BMO Alto Bank Review: Services, Pros and Cons (November 2024) (original) (raw)
BMO Alto is a relatively new online financial institution that began offering services nationwide in 2023. While it has a limited selection of savings products — including a high-yield savings account and several CDs — these accounts earn attractive interest rates and don’t charge monthly maintenance fees.
However, BMO Alto lacks many of the tech features that most online banks have, such as a mobile app and digital payments.
In this review, we at the MarketWatch Guides team will discuss the pros and cons of BMO Alto’s accounts, along with the bank’s reputation and customer experience.
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BMO Alto Summary
BMO Alto
4.3
Available Deposit Products Savings, CDs
Number of Branch Locations 0
Number of ATM Locations 0
BMO Alto is a relatively new, online-only division of BMO Bank, a traditional bank based in Chicago. Formerly known as BMO Harris Bank, BMO Bank has been in operation since 1817 and now ranks 13th among U.S. banks based on assets.
That said, BMO Alto operates separately, meaning its customers can’t use BMO’s regional branches or ATMs or access its online banking site or mobile app.
BMO Alto doesn’t have account fees or minimum opening deposit requirements and offers customers higher interest rates than much of the competition. However, the online bank doesn’t have any branches or access to ATMs. It also doesn’t offer a mobile app or support for cash transactions, paper checks, wire transfers or access to Zelle transactions. The only way to add or withdraw money from a BMO Alto account is by automated clearing house (ACH) transfer.
Pros
Attractive rates: BMO Alto offers competitive interest rates for its high-yield savings account and CDs
No minimum opening deposit requirements: Some banks require you to make an opening deposit between 25and25 and 25and500 to open an account. BMO Alto has no such requirement.
No account fees or minimum balance requirements: This makes BMO Alto potentially a good option for someone with limited assets.
Cons
No branch locations: BMO Alto customers can’t get services at the bank branches of its parent company, BMO.
No mobile app: Unlike most online and traditional banks, BMO Alto doesn’t have an app for services such as mobile check deposit.
Limited transfer options: The only way to make deposits and withdrawals is with ACH transfers between bank accounts.
No cash: Because BMO Alto doesn’t offer ATM cards, account holders can’t deposit or withdraw cash at ATMs.
Few ways to access your money: The online bank doesn’t offer ATM cards or paper checks and doesn’t support Zelle, wire transfers or mail transactions.
Our BMO Alto Ratings
We give BMO Alto 4.2 out of 5 stars after evaluating factors including its branch availability, account fees, interest rates and customer support. Here’s how the company scores in each of our review categories:
*Ratings are determined by our editorial review team. Learn more about our scoring methodology.
BMO Alto vs. Other Top Banks
The main way BMO Alto differs from other top banks is that it lacks the thousands of branches and ATMs they have. If branch and ATM access is important to you, consider using a more traditional financial institution as your main bank. For instance, you could visit a Bank of America, Wells Fargo or Chase branch to handle everyday transactions or get help.
While BMO Alto offers phone support, its lack of physical presence means you can’t do cash withdrawals or deposits. Plus, other banks have options for depositing checks online or in person, along with support for transactions with platforms such as Zelle, a digital peer-to-peer payments platform.
Although other top banks also offer savings and CD accounts, they usually provide more account types. For example, Bank of America has both fixed-term and flexible CD options, while Chase Bank has three types of savings accounts, which offer increasingly better perks for higher balances. Plus, these competitors typically offer many more products and services, including checking accounts, credit cards and loans.
However, BMO Alto takes the lead over traditional banks with its higher APYs and no account fees. Online banks including BMO Alto are able to offer higher APYs and few to no fees since they have lower operating costs than traditional banks, according to the International Monetary Fund.
| BMO Alto | Chase | Wells Fargo | Bank of America | |
|---|---|---|---|---|
| Our Rating | 4.2 | 4 | 3.8 | 4 |
| Number of Branch Locations | 0 | 4,700 | 4,600 | 3,800 |
| Number of ATM Locations | 0 | More than 15,000 | 11,000 | 15,000 |
| Available Deposit Products | Savings, CDs | Checking, savings, CDs | Checking, savings, CDs | Checking, savings, CDs |
| No-Fee Checking Account Option? | N/A | Yes* | Yes* | Yes* |
*This bank offers a low fee that is waivable if at least one requirement is met, such as a recurring direct deposit, a minimum monthly balance or a linked savings account. Requirements vary by bank.
