BMO CD Rates: Pros, Cons, and Current Rates

We compared BMO CDs to the best CD rates and found it's an industry leader because BMO Alto CDs offer some of the best rates for accounts with no opening deposit requirements.

BMO Alto CDs are offered through the bank's online-only division, BMO Alto.

If you would prefer to manage bank accounts at BMO branches, the bank has standard CDs and special CDs. Some BMO Bank CD rates are also good, too, but they may not be as appealing as BMO Alto CD rates or other online bank CD rates.

Current BMO CD Rates

BMO Alto CD Rates

BMO Alto High Yield CD are more competitive than BMO Standard CDs, and Special CDs.

These accounts are available online-only through the BMO Alto website, which means you won't be able to go to a BMO branch for support. Instead, you must call BMO Alto customer support. Another thing to keep in mind is that BMO Alto doesn't have a mobile app. Compare APYs (annual percentage yields) below:

• 6 Month High Yield CD: 4.10% APY
• 1 Year High Yield CD: 4.10% APY
• 2 Year High Yield CD: 3.70% APY
• 3 Year High Yield CD: 3.70% APY
• 4 Year High Yield CD: 3.70% APY
• 5 Year High Yield CD: 3.80% APY

BMO Bank CD Rates

BMO Standard CDs pay low interest rates, while the Special CDs are good overall. Special CDs are only available for a limited time, though.

The bank's CD rates may vary by region and minimum deposit. The following chart shows the current rates for Standard CDs if you live in Chicago, Illinois:

Overview of BMO CDs

BMO has Standard, Special, and Alto CDs. The best option for you will depend on what you want out of your banking experience.

If you prefer in-person banking, you can open Standard to Special CDs. The difference between Standard and Special CDs is that the latter offer promotional rates.

BMO has a physical footprint in Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, New York, New Jersey, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Utah, Virginia, Washington, Washington, DC, Wyoming, and Wisconsin.

Meanwhile, BMO Alto CDs may be a better fit if you're comfortable with an online-only banking experience. You can't go to a BMO branch to make transactions for these accounts.

BMO CD Pros and Cons

BMO CD Pros

• Special CDs and Alto CDs pay higher than the average CD rates
• Alto CDs have standard-to-low early withdrawal penalties
• Variety of CD terms
• Standard-to-low minimum opening deposit requirements

BMO CD Cons

• Standard CDs pay low interest rates
• Standard CDs have high early withdrawal penalties

BMO CD Alternatives

BMO CDs vs. Chase CDs

Chase CD rates pay 0.01% to 4.00% (vary by location) APY. Chase CD rates are low if you only qualify for the standard rate. You'll qualify for a higher relationship rate if you have a Chase checking account, though.

Chase has a solid 2-month CD if you qualify for a relationship rate. However, BMO may be a good choice if you are interested in one of the BMO CD specials or a BMO Alto CD.

Chase Bank Review

BMO CDs vs. Wells Fargo CDs

Wells Fargo CD rates vary between standard CDs and special CDs. Wells Fargo CD rates standard CDs pay 2.00% to 2.76% APY, and its special CDs pay 3.50% to 4.26% (varies by location) APY. The best option for you may likely depend on which term you want, and whether you're interested in banking in person or online.

However, there is one clear distinction between the two banks that can help you decide the best choice. BMO may be a better option if you'd like a low minimum opening deposit. The bank lets you open an account with $1,000 (or $0 if you open an BMO Alto CD), while at Wells Fargo, you need at least $2,500.

Wells Fargo Bank Review

BMO CDs: Understanding Your Options

BMO CD Minimum Opening Deposits

BMO Standard and Special CDs have a $1,000 to $100,000 minimum opening deposit. This is typical for most brick-and-mortar banks.

BMO Alto CDs require less money upfront. You can open BMO Alto CDs with $0.

BMO CD Early Withdrawal Penalties

BMO Standard and Special CDs have the following early withdrawal penalties:

• All interest earning for terms between 7 days and 59 days
• 90 days of interest for terms between 2 months and 11 months
• 180 days of interest for terms between 12 months and 23 months
• 270 days of interest for terms between 24 months and 25 months
• 365 days of interest for terms of 36 months and 47 months
• 545 days of interest for terms of 48 months or more

BMO Alto CDs have the following early withdrawal penalties:

• 90 days of interest for CD terms of 11 months or less
• 180 days of interest for terms of 12 months or more

What Influences BMO CD Earnings

National CD rate trends can impact whether BMO offers more competitive CD rates. CD selection can also affect your total interest earned. We'll explain more about the factors that influence CD earnings, below.

National CD Rate Trends

Historical CD rate trends indicate CD rates are affected by the Fed's decisions. When the Federal Reserve raises the federal funds rate to fight inflation, CDs become more competitive and rates rise. When the Fed lowers the federal funds rate to stimulate economic growth, CDs become less competitive.

Due to the current economic environment, BMO Special and Alto CDs reflect a national trend where short-term CD rates are higher than long-term CD rates. The bank's best rates are on its 6-month BMO Alto CD.

The Federal Reserve has started cutting rates, which has led to CD rate declines. CD rates will likely still remain competitive for some time, but expect national CD rate trends to continue shifting throughout the year.

CD Selection

Being mindful of your CD selection can help you avoid early withdrawal penalties. Most banks, including BMO, penalize you for an early withdrawal by making you pay some of the interest you've earned.

Experts recommend choosing a CD term that matches a savings goal, so you have a plan already in action and can minimize the chance of making an early withdrawal.

Should You Invest in BMO CDs?

BMO Special CDs and BMO Alto CDs offer good interest rates, while BMO Standard CD rates are low overall. If you're strictly searching for the best CD rates, though, online banks have even more competitive rates right now.

Why You Should Trust Us: How We Reviewed BMO CDs

We used Business Insider's certificate of deposit methodology to review Standard, Special, and Alto CDs. We look at interest rates, minimum opening deposits, early withdrawal penalties, CD term variety, ethics, security, customer support, miscellaneous features and the mobile app. 

We rate bank accounts on a scale from one to five stars. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.

BMO CD FAQs

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three and a half years as a personal finance journalist and is an expert across numerous banking topics. ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better. She's also covered the the following stories during her time at Business Insider: 

• Best budgeting apps
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Sophia has spent seven and a half years writing and editing as a journalist. She began her journalism career at her college newspaper, where she took on various roles.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE Accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

• Bank accounts
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EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

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Evelyn He is a compliance and operations associate for Business Insider’s Personal Finance team. Evelyn ensures content accuracy and editorial independence so readers get the most up-to-date and objective financial advice, enabling them to make informed financial decisions.ExperienceAs part of the compliance team, Evelyn helps fact check Personal Finance stories and works to make sure that the language is clear, precise, and compliant with government regulations and partner guidelines. Previously, Evelyn worked as a compliance specialist for Apellis Pharmaceuticals and a legal assistant at the law firm Morrison Mahoney.ExpertiseEvelyn is an expert in the following areas:

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EducationEvelyn earned a bachelor’s degree in business administration from UMass Amherst and a master’s in marketing from Boston University.Evelyn has two dogs, Money and Tibber.

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