Competitive rates for serious saving. High-Interest eSavings đź’°
If you’re tired of paying bank fees and earning minimal interest on your savings, you’re in the right place. Alterna Bank is an online-only digital bank that has been making waves in the Canadian banking scene. Founded in 2000 as a subsidiary of Alterna Savings, which has over 110 years of experience, Alterna Bank offers a range of banking products aimed at providing value to its customers. In this review, we’ll dive into the pros and cons of Alterna Bank, focusing on their offerings, features, and how they stack up against the competition.
Overview of Alterna Bank
As an online-only bank, Alterna Bank provides a variety of products including:
- No fee checking accounts
- High-interest savings accounts
- Tax-Free Savings Accounts (TFSA)
- Registered Retirement Savings Plans (RRSP)
- Mortgages
- Term deposits
- Online investing via Qtrade Investor
This broad range of offerings makes Alterna Bank a versatile choice for those looking to manage their finances without the traditional brick-and-mortar banking model.
Pros of Alterna Bank
Alterna Bank has several advantages that make it an appealing option for potential customers. Here’s a closer look at some of the key pros:
No Fee Checking Account
One of the standout features of Alterna Bank is their no fee checking account. Here are some highlights:
- No monthly fees
- Free unlimited day-to-day transactions
- Free unlimited Interac e-transfers
- Access to over 3,300 ATMs in the exchange network
- Annual interest rate of 0.05%
- Mobile check deposit capability
Compared to competitors like Modus Bank, Tangerine, and Simply, Alterna Bank’s checking account offers great value, especially with access to physical branches in Ontario and Quebec.
High-Interest Savings Accounts
Alterna Bank also shines with its savings accounts. Here are the features:
- No minimum balance required
- Free unlimited bill payments, transfers, and debits
- Free unlimited e-transfers
- Interest rate of 2.3% on every dollar saved
This rate is competitive, especially when compared to Simply and Tangerine, which currently offer only 1.15%. In the realm of high-interest savings, Alterna competes closely with EQ Bank, which also offers a rate of 2.3%.
Online Brokerage Service
Alterna Bank has partnered with Qtrade to provide an online investing platform, giving customers access to a broader range of investment options:
- Stocks
- Options
- ETFs
- GICs
- Mutual funds
- IPOs and bonds
This feature sets Alterna apart from other competitors that primarily focus on GICs and mutual funds.
Mobile App Improvements
Previously criticized for its outdated design, the new Alterna Bank mobile app offers a modern, user-friendly experience with features such as:
- Fingerprint ID and facial recognition
- Account activity and balance viewing
- Bill payment options and scheduling
- Interac e-transfer capabilities
- Check deposits via smartphone
- ATM locator
The app’s enhancements reflect Alterna Bank’s commitment to improving user experience and accessibility.
Cons of Alterna Bank
While Alterna Bank has many strengths, there are some drawbacks to consider:
Limited Interest on Checking Accounts
Alterna Bank offers a mere 0.05% interest on their checking account, which may not appeal to those looking to earn more on their daily funds. If you require checks, you might be better off with Simply Bank, which provides free unlimited checks.
No Sign-Up Bonus
Unlike some competitors like Tangerine and Simply, which offer attractive sign-up bonuses, Alterna Bank currently does not have any promotions. This could sway potential customers towards banks that provide immediate financial incentives.
Overall Recommendation
Alterna Bank is an excellent choice for individuals seeking a no-fee banking solution combined with high-interest savings and investment opportunities. Its online platform is well-suited for those who prefer managing their finances digitally and appreciate the convenience of a mobile app.
However, if you often require paper checks or are looking for a bank with a strong sign-up bonus, you might want to explore other options.
Conclusion
In summary, Alterna Bank offers a solid banking experience with a focus on digital convenience, competitive savings rates, and a comprehensive suite of financial products. While it lacks some features that traditional banks provide, its strengths in online banking make it a worthy contender in the Canadian banking landscape. If you’re looking for a modern, fee-free banking experience, Alterna Bank may be the right fit for you.
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