the interest I earned?
No. Moving money between banks does not trigger taxes. You owe tax on interest earned in the calendar year it was credited to your account, regardless of whether you keep the money at BMO or move it elsewhere. Report the interest on your tax return for the year you earned it.