BMO Alto and Synchrony Bank are both notable names in the online banking sector, each offering no-fee models and attractive interest rates aimed at maximizing savings for customers. BMO Alto, the digital division of BMO Bank N.A., launched in 2023 with a focus on high-yield savings accounts and certificates of deposit (CDs). Designed to operate with no monthly fees or minimum deposit requirements, BMO Alto aims to be competitive in a market where traditional banking often falls short. On the other side, Synchrony Bank, established in Connecticut, has built its reputation by providing a range of consumer savings and credit products, including savings accounts, money market accounts (MMAs), CDs, and credit cards, as well as business banking services. The competitive landscape raises the question: does one bank offer superior products or services compared to the other?
When examining their savings accounts, both BMO Alto and Synchrony Bank provide high-yield options with no opening deposit or balance minimums, along with no ongoing fees. BMO Alto currently boasts a slightly higher Annual Percentage Yield (APY) of 4.30%, compared to Synchrony Bank’s 4.10% APY. Both rates are significantly higher than the national average for traditional savings accounts, establishing both banks as strong contenders for anyone seeking to grow their savings. Notably, Synchrony Bank is recognized in the ranking of the top 10 high-yield savings accounts available currently, highlighting its competitiveness in the market.
Regarding CD offerings, both banks excel in providing a varied range of terms that extend up to 60 months. BMO Alto’s standard CDs feature a maximum interest rate of 4.30% APY for a 6-month term, while Synchrony Bank features an interest rate of 4.00% APY for its nine, twelve, and sixty-month terms. Synchrony also runs a promotional 13-month CD rate at 4.25% APY that gives it an edge in specific scenarios. Both banks’ offerings of specialty CDs, such as bump-up and no-penalty CDs, further enhance their capabilities, making them two of the leading institutions concerning CD rates available today.
While both banks have chosen to focus on the high-yield angle, BMO Alto lacks a money market account, a product that Synchrony Bank provides with a competitive APY of 2.25%. This withdrawal functionality allows customers easier access to their funds through either ATM cards or checks. Synchrony Bank’s money market account, known for having no minimum opening deposit, no balance requirements, and the absence of monthly fees, presents a compelling option for consumers who prefer flexibility in accessing their funds while still earning interest. The APY offered is considerably higher than the national average of 0.66%, making it a worthwhile consideration for savers.
Overall, BMO Alto clearly stands out in terms of higher interest rates for both its savings accounts and CDs. However, it is important to note that it does not cater to customers seeking a money market account. In that regard, Synchrony Bank emerges as the more versatile option, providing a broader selection of CD terms and types, catering effectively to those wanting to secure a competitive rate alongside the flexibility of accessing funds with a money market account.
In conclusion, both BMO Alto and Synchrony Bank have crafted their products to meet the needs of savers looking for no-fee accounts and competitive rates. BMO Alto is an excellent choice for customers focused exclusively on high-yield savings and competitive CD rates without additional account types. Conversely, if a money market account or a variety of CD options is paramount to your banking needs, Synchrony Bank may be the better choice. Decisions between the two should be guided by individual financial goals and the specific types of accounts one values most in the evolving online banking landscape.
