What are BMO Fixed Cash Flow Plus Deposits?

BMO Fixed Cash Flow Plus Deposits (“Deposits”) guarantee your initial investment, pay a 5% capital distribution for 15 years regardless of market conditions, and also provide the performance return of 5 BMO Mutual Funds.

How do the distributions work?

You’ll receive a guaranteed capital distribution of 5% per year paid out to you in monthly installments for 15 years. Any unpaid principal will be paid out to you on the date of maturity. The capital distributions will not impact your Old Age Security or Guaranteed Income Supplement.

What is the performance of the Deposits tied to?

The Deposits performance will be based on the performance of 5 BMO Mutual Funds: BMO Dividend Fund, BMO International Value Fund, BMO U.S. Equity Fund, BMO Bond Fund, BMO Money Market Fund.

How are the Deposits taxed?

The capital distributions will not be taxed, but the growth of the underlying portfolio will be taxed when the Deposits are sold, or when the Deposits mature. This provides the benefit of tax deferral until you choose to sell the investment, or until the Deposits mature. This growth will be treated as ordinary income.

What is the minimum investment I can invest?

The minimum amount you can invest into the BMO Fixed Cash Flow Plus Deposits is $5,000.

Who is the BMO Fixed Cash Flow Plus Deposits suitable for?

These Deposits are generally suited for those entering into, or are currently in retirement.

Are the BMO Fixed Cash Flow Plus Deposits insured by CDIC?

Yes, the Deposits are covered by CDIC. CDIC limits apply.

How do I invest into these Deposits?

To invest in mutual funds, just book an appointment online.

B M O Fixed Cash Flow Plus Deposits

Canadians today are living longer and healthier lives than ever before. Even if you have managed to set aside a tidy nest egg for your retirement, you may be concerned about outliving your savings.

Retire with confidence knowing that your basic living needs are covered. B M O Fixed Cash Flow Plus Deposits provide a guaranteed cash flow stream that’s paid to you in regular monthly installments.

Ideal for investors who are newly retired or soon to retire, B M O Fixed Cash Flow Plus Deposits offer:

Guaranteed cash flow
Tax-effectiveness
Capital protection
Growth potential

The B M O Fixed Cash Flow Plus Deposits might be for you if:

You’re interested in generating a monthly fixed cash flow stream
You have a medium- to long-term retirement investment time horizon
You want to ensure your initial retirement investments will be safe
You’re looking for a retirement investment that has the potential to grow based on a basket of B M O Mutual Funds

How B M O Fixed Cash Flow Plus Deposits works

Monthly cash flow to help with fixed expenses

Even if the market experiences a downturn or interest rates decline, you can count on receiving regular monthly payouts to assist with mortgage payments, household bills, grocery bills, and any other fixed expenses you consider important.

For example

$60,000
investment

for 15 years

frequently asked questions

B M O Fixed Cash Flow Plus Deposits (“Deposits”) guarantee your initial retirement investments, pay a 5% capital distribution for 15 years regardless of market conditions, and also provide the performance return of 5 B M O Mutual Funds.
The Deposits performance will be based on the performance of 5 B M O Mutual Funds:
- B M O Dividend Fund
- B M O International Value Fund
- B M O U.S. Equity Fund
- B M O Bond Fund
- B M O Money Market Fund
The portfolio weighting at the beginning of the investment will be a balanced portfolio consisting of 60% equity and 40% fixed income. Over the term of the Deposits, the portfolio slowly becomes more conservative and at the end of the term will be in a conservative portfolio with a weighting of 35% equity and 65% fixed income.

