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The BMO US Dollar Premium Rate Savings Account is a convenient banking solution. It’s especially beneficial for Canadians who frequently travel to the United States or conduct transactions in US dollars.
The BMO US Dollar Premium Rate Savings Account is designed for those who frequently travel to the United States or deal with USD transactions. It offers a 0.050% interest rate, no monthly fees, and transaction limits based on your existing BMO chequing account plan. However, it lacks bill payment options and Interac e-Transfers.
This account breakdown will explore everything you need to know about this savings solution and how to open an account. It will also detail other BMO savings account options and more.
BMO US Dollar Premium Rate Savings Account Features
A few exciting features are associated with this account, which may complement your banking needs. Its core features include:
- The account offers a 0.05% interest rate, allowing your savings to grow over time.
- There is no monthly savings requirement, providing flexibility for your saving habits.
- Transactions are based on your chosen Plan limits, ensuring you stay within your account’s boundaries.
- You can have a maximum of 1 account with the Practical Plan and up to 20 accounts with all other Plans, accommodating various saving needs.
- This account can be included in any Bank Plan, allowing for seamless integration with your existing banking services.
Pros Associated With This Savings Account
No Monthly Fees
The BMO US Dollar Premium Rate Savings Account has no monthly fees, making it an affordable option for holding US dollars. However, it is essential to note that you must have an existing BMO chequing account to avoid fees for this savings account.
Earn Interest on US Dollars
With a 0.050% interest rate, you can earn daily interest on your US dollar savings, allowing you to grow your savings over time.
Easy Access to Your Money
This account offers easy access to your funds with no restrictions on withdrawals. But transaction limits and accessibility depend on your BMO banking plan. Therefore, you can access your money via debit card and electronic transfer if your plan allows it.
Convenient for Travelers
The account is ideal for those who frequently travel to the United States or conduct transactions in US dollars. As such, it reduces the need for currency conversion.
Cons Associated With This Savings Account
Low Interest Rate
The 0.050% interest rate is on par with other big banks. However, it is significantly lower compared to some online banks that offer better rates.
No Welcome Bonus or Sign-up Incentives
Unfortunately, BMO offers no welcome bonuses or other incentives for opening a US Dollar Premium Rate Savings Account.
Requires an Existing BMO Chequing Account
To open this account, you must have an existing BMO chequing account. But this may come with its own fees.
Exchange Rate Fluctuations
The value of your savings may be affected by fluctuations in the exchange rate between the US dollar and your home currency.
Not Ideal for High-Yield Savings
The interest rate on this account is relatively low compared to other high-yield savings accounts. As such, it is less suitable for those seeking maximum interest earnings.
BMO US Dollar Premium Rate Savings Account Fees
There are no monthly fees for this savings account. But you must have an existing BMO chequing account to avoid fees. Transactions are based on your Plan limits, and any additional fees for debits will depend on your BMO chequing account.
Other BMO Savings Account Options
Perhaps the BMO US Dollar Premium Rate Savings Account doesn’t suit your needs. In that case, there are other BMO savings account options to consider:
- BMO Savings Amplifier Account: This account offers an impressive 1.800% interest rate, making it an excellent option for those looking to grow their savings. It offers unlimited no-fee self-serve transfers to other BMO accounts, no monthly fees, and no minimum balance requirements. Therefore, the BMO Savings Amplifier Account provides flexibility and convenience.
- BMO Savings Builder Account: Encouraging consistent saving, the BMO Savings Builder Account features a 0.500% base interest rate. But it also provides a 2.000% bonus interest rate for those who save at least $200 per month. With one no-fee transfer per month to another BMO account and no monthly fees, this account rewards you for developing healthy saving habits.
- BMO Premium Rate Savings: Designed for those who require frequent access to their funds, the BMO Premium Rate Savings account offers a 0.010% interest rate. It’s also requires no monthly fees. In addition, this account can be included in any Bank Plan. Therefore, it provides additional flexibility and convenience for BMO customers.
How to Open a BMO US Dollar Premium Rate Savings Account
For those who would like to open this US Dollar savings account, all you need to do is follow these easy steps:
- First, visit BMO’s website and navigate to the “Savings Accounts” section under “Bank Accounts.”
- Next, locate the correct savings account page.
- Then indicate whether you’re a new or existing customer to be redirected to the appropriate application.
- Enter your personal information, including your full name, date of birth, Social Insurance Number (SIN), and email address.
- Now you can submit your application and provide any additional documents requested by BMO.
- Once approved, sign up for an online BMO account with your new banking information.
BMO US Dollar Premium Rate Savings Account conclusion
The BMO US Dollar Premium Rate Savings Account offers an ideal solution for individuals who frequently deal with US dollars or travel to the United States. This account provides a modest interest rate, flexible transaction limits, and easy access to funds.
However, before deciding, potential account holders should consider the limitations, such as the lack of bill payment options and Interac e-Transfers. By carefully assessing their needs and comparing other BMO savings account options, users can select the best account to support their financial goals.
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