To the point
Presentation of Alterna Bank, a new online platform. Details of Alterna financial products: loan, credit card, etc.
Do you know Motusbank, Alterna, Manulife or Simplii? These new platforms compete with the financial institutions we are already familiar with.
Introduction
New online financial institutions have emerged, and they offer many benefits to Canadian investors. We are talking about:
- very low management fees,
- free basic services (interac, withdrawal and money transfer), and
- affordable financial products (credit cards and debit cards, among others).
Examples include Motusbank, Alterna, Manulife and Simplii.
To this end, you can find on milesopedia.com a comparison of the main financial products offered by each of these banks. In this article, we detail what Alterna Bank has on offer.
Alterna Bank
Alterna Bank is a subsidiary of the Alterna Deposit Fund based in Ottawa. This banking institution manages over 10 billion in assets. Here is a brief analysis of this institution’s range of financial products. Please note that in Quebec, Alterna Bank currently operates only in the city of Gatineau.
Alterna checking account
Alterna Bank offers two checking accounts:
- the standard account
- the US dollars account.
The standard checking account has no fees for students, children and occasional users. It also provides access to an interest rate of 0.05% on all money invested. In addition, this account provides you with a debit card and privileged access to over 3,300 ATMs through the Canadian “The Exchange” program. Finally, depositing checks is simplified by simply uploading a photo.
The U.S. dollar checking account is free for all users. In addition, an interest rate of 0.05% is offered on a $200 deposit in U.S. funds. Finally, you can write checks and make purchases in U.S. currency.
You can refer to this web page for more information on these two accounts.
Alterna Savings Account
Two accounts are offered by Alterna Bank:
- the investment savings account
- the Daily Interest Savings Account.
The Investment Savings Account offers an interest rate of 1.00% on the first dollar deposited. There is no monthly fee. However, you are only entitled to one free transaction per month. Access to this account is simplified through an easy-to-use telephone interface.
The Daily Interest Savings Account offers an interest rate of 0.05% on all amounts over $5,000. There is no monthly management fee. However, you are only entitled to two free transactions per month. This account also allows quick access to Alterna’s phone application.
You can refer to this web page for more information on these two accounts.
Alterna Credit Cards
Alterna Bank offers three main categories of credit cards: no fee, low interest and travel. Here are three tables showing the main attributes of these cards.
Free credit cards
|
|
Annual fee |
Rewards |
Insurance |
Interest rate |
| Visa cash back | Free |
2 points for every dollar spent at a gas station (up to $5,000) 1 point for every dollar spent in the entertainment industry 0.5 points for every dollar spent in all other categories |
90-day purchase protection on all transactions made with your card Insurance on your mobile devices
|
19,99 % |
| Visa Classic | Free | No |
90-day purchase protection on all transactions made with your card Insurance on your mobile devices |
12,99 % |
Low-interest credit cards
|
|
Annual fee |
Rewards |
Insurance |
Interest rate |
|
Visa Centra Gold |
$50 |
1 point for every dollar spent on all purchase categories
|
90-day purchase protection on all transactions made with your card Insurance on your mobile devices
|
11,99 % |
Credit cards for travel
|
|
Annual fee |
Rewards |
Insurance |
Interest rate |
|
Visa Gold |
$99 |
1 point for every dollar spent on all purchase categories |
90-day purchase protection on all transactions made with your card Insurance on your mobile devices Insurance on car rental and damage caused in an accident Emergency health coverage for a period of more than 60 days, including small children Trip cancellation insurance up to $2,000 Unlimited Sudden Trip Interruption Insurance Insurance for delays in the delivery of your luggage 24-hour assistance
|
19,99 % |
|
Visa Infinite |
$120 |
3 points for every dollar spent at grocery stores (up to $20,000) 2 points for every dollar spent on entertainment and food services 1 point for every dollar spent in all other categories |
90-day purchase protection on all transactions made with your card Insurance on your mobile devices Car rental and accident damage insurance for 48 days Emergency health coverage for a period of more than 60 days, including small children Trip cancellation insurance up to $2,000 Unlimited Sudden Trip Interruption Insurance Insurance for delays in the delivery of your luggage 24-hour assistance
|
20,99 % |
|
US Dollar Visa |
$50 (US) |
1 point for every $2 US spent on all purchase categories |
90-day purchase protection on all transactions made with your card Car rental and accident damage insurance for 48 days |
19,99 % |
| Checking accounts | Savings accounts | Credit cards | Investment | Mortgage loans | Loans |
|
Standard checking account 0.05% interest Free for students, children and occasional users Deposit cheques by taking a picture Access to over 3,300 ATMs through “The Exchange” program Access to a debit card U.S. Dollar Checking Account No management fees Interest rate of 0.05% on deposits over $200 Ability to issue cheques in U.S. funds Possibility of paying for purchases in American currency |
Investment Savings Account 1.00% interest No minimum balance required – start saving now Easy account access through online, mobile and phone banking Free debit transaction (1) per month Interest calculated daily and paid monthly Daily Interest Savings Account Fast account access through online, mobile and phone banking Interest rate of 0.05% on amounts exceeding $5,000 Two free debit transactions per month Interest is calculated daily and paid monthly |
Free cards Visa Cash Back Card Visa Classic Card Low Interest Rate Card Visa Centra Gold card Travel cards Visa Gold Travel Card Visa Infinite Card Visa card in US dollars |
Several investment options: RRSP TFSA RRIF RESP Guaranteed Investment Certificates Special actions Term deposits Stock market tracker |
– Closed fixed rate mortgage with increased loan-to-value only: 2 years at 1.54% (APR) – Fixed rate variable mortgage with increased loan-to-value only: 5 years at 1.65% (APR) – Flex-mortgage: Choice of mortgages with different terms and choice between fixed and variable rates |
– Personal loans – Investment loans – Recreational vehicle loans – Personal line of credit – Unsecured line of credit – Student Line of Credit |
Investment
Several investment options are available to Alterna users. First of all, it is possible to invest in registered accounts such as RRSPs, TFSAs, RRIFs and RESPs. In addition, many guaranteed investment certificates are available to users. You can find more information on this subject by checking out this web page.
Guaranteed Investment Certificates with “Stock Tracking” are also available. These offer higher returns. However, it should be noted that exposure to risk is also greater. You will find all the necessary information on this product by following this hyperlink.
Users can also purchase “special shares”, which are a kind of share in the Alterna cooperative. By purchasing these shares you will become a shareholder of the Alterna cooperative, which represents a great opportunity to actively participate in the growth of this financial institution. You will find more information on this web page.
Mortgage loans
Alterna Bank offers a wide range of fixed and variable rate mortgages. The following is an analysis of current rates.
Closed Fixed Rate Mortgages:
|
6 months (closed) |
1 year (closed) |
2 years (closed) |
3 years (closed) |
4 years (closed) |
5 years (closed) |
5 years (cash back) |
7 years (closed) |
10 years (closed) |
|
3,35 % |
2,79 % |
2,49 %* |
2,29 %* |
2,69 %* |
4,59 %* |
5,54 %* |
5,65 % |
6,05 % |
Open Fixed Rate Mortgages:
|
6 months |
1 year |
1 year (second rank) |
|
7,25 % |
6,35 % |
7,00 % |
Variable Rate Mortgages:
|
3 years (open) |
3 years (closed) |
5 years (closed) |
|
4.15 % |
3,55 % * |
2,95 % * |
You can get more information on mortgages at thishyperlink.
Loans
Alterna Bank offers personal, investment and recreational vehicle loans. It should be noted that these loans are personalized and differ from one individual to another. To learn more about these financial products, please refer to this hyperlink.
There are also several options in terms of lines of credit. This is a personal, unsecured line of credit for students. You will find most of the information about these products on this web page.
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