Types of BMO deposits
If you want to deposit a certain sum to a BMO account, you can choose from an array of available options.
- Certificates of Deposit (CDs) are available at BMO Harris Bank. CDs feature locked-in interest rates and flexible term options. Standard CD from BMO allows you to deposit just $1,000 and select a term from 3 months to 5 years. Depending on the chosen term, the rate will range from 0.05% to 0.25%. With a minimum deposit amount of $5,000, BMO offers special rates from 2% to 3%, depending on a chosen term. The terms for these special-rate options range from 13 to 59 months.
- Guaranteed Investment Certificates (GICs). With BMO guaranteed investment certificates, you can deposit your money for a fixed term at a fixed interest rate, so your return is predictable. The longer the term (from 1 to 10 years), the higher the interest rate you can count on: 3.650%-4.750%. BMO GICs are pretty similar to U.S. certificates of deposits at BMO.
- Chequing accounts from BMO are a kind of deposit account to make deposits and withdrawals and perform everyday transactions. Unlike CDs or savings accounts, they are not interest-bearing. There are monthly fees on these accounts, with an opportunity to waive them when maintaining the minimum balance required.
- Savings accounts. To grow the funds deposited into your bank account, consider savings accounts from BMO. These accounts allow you to earn interest for holding money with rates ranging from 0.01% to 1.30%. BMO savings accounts come with no monthly fees when maintaining the minimum balance. Some of the options have no minimum balance requirements either.
- Tax-free Savings Accounts (TFSA) allow you to grow your earnings tax-free. You can mix the sums you deposit to your TFSA with Guaranteed Investment Certificates, stocks, bonds, mutual funds, and other investments.
- Registered Retirement Savings Plans (RRSP) allow you to save for retirement and earn interest tax-free. The contributions to an RRSP lower your taxable income.
- Registered Education Savings Plan (RESP) allows you to deposit funds and save for your child’s education. These accounts feature tax-sheltered earnings and no annual contribution limit, with a lifetime limit of $50,000.
- Registered Disability Savings Plans (RDSP) are savings solutions for Canadians with disabilities to grow the funds on a tax-deferred basis. The lifetime contribution limit is $200,000. As an account holder, you can contribute to it yourself and also get funding from government programs.
- Continuous Savings Plans (CSP) represent pre-authorized plans to withdraw money from one account and deposit them into a savings or investment account. The minimum monthly contribution is $50.
Requirements
To apply for deposit products from BMO, you must be either a Canadian or a U.S. citizen or resident.
Be ready to provide your personal information, your contact details, and your Social Insurance Number. In addition, have a valid government-issued photo ID (a driver’s license or a passport) at hand.
Pros and cons
Here are the advantages of BMO deposit accounts:
- A range of account types where you can deposit your money to
- An affordable minimum deposit requirement to open a chequing or savings account
- Easy and convenient ways to make a deposit
- No envelope needed to deposit a cheque at a BMO ATM
Still, there are potential drawbacks:
- Minimum balance requirements on most chequing and savings accounts to waive monthly fees
- Earning higher interest amounts with CDs will require you to maintain four-figure account balances
- Early withdrawal fees for CDs
How to make a deposit?
BMO offers several ways to make a deposit:
- Through Online Banking by downloading the BMO Direct Deposit form, attaching a void cheque, or filling in the form with your account, financial institution, and branch transit numbers.
- In the BMO Mobile Banking app by specifying the amount on the cheque and taking a photo of its front and back sides.
- At a BMO ATM, by inserting your debit card, selecting the account to fund, and inserting your cheque(s) and/or cash together