BMO Alto Bank Accounts
BMO Alto only offers two types of deposit accounts: a high-yield online savings account and high-yield CDs. Both accounts have straightforward online applications that support individual and joint accounts.
Because of its limited offerings, BMO Alto isn’t ideal as a one-stop bank. It doesn’t offer checking accounts, which are typically ideal for paying monthly bills; or money market accounts, which often provide flexibility and potentially higher rates. This bank also lacks the following common personal banking products:
- Credit cards
- Mortgages
- Home equity loans
- Auto loans
- Personal loans
- Investment accounts
- Retirement accounts, such as IRAs
BMO Alto’s online banking portal includes basic features for viewing your account balances, statements and documents. You can check recent and scheduled transactions and update your security settings.
If you have a CD, you’ll have options for choosing what happens at its maturity. Plus, you can set up transfers between BMO Alto accounts or between your BMO Alto and linked external accounts.
| BMO Alto Account | Annual Percentage Yield (APY)* | Minimum Opening Deposit |
|---|---|---|
| Online savings account | 4.60% | $0 |
| Online CDs | 3.90% to 4.50% | $0 |
*APYs accurate as of November 7, 2024
BMO Alto Savings Account
We give the BMO Alto Online Savings Account a rating of 4.4 stars for its high interest rate, no monthly fees and no minimum opening deposit. It’s a great choice if you want a savings account with a solid return and no fees. This account is also suitable if you don’t mind relying only on electronic bank transfers, including direct deposits, to make deposits and withdrawals.
| BMO Alto Savings Account | APY | Min. Opening Deposit | Min. Account Balance | Monthly Service Fee |
|---|---|---|---|---|
| BMO Alto Online Savings Account | 4.60% | 0∣0 | 0∣0 | $0 |
BMO Alto Savings Account Features
BMO Alto’s savings APY is much higher than the national average interest rate for a savings account, which is 0.49%. Since the rate is variable, there’s some uncertainty of future interest earned. In other words, while rate increases would benefit account holders, BMO Alto could also lower the rate at any time.
In addition to no monthly fee, you won’t need to pay other common banking fees since you can’t get an ATM card or use overdraft protection. The bank doesn’t charge for any transfers you make between accounts either, though an external bank might do so.
BMO Alto also doesn’t set any withdrawal or transfer limits, which gives you the flexibility to move money often. But keep in mind that you must add money to your account within the first 90 days or of opening or it will be closed.
Rate History for BMO Alto’s Savings Account
BMO Alto’s Online Savings account earns 4.60% APY, which is steady from the rate at the same time last week. Over the last quarter, the BMO Alto Online Savings APY has changed 2 times.
| Date | BMO Alto Online Savings APY | National Average Savings APY |
|---|---|---|
| Today (November 15, 2024) | 4.60% | 0.49% |
| Last Week | 4.60% | 0.49% |
| Last Month | 4.60% | 0.48% |
BMO Alto CDs
We give BMO Alto’s high-yield CDs 4.3 stars for their high rates and no minimum opening deposit requirements. These CDs are designed for those who want a guaranteed, high return, and can keep funds in the account until the term expires.
| BMO Online CD | Minimum Opening Deposit | APY* | Early Withdrawal Penalty |
|---|---|---|---|
| 6-month CD | None | 4.50% | 90 days interest |
| 1-year CD | None | 4.30% | 180 days interest |
| 2-year CD | None | 3.90% | 180 days interest |
| 3-year CD | None | 3.90% | 180 days interest |
| 4-year CD | None | 3.90% | 180 days interest |
| 5-year CD | None | 4.00% | 180 days interest |
*APYs accurate as of November 7, 2024
BMO Alto CD Account Options
BMO Alto offers six fixed-term options. However, it lacks specialty CDs such as bump-up and no-penalty CDs, which many competitors have.
