BMO Harris Bank primarily serves customers in the Midwest. If you’re looking for a certificate of deposit (CD) account and don’t live near a branch, you also have the option to open an online account. The minimum deposit for a CD is $1,000, whether you're in person or online. The interest rates from BMO Harris do not generally compare well with the best CD rates on the market, with the exception of some special rates. The special rates require a $5,000 initial deposit, though.
In this review, we’ll go into more of the details you need to help you decide if a BMO Harris CD is the right choice for you.
|CD Length||APY: Minimum Deposit $1,000||APY: Minimum Deposit $5,000||APY: Minimum Deposit $100,000|
|1 Month||-||-||0.05%||Compare CDs|
|3 Month||0.05%||0.05%||0.05%||Compare CDs|
|6 Month||0.05%||0.05%||0.05%||Compare CDs|
|9 Month||0.10%||0.10%||0.10%||Compare CDs|
|12 Month||0.15%||0.15%||0.15%||Compare CDs|
|18 Month||0.25%||2.75%||2.75%||Compare CDs|
|24 Month||0.30%||0.30%||0.30%||Compare CDs|
|30 Month||0.35%||0.35%||0.35%||Compare CDs|
|36 Month||0.40%||0.40%||0.40%||Compare CDs|
|48 Month||0.50%||0.50%||0.50%||Compare CDs|
1-Month CD Interest Rate Comparison
Overview of BMO Harris Bank CDs
BMO Harris Bank is headquartered in Chicago, Illinois and is one of the largest commercial banks in the Midwestern U.S. It also has locations outside of the Midwest with branch locations in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. According to the bank, it has about 600 branch locations and more than 43,000 ATMs.
If you’re considering a CD account, know that BMO Harris has term options ranging from three months to four years. All term options are available as standard CDs and as individual retirement account (IRA) CDs. The minimum deposit is $1,000. Rates vary by location and by the amount of your initial deposit. A higher deposit won’t always earn you a higher rate, but special rates apply just to accounts of $5,000 or more. Depositing at least $100,000 could also open you up to short-term CDs of one to two months.
Interest compounds daily in all CD accounts. For terms of less than one year, the interest you earn will only be credited when your CD reaches maturity. For terms that are one year or longer, interest credits quarterly. You cannot remove interest earnings from your account before the maturity date.
It is possible to open an account online with BMO Harris but there are some restrictions to keep in mind. You cannot open an online CD with more than $100,000. You also cannot open an online CD as part of an IRA.
In addition to its standard CDs, BMO Harris also has a Step Rate CD. There is just one term option, three years, and it comes with a minimum deposit of $5,000. A Step Rate CD has pre-defined rates that the bank will increase over the term of the CD at predetermined intervals. You don’t need to do anything to increase the rates. It’s automatic. Step Rate CDs are also available in IRAs.
If you want to withdraw any funds from your CD, you will need to wait until after your account’s maturity date. At the end of your CD term, you will receive a grace period of 10 days. During that time, you can make any changes to your account or even close your account. If you don’t make any changes (and if your account has at least $1,000) then BMO Harris will renew your account for another CD. The new term length will be the same as the original CD. The new interest rate will depend on the current available rates.
Any withdrawals you make from your CD before the maturity date will result in an early withdrawal penalty. The amount of the penalty depends on the length of your CD. Longer CD terms have a higher penalty. It doesn’t matter how long is left in your CD term. The early withdrawal penalty will first come out of the interest that you have earned. If that amount is insufficient, the penalty will come out of your principal. The table below shows the early withdrawal penalties for various CD terms.
|CD Term||Interest Penalty|
|1 month (7 – 59 days)||All interest earned|
|2 months – 11 months (60 days – up to 364 days)||90 days interest|
|12 – 23 months||180 days interest|
|24 – 35 months||270 days interest|
|36 – 47 months||365 days interest|
|48 months or longer||545 days interest|
|Short Term CD Special (2 – 11 months)||180 days interest|
|Long Term CD Special (12 months or longer)||365 days interest|
How Much You Earn With BMO Harris Bank CDs Over Time
The interest rates from BMO Harris are relatively low. If your goal is to use a CD to help you build savings, you will need to contribute large amounts or opt for long-term CDs. There are three exceptions. Because of special CD rates, the interest rates for 18-, 30- and 60-month CDs are above 2%. Those rates are competitive but you will need to contribute at least $5,000 to get them.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths. Note the significantly higher earnings if you contribute to CDs with special rates.
|Initial Deposit||18-Month CD||36-Month CD|
How BMO Harris Bank CD Rates Compare to Other Banks
As mentioned above, interest rates are generally low for BMO Harris CDs. Even if you can afford the $5,000 minimum for special rates, it’s a good idea to compare CD rates from a few banks.
For customers who want a short-term CD, consider an online bank. For example, Ally offers competitive rates on terms of about two years or less. If you want a CD longer than a couple of years, there are some other options you should consider too. Capital One has competitive long-term rates, and there is no minimum for opening an account.
It’s good to note that the special rate for BMO Harris’ 60-month CD is very competitive. One of the few places you’ll find a higher rate is with a broker like Edward Jones. Edward Jones offers higher rates than most traditional banks because it has brokered CDs. (Brokered CDs operate slightly differently than CDs from traditional banks, so make sure you understand how they work before opening any accounts.) Minimum deposits are only $1,000. Edward Jones also offers CD terms up to 10 years for people who are focused on long-term savings.
|CD Account||BMO Harris Bank||Ally Bank||Capital One|
Compare BMO Harris Bank to Other Competitive Offers
Should You Get a BMO Harris Bank CD Account?
Overall interest rates from BMO Harris are low. Another bank is likely to offer better rates. However, you should consider an account if you can afford to deposit at least $5,000. With that minimum deposit you will qualify for special interest rates. The special rates are very competitive, but you should check with local branches before opening an account. Individual branches may have different rates.
BMO Harris also provides flexibility by allowing you to open a CD account online. At the same time, you should also consider online banks, like Ally, if you are only looking for an online account.