Alterna Bank Review Pros Cons Digital Bank Canada 2020

Are you still paying bank fees? Are you still only getting 0.5% interest on your savings? Well, you're gonna learn today. If this sounds like something you're interested in, make sure you watch the video till the end. Who is AlternaBank? AlternaBank is an online-only digital bank. They were founded in 2000 as a subsidiary of Alterna Savings. Alterna Savings is a credit union that's been in the game for over 110 years. AlternaBank includes many different products including a no-fee checking account, a high-interest savings account, TFSAs, RRSPs, mortgages, term deposits, and online investing via QTrade Investor. Without further ado, let's get into the pros. Number one, their no-fee checking account. It features no monthly fees, free unlimited day-to-day transactions, free unlimited interact e-transfers, free access to over 3,300 ATMs in the exchange network, an annual interest rate of 0.05%, and mobile check deposit. This checking account competes with Modis Bank, Tangerine, and Simply. One pro that AlternaBank has over these other banks is that they have 31 branch locations across Ontario through Alterna Savings. Also, they have a branch location in Quebec, which means banking is available there. Simply and Modis Bank is not available in Quebec, while Alterna and Tangerine are. Also, consider if you do a lot of e-transferring, that Alterna Bank has free unlimited e-transfers like Simply and Modis, but they are $1 per e-transfer with Tangerine. Their second pro is their savings accounts. No minimum balance required, free unlimited bill payments, transfers, and debits, free unlimited e-transfers, and most importantly, 2.3% interest on every dollar. Simply and Tangerine are currently only offering 1.15% on their savings account rates, so they don't compete with Alterna Bank. Alterna's main competition here is with EQ Bank and Modis Bank. EQ Bank's rate is on par with Alterna Bank with 2.3%, and Modis Bank is slightly lower with 2.25%. What separates Alterna Bank's savings accounts from EQ Bank's is that they offer registered accounts. EQ Bank doesn't offer registered accounts, so it's Alterna Bank versus Modis Bank. Modis Bank has a TFSA rate of 2.5% while Alterna only has 2.35%, but Alterna has 2.35% on their RRSPs while Modis Bank only has 2.25%. And recently, Alterna Bank has made TFSA withdrawals self-serve. Before, you had to call to withdraw from your TFSAs, but this is no longer the case. The third pro, they offer an online brokerage service. Alterna Bank has partnered with QTrade to provide online investing from one of Canada's best online brokers. SimplyTangerine Modis Bank doesn't offer this type of self-managed investing. Modis Bank only offers GICs, and SimplyTangerine only offer GICs and mutual funds. QTrade offers stocks, options, ETFs, GICs, mutual funds, IPOs, and bonds. Trades are $8.75 and administration fees are $25 per quarter. But there's many different ways to waive this fee. And if you are between the age of 18 and 30 and add $50 or more a month to your account, you get trades for $7.75 and no account minimums and no quarterly admin fees. The fourth pro, they have a new mobile app. Once a con, Alterna Bank's mobile app used to be hard to navigate and had an outdated look. The new app is easier to navigate and has a fresh modern design. The app offers fingerprint ID and facial recognition, view your account activity, balances and recent transactions, manage multiple accounts, you can pay bills now or set up for a future date, and view and edit upcoming scheduled bills and transfers. Send money with Interact eTransfers, transfer money between Alterna Bank accounts and Meet & Meet transfers to another financial institution, deposit checks using your smartphone, locate ATMs in your area, and you can check rates, search for ATMs, and display balances without having to log in. Hopefully they update their website to match it. Now let's get into the cons. Number one, they don't offer free checks and they only offer 0.05% interest on their checking account. If you find yourself constantly needing checks, you're better off with Simpli as they offer free unlimited checks. And if you insist on earning interest on your checking account, then go with Modis Bank as they offer 0.5% interest. And if you want a higher interest rate on a checking account, consider Manulife Banks, a Vantage account with 1.25% interest. But in my opinion, a checking account should only have enough money in it for daily spending. Any extra funds should be in a high interest savings account or an investment account. Click this link up here if you want to watch my video on which savings account is right for you. The second con, they don't have a signup bonus. Although Tangerine's $200 signup bonus has expired, they are still offering a $50 referral signup bonus. And I have a feeling that Tangerine will bring back the rest of the bonus in the near future. Simpli Bank currently has a $200 signup bonus. If you are interested in either of these signup bonuses, check out the video description below for more information. So if you want your daily banking, savings, and investing all in one spot, Alternative Bank is perfect for you. They have no-fee banking, 2.35% under savings, and offer an online investing broker. You might have been iffy before because of their outdated app and the fact that you had to call them to withdraw from your TFSAs, but now they have a new app and TFSA withdrawals are self-service. And the worst part of an online-only bank is that they have no physical branches, so there is no face-to-face and customer service. But if you live in Ontario or Quebec, they have physical branches there where you can do your banking. All in all, Alternative Bank is a solid bank that can compete with Tangerine, Simpli, and Modus Bank. I think if they updated their website and added a signup bonus and did a little bit more marketing, they'd be more popular and more successful than they already are. If you liked this video, hit the like button and share this with a friend. And if you haven't already, make sure you hit the subscribe button and the bell icon to get notified when new videos come out. And if you want to further support the channel, check out some of the affiliate links in the video description. Thanks for watching. If you got any comments or questions, comment them below. Until next time, keep making money moves. Peace!