While BMO Alto doesn’t require a minimum deposit for opening a CD, you must fund your account within 10 days or it will be closed. After the first 10 days, you would then need to wait until the CD matures to make any additional deposits.
There’s an early withdrawal penalty if you withdraw money outside of the 10-day grace period at your CD’s maturity and you don’t qualify for another waiver. The penalty equals 90 days of interest for CD terms of 11 months or less and 180 days of interest for terms of one year or more. If you haven’t earned enough interest, you’ll need to use some of the principal to pay the penalty.
Rate History for BMO Alto’s CD Accounts
| Term | APY Today | APY Last Week | APY Last Month | Changes Over Last Quarter |
|---|---|---|---|---|
| 6 months | 4.50% | 4.50% | 4.50% | 3 times |
| 1 year | 4.30% | 4.30% | 4.30% | 3 times |
| 2 years | 3.90% | 3.90% | 3.90% | 2 times |
| 3 years | 3.90% | 0.00% | 3.90% | 2 times |
| 4 years | 3.90% | 3.90% | 3.90% | 2 times |
| 5 years | 4.00% | 4.00% | 4.00% | 2 times |
BMO Alto Customer Experience
There’s no listing for BMO Alto with the Better Business Bureau (BBB), but there is one for the brick-and-mortar bank, BMO. The latter has an A+ rating from the BBB and has been accredited by the organization since 1997.
BMO Bank has a good reputation for being a reliable place to deposit your money. Bauer Financial, which rates U.S. credit unions and banks, rates BMO Bank 5 out of 5 stars, which stands for “superior.”
Plus, the Federal Deposit Insurance Corp. (FDIC) insures deposits at BMO Alto and BMO Bank up to $250,000 per depositor and per institution. You’ll see this listed on both websites as “member FDIC” or “FDIC insured.”
### Our Experience Opening a BMO Alto CD
For a personal look into the BMO account process, we opened a $2,500 CD with a six-month term. Here’s what we liked about becoming a BMO Alto account holder:
- BMO Alto will give you the higher APY if its rate increases between when you open your account and when you fund your CD.
- Convenient option to save your progress on the online application and finish it later
- Lets you close your account online instead of requiring you to call
Since the bank doesn’t offer a mobile app, we only tested its online banking platform. There were several technical glitches we had to work through:
- Asked for location during the application process
- Aggressive account timeout mechanisms, leading to unintended logouts
- Error when linking bank accounts forced us to link manually
The Bottom Line: BMO Alto Bank Reviews
BMO Alto can be appealing if you want a high-yield savings account or high-yield CD with no fees and no minimum deposit or balance requirements. Just make sure that you’re comfortable using its online banking site only and not being able to do cash or paper check transactions.
This bank industry newcomer may eventually offer more account types and features. Until then, you’ll need to find another financial institution if you’re looking for a money market account, checking account, mobile banking app or support for a greater variety of transactions.
Learn More About BMO Alto
See how BMO Alto stands out in our roundups of the best financial institutions and deposit products available today:
- #7 on Best CD Rates
- #2 on Best 3-Year CD Rates
- #3 on Best 6-Month CD Rates
- #4 on Best 5-Year CD Rates
- #5 on Best IRA CD Rates
FAQ: BMO Alto
Yes, BMO Alto is a legitimate bank. BMO Alto is the online-only division of BMO Bank, a traditional bank that’s been around for over 200 years. It’s also an FDIC-insured financial institution with a high financial stability rating.
BMO Alto’s online savings account could be good for those who need unlimited access to their money without fees. Its higher APY also makes it a good option for earning several times the national average savings rate.
The BMO Alto high-yield savings account is a legit, FDIC-insured account that is a safe place to store your cash. As an account holder, you’ll get 24/7 support, no account fees and a competitive APY.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
Savings and money market accounts
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Banking experience and access
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
35% Savings and money market accounts
30% Checking accounts
20% Certificates of deposit
15% Banking experience and access
Savings and money market accounts
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
Checking accounts
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Certificates of deposit
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Banking experience and access
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank
*Rates accurate as of November 7, 2024
**Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com .