A BMO TFSA can hold a variety of investment products, including GICs, stocks, ETFs, mutual funds, and cash savings accounts. So whether you prefer a hands-off or a DIY approach to investing, BMO may have an option for you though their various TFSA products.
Though flexible, this is also standard among big banks – so it may not be impressive if you’re comparing BMO against something like TD or RBC. And BMO doesn’t offer much to really set themselves apart from other options on the market…so is it worth your time? Let’s dig in and find out.
BMO TFSA features
Here’s what kind of products you can get in your BMO TFSA:
Why You Want It
Grow your money tax free + Get backed by the trusted reputation of a big bank.
Eligibility
- Age of majority
- Canadian citizen
Provinces
ALL
GIC Rates
Cashable
1 Year
1.5%
Non-Cashable
1 Year
2.5%
18 Months
2.5%
2 Years
2.5%
3 Years
2.55%
4 Years
2.7%
5 Years
3%
6 Years
3.25%
7 Years
3.3%
10 Years
3.35%
Features
Self-directed TFSA Platform
BMO InvestorLine
Self-directed Base Fee
N/A
TFSA GICs List
- Redeemable
- Non-redeemable
- Income Builder
- Market-linked
Self-directed Available?
TFSA GICs Available?
TFSA Mutual Funds?
TFSA Portfolios?
TFSA Savings Account?
Min TFSA Savings Account Interest Rate
0.25%
Max TFSA Savings Account Interest Rate
0.25%
Promotion
N/A
Promotion End Date
N/A
Average Mutual Fund MER
See Issuer for Details
Investment Portfolios Fees
N/A
BMO TFSA product rating: 4.7 stars
Opening a TFSA with BMO means you get the flexibility of 5 main investment options, plus the reputation of a big bank to back it up. Whether you want to go hands-on with a BMO InvestorLine account, or let the experts handle it with a mutual fund, you can start saving with a BMO TFSA.
The major downside is that BMO doesn’t have anything to set itself apart from other big banks, since they all offer a similar collection of products. Its savings account rate is also low compared to some online banks, which makes it difficult to justify.
Rating methodology
To calculate our Genius Ratings, we compare the features of the account or product in question with other similar products in Canada. We give each feature a score out of 5 based on that comparison. Once we’ve rated all the features, we run them through our proprietary algorithm to produce a final rating out of 5.
Learn more about our rating methodology.
The pros of a BMO TFSA
Here are the main perks of a BMO TFSA.
Pros
Backed by a good reputation
BMO is one of the big 5 banks in Canada, meaning they have a lot of trust built into all of their products. And if you already bank with BMO, it’s an easy step to start investing with them as well – since you’re likely already familiar with your local branch.
Get guaranteed returns with BMO GICs
BMO offers many different types of GICs for TFSAs, including cashable, non-cashable, and progressive. In total, there are currently 14 different GICs eligible for a TFSA. You can see them all, and their current rates, here.
Keep your money accessible with a savings account
If you want to take advantage of TFSA tax benefits, but still want the money around for those emergency situations, opening a BMO TFSA savings account makes it easy to keep your funds accessible.
BMO InvestorLine for the DIY investors
For investors out there who want to know exactly where their hard-earned money is at all times, opening a TFSA through BMO InvestorLine means you can trade stocks, bonds, ETFs, and more.
Leave investing to the experts with mutual funds and portfolios
Don’t like meddling in your finances? Opening a TFSA mutual fund or investment portfolio means your money can grow at the hands of a trained professional.
The cons of a BMO TFSA
And here are some things to keep in mind.
Cons
Low interest rate on the savings account
Currently the BMO TFSA savings account rate is a measly 0.25%, which is higher than some of BMO’s other savings accounts, but still not getting you much return at all. The benefit of the savings account is mostly that the cash you hold in it is easily accessible – but you’ll be missing out on the higher returns the other products provide.
Make sure you know the applicable fees of certain investment products
Mutual funds, portfolios, and some other investment tools have associated fees – but those fees may not always be clearly stated. Make sure to ask your BMO contact about the exact fees you’ll be paying with the product you go with, just so there aren’t any surprises or hidden deductions.
Nothing special to set BMO apart from the big bank pack
Though BMO’s TFSA options are pretty flexible, there’s nothing that really stands out as a major selling point when compared to other big banks. A lot of their draw relies on the BMO brand itself, which is trusted among Canadians.
BMO TFSA alternatives
Here’s how a BMO TFSA stacks up against 3 other big Canadian banks.
 |  |  |  | |
|---|---|---|---|---|
| Account | BMO TFSA | Scotiabank TFSA | Questrade TFSA | RBC TFSA |
| Genius Rating | ||||
| Why You Want It | Grow your money tax free + Get backed by the trusted reputation of a big bank. | Grow your money tax free + Get plenty of flexibility for your investments. | Exclusive: Get $50 off commission fees + ETFs are always free to buy. | Redeem RBC Rewards as contributions + Multiple client support options. |
| GIC Rates | Cashable
Non-Cashable
| Cashable
Non-Cashable
Savings
| See Issuer for Details | Cashable
Non-Cashable
|
| Self-directed TFSA Platform | BMO InvestorLine | Scotia iTrade | Questrade | RBC Direct Investing |
| Self-directed Base Fee | N/A | N/A | N/A | $9.95 |
| TFSA GICs List |
|
| N/A |
|
| Self-directed Available? | | | | |
| TFSA GICs Available? | | | | |
Show More | ||||
| Open an account See more BMO products Compare | Open an account See more Scotiabank products Compare | Open an account See more Questrade products Compare | Learn More See more RBC products Compare |
FAQ
What’s a TFSA?
A Tax-Free Savings Account is a government-registered account that lets you grow your money without incurring any taxes. Your money in a TFSA grows tax free and there’s no tax to pay when you withdraw the money either. There are many different investment products you can hold within a TFSA. Check out what BMO offers for a good example of the variety.
What is the TFSA contribution limit?
The annual TFSA contribution limit is $7,000, but if you haven’t used up all your room in previous years, you may have more room available. Click here to see the different ways you can invest in your TFSA with BMO.
What options does BMO have for investing in a TFSA?
If you open a TFSA with BMO, you can invest your money in a mutual fund or portfolio for professionally managed investments, BMO InvestorLine for DIY investing, GICs for guaranteed return, or a savings account to keep your money easily accessible. Check out more details right here.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
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