BMO Bank of Montreal has rolled out a savings account scheme for Canadians that facilitates savings by rewarding with bonus interest for making regular monthly savings contributions.
The BMO Savings Builder Account will offer Canadian customers an interest rate of 1.3% when they increase their savings by $200 or more each month besides providing an additional introductory scheme of 2.5% interest on their savings until 30 June, 2015.
BMO Financial Group Head of North American retail payments and personal banking Canada Ernie Johannson said: "While Canadians have been taking steps to address aspects of their personal finances – such as paying down debt – the most recent industry data show the household savings rate in Canada hit a five-year low in the fourth quarter of 2014.
"With this in mind, we have introduced the Savings Builder Account to encourage Canadians to use the power of savings and earn more when you save on a regular basis."
Johannson added: "This account addresses a gap in the needs of customers looking to meet and exceed their savings goals, including saving for a down payment on a home, a child’s education or for a rainy day."