Alterna Bank is the online subsidiary of the popular Ontario credit union, Alterna Savings. Like digital options for banking in Canada, Alterna Bank avoids the costly overhead of physical branches, helping it offer low-to-no fees and much better rates than the big banks.
Despite being entirely online, Alterna Bank offers an impressive menu of banking products, including a free chequing account, high-quality mortgages, and valuable investment options. It’s a strong choice for Canadians looking to simplify their finances without sacrificing features or service.
Overview
- Wholly online subsidiary of Alterna Savings
- Surprisingly wide range of products and services
- All deposits protected by the CDIC
- Client access to THE EXCHANGE Network of ATMs
- Some of the best mortgage rates in the country
Rating methodology
Alterna's overall rating is 3.5 out of a possible 5 stars. This number is an average of all the individual products we've rated so far, which you can find more info on below. Each of these are scored by breaking them down into their main parts, then comparing each feature to similar products on the market.
Alterna Bank accounts
While it only offers a couple of bank accounts, the quality of Alterna Bank's savings and chequing accounts is undeniable. They offer the conveniences we've come to expect from online banks, plus several other features and benefits – including a debit card, which is surprisingly unique for online accounts.
The Alterna High Interest eSavings Account is rated as Canada's best credit union savings account, thanks to a competitive interest rate and free, unlimited transactions. With a very low monthly fee and unlimited debit and credit transactions, the Alterna Small Business eChequing Account is the best option for small businesses who prefer working with an online bank.
Alterna High Interest eSavings Account
Unlimited $0 transactions, bill payments, & debits + Max 1.15% interest.
Alterna No Fee eChequing Account
Get unlimited transactions for no monthly fee + Over 3,300 ATMs in network.
Alterna Bank investment accounts and products
For registered accounts, this bank has three options. The Alterna Bank TFSA eSavings Account and Alterna Bank RRSP eSavings Account both have competitive interest rates (currently 1.15%), no minimum balance requirements, and easy online applications. There's also an FHSA available to help hopeful homeowners reach their goals.
Alterna Bank offers GICs (term deposits) with rates that match or surpass those from big banks, and also offers young investors (under age 19) a low minimum investment of just $100. To manage investments, Alterna Bank has partnered with Qtrade to bring you guided and DIY options.
Alterna Bank loans
Clients have two standard borrowing options available from Alterna Bank: a personal loan and/or a personal line of credit. The personal loans have flexible terms, from one to five years, and both fixed and variable rates are available. The line of credit offers a low variable interest rate. You can also get investment/RRSP loans through Alterna Bank.
Partnering with Driven, Alterna Bank also provides small business loans. Daily, weekly, and bi-weekly payment options are available, and clients receive dedicated online and offline customer support.
Visit the Alterna Bank site to learn more about its loan options.
Alterna Bank mortgage
Alterna Bank delivers strong mortgage options, with standout features that go well beyond the low rates. Whether you're hoping to purchase your first home, renewing an existing mortgage, or climbing the property ladder with an investment property, this bank has excellent open, closed, fixed, and variable-rate options to suit your needs.
Mortgage clients can receive up to $1,000 to help with appraisals, legal fees, and other closing costs. It's also worth noting that Alterna Bank is proactive about protection and contacts every applicant to review mortgage insurance options.
Alterna Closed Fixed Mortgage
Easily lock in your mortgage online + Get up to $800 in closing costs covered.
FAQ
Is Alterna Bank legit?
Yes, Alterna Bank is a safe and competitive option for Canadians, complete with CDIC coverage. The Alterna Savings and Credit Union has been serving Canadians for 115+ years, and it launched its online subsidiary, Alterna Bank, in the year 2000.
Is Alterna Bank a good bank?
Yes, Alterna Bank has plenty of high-quality products and services that make it an excellent choice for personal (and business) banking. In particular, it has one of the top credit union savings accounts in Canada and very good mortgage rates.
Is Alterna Bank an online bank?
Alterna Bank is the online subsidiary of Alterna Savings and Credit Union. While technically an online-only institution that offers convenient access through its website and mobile apps, Alterna Bank clients can also visit Alterna Savings branches for in-person services.
How big is Alterna Bank?
While there aren't specific numbers for Alterna Bank, its parent bank is among the largest credit unions in Ontario. Alterna Savings has more than $8 billion in assets, with 39 branch locations serving more than 206,000 members and customers.
Who is Alterna Bank owned by?
Alterna Bank is the online subsidiary of Alterna Savings and Credit Union, one of the largest credit unions in Ontario. While Alterna Savings has been serving clients for more than 115 years, Alterna Bank was only launched in 2000.
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
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