BMO Alto and Synchrony Bank are both popular online banks known for their free models and competitive interest rates. So is one better than the other?
Take a closer look at how BMO Alto and Synchrony’s banking products compare so you can decide which one is right for your needs.
BMO Alto is the online banking division of BMO Bank NA, part of the Bank of Montreal. Launched in 2023, BMO Alto is focused on providing high-yield savings accounts and certificates of deposit (CDs) with competitive interest rates and no monthly fees or minimum deposit requirements.
Read our full review of the BMO Alto here.
Connecticut-based Synchrony Bank is an online bank that offers consumer savings and credit products, including savings accounts, money market accounts, CDs, credit cards, and more. Sync also offers business banking products and services.
Read our full review of Synchrony Bank here.
Synchrony Bank and BMO Alto both offer high-yield savings accounts with no minimum opening deposit or balance requirements and no monthly fees.
BMO Alto’s interest rate is 4.30% APY, which is slightly higher than Synchrony’s interest rate of 4.10% APY. However, both banks offer savings account interest rates that are significantly higher than the national average for traditional savings accounts. And Synchrony ranks among the 10 best high-yield savings accounts available today.
BMO Alto and Synchrony both offer CDs of varying lengths, up to 60 months. However, BMO Alto offers the maximum rate on its standard CDs at 4.30% APY (6-month terms), which is slightly higher than Synchrony’s 4.00% APY (9-, 12-, and 60-month terms).
That said, Synchrony is running a promotional CD rate of 4.25% APY on 13-month CDs. We also offer specialty CDs, including bump-up CDs and penalty-free CDs.
BMO Alto and Synchrony have some of the best CD prices on the market right now.
BMO Alto does not currently offer money market accounts.
Synchrony Bank offers a money market account that earns 2.25% APY. There is no minimum deposit or minimum balance required for this account. Additionally, there are no monthly maintenance fees and account holders can easily access their funds using optional ATM cards and checks.
Overall, BMO Alto offers higher APYs on CDs and savings accounts. However, only Synchrony offers a money market account that pays a competitive 2.25% APY. This is much higher than the national average of 0.66%.
Both banks have fee-free accounts. This means there are no monthly maintenance fees or penalties for falling below a certain balance. However, both banks impose early withdrawal penalties on CDs, and Synchrony’s penalty may be higher depending on the term.
BMO Alto is a great option for consumers who want a simple, high-yield savings account or CD with market-leading interest rates.
BMO Alto does not offer money market accounts, so if you are interested in this specific type of account, you may want to consider Synchrony Bank. Synchrony also offers a wider range of CD terms and types for consumers looking to secure competitive pricing.
