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.
You can earn up to 1.2% in interest on any savings you invest with LBC Digital’s High Interest Savings Account.
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 1.2% 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)
|*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
- 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.
- 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?
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:
- Visit the LBC digital banking website to register for an account online.
- Complete the application, which includes providing your name, email address, Social Insurance Number and birth date.
- Verify your ID and deposit funds into your account.