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- Capital distributions are repayments of principal that will reduce the principal amount invested in the B M O Fixed Cash Flow Plus Deposit (“Cash Flow Deposit”) and the investor’s adjusted cost base of the Cash Flow Deposit.
- Investors should consult their own tax advisors for advice with respect to the tax consequences of an investment in Cash Flow Deposits, based on their particular circumstances.
- Capitalized terms used and not otherwise defined herein have the meanings given to them in the Master Information Statement dated July 1, 2021.
- Investments in the Cash Flow Deposits are not mutual fund investments. They are investments in principal protected deposit notes issued by Bank of Montreal and will constitute direct, unsecured and unsubordinated debt obligations of Bank of Montreal. Details regarding the calculations and payments of interest, the Fixed Cash Flow Plus Portfolio (Cash Flow Portfolio), capital distributions, certain risk factors and certain federal income tax considerations of investing in the Cash Flow Deposits will be contained in the Master Information Statement, which will be available through your branch investment professional or on our public website at www.bmo.com/fixedcashflowplus
- This summary is issued for information purposes only to provide a general overview of the Cash Flow Deposits and does not constitute investment advice or an offer to sell or a solicitation to purchase. An investment in Cash Flow Deposits is subject to certain risks, which investors should consider and, in particular, should evaluate the specific risk factors set out in the Master Information Statement and Series Supplement. Investors should read the related Master Information Statement and Series Supplement carefully before investing and discuss Cash Flow Deposit suitability with their branch investment professional. The Cash Flow Deposits may not be suitable for all types of investors; the prices and value of the Cash Flow Deposits may fluctuate and/or be adversely affected by a number of factors. The fluctuation of the value of the Cash Flow Portfolio will directly impact the variable return, if any, on the Cash Flow Deposits. At maturity, the variable return, if any, will be equal to the amount by which the Deposit Value on the third business day before the Cash Flow Deposit matures exceeds the Remaining Deposit Balance when the Cash Flow Deposit matures. If the Deposit Value on the third business day before the Cash Flow Deposit matures is equal to or less than the Remaining Deposit Balance at maturity then you will not receive any variable return on your Cash Flow Deposits. It is possible that no variable return will be paid on the Cash Flow Deposits. The Cash Flow Deposits have not been and will not be rated by any credit rating organization.
- Neither Bank of Montreal nor any of its subsidiaries and affiliates (collectively, BMO) make any assurances, representations or warranties with respect to accuracy, reliability or completeness of information contained herein. Furthermore, BMO makes no recommendation concerning the Cash Flow Deposits or the suitability of investing in securities generally or the Cash Flow Deposits in particular. No person has been authorized to give any information or to make any representation not contained in the Master Information Statement and Series Supplement relating to the applicable Cash Flow Deposits and BMO does not accept responsibility for any information not contained in the Master Information Statement and Series Supplement. The offering and sale of Cash Flow Deposits may be prohibited or restricted by laws in certain jurisdictions.Neither Bank of Montreal nor any of its subsidiaries and affiliates (collectively, B M O) make any assurances, representations or warranties with respect to accuracy, reliability or completeness of information contained herein. Furthermore, B M O makes no recommendation concerning the Cash Flow Deposits or the suitability of investing in securities generally or the Cash Flow Deposits in particular. No person has been authorized to give any information or to make any representation not contained in the Master Information Statement and Series Supplement relating to the applicable Cash Flow Deposits and B M O does not accept responsibility for any information not contained in the Master Information Statement and Series Supplement. The offering and sale of Cash Flow Deposits may be prohibited or restricted by laws in certain jurisdictions.
- ® Registered trade-mark of Bank of Montreal, used under license.

B M O Fixed Cash Flow Plus Deposits

The B M O Fixed Cash Flow Plus Deposits might be for you if:

How B M O Fixed Cash Flow Plus Deposits works

Monthly cash flow to help with fixed expenses

frequently asked questions

Resources:

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BMO Fixed Cash Flow Plus DepositsB M O Fixed Cash Flow Plus Deposits

The BMO Fixed Cash Flow Plus Deposits might be for you if:The B M O Fixed Cash Flow Plus Deposits might be for you if:

How BMO Fixed Cash Flow Plus Deposits worksHow B M O Fixed Cash Flow Plus Deposits works

Monthly cash flow to help with fixed expenses

FAQsfrequently asked questions

Resources:

Have questions?

We’ll call you

Let’s meet

Get in touch

Disclaimer:

Explore our services

Security Centre

Ways to Bank

Looking for BMO U.S.?

B M O Fixed Cash Flow Plus Deposits

The B M O Fixed Cash Flow Plus Deposits might be for you if:

How B M O Fixed Cash Flow Plus Deposits works

frequently asked questions