BMO Alto and Synchrony Bank have carved out strong reputations as go-to choices in the online banking space, each offering appealing no-fee models and attractive interest rates. But how do they stack up against each other, and which might be the right choice for you?
To find out, we’ll delve into what BMO Alto and Synchrony Bank each bring to the table, helping you make an informed decision based on your financial needs.
BMO Alto serves as the digital banking arm of BMO Bank N.A., a subsidiary of the Bank of Montreal. It hit the market in 2023 with a focus on delivering high-yield savings accounts and certificates of deposit (CDs). Customers are drawn to its competitive interest rates combined with no monthly fees or minimum deposit requirements—making it a hassle-free banking option.
Synchrony Bank, hailing from Connecticut, also ranks as a prominent online banking institution. It offers a suite of savings and credit products tailored for consumers, including savings accounts, money market accounts (MMAs), CDs, and credit cards, along with a selection of business banking products.
When it comes to high-yield savings accounts, both BMO Alto and Synchrony Bank catch attention for their zero minimum opening deposits or balance maintenance requirements, coupled with no monthly fees. BMO Alto edges ahead slightly with an interest rate of 4.30% APY, compared to Synchrony’s 4.10% APY. Nonetheless, both banks significantly surpass the national average rates for traditional savings accounts. It’s worth noting that Synchrony has secured a spot in our list of the top 10 high-yield savings accounts available today.
Each bank offers a variety of CD options, with terms reaching up to 60 months. Here, BMO Alto again has a slight advantage with a maximum standard CD rate of 4.30% APY for a 6-month term, while Synchrony offers up to 4.00% APY on its 9-, 12-, and 60-month terms. Interestingly, Synchrony is currently promoting a CD with a 4.25% APY for a 13-month term and offers additional specialty CDs like bump-up and no-penalty options.
While both BMO Alto and Synchrony Bank boast some of the best CD rates on the market, BMO Alto falls short in one area: it doesn’t offer a money market account. This is a field where Synchrony steps into the spotlight, providing a money market account with a competitive 2.25% APY. Users benefit from no minimum opening deposit or balance requirements, no monthly maintenance fees, and convenient access to their funds via an ATM card or checks.
In a nutshell, BMO Alto shines with its higher APYs on CDs and savings accounts, making it a strong contender for those seeking straightforward, high-yield savings options. On the flip side, Synchrony Bank holds the advantage for those interested in money market accounts, paired with a wider variety of CD types and terms to lock in favorable rates.
Both banks offer hassle-free, no-fee accounts, sparing customers from monthly maintenance charges or penalties for dipping below a certain balance. However, keep in mind that early withdrawal penalties apply for CDs, with Synchrony’s potentially being steeper based on the term.
In conclusion, if you’re mainly seeking high-yield savings accounts or basic CDs with leading rates, BMO Alto is worth considering. But if a money market account is on your radar or you’re looking for more CD variety, Synchrony Bank might just be your ideal match.
