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BMO'S Financial Tip of the Week: Choose a Low-Interest Rate Credit Card If You Carry a Balance

TORONTO, ONTARIO--(Marketwire - May 17, 2012) - As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense' for Canadians, BMO is releasing a financial tip every week in 2012.

BMO's Financial Tip of the Week: If you regularly carry a balance on your credit card, shop around for a card with the lowest interest rate available.

Credit cards are a great payment option because of their convenience, security and loyalty reward features. But to get full value out of your card, BMO Bank of Montreal recommends you pay off your credit card balance in full every month to avoid interest charges.

If you do tend to carry a balance, however, choose a card with the lowest interest rate available.

"Several financial institutions offer cardholders the option to 'buy down' or lower the interest rate that is applied to their credit card balances. For example, BMO credit card customers can lower their credit card interest rate to 12.9 per cent for an annual fee of $45," said Rebecca Tascona, Director, Credit Card Products, BMO Bank of Montreal. "The low-interest rate option is seven per cent lower than the interest rates charged on most credit cards today and provides annual interest savings of about $285 on a typical monthly average unpaid balance of $5,000.*" Ms. Tascona noted that BMO is the only major Canadian bank that provides its customers with this option, while still offering them the loyalty rewards of their choice.

For more tips on how to reduce debt and save, please visit www.bmo.com/smartsteps. If you have questions about the best financial product and service options for your specific needs, be sure to speak with a BMO banker.

*Calculations to compare interest charges are for illustrative purposes only and interest savings may vary.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

For further information:
Media Contacts:
Carol Greene, Toronto
(416) 867-3996
carol.greene@bmo.com

Ronald Monet, Montreal
(514) 877-1873
Ronald.monet@bmo.com

Laurie Grant, Vancouver
(604) 665-7596
laurie.grant@bmo.com

Web: www.bmo.com
Twitter: @BMOmedia