topic Re: BMO Alto Online CDs in Personal Finance

BMO Alto Online CDs

Dennis885 — Fri, 02 Feb 2024 20:08:23 GMT

Does anyone have experience with BMO Alto online CD accounts?

I recently had a CD with my credit union mature, and BMO is currently offering a better rate , so I'm doing my due diligence.

What I liked about the CD with my credit union is I could take monthly interest payments. I'd like to know if monthly interest payments via ACH to my personal bank account are an option with BMO or if I can only take all interest at maturity. Also any general feedback on BMO is appreciated.

Re: BMO Alto Online CDs

Kforce — Fri, 02 Feb 2024 21:49:18 GMT

Don't have BMO Alto account.

This is just generally how most I have had work.

Most don't pay interest until end for short term CD's (< 1 year)

Most pay interest monthly or quarterly on CD's longer than a year.

If removing earned interest when ever it is allowed you are reducing

your future interest earned.

Needing the funds for cash flow vs higher compounding gain.

Did not know this was even a thing.

Re: BMO Alto Online CDs

Kforce — Fri, 02 Feb 2024 22:08:57 GMT

Just went out and they have a "CD Deposit Disclosure" (Pdf)

My take:

Interest compounded daily using the Daily Balance Method,

and will be credited to the account on the last day of the month.

During the first 15 calendar days from initial funding, you may not

close your Account for any reason. After this time, early withdrawal

penalties may apply if you choose to close the Account prior to maturity.

Did not look up Fee's

You cannot make additional deposits into or partial

withdrawal from this Account until the maturity date.

Re: BMO Alto Online CDs

AndySoCal — Sat, 03 Feb 2024 02:07:46 GMT

@Dennis885 Here is a link to Depositacccounts.com this will allow to shop for a CD rate. You will need to adjust the search for your area

https://www.depositaccounts.com/cd/

You can do better than BMO Alto in my opinion.

Re: BMO Alto Online CDs

Dennis885 — Sat, 03 Feb 2024 02:25:17 GMT

I was able to get someone on the phone. They DO allow interest withdrawals to an external account on monthly basis.

That is the only option besides full interest at maturity. (No quarterly or 6 month withdrawl options).

Time for one last rate shop before I pull the trigger. I should have added I'm only planning on doing 12-15 months term.

Re: BMO Alto Online CDs

ptatohed — Wed, 14 Feb 2024 06:49:42 GMT

If you withdraw the interest monthly, you'll only be earning the APR, not the APY.