High-Yield Banking: BMO Alto vs. Synchrony Bank
When it comes to online banking, two popular options stand out: BMO Alto and Synchrony Bank. Both offer no-fee models and competitive interest rates, but which one is the better fit for your financial needs?
A Closer Look at BMO Alto
Launched in 2023, BMO Alto is the online banking arm of BMO Bank N.A., part of the Bank of Montreal. This digital bank focuses on providing high-yield savings accounts and certificates of deposit (CDs) with competitive interest rates and no monthly fees or minimum deposit requirements.
Synchrony Bank: A Comprehensive Online Bank
Based in Connecticut, Synchrony Bank is an online bank that offers a wide range of consumer savings and credit products, including savings accounts, money market accounts (MMAs), CDs, credit cards, and more. Additionally, Synchrony provides business banking products and services.
High-Yield Savings Accounts: A Comparison
Both BMO Alto and Synchrony Bank offer high-yield savings accounts with no minimum opening deposit or balance requirements and no monthly fees. BMO Alto’s interest rate of 4.30% APY is slightly higher than Synchrony’s 4.10% APY. However, both banks offer savings account rates well above the national average for traditional savings accounts.
Certificates of Deposit: A Competitive Landscape
Both banks offer CDs with a wide range of terms, up to 60 months. BMO Alto offers a slightly higher maximum rate on its standard CDs at 4.30% APY (6-month term) compared to Synchrony’s 4.00% APY (9-, 12-, and 60-month terms). However, Synchrony is running a promotional CD rate of 4.25% APY on its 13-month CD, and also offers specialty CDs, including bump-up and no-penalty CDs.
Money Market Accounts: A Key Difference
BMO Alto does not currently offer a money market account, while Synchrony Bank provides a money market account that earns 2.25% APY. This account does not require a minimum opening deposit or minimum balance, and there are no monthly maintenance fees.
The Verdict: Choosing the Right Bank for You
Overall, BMO Alto offers higher APYs for its CDs and savings accounts. However, only Synchrony offers a money market account, which pays a competitive 2.25% APY. Both banks have no-fee accounts, but BMO Alto is a great option for consumers who want a no-frills, high-yield savings account or CD with market-leading rates. If you’re interested in a money market account or a wider variety of CD terms and types, Synchrony Bank may be the better choice.
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