Rare Opportunity to Earn a Tip-Top Rate From a Very Big Bank
For savvy CD investors, smaller banks and credit unions usually offer the highest returns, often with lesser-known names. However, if you prefer to entrust your funds to a renowned, major bank, now is a fortuitous time.
BMO Alto, the online division of BMO—a prominent U.S. bank ranking 12th in size—has elevated its rates for CD terms of 3 years and beyond. Notably, their new 5-year rate stands at an impressive 4.80% APY, leading the nation’s offerings. This rate secures your investment until mid-2029.
Background on BMO
BMO Harris, now BMO, sits as the nation’s 12th largest bank by total deposits, predominantly operating around 1,000 physical branches in the Midwest. Launching BMO Alto last year expanded its reach, catering to customers nationwide with online-only services, featuring CDs from 6 months to 5 years.
Looking for a Shorter Term? You’ve Got Plenty of High-Paying Options
If you’re considering a shorter-term CD investment, fret not. Our daily ranking of superior CD rates offers abundant opportunities for top-tier rates across various terms.
Although many high-paying CDs come from lesser-known banks or credit unions, the nature of CDs—essentially, “park it and forget it”—makes it simple to hold accounts in different institutions from your primary bank, minimizing interaction with the CD account.
Assurance of Federal Protection
Regardless of its size or recognition, deposits at any FDIC-insured bank or NCUA credit union are equally federally protected, ensuring the safety of your funds in the unlikely event of the institution’s failure.
If you prefer banking with a larger institution, BMO Alto remains an attractive option with competitive CD rates starting at 6 months. Comparatively, BMO Alto’s rates stand firm against the top 15 options in each CD term category.
How BMO Alto’s Savings Account Rate Compares
For those eyeing a savings account, we curate a daily list of high-yield savings accounts. While BMO Alto doesn’t feature in our top 15 rates—which currently range from 5.15% to 5.55% APY—it offers a commendable 5.10% APY, the highest among the Top 30 banks.
While opting for a savings account may seem tempting for flexibility, be cautious as savings account rates can fluctuate. Locking in a rate through a CD secures your return for the specified term.
Outlook on Interest Rates
With the Federal Reserve currently observing a wait-and-see approach due to persistent high inflation, savings and CD rates might remain stable. However, any indication from the Fed to reduce rates could trigger a decline in savings account and new CD rates.
For more details on how we select the best savings and CD rates, please refer to our full methodology.