If you have a high-interest savings account with one of the big banks, you probably don’t earn a lot of interest. But you can get a better rate if you open an account at a smaller financial institution like Alterna Bank.
About Alterna Bank
Alterna Bank is a division of Alterna Savings, which is credit union based in Ottawa. You can bank online, over the phone, on its mobile banking app, at more than 3,000 surcharge-free ATMs across the country, or at one of the company’s 25 branches in Ontario and Quebec.
The Alterna Bank High Interest eSavings Account has an interest rate of 1.95%, which is one of the best long-term rates available. There’s no minimum balance so you’ll earn 1.95% on a balance of $25 or $2,500.
If you compare the rate to its competitors, the rate is slightly less than what the EQ Bank Savings Plus Account offers but it’s higher than what most financial institutions offer. Here’s what other financial institutions offer on a balance of $5,000 or more:
|Financial institution||Interest rate|
|Steinbach Credit Union||1.60%|
|Meridian Credit Union||1.50%|
|BMO Bank of Montreal||1.25%|
|Canadian Western Bank||1.00%|
|RBC Royal Bank||0.55%|
|TD Canada Trust||0.55%|
*currently 2.40% for new clients only for the first 182 days and 0.80% thereafter; rate for current clients is 0.80%
The Alterna Bank High Interest eSavings Account doesn’t have a monthly fee. It also comes with unlimited free bill payments, transfers, and debits. Also, there are two free Interac e-transfers a month and $0.95 thereafter.
The bottom line
It can sometimes be difficult to find a savings account with a good interest rate. The Alterna Bank High Interest eSavings Account is one of those accounts and has many great features. To see how it compares, check out the best high-interest savings accounts.
- Review: Oaken Savings Account
- Review: EQ Bank Savings Plus Account
- Review: Scotiabank Momentum Savings Account
- High-interest Savings Accounts and the Benefits of Compounding