Alterna Bank review
- Promotional Rate
- N/A
- Interest Rate
- 0.05%
- Minimum Balance
- $0
Summary
Learn what Alterna Bank offers in Canada and decide if this bank is right for you.
Alterna Bank is a popular online bank in Canada that offers a number of different financial products. These include digital chequing and savings accounts, eTerm deposits, loans, and business banking solutions, making it a versatile option for those who want to do all their banking in one place.
You can sign up for an account in a matter of minutes and you should be approved in a couple of days. However, Alterna Bank's interest rates are lower than other digital banks. Find out more about the rates and services that Alterna Bank offers to decide whether this bank is the right fit for your financial needs.
What is Alterna Bank?
Alterna Bank is a Canadian bank that operates primarily online, though it has two branches in Ontario. It offers everyday banking products like a savings account, a chequing account, registered accounts, mortgages, and loans to customers across the country. It’s a federally regulated Schedule I bank, CDIC member and a wholly owned subsidiary of Alterna Savings.
The bank launched in 2000 after Alterna Savings obtained a federal banking charter, allowing the organization to expand beyond its Ontario credit-union branches and offer banking services nationwide.
What accounts does Alterna Bank offer?
Here are the non-registered and registered accounts that Alterna Bank offers.
No-Fee eChequing Account
Alterna Bank eChequing Account
Bonus Offer
Monthly Account Fee
Free Transactions
- $0 monthly fee
- Unlimited transactions
- $0 Interac e-Transfers
- Surcharge-free ATM access
- $2.50 monthly fee for overdraft protection
- Low interest
- Limited branch access
| Monthly Account Fee | $0 |
|---|---|
| Free Transactions | Unlimited |
| Interac e-Transfer Fee | $0 |
| In-Network ATM Fee | |
| Bonus Offer | N/A |
High Interest eSavings
Alterna Bank High Interest eSavings Account
Interest Rate
Account Fee
Transaction Fee
- $0 transaction fees
- $0 monthly fee
- No minimum balance requirement
- Easy online access
- Low interest rate compared to other digital banks
| Ongoing Interest Rate | 1.15% |
|---|---|
| Promotional Interest Rate | No promotional rate available |
| Monthly Account Fee | $0 |
| Minimum Balance | $0 |
| CDIC Deposit Insurance | $100,000 |
Registered accounts
In addition to its everyday chequing and savings accounts, Alterna Bank also offers registered investment accounts that can help you save tax-free or tax-deferred. Its Tax-Free eSavings Account and Registered Retirement eSavings Account both have no minimum balance requirements and earn competitive interest. You can also hold Alterna’s eTerm deposits (GIC-style term investments) in either account to let your money grow safely with a guaranteed interest rate.
Alterna Bank partners with Aviso Wealth to offer a First Home Savings Account (FHSA), enabling customers to invest contributions via a self-directed platform while enjoying the FHSA’s tax benefits.
What investment products and services does Alterna Bank offer?
Alterna Bank partners with Qtrade Direct Investing so customers can open an online investment account and trade a wide range of securities, including stocks, ETFs, bonds and mutual funds, either through self-directed investing or professionally managed portfolios.
In addition to online brokerage access, Alterna Bank also offers eTerm deposits, which function similarly to guaranteed investment certificates (GICs). With an eTerm deposit, you lock in your funds for a fixed period and earn a guaranteed interest rate, so it’s a stable option for conservative investors.
Wealth and investment planning
If you need more personalized financial help, Alterna Bank also offers wealth and investment planning services. You can schedule a one-on-one meeting with a Wealth Advisor to build a long-term financial strategy tailored to your goals, risk tolerance, and preferred timeline. Those who want to talk stocks and bonds can meet with an Investment Advisor from Aviso Wealth instead for guidance on building and managing a diversified portfolio.
What loan products does Alterna Bank offer?
Alterna Bank offers a range of loan products to meet different borrowing needs, but they’re not available to Quebec residents.
Personal loans
Alterna Bank’s personal loans provide a flexible way to borrow money for a variety of purposes, like home renovations, vehicle purchases or debt consolidation. This loan comes with fixed rates and flexible terms from 1 to 5 years. You can repay it via direct deposit, automatic funds transfers or online banking, either weekly, biweekly, semi-monthly or monthly.
Lines of credit
Alterna Bank offers a personal line of credit that gives you ongoing access to funds whenever you need them. A low variable interest rate is charged on the amount you actually use, making it a convenient way to manage cash flow, cover unexpected expenses or finance short-term projects. As with most lines of credit, you have the flexibility to borrow, repay and borrow again within your approved credit limit.
Mortgages
A range of mortgage options are available at Alterna Bank for homebuyers, homeowners looking to refinance and those renewing an existing mortgage. Choose between open or closed mortgages, as well as fixed or variable interest rates, flexible terms and repayment schedules designed to suit different financial goals and budgets. Book an appointment with a mortgage specialist to discuss your options and potentially receive an incentive of up to $1,000 to cover switching or legal fees.
