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The (Bank of Montreal) BMO Premium Rate Savings Account is a flexible and convenient savings option for Canadians. But will this savings account meet your financial needs?
The BMO Premium Rate Savings Account offers no monthly fees, a 0.01% interest rate, and unlimited free Interac e-Transfers. However, it requires a BMO chequing account and has limited debits. You can open an account online, in person, or over the phone. And depositing funds into your account is seamless.
This post will discuss the features, pros, cons, fees, special offers, and other BMO savings account options. We will also provide a step-by-step guide on how to open the account.
BMO Premium Rate Savings Account Features
Some of the features customers can expect when opening a BMO Premium Rate Savings Account include:
- 0.010% interest rate: Earn daily interest on every dollar saved
- Flexible transactions: Share transaction limits with your BMO chequing account
- One monthly Plan fee: Include this account with your BMO Bank Plan and pay only one fee
- No minimum balance: No monthly savings requirement or minimum balance is needed
- Full access to funds: Withdraw your money whenever you need it
- Plan eligibility: Can be included in any BMO Bank Plan
- Easy mobile banking: Manage your account and transactions on the go with the BMO mobile app
BMO Premium Rate Savings Account Pros
No Monthly Fees
One of the main benefits of this savings account is that there are no monthly fees associated with the savings account itself. However, it’s important to note that you will still need to pay fees for your primary BMO chequing account, which can vary depending on your specific plan.
Earn Interest
While the interest rate may be low, the BMO Premium Rate Savings Account does allow you to earn 0.01% interest on your savings balance, helping your money grow over time.
No Minimum Balance Requirement
This account has no minimum balance requirement, making it accessible to customers of all financial backgrounds and providing the flexibility to save at your own pace.
Easy Mobile Banking
BMO’s mobile app allows you to easily manage your account, view your balance, and make transactions, all from the convenience of your smartphone or tablet.
Can Be Included in Any BMO Bank Plan
Perhaps you already have a BMO chequing account. In that case, you can easily include the Premium Rate Savings Account in your existing plan, allowing one combined monthly fee for all your accounts.
Unlimited Free Interac e-Transfers
This savings account offers unlimited free Interac e-Transfers, making sending money to friends or family easy and cost-effective.
BMO Premium Rate Savings Account Cons
Low Interest Rate
The main drawback of this savings account is its low interest rate, which may not be ideal for those looking to maximize their savings potential.
Requires a BMO Chequing Account
To open a BMO Premium Rate Savings Account, you must also have a BMO chequing account, which may not be ideal for those who already bank with another institution or prefer not to have multiple accounts.
No Set Withdrawal Limits
The withdrawal limits for this savings account are determined by your primary chequing account, which may be restrictive for some customers.
Limited Debits
Debit transactions for the BMO Premium Rate Savings Account are limited, depending on the terms of your chequing account. This could be a downside for those requiring frequent funds access.
Minimal Transaction Fees Information
BMO does not provide detailed information about fees for ATM withdrawals and other transactions for the Premium Rate Savings Account, which could be a concern for customers who want full transparency regarding costs.
No Welcome Bonus
Unlike some others, this savings account does not offer any welcome bonuses or introductory offers to attract new customers.
BMO Premium Rate Savings Account Fees
The BMO Premium Rate Savings Account has no monthly fees. Still, you will need to pay fees for your primary chequing account, which will vary depending on the specific plan you choose. Withdrawal fees may apply, depending on the terms of your chequing account.
Additionally, fees for ATM withdrawals and other transactions may apply. However, BMO does not provide detailed information about these costs, making it essential for potential customers to inquire about additional fees before opening an account.
Other BMO Savings Account Options
While the BMO Premium Rate Savings Account has its benefits, it’s essential to consider other savings account options offered by BMO to ensure you find the best fit for your financial goals. Here are three other popular BMO savings account options worth considering:
BMO Savings Builder Account
The BMO Savings Builder Account is designed to encourage and reward consistent saving habits. This account offers a tiered interest rate structure that rewards you with a higher interest rate when you meet specific savings criteria. To qualify for the bonus interest rate, you must increase your account balance by at least $200 monthly. With the BMO Savings Builder Account, you can enjoy the following:
- A base interest rate of 0.01% and a bonus interest rate of up to 0.50% when you meet the monthly savings requirements
- No minimum balance requirement
- Unlimited free Interac e-Transfers
- The ability to manage your account easily through the BMO mobile app
BMO Smart Saver Account
The BMO Smart Saver Account is a high-interest savings account offering a competitive interest rate without minimum balance requirements or monthly fees. This account is ideal for those who want to grow their savings without worrying about meeting specific savings targets. The BMO Smart Saver Account features:
- A competitive interest rate
- No monthly fees or minimum balance requirements
- Unlimited free Interac e-Transfers
- Easy account management through the BMO mobile app
BMO U.S. Dollar Premium Rate Savings Account
For those who frequently deal with U.S. currency or travel to the United States, the BMO U.S. Dollar Premium Rate Savings Account is an excellent option. This account allows you to save and earn interest in U.S. dollars, protecting you from fluctuations in the exchange rate. The BMO U.S. Dollar Premium Rate Savings Account offers:
- Competitive interest rates on your U.S. dollar balance
- No monthly fees or minimum balance requirements
- The ability to make U.S. dollar transactions without the need for currency conversion
- Easy account management through the BMO mobile app
How to Open a BMO Premium Rate Savings Account
Opening a BMO Premium Rate Savings Account is a straightforward process. Follow these step-by-step instructions to open your account:
- Gather required documents: To open a BMO Premium Rate Savings Account, you must provide proof of identity, such as a valid government-issued photo ID (e.g., driver’s license or passport), and proof of address, such as a recent utility bill or bank statement.
- Open a BMO chequing account (if you don’t already have one): Since this savings account is a BMO chequing account, you’ll need to open one if you’re not an existing BMO chequing account holder. You can open a chequing account online or by phone, or by visiting a local BMO branch.
- Choose a bank plan: BMO offers various bank plans with different features and fees. Review these options to determine which plan best suits your banking needs. Remember that this savings account can be included in any BMO bank plan.
- Open the account online: Visit the BMO website and navigate to the savings account section. Select the BMO Premium Rate Savings Account and follow the on-screen prompts to open your account. You’ll need to provide your personal information, including your name, address, Social Insurance Number (SIN), and employment details.
- Open the account by phone: Call BMO customer service to open your account over the phone. Have your required documents and personal information handy, as a customer service representative will guide you through the process.
- Open the account in person: Visit your nearest BMO branch to open the account in person. Bring your required documents and be prepared to provide your personal information to a bank representative.
- Fund your account: Once your account is open, you can fund it by transferring money from your BMO chequing account, depositing cash or a cheque at a BMO branch or ATM or setting up a direct deposit from your employer or another financial institution.
BMO Premium Rate Savings Account conclusion
The BMO Premium Rate Savings Account offers some benefits, like no monthly fees, easy mobile banking, and free Interac e-Transfers. However, it also comes with a low interest rate and requires a BMO chequing account.
Understanding the features and weighing the pros and cons can help determine if this account aligns with your financial goals. If you’re still unsure, remember that BMO offers other savings account options, so you can find one that best suits your needs.
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