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BMO, or the Bank of Montreal, is one of the largest banks in Canada and offers a range of financial products and services to its customers. One of the investment options provided by BMO is Certificates of Deposit (CDs), which are fixed-term investments that offer a predetermined interest rate over a specified period. BMO CDs are designed to provide customers with a safe and reliable way to grow their savings. They offer competitive interest rates and various term options to suit different investment goals and timelines. Here is some detailed information about BMO Certificates of Deposit:
  1. Types of BMO CDs: BMO offers both traditional CDs and market-linked CDs. Traditional CDs provide a fixed interest rate for the entire term, while market-linked CDs have their returns linked to the performance of specific financial markets or indices.
  2. Term Options: BMO offers a range of term options for CDs, typically ranging from 3 months to 5 years. Shorter-term CDs are suitable for individuals who may need access to their funds in the near future, while longer-term CDs are ideal for those looking to invest for a longer period and maximize their returns.
  3. Minimum Deposit: BMO CDs generally have a minimum deposit requirement, which can vary depending on the specific CD and term chosen. The minimum deposit amount is typically higher for market-linked CDs compared to traditional CDs.
  4. Interest Rates: BMO CDs offer fixed interest rates for the duration of the term. The interest rates vary depending on market conditions, the term length, and the type of CD chosen. Generally, longer-term CDs tend to offer higher interest rates to compensate for the longer commitment.
  5. Interest Payments: Interest on BMO CDs can be paid out at different intervals, depending on the product and the customer’s preference. Some CDs may offer monthly, quarterly, semi-annual, or annual interest payments, while others may compound the interest and pay it out at maturity.
  6. Early Withdrawal: CDs are designed as fixed-term investments, and withdrawing funds before the maturity date may result in penalties or loss of interest. BMO CDs typically have early withdrawal penalties, which can vary depending on the specific CD and the remaining term at the time of withdrawal.
  7. CD Renewal: At the end of the CD term, BMO provides options for customers to renew their CDs or make changes to their investment strategy. Customers can choose to reinvest their funds in a new CD with the same or different terms or explore other investment options.
  8. FDIC Insurance: BMO CDs are protected by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000 per depositor. This insurance provides additional security and protection to customers in case of bank failure.
It’s important to note that the specific details of BMO CDs, including interest rates, terms, and conditions, may vary over time and based on market conditions. It is always advisable to consult with a BMO representative or visit their website to obtain the most up-to-date and accurate information regarding their CD offerings.

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