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The BMO Savings Builder Account is a high-interest savings account offered by the Bank of Montreal (BMO) to encourage active savers. With attractive rewards and interest rates, one can understand why this savings account is sought-after.
The BMO Savings Builder Account offers a tiered interest rate to encourage regular savings, with no monthly fees. Open an account online with an easy to follow application process.
Benefit from one free monthly transfer and no deposit fees while exploring other BMO savings options such as the Amplifier, U.S. Dollar Premium, and Premium Rate accounts.
Here we discuss the features, pros, cons, fees, special offers, and other BMO savings account options. We’ll also detail the process for opening this savings account, step by step.
BMO Savings Builder Account Account Features
- Up to 2.5% interest rate (0.500% base interest rate and 2.000% bonus interest rate)
- Monthly savings requirement of $200 to qualify for the bonus interest rate
- Maximum balance of $250,000 for bonus interest eligibility; base interest paid on all balances
- One free transfer out of the account per month ($5 fee for each withdrawal or additional transfer out)
- Limited to one BMO Savings Builder Account per customer
- Not eligible for inclusion in a BMO Bank Plan
The Pros of BMO Savings Builder Account
No Monthly Fees
The BMO Savings Builder Account has no monthly fees, making saving money easier without worrying about extra charges.
Competitive Bonus Interest Rate
With a potential interest rate of up to 2.5%, this savings account offers a much higher rate than many other big bank savings accounts, which often have a base interest rate of around 0.05%.
Encourages Active Saving
The bonus interest rate incentivizes account holders to actively save and increase their monthly balance by at least $200 each month. This can help build positive saving habits, particularly for individuals who struggle to save.
Limited Access Helps Prevent Impulse Spending
Since the BMO Savings Builder Account does not allow access to funds through bank machines, it reduces the likelihood of impulse spending. It helps account holders to better manage their savings.
The Cons of BMO Savings Builder Account
No Introductory Promotion
Unlike some savings accounts that offer welcome bonus interest rates or other incentives, this savings account does not have an introductory promotion. However, the high bonus interest rate may compensate for this lack.
Average Base Interest Rate
If you fail to meet the $200 monthly deposit requirement, your interest rate drops to 0.5%. This can be a significant decrease, especially if you miss the target by just a tiny amount.
Inconvenient Access to Funds
Accessing money from this savings account can be inconvenient due to the lack of bank machine access. Account holders must transfer funds to another account to use modern banking conveniences like debit cards and bank machines.
Limited Free Transfers
The BMO Savings Builder Account comes with one free monthly transfer. Each additional transfer costs $5, which can be expensive if you need to make multiple transactions.
Only One Account Allowed Per Customer
Account holders can only have one BMO Savings Builder Account, limiting options for those wanting multiple accounts for different saving goals or purposes.
BMO Savings Builder Account Fees
When it comes to managing your savings account, understanding the associated fees is crucial. To help you easily navigate your savings journey, we’ve highlighted the vital fee-related aspects of this account. Rest assured, the BMO Savings Builder Account is designed to be budget-friendly, so you can focus on building your savings with minimal expenses.
Enjoy the Perks of No Monthly Fees
The purpose of this account is to help you save without the burden of ongoing costs. This means that you can enjoy the benefits of your account without worrying about any monthly deductions eating away at your hard-earned savings.
Embrace the Convenience of One Free Transfer Out per Month
Need to move some funds? No problem! BMO generously provides one free transfer out of your Savings Builder Account each month. This way, you can manage your finances without incurring additional costs.
Be Mindful of the $5 Fee for Withdrawals or Additional Transfers Out
While BMO encourages saving by offering a free transfer out per month, it’s important to note that there is a $5 fee for each withdrawal or additional transfer out of the account. To make the most of your savings experience, plan your transfers strategically and minimize any unnecessary transactions.
Deposit with Confidence: No Fees for Deposits
Boost your savings without the worry of hidden costs! BMO values your commitment to saving and does not charge any fees for deposits made into your Savings Builder Account. This means you can watch your account balance grow without any unexpected surprises.
Other BMO Savings Account Options
- BMO Savings Amplifier Account: This high-interest savings account is designed for customers who maintain a larger balance, offering competitive interest rates to help maximize your savings growth potential.
- BMO U.S. Dollar Premium Rate Savings Account: Ideal for those who frequently deal with U.S. currency, this account allows you to save and earn interest in U.S. dollars. This provides protection against exchange rate fluctuations.
- BMO Premium Rate Savings Account: A flexible savings option that offers tiered interest rates, the BMO Premium Rate Savings Account rewards you with higher interest rates as your balance increases, incentivizing and supporting your long-term savings goals.
How to Open a BMO Savings Builder Account
- Go to the website: Visit the BMO Savings Builder Account page on the BMO website.
- Initiate your application: Click on “Apply Now” and follow the on-screen prompts to get the ball rolling.
- Provide your personal information: This includes your full name, where you live, SIN (or equivalent), contact details, and more.
- Select the type of account you want to open: BMO may offer various types of Savings Builder Accounts, such as individual, joint, or custodial accounts. Choose the account that best aligns with your financial needs.
- Review and accept the account terms and conditions: Read through these and ensure you understand them. They detail important information about fees, interest rates, and other account features. If you agree, check the box to confirm your acceptance.
- Verify your identity: BMO may require you to provide a valid form of identification. Typically, you can submit a copy of your driver’s license, passport, or government-issued ID. They may also ask you to answer a few security questions based on your personal history to help confirm your identity.
- Fund your account: Next, you’ll need to make the first deposit to open your Savings Builder Account. The minimum deposit requirement can vary subject to the account you select. You can deposit funds into your account via a bank transfer, direct deposit, or mailing a cheque to the bank.
- Set up online and mobile banking: Once your account is open, you’ll want to register for BMO’s online and mobile banking services. This will allow you to manage your account, view your account balance, make deposits, and transfer funds quickly from your computer or mobile device.
BMO Savings Builder Account conclusion
The BMO Savings Builder Account is a practical and rewarding option for those looking to develop consistent saving habits. With its tiered interest rates, no monthly fees, and a user-friendly online application process, it simplifies the journey toward financial growth.
BMO offers a variety of other savings accounts to cater to diverse needs, ensuring there’s a suitable option for every individual. By exploring these accounts and understanding their features, you can make informed decisions to secure your financial future.
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