Which online bank is better?

BMO Alto and Synchrony Bank are both popular online banks known for their no-fee models and competitive interest rates. So, is one better than the other?

Let’s take a closer look at how BMO Alto and Synchrony’s banking products compare so you can decide if one is the right fit for your needs.

BMO Alto is the online banking arm of BMO Bank N.A., which is part of the Bank of Montreal. Launched in 2023, BMO Alto focuses on providing high-yield savings accounts and certificates of deposit (CDs) with competitive interest rates and no monthly fees or minimum deposit requirements.

Read our full review of BMO Alto here

Based in Connecticut, Synchrony Bank is an online bank that offers consumer savings and credit products, including savings accounts, money market accounts (MMAs), CDs, credit cards, and more. Synchrony also provides business banking products and services.

Read our full review of Synchrony Bank here

Synchrony Bank and BMO Alto both offer high-yield savings accounts with no minimum opening deposit or balance requirements and no monthly fees.

BMO Alto’s interest rate of 4.30% APY is slightly higher than Synchrony’s 4.10% APY. However, both banks offer savings account rates well above the national average for traditional savings accounts. And Synchrony is included in our ranking of the 10 best high-yield savings accounts available today.

Both BMO Alto and Synchrony offer CDs with a wide range of terms, up to 60 months. However, BMO Alto offers a slightly higher maximum rate on its standard CDs at 4.30% APY (6-month term) compared to Synchrony’s 4.00% APY (9-, 12-, and 60-month terms).

That said, Synchrony is running a promotional CD rate of 4.25% APY on its 13-month CD. It also offers specialty CDs, including bump-up and no-penalty CDs.

BMO Alto and Synchrony rank among our best CD rates on the market today.

BMO Alto does not currently offer a money market account.

Synchrony Bank provides a money market account that earns 2.25% APY. This account does not require a minimum opening deposit or minimum balance. There are also no monthly maintenance fees and account holders have easy access to their funds with an optional ATM card and checks.

Overall, BMO Alto offers higher APYs for its CDs and savings accounts. However, only Synchrony offers a money market account, which pays a competitive 2.25% APY — significantly higher than the national average rate of 0.66%.

Both banks have no-fee accounts, meaning there are no monthly maintenance fees or penalties for falling below a certain balance. However, both banks impose early withdrawal penalties for CDs, and Synchrony’s penalty may be higher, depending on the term.

BMO Alto is a great option for consumers who are in the market for a no-frills, high-yield savings account or CD with market-leading rates.

Since BMO Alto does not offer a money market account, you’re better off considering Synchrony Bank if you’re interested in this specific type of account. Synchrony also offers a wider variety of CD terms and types for savers who want to lock in a competitive rate.