Skip to main content
Ratehub logo
Ratehub logo

Battle of the Banks: BMO Bank of Montreal vs. Scotiabank

Craig Sebastiano

Choosing a financial institution isn’t easy when most of them offer the same products and services. But it’s not as difficult to make a choice when you only compare some of the products.

In this final battle of the banks, we compare the GICs and high-interest savings accounts offered by both BMO Bank of Montreal and Scotiabank.

GICs

There are two types of non-redeemable GICs at Scotiabank: Long-term and special rate GICs. The rates on the long-term GICs are similar to what other banks offer while the special rate GICs have a better rate and are comparable to the rates at smaller financial institutions. As of April 24, these are the rates both banks offer on non-redeemable GICs for terms of between one and five years:

Both Scotiabank and BMO require a minimum investment of $1,000 for their GICs. Among the two banks, Scotiabank has the best GIC rates because of its special rate GICs.

Market-linked GICs

Scotiabank and BMO offer market-linked GICs and both require a minimum investment of $1,000. Scotiabank offers five of these GICs and the terms are for two, three, and five years. On the other hand, BMO has eight market-linked GICs and the terms are between 1.5 and five years.

Read:Should You Put a Market-Linked GIC in Your RRSP?

High-interest savings accounts

Both banks have a few savings accounts to choose from. But there are two that can provide you with an annual return or more than 1%: The Scotiabank Momentum Savings Account and the BMO Savings Builder account.

The rate on the Scotiabank Momentum Savings Account is 0.05% if your balance is less than $5,000. But until Aug. 31, if you have a balance of more than that amount, the rate is 2.15% if no withdrawals are made within 90 days.

The rate on the BMO Savings Builder account is only 0.2%, but again there’s the potential to earn a higher rate. How? Just deposit at least $200 into your account every month—and don’t make any withdrawals—to get a bonus 1% (for a total of 1.2%).

The winner

The most international bank in Canada is also the winner of the battle of the banks. Scotiabank’s special rate GICs have a good interest rate and its high-interest savings account actually has the potential to pay a high rate of interest.

Also read:

Flickr: Chris Tyler

advertisement
advertisement

The knowledge bank

A wealth of wealth knowledge delivered right to your inbox.

By submitting your email address, you acknowledge and agree to Ratehub.ca’s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.
advertisement