BMO vs TD: The Ultimate Showdown

Choosing a bank to place your trust in is an important financial decision that can follow you for the rest of your life. With the Big 5 Canadian banks dominating the financial landscape, it is natural for them to be a top choice for Canadians. But which big bank in Canada is the right one for you?

In this ultimate showdown article, we will compare and contrast the Bank of Montreal and Toronto Dominion Bank. This article will discuss their various accounts for personal banking, credit cards, online brokerages, and best offers for newcomers to Canada. If you are considering switching to either BMO or TD, this article will help you decide which Big 5 Canadian bank is the one for you.

BMO Overview

The Bank of Montreal, or BMO, is the oldest financial institution in Canada having been established in 1817. As of July 2023, it is the third-largest bank in Canada by market capitalization and among the top-ten largest banks in North America. BMO currently serves over 12 million customers worldwide and domestically has over 800 BMO branches for Canadian clients.

TD Overview

The Toronto Dominion Bank, or TD, is the second-largest bank in Canada by market capitalization after RBC. In 2019, TD reached the status of a globally systematically important bank by the Financial Stability Board. TD as we know it now was established in 1955 but its predecessors, the Bank of Toronto and the Dominion Bank were founded in the mid-19th century. In Canada, TD has over 11 million clients that are served at over 1,150 branches across the country.

BMO vs TD: Chequing Accounts

BMO Chequing Accounts

For BMO customers, there are plenty of options when it comes to day-to-day banking with a chequing account. BMO offers five different chequing accounts which all come with unlimited Interac eTransfers, free credit score scans, BMO Insights, and the potential to earn up to 4.00% interest on your cash balance.

The BMO Practical Chequing Account is a no-frills way to hold your money. It offers just 12 transactions per month and a monthly fee of $4.00. For rewards collectors, BMO offers an Airmiles Chequing Account to earn Airmiles on BMO Debit Card purchases. But for a majority of Canadians, they will likely be choosing between the Performance, Premium, and Plus accounts.

TD Chequing Accounts

Like BMO, TD also offers five different chequing accounts to Canadians. The Student Chequing Account is for those who are aged 23 or younger and enrolled in an educational institute. It offers unlimited free transactions and no monthly fees. The TD Minimum Chequing Account offers 12 transactions per month and a low monthly fee of just $3.95.

TD also offers the TD Everyday Chequing Account. This account offers 25 transactions per month, free Interac eTransfers, and a monthly fee of $10.95. A vast majority of Canadians will likely be choosing between the TD-All Inclusive Banking Plan and the TD Unlimited Chequing Account.

The Winner: TD

Overall, the comparison of BMO and TD chequing accounts is pretty similar. TD wins extra points for having a chequing account that helps youths and students. On top of that, the monthly fees for TD chequing accounts are slightly lower.

Before we compare BMO and TD Savings Accounts, it is important to know that both of these banks are CDIC protected. This means that in the unlikely event that either BMO or TD goes bankrupt, your deposits of up to $100,000 will be insured and completely safe.

BMO vs TD Savings Accounts

BMO Savings Accounts

Canadians have a choice between four different BMO savings accounts. A majority of BMO clients will be choosing between the Savings Amplifier Account, the Savings Builder Account, and the Premium Rate Savings Account. There is also a BMO US Dollar Premium Rate Savings Account which pays a 0.05% interest rate on your US dollars.

The BMO Savings Amplifier Account provides unlimited free transactions and up to a 1.8% interest rate. This account has no monthly fee or minimum balance required. With the BMO Savings Builder Account, adding $200 to your account each month can boost your interest rate from 0.50% to up to 2.50%. Finally, the Premium Rate Savings Account offers a minimal 0.01% interest rate but can be combined with a BMO chequing account to share transaction limits and fees.

TD Savings Accounts

TD offers three different types of savings accounts although there isn’t much differentiation between them. All three come with no monthly fees and the ability to earn interest on every dollar deposited. The TD Every Day Savings Account comes with just 1 free transaction but unlimited transactions to other TD accounts. For any dollar amount, you earn 0.010% in this account.

The TD ePremium Savings Account provides unlimited free TD transactions, no free external transactions, and 1.7% interest for balances over $10,000. Finally, the TD High-Interest Savings Account focuses on higher interest rates for a lower account balance. On anything over $5,000, you can earn 0.05% interest. You earn no interest for balances below $5,000.

The Winner: BMO

TD takes a simplistic approach to savings accounts and BMO offers more optionality. Choose the side that works for you but with higher potential interest rates, BMO wins this Canadian savings account comparison.

BMO vs TD: Credit Cards

BMO Credit Cards

BMO offers a selection of 13 credit cards for Canadian consumers, all of which are from Visa or Mastercard. The bank offers both BMO Rewards points and Airmiles for Canadians who wish to collect rewards from their spending.

Of note, BMO also offers two student credit cards and a US Dollar Mastercard with lower cross-border exchange rates for travellers. BMO also offers the BMO PaySmart program which is its version of Buy Now Pay Later. This allows consumers to pay off larger purchases over 3, 6, or 12 months with interest-free payments.

TD Credit Cards

TD has 14 different credit cards for Canadians and many of them come with a focus on travel rewards. Whether you collect TD Rewards Points or Aeroplan miles, 8 of TD’s 14 cards are associated with one of these programs. TD also offers four different business credit cards and only two personal cards with no annual fees.

The Winner: BMO

This comparison of BMO and TD credit cards does not show much of a difference. Both banks provide ample opportunities to earn rewards and cash back on purchases. BMO has the edge with its Buy Now Pay Later service BMO PaySmart which provides added flexibility for consumers.

This article is the shortened version of an article originally published on Hardbacon.ca by Baggio Ma under the title "BMO vs TD: The Ultimate Showdown?".