Alterna Bank: Our review of their financial products

What is Alterna Bank?

CS Alterna Bank, which operates under the Alterna Bank name, is a Canadian financial institution founded over 30 years ago. It is a member of the Alterna Group, which includes Alterna Credit Union and Alterna Bank.

Alterna Bank operates mainly in the Ottawa and Gatineau regions, where its head office is located. It offers many products and services to Canadians, including chequing accounts, high-interest savings accounts, mortgages and investments (TFSAs, RRSPs, GICs, etc.). Deposits in their savings products are eligible for CDIC deposit insurance up to $100,000.

Alterna Bank also offers products and services for small businesses, such as bank accounts, loans and payroll solutions.

Alterna Bank’s Financial Products

As mentioned above, Alterna Bank offers a wide variety of financial products. However, our analysis focuses mainly on bank accounts.

Alterna Chequing Account

Alterna Bank offers Canadians a chequing account with no monthly fees: No Fee e-Chequing. Here are its main features:

• No monthly fees
• No minimum balance required
• Free and unlimited day-to-day transactions (withdrawals, transfers, bill payments, debit payments, etc.)
• Free and unlimited Interac e-Transfers
• Access to over 3,300 ATMs on THE EXCHANGE network
• Deposits insured by the Canada Deposit Insurance Corporation (CDIC)

Alterna Savings Account

Alterna Bank offers several savings accounts, the best known being the high-interest eSavings Account. Here are its main features:

• No monthly fees
• No minimum balance required
• High interest rates
• Free transfers, debits and bill payments
• Deposits insured by the Canada Deposit Insurance Corporation (CDIC)

The other two savings accounts offered by Alterna Bank are : TFSA eSavings and RRSP eSavings. Both are no-fee accounts with no minimum balance required.

Other Financial Products from Alterna Bank

Mortgages

Alterna Bank offers a range of fixed and variable-rate mortgages, both for new mortgages and mortgage renewals. Several advantages are offered, such as early repayment options (up to 20% of the initial balance) and covered closing costs of up to $800.

Investing

Alterna Bank offers several investment options. First, the TFSA and RRSP/RRIF savings accounts mentioned above. But, also, guaranteed investment options such as Term Deposits (eTerm Deposits), Guaranteed Investment Certificates (GICs), Direct investing and Guided Portfolios – the last two in collaboration with Qtrade.

Comparison with other banks

Chequing Accounts

In our Review, the Alterna Bank chequing account is a good choice. Firstly, because there are no monthly fees. But also because there are no fees for day-to-day transactions and no minimum balance required. However, other Canadian banks also offer advantageous chequing accounts, including :

To compare other chequing accounts, use our bank account comparator.

Savings Accounts

In our Review, Alterna Bank‘s high-interest savings account is another good choice. However, as is the case with chequing accounts, other Canadian financial institutions have tempting offers (especially online banks), including :

To compare other savings accounts, use our bank account comparator.

Our review of Alterna Bank’s financial products

Overall, Alterna Bank ‘s range of financial products is attractive to Canadians, including bank accounts with no fees and no minimum balance requirements, available through ATMs in Quebec and Ontario.

However, the « High » Interest eSavings account interest rate is lower than many of its competitors, whether EQ Bank, Wealthsimple or Tangerine. What’s more, the range of savings and investment products is limited and offered by another online broker (in collaboration).

TFSA and RRSP savings accounts are available, but the FHSA is not (although it is available in an investment account).

Competition among Canadian financial institutions is fierce, and has been for several years. Of course, Alterna Bank must continue to offer competitive products and services that meet the needs of Canadians. But it also has to develop new financial products to compete with other banks (traditional banks and online banks).