If you’re looking for a CD that offers simplicity and high APYs, look no further than BMO Alto’s CDs. While online-only banks like BMO Alto don’t have physical branches, they tend to be able to offer CDs with higher interest rates because of these low overhead costs. Here’s what you need to know to decide if BMO Alto’s CDs are right for your savings.
BMO Alto CDs
BMO Alto is a member of the FDIC.
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Annual Percentage Rate (APY)
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Conditions
From 6 months to 60 months
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Minimum deposit
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Monthly fee
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Prepayment penalty
If you withdraw your principal before maturity, you will be charged an early withdrawal penalty. The penalty is calculated based on the interest rate in effect on the CD at the time of the early withdrawal. If the amount of the penalty exceeds the amount of your accrued and unpaid interest, a reduction in principal will be required to pay the penalty:
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- Above-average APYs
- Range of CD running times
- No minimum deposit
- No monthly fee
Disadvantages
- You cannot access your money until your CD term ends
- Prepayment penalties apply
- No physical branch locations
Compare offers for CDs
How do BMO Alto CDs work?
BMO Alto offers competitive CD interest rates at terms of six months to five years. BMO Alto does not charge any fees for its CDs, including monthly management fees.
How to finance your CD
You have two options for funding a CD: either link an external account to BMO Alto Online Banking and transfer your funds via ACH transfer, or you can initiate an ACH transfer from your external bank account using your BMO Alto CD routing and account numbers.
Access to your cash
All BMO Alto CDs are traditional CDs, meaning you make an initial deposit and then cannot withdraw any money until the CD expires—at least not without paying a penalty.
Once your CD matures, you can withdraw your funds for free during a 10-day grace period. You can then transfer the funds in the CD to either another BMO Alto account or an external account. If you do nothing, BMO Alto will automatically extend the term to another CD with the same term.
Fees and penalties
While BMO Alto doesn’t charge fees on its CDs, it does charge an early withdrawal penalty if you take money out of your account before the CD matures. For CDs with terms of 11 months or less, this penalty is 90 days of interest. For CDs with terms of 12 months or more, the cost is 180 days of interest.
Are the BMO Alto CDs worth it?
With low interest rates and no fees, BMO Alto CDs are a great option if you want to keep your money safe and lock in a high interest rate. However, BMO Alto is an online-only bank, so you’ll have to accept not having a physical branch if you have any questions.
Unlike many other banks, BMO Alto does not offer Specialty CDs, such as no-penalty CDs or add-on CDs, that allow you a little more flexibility in how you manage your funds. Still, these CDs might be good if you’re just looking for a place to keep your money that will pay a high rate of return.
Alternatives to BMO Alto
If you want more flexibility with your CDs, Synchrony Bank offers a variety of options, including standard CDs, a bump-up CD (higher interest rate), a no-penalty CD (no withdrawals), and an IRA CD (saving for retirement). CD terms range from three months to five years, and you can earn a high APY. Although there are no physical branches, you can reach customer service by phone or online chat seven days a week and 24/7 through the app.
Synchrony Bank CDs
Synchrony Bank is a member of the FDIC.
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Annual Percentage Rate (APY)
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Conditions
From 3 months to 60 months
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Minimum balance
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Monthly fee
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Prepayment penalty
An early withdrawal penalty may apply if you withdraw funds from the principal before the CD maturity date (the last day of the CD term). The penalty is charged on the amount of principal withdrawn (no penalty is charged on interest). With the no-penalty CD, early withdrawals are not allowed within the first 6 days after the account is funded. After that, only withdrawal of the entire balance is allowed.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce yields. CD accounts may be subject to a penalty for early withdrawals. If your CD is renewed after maturity, you will receive the interest rate offered at that time for your CD type.
If you prefer to bank with a larger institution, Marcus by Goldman Sachs® CDs offer terms ranging from six months to six years, with interest rates also in a competitive range. While Marcus by Goldman Sachs requires a minimum deposit of $500, there are no monthly account maintenance fees. The U.S.-based contact center is also open 24/7 for live customer support via phone or online chat.
Marcus von Goldman Sachs® CDs
Marcus by Goldman Sachs® is a trademark of Goldman Sachs Bank USA, a member FDIC.
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Annual Percentage Rate (APY)
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Conditions
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Minimum deposit
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Monthly fee
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Prepayment penalty
If you withdraw the entire principal amount from your CD account before maturity, you will be charged an early withdrawal penalty based on the term of your CD and the principal amount (except in the case of a no-penalty CD). Here’s how early withdrawal penalties are calculated:
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Early withdrawal penalty = Interest rate ÷ 365 (or 366) × penalty days × Original principal amount
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