Business banking
Not only does Alterna Bank offer personal banking solutions, but it also has a range of business products and services, including:
- Small Business eChequing Account: A digital-first chequing account with easy online access, unlimited electronic transactions and tools to manage everyday business finances.
- Small business loan: Flexible financing to support growth, equipment purchases, renovations or working capital needs offered through a partnership with Driven.
- Business line of credit: Access to revolving credit that helps smooth cash flow and cover short-term expenses.
- Payment processing: Solutions offered through a partnership with Global Payments that allow businesses to securely accept a variety of payment methods.
- Payroll solutions: Integrated services to simplify payroll management and ensure timely, accurate employee payments.
Is Alterna Bank safe?
Yes, since Alterna Bank is a federally regulated Schedule I bank, it follows strict rules to protect customers’ money and personal information. It’s also owned by Alterna Savings, one of Ontario’s largest credit unions with over a century of experience in financial services.
And, eligible deposits at Alterna Bank are protected by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000 per depositor per account category in the rare chance that the bank were to fail.
Alterna Bank also uses encryption, secure login protocols and multi-factor authentication to keep your online banking details safe.
Pros and cons
Pros
- Debit card. Alterna Bank offers customers an Alterna Access Card, which is a debit card you can use to make purchases and withdraw cash. You can also add it to your mobile wallet for easier spending. You'll get a debit card automatically when opening a chequing account, but you'll need to request one during the application process if you want one for your savings account.
- Easy application. It's easy to open an account in less than 10 minutes using Alterna Bank's simple online application.
- No monthly fees. You won't have to spend money out-of-pocket each month to cover account maintenance fees.
- No minimum balances. You won't have to keep a minimum balance in your account to qualify for benefits.
- Many account types. Alterna Bank offers a variety of account types, including a chequing and savings account, and registered options like a TFSA and RRSP, so you can manage all your finances in one place.
- Deposit insurance. Any deposit you make will be protected up to $100,000 per eligible category by the Canada Deposit Insurance Corporation.
- In-person services. Customers can access face-to-face service through two Alterna Bank branch locations in Ontario.
- Mobile app. You can get easy and secure access to your banking at any time with the Alterna Bank Mobile Banking app.
- Alterna Alerts. If you sign up for Alterna Alerts, you'll receive an email when your account or personal line of credit falls below $100 so you can avoid NSF fees or declined payments.
Cons
- Minimum deposit requirement for eTerm deposits. You'll have to make a minimum deposit of $500 if you want to put money into an eTerm deposit
- Low rates for eTerm deposits. You'll get lower interest rates on eTerm deposits with Alterna Bank than you will with GICs from other digital banks.
- No branches outside of Ontario. Alterna Bank only has two branches. One in Orleans and one in Ottawa, so you won't be able to get in-person service outside of Ontario.
- Limited products in Quebec. Alterna Bank's loans and lines of credit aren't available to Quebec residents.
How can I open an account?
Eligibility requirements
To open an account with Alterna Bank, you’ll need to meet a couple of requirements:
- Be the age of majority in your province or territory (18 or 19)
- Be a Canadian resident
- Have a valid Social Insurance Number (SIN)
- Have a government-issued ID
How to apply
You can apply for a chequing or savings account with Alterna Bank in less than 10 minutes using its easy online application. Just follow these steps to get started:
- Visit Alterna Bank’s website and select Join Alterna.
- Select what the account will be used for from the dropdown menu, then select Open Now.
- Enter your full name, email address and mobile phone number and verify your number with a code.
- Complete the application, which includes providing your address, Social Insurance Number, birth date and occupation.
- Review your details, then select Submit Your Application.
Alterna Bank mobile app
You can download the Alterna Bank Mobile Banking on the Apple App Store or Google Play to access and assess your funds on the go. With the app, you can:
- View account activity and balances
- Send, receive, and request Interac e-Transfers
- Pay bills
- Transfer money between your accounts
- Set up alerts and notifications
That being said, the app only has a 2.8/5 from 57 reviews on Google Play and no reviews on the Apple App Store, with many users saying the app is slow and not user-friendly.
Compare other digital banking options in Canada
Not sure if Alterna Bank is right for you? Compare other digital bank accounts from popular financial institutions in Canada.
Finder Score for savings accounts
To make comparing even easier we came up with the Finder Score. Interest rates, account fees and features across 50+ savings accounts and 25+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.
Bottom line
Alterna Bank is a solid choice for Canadians looking for no-fee chequing and savings accounts with features like free Interac e-Transfers, a physical debit card and surcharge-free ATM access. It also provides loans, eTerm deposits, business banking solutions and access to investing platforms, making it a versatile option for both personal and business finances. However, if earning higher interest is a priority, you may want to compare rates with other digital banks before opening an account.
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