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Email this6:18 am
April 6, 2013
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Alterna Bank has introduced balance limits on their eSavings accounts opened May 1 or after. This is from their rates page:
High Interest eSavings Account
…
For accounts opened before May 1, 2017, the maximum balance per customer is $1,000,000 (plus accrued interest).For accounts opened on or after May 1, 2017 the maximum balance per customer is $250,000 (plus accrued interest).
6:46 am
October 21, 2013
Online
It would be interesting to know if this change is related to the debacle unfolding at HCG. Depositors who have very high savings balances may make a FI more vulnerable when there is an issue by withdrawing large sums.
But, then again, they have to find somewhere else to put those large sums. EQ also has deposit limits.
1:25 pm
October 21, 2016
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Given the $125K limit per month per account, it would take a single person 8 months to empty his/her account. My guess is that it makes managing deposits easier since you reduce the amount of deposits at all times.
1:26 pm
December 18, 2008
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Good to know. Either way I won't hit either limit 🙂 haha
3:31 pm
December 12, 2009
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Loonie said
It would be interesting to know if this change is related to the debacle unfolding at HCG. Depositors who have very high savings balances may make a FI more vulnerable when there is an issue by withdrawing large sums.
But, then again, they have to find somewhere else to put those large sums. EQ also has deposit limits.
I doubt that's the main reason, if at all. It's probably more likely that they're wanting to limit the amount of interest they pay on their highest rate savings accounts and this is their "easiest" way of implementing that, rather than upgrading their core banking platform to pay no interest on the portion of one's balance over a set amount. 🙂
Cheers,
Doug
3:33 pm
December 12, 2009
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SG said
Good to know. Either way I won't hit either limit 🙂 haha
JustMe2016 said
Given the $125K limit per month per account, it would take a single person 8 months to empty his/her account. My guess is that it makes managing deposits easier since you reduce the amount of deposits at all times.
That's if you initiate the transfers out from within Alterna Bank. They can't regulate transfers out that are externally-sourced (i.e., through your external bank account's online banking platform). 😉
Cheers,
Doug
4:27 pm
October 21, 2016
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Doug said
That's if you initiate the transfers out from within Alterna Bank. They can't regulate transfers out that are externally-sourced (i.e., through your external bank account's online banking platform). 😉Cheers,
Doug
So what you are saying is that if you do a pull instead of a push there is no limit? And has anyone tested this?
4:33 pm
October 21, 2013
Online
Doug said
I doubt that's the main reason, if at all. It's probably more likely that they're wanting to limit the amount of interest they pay on their highest rate savings accounts and this is their "easiest" way of implementing that, rather than upgrading their core banking platform to pay no interest on the portion of one's balance over a set amount. 🙂
Cheers,
Doug
Why would they care how much interest they are paying on a high balance account versus a low one? It's all money, and it's all at the same rate... unless it's part of a strategy to get more clients. But they won't get more clients by lowering their savings rate while EQ is raising theirs.
8:24 pm
April 27, 2017
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JustMe2016 said
So what you are saying is that if you do a pull instead of a push there is no limit? And has anyone tested this?
Or you can simply open an Alterna chequing account and write out a cheque to yourself - for any amount you like.
5:07 am
October 21, 2013
Online
If you want to write a cheque, you have to buy their cheques. $43.93 for a book of 50 cheques as of last November.
It would be a strategy for people who already have a chequing account and don't mind wasting the 88 cents on using the cheque.
8:34 am
August 17, 2010
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I've pulled way over Alterna's limits many times. It was never an issue. The Banks that I pulled from were tangerine and accelerate
8:49 am
December 18, 2008
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Loonie said
If you want to write a cheque, you have to buy their cheques. $43.93 for a book of 50 cheques as of last November.
It would be a strategy for people who already have a chequing account and don't mind wasting the 88 cents on using the cheque.
I ordered 200 cheques from ASAP cheques for $35.75 with tax and shipping for my Alterna Chequing Account. (18 cents a cheque)
9:53 am
December 4, 2016
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Doug said
I doubt that's the main reason, if at all. It's probably more likely that they're wanting to limit the amount of interest they pay on their highest rate savings accounts and this is their "easiest" way of implementing that, rather than upgrading their core banking platform to pay no interest on the portion of one's balance over a set amount. 🙂
Cheers,
Doug
That's more likely. EQ also lowered the limit from 500,000 to 100,000 and lowered the rate.
Likely because their promo (which they said wasn't a promo) was running out of money to give to people for their interest.
It may be possible that a large influx occurred of money and people do to recent issues with HCG.
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