BMO Alto and Synchrony Bank are both popular online banks known for their no-fee models and competitive interest rates. So, is one better than the other?
Let’s take a closer look at how BMO Alto and Synchrony banking products compare so you can decide if one is right for your needs.
BMO Alto is the online banking division of BMO Bank NA, part of the Bank of Montreal. Launching in 2023, BMO Alto focuses on offering 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 BMO Alto here
Based in Connecticut, Synchrony Bank is an online bank that offers savings and loan products for consumers, including savings accounts, money market accounts (MMAs), CDs, credit cards and more. Synchrony also provides 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 of 4.30% APY is slightly higher than Synchrony’s 4.10% APY. However, both banks offer savings interest rates that are well above the national average for traditional savings accounts. And Synchrony is included in our ranking of the 10 best high-yield savings accounts available today.
Both BMO Alto and Synchrony offer CDs with a wide range of maturities, up to 60 months. However, BMO Alto offers a slightly higher maximum rate on its standard CDs of 4.30% APY (6-month terms) compared to Synchrony’s 4.00% APY (9, 12, and 60-month terms).
That said, Synchrony has a promotional CD rate of 4.25% APY on its 13-month CD. It also offers specialty CDs, including bump-up and no-penalty CDs.
BMO Alto and Synchrony are among our best CD rates on the market today.
BMO Alto does not currently offer a money market account.
Synchrony Bank offers a money market account that earns 2.25% APY. This account does not require a minimum opening deposit or minimum balance. There are also no monthly maintenance fees and account holders can easily access their funds with an optional ATM card and checks.
Overall, BMO Alto offers higher APYs for its CDs and savings accounts. However, only Synchrony offers a money market account, which pays a competitive APY of 2.25% – significantly higher than the national average rate of 0.66%.
Both banks have no-fee accounts, meaning there are no monthly maintenance fees or penalties if you fall below a certain balance. However, both banks impose early withdrawal penalties for CDs, and Synchrony’s penalty may be higher depending on the term.
BMO Alto is a great option for consumers looking for a no-nonsense, high-yield savings account or a CD with market-leading rates.
Because BMO Alto does not offer a money market account, you may want to consider Synchrony Bank if you are interested in this specific type of account. Synchrony also offers a wider variety of CD terms and types for savers looking to secure a competitive rate.
