Is BMO a Real Bank (2024)

BMO, is a U.S bank, part of the Bank of Montreal. It offers solid basic checking options and a large ATM network. But, is it legit? Read on to find out.

With BMO being one of the largest national banks, it is most definitely a legitimate bank. It is also one of the oldest banks in North America.

The bank offers an array of different accounts and has fee-free transactions at 40,000+ BMO and Allpoint ATMs nationwide. However, it only has branches in 24 states.

What is BMO?

BMO is a fully functional retail bank. Founded in 1882 with headquarters in Chicago, the bank is currently the 8th largest by assets in North America. They provide a range of services, from deposits and loans to investment options.

A little history: BMO was founded in 1882 as N.W. Harris & Co. and was named Harris Trust and Savings Bank in 1907. Fast-forward to 1960, the bank merged with Chicago National Bank. A few years later, in 1972, it was rebranded as Harris Bank, N.A. It was eventually re-established as BMO Harris Bank in 2011. Finally, In 2023, BMO Harris Bank changed its name to BMO.

Being a fully functional bank, it offers numerous services and benefits to different customers. So, let's dig into that.

BMO: Pros and Cons

If you don't want to read in detail about the bank, here's a scoop of what's good and not so good about BMO.

Pros:

• Low/avoidable fees
  
• Debit card options
  
• Cash bonuses for new customers
  
• Low minimum for account opening

Cons:

• Limited locations
  
• High balances needed to gain high-interest rates
  
• Overdraft fees

What is BMO Best For?

BMO is best for people looking for checking accounts with low fees. It's also suitable for those looking for different CD options to suit their interests.

BMO banking is not for you if you are likely to overdraft. Either you get an account that doesn't offer overdraft, or you will pay fees of $15 and upwards if your account is overdrawn by more than $50.^[1]

What Services Does BMO Offer?

As with most banks as big as BMO, it offers various services and accounts. As a result, the bank will be beneficial for many people, considering the CDs they have to offer.

To give you an idea of what you can do with a BMO account, here are some services they offer:

• Auto, personal, business, & CD-secured loans
  
• Purchase & refinance mortgages
  
• Home equity loans & lines of credit (HELOCs)
  
• Personal lines of credit
  
• IRAs
  
• Managed investment portfolios
  
• Private banking
  
• Financial advisors
  
• Customer service
  
• Money market, checking, savings, certificates of deposit & credit cards

BMO Bank Accounts

There is a variety of bank accounts you can open with BMO. You have numerous choices at BMO, from savings to credit accounts. A recommendation for you: go for a checking account (and don't overdraft if you can help it).

Below we will elaborate and explain what kind of accounts BMO has and what they offer.

Money market accounts
Money market accounts can be opened with as little as $25. However, expect to pay a fee if the minimum daily balance falls below $5,000.^[2] These accounts are good if you keep high amounts of money in them, as interest rates go up the more money you have.

Checking accounts
You can open three types of checking accounts at BMO:

• Smart Money Checking: $5 ($0 if you're under 25 years old) in monthly fees. Overdraft is not possible; the transfer doesn't go through in case of insufficient funds.^[3]
• Smart Advantage Checking: No monthly fees as long as you opt for paperless statements. $25 minimum deposit to open. A $15 fee if you overdraft over $50. It doesn't apply for items $5 or less, or if your account is overdrawn by $50 or less at the close of that business day.^[4]
• Relationship Checking: $25 monthly fee that can be waived with a high balance. Takes up to $25 of non-BMO ATM charges and allows earning interest.^[5]

Savings accounts
BMO Savings Builder Account has a $0 monthly fee and requires just $25 to open. BMO will reward you with a bonus interest rate for each month your balance grows by at least $200.^[6]

Credit cards
BMO offers five types of credit cards:

• Platinum Rewards Mastercard
  
• Cash Back Mastercard
  
• Boost Secured Mastercard
  
• Platinum Mastercard
  
• Premium Rewards Mastercard

Certificates of deposit
BMO offers three types of CDs:

• Standard CD: The opening deposit minimum is $1,000 and offers numerous maturity dates.
• Special Rate CD: The opening deposit minimum is $1,000. You can choose from many options and get high-interest rates.
• Add-on CD: The opening deposit is $1,000. They come in one-year terms and you can add as much money as you want after opening it.

Mobile Cash
BMO offers a feature that allows you to directly withdraw from ATMs using your phone. This is especially handy for those who tend to go out with just their phones!

What Bank Owns BMO?

BMO Harris was acquired by the Bank of Montreal (BMO) in 1984, hence the name BMO Harris. Since then, BMO Harris has acquired a number of banks across America and grown into the 13th largest by assets in the United States.^[7]

Although they operate under the same name, BMO and BMO Harris are not to be confused. Though the bank has been known as BMO Harris Bank to U.S. customers, BMO Harris has rebranded as BMO in 2023.

Is BMO Harris part of the Bank of America?
No, BMO Harris is part of the Bank of Montreal (BMO). BMO acquired BMO Harris back in 1984, hence the name BMO Harris.

What is the Difference Between BMO and BMO Harris?

BMO Harris is a subsidiary of the BMO bank. It's the oldest Canadian bank operating in Montreal, Quebec. In addition, it's also the fourth-largest bank by assets in Canada.

Essentially, they provide the same services and cater to the same people. There are no distinct differences other than the fact that BMO is larger and operates at a higher level. Also, BMO operates in Canada, and BMO Harris operates in the U.S.

In 2023, BMO Harris rebranded as BMO to make its name simpler and shorter.

Bottom Line

BMO is a legitimate and full-service bank. It operates branches in 24 states with a variety of features and benefits to offer to different customers. BMO may be the right bank for you, if you're looking for basic checking and savings with low requirements.

However, if you're interested in savings accounts with high interest rates, or you're likely to overdraft, consider other options which offer less overhead and higher yields.

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