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LBC Digital Bank review

Enjoy high interest rates and pay no monthly fees when you sign up for an account or GIC with this innovative online bank from Laurentian Bank.

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LBC Digital is a Quebec-based bank that operates entirely online from its parent bank, Laurentian Bank. It offers a number of financial services to Canadians, including chequing accounts, high interest savings accounts and guaranteed investment certificates (GICs).

It’s easy to sign up for LBC digital banking in a matter of minutes. From there, you can transfer funds into your account as soon as it’s up and running. Find out more about whether LBC Digital Bank is the right fit for you and sign up today to start saving.

What is LBC Digital Bank?

LBC Digital Bank is an online-only bank that was launched by Laurentian Bank which is based in Quebec. Laurentian Bank itself has existed for over 100 years and is an accredited member of the Canada Deposit Insurance Corporation (CDIC).

LBC Digital was created by Laurentian Bank to give customers a safe space to invest their money online. Its purpose is to help cut down on overhead fees, such as branch and personnel costs, so that these fees don’t eat into customer savings.

How does LBC Digital work?

LBC Digital functions just like any other bank in Canada, except that it does all of its business online. This means that you won’t be able to visit a branch to get help if you run into trouble with your account.

The trade-off for this is that you’ll save money on your LBC digital banking because you won’t have to pay monthly account or transaction fees. You’ll also get a much higher interest rate on your savings than you’ll typically get with any of Canada’s Big Five banks.

What financial products does LBC Digital Bank offer?

You can sign up for a number of different account types and guaranteed investment certificates (GICs) with LBC Digital. These include the following:

LBC Digital Chequing Account

The LBC Digital Chequing Account is an online chequing account that comes with no monthly fees. It also provides unlimited transactions including free Interac e-Transfers and free withdrawals on EXCHANGE network ATMs.

The downside of this account is that it gives you a 0% interest rate on any money you have invested. You’ll also have to pay $1.50 for every withdrawal you make on non-EXCHANGE network ATMs in Canada, and $4 plus a 2.5% foreign currency fee on international ATMs.

LBC Digital savings accounts

You can earn up to 1.65% in interest on any savings you invest with LBC Digital’s High Interest Savings Account. There are no minimum balance requirements and you won’t have to pay monthly fees to keep your account up and running.

Just be aware that once you reach $500,000 in savings, you’ll only earn an interest rate of 0.65% on your remaining balance. You should also get free withdrawals on this account, though what types of withdrawals you’ll get for free isn’t made clear on LBC Digital’s site.

LBC Digital guaranteed investment certificates

GICs come with interest rates as high as 2.3% for a 5-year term. You’ll have to invest at least $100 to open a GIC, and any money you deposit will be eligible for CDIC insurance. You can sign up for a term between 1 and 5 years, depending on your preferences and savings goals.

Just be aware that LBC Digital’s GICs are non-redeemable. This means that when you put money in, you won’t be able to take it out for the length of the term. That’s why you should only invest money that you know you won’t need to access in the short term.

Length of term

GIC rates (as of 15 July 2020)

1 year 2.1%
2 years 2.05%
3 years 2.05%
4 years 2.15%
5 years 2.3%
*These rates are subject to change – you can find LBC Digital Bank’s current GIC rates here.

Is LBC Digital Bank safe?

LBC Digital Bank is as safe as a regular bank because its parent bank (Laurentian Bank) is insured by the Canada Deposit Insurance Corporation. This means that any money you invest will be guaranteed up to $100,000 per account type.

Pros and cons

Pros

  • Easy application. You can open an account with LBC Digital Bank in a matter of minutes with a couple of clicks of your mouse.
  • No monthly fees. You won’t have to pay monthly fees to open or manage any of LBC Digital’s accounts.
  • No minimum balances. There are no minimum balance requirements for LBC’s chequing or savings accounts.
  • High interest rates. You’ll get relatively high interest rates for LBC Digital savings accounts and GICs compared to Canada’s Big Five banks.
  • Unlimited transfers. You can transfer money and pay bills online for no additional charge (whereas some other digital banks charge $1 for every debit).
  • Deposit insurance. Any deposit you make will be protected up to $100,000 by the Canada Deposit Insurance Corporation.

Cons

  • Minimum deposit requirement for GICs. You’ll have to make a minimum deposit of $100 if you want to put money into a GIC.
  • No interest on chequing accounts. You’ll earn a 0% interest rate on LBC Digital chequing accounts.
  • No physical locations. You won’t be able to visit LBC Digital Bank in person to deal with any issues you might have with your account.
  • Additional fees. There’s a long list of additional fees you’ll have to pay for a number of LBC digital banking services.
  • No mobile app. You won’t be able to access your account details through a dedicated mobile app.

How can I open an account?

Eligibility requirements

To open an account with LBC Digital Bank, you’ll need to meet a couple of requirements:

  • Be at least 18 years of age (or 19 in some provinces)
  • Have a bank account at another Canadian financial institution
  • Have a valid Social Insurance Number (SIN)
  • Have a valid email address

How can I apply?

You can apply for a savings account with LBC Digital using its easy online application. Just follow these steps to get started:

  1. Visit the LBC digital banking website to register for an account online.
  2. Complete the application, which includes providing your name, email address, Social Insurance Number and birth date.
  3. Verify your ID and deposit funds into your account.

How can I get in touch with customer service?

LBC Digital Bank‘s customer service team is dedicated to helping you navigate problems with your account. You can call customer service using LBC Digital’s toll-free number. You can also send an email to ask any questions you might have about your account at any time of day or night.

Bottom line

LBC Digital Bank is a well-known online bank that offers high interest rates on its savings accounts and no monthly fees on all of its accounts. It also offers a comprehensive suite of GICs if you want to invest your money in the long-term. Learn what you need to become a member of LBC Digital, and apply online today to get started.

Compare other digital banking products in Canada

Name Product Interest Rate Promotional Interest Rate Min. Bal / Min. Deposit Account Fee
EQ Bank Savings Plus Account
1.50%
N/A
$0 / $0
$0
Enjoy zero everyday banking fees, free transactions and no minimum balance with a Savings Plus Account from EQ Bank.
Tangerine Savings Account
0.10%
2.1%
$0 / $0
$0
Earn 2.10% interest for 5 months (up to a maximum of $1,000,000) as a new Tangerine client when you open your first savings or chequing account and use the promo code EARNMORE. Plus, get up to a $150 bonus when payroll requirements are met. Apply online by January 31, 2021.
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