BMO Alto Online Savings Account Review: High Yield, but No Cash Transactions

The BMO Alto Online Savings Account is an online-only account that boasts a competitive 5.10% APY. The account is pretty low maintenance -- no monthly service fees, no account minimums, no opening deposits -- but offers no branch access at BMO banks and no cash deposits. It's the kind of high yield account that makes your savings work hard for you, but it's also not the highest APY we've seen. Below, we'll take a deeper dive into the BMO High Yield Saving Account and help you decide if it's the right place for your savings.

The APY on BMO Alto Online Savings Account blows away its fellow big bank competitors. You can find higher rates with smaller online-only banks, but since you earn this rate with no minimum deposit, it's worth considering if you don't mind having less access to your savings.

The BMO Alto Online Savings Account will suit savers who want to earn high interest and don't need immediate access to their savings. While not as punishing as breaking a CD term, this savings account doesn't allow cash withdrawals, nor any cash equivalents like checks or debit cards. Electronic transfers are free and unlimited, but they're not instant and could add time to your withdrawals or deposits. With this in mind, let's take a closer look at this account's top perks and drawbacks.

Top perks

High yield on your savings: The BMO Alto Online Savings Account stands tall among savings accounts offered by big banks.

No fees, no account minimums: If you're sick of monthly account fees taking a bite out of your savings, you'll be pleased to know the BMO High Yield Savings Account doesn't have them. Even better, you don't have to maintain a high minimum balance to waive the fee. In fact, you don't even need money to open the account (although that's recommended). This free savings account has a $0 opening deposit requirement, so you could open it now with zero savings and fund it later.

Unlimited withdrawals: Another sigh of relief. If you withdraw frequently, you won't have to pay a fee when you surpass some withdrawal limit (usually six at other banks). The BMO Alto Online Savings Account gives you unlimited access to your money, helping you retain more of your money and dish out less in fees.

Personalized support: This is an online-only bank account, so you won't get in-branch support. That said, you can always call the BMO Alto support line to get personalized help for your account.

What could be improved

APY isn't the highest we've seen: If your goal is to earn the most interest possible for your savings -- if every little penny is significant -- you might want to compare the BMO Alto Online Savings Account with other high-yield savings accounts. Truth is, BMO Alto doesn't have the highest APY on the market and is notably lower than several savings accounts offered through the financial platform, Raisin. Do some shopping around before you commit, as you might earn a higher APY from another bank or credit union.

No cash deposits or withdrawals: This account does not allow cash transactions, whether withdrawals or deposits. Money can only move in and out of this account electronically, with no option to deposit through check or withdraw at an ATM.

Withdrawals aren't instant: Because you can't take cash out at ATMs, you should plan for a few business days when withdrawing money. While your money isn't locked up (like in a CD), it's also not as accessible as at a brick-and-mortar bank.

No mobile app: You might expect an online bank account to have a mobile app. And rightfully so: Most online accounts do connect to an app of some sort. But BMO Alto hasn't developed an app for its digital banking services, nor can you connect to the BMO Alto Online Savings Account through any app. The only way to check your money is online through the BMO Alto website.

No branch access: No surprise here, but it's worth emphasizing that you won't get in-person support with this account. Plus, the only way to access money is online through your BMO Alto account.

For all its high yields and no fees, the BMO Alto Online Savings Account offers few ways to access your money. If you're constantly withdrawing and depositing money, you might want to check out your options below before committing.

Deposit options

Sadly, this account has no cash or check deposits; all money must be deposited electronically. This can be done through an ACH electronic transfer (translation: a transfer from an external checking or savings account), or you can set up direct deposits. In contrast, other online banks have more deposit options, like scanning checks in a mobile app, depositing cash at an ATM, or mailing checks.

Withdrawal options

Withdrawing money from the BMO Alto Online Savings Account must be done electronically. There's no debit card, no ATM access, and you can't wire money to another account. If withdrawing cash is important to you, this might not be the right account for you.

• You want high yield on your savings
• You've looked at other savings accounts with higher APYs and decided that this one has features you like more
• You can deposit money electronically and don't want or need fast access to cash
• You can manage your money on a desktop and don't need to access it through a mobile app

Keep reading about BMO

• BMO Bank Review
• BMO Savings Builder Review
• BMO Debit Mastercard Review
• BMO Relationship Plus Money Market Review
• BMO CD Rates

Our savings account methodology

At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

Our scores are weighted as:

• APY: 50%
• Brand and reputation: 20%
• Fees and minimums: 15%
• Other perks: 15%

Learn more about how The Motley Fool Ascent rates bank accounts.