Alterna Bank

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.

Final Thoughts

Alterna Bank stands out as a strong contender in the Canadian online banking market, especially for customers seeking no-fee accounts and competitive high-interest savings options. Its broad product range, combined with improvements in digital banking through the updated mobile app and access to online investing via Qtrade, makes it an appealing choice for those who prefer a fully digital banking experience.

However, the relatively low interest on checking accounts and the absence of sign-up bonuses might deter some potential customers. Overall, if you prioritize low fees, solid savings rates, and a variety of financial products without needing physical branches, Alterna Bank is definitely worth